Fillable Master Promissory Note Template Direct Plus Loans (Page 7 of 15) in pdf

William D. Ford Federal Direct Loan Program

Direct PLUS Loan Borrower's Rights and Responsibilities Statement

4. ABOUT THE MPN

7. INFORMATION YOU MUST REPORT TO US AFTER YOU RECEIVE YOUR LOAN

You may receive more than one loan under this MPN over a period of up to 10

You must notify your servicer and/or the financial aid office at the school about

years to pay for your educational costs (if you are a graduate or professional

certain changes.

student borrower) or for the educational costs of the student identified in in the

Until you (or if you are a parent borrower, the student) graduate or otherwise leave

Dependent Undergraduate Student Information section of the MPN (if you are a

school, you must notify the school's financial aid office if:

parent borrower), as long as the school is authorized to use the multi-year feature

•

You change your address or telephone number;

of the MPN and chooses to do so.

•

You change your name (for example, maiden name to married name);

If the school is not authorized to use the multi-year feature of the MPN or chooses

not to do so, or if you do not want to receive more than one loan under this MPN,

•

You (or if you are a parent borrower, the student) --

you must sign a new MPN for each loan that you receive. If you do not want to

•

Do not enroll at least half-time for the loan period certified by the

receive more than one loan under this MPN, you must notify the school or your

school;

servicer in writing.

•

Do not enroll at the school that determined you were eligible to receive

If you are a parent requesting more than one Direct PLUS Loan to pay for the

the loan;

educational costs of more than one dependent undergraduate student, you must

•

Stop attending school or drop below half-time enrollment;

sign a separate MPN for each student. You must also sign separate MPNs if you are

•

Transfer from one school to another school; or

a parent borrowing on behalf of a dependent undergraduate student and you also

wish to obtain a Direct PLUS Loan to pay for your own attendance in a graduate or

•

Graduate.

professional degree program.

You must also notify your servicer if any of the above events occur at any time after

If we determine that you have an adverse credit history and you obtain an

you receive your loan. In addition, you must notify your servicer if you:

endorser (see Item 3, “Direct PLUS Loans”), you may receive only one loan under

•

Change your employer, or your employer's address or telephone number

this MPN. If you later want to receive another Direct PLUS Loan, you must sign a

changes; or

new MPN. If you receive a loan under this MPN without an endorser, but are later

•

Have any other change in status that would affect your loan (for example, if

determined to have an adverse credit history and obtain an endorser for a future

you receive a deferment while you are unemployed, but you find a job and

Direct PLUS Loan, you will have to sign a new MPN for that loan.

therefore no longer meet the eligibility requirements for the deferment).

5. DIRECT PLUS LOANS AND ELIGIBILITY FOR OTHER FINANCIAL AID

NOTE TO ENDORSER

You must notify the servicer if you change your address, telephone number, name,

If you borrow a Direct PLUS Loan, this may affect your eligibility for other financial

or employer, or if your employer's address or telephone number changes.

aid. Therefore, we suggest that you contact the school's financial aid office to

determine your eligibility for grants, work-study funds, or other forms of federal,

8. AMOUNT YOU MAY BORROW

state and private student aid that do not have to be repaid before you apply for a

Direct PLUS Loan.

For each academic year, you may borrow up to - but not more than - the amount

of your estimated cost of attendance (if you are a graduate or professional student

6. USE OF YOUR LOAN MONEY

borrower) or the student's estimated cost of attendance (if you are a parent

You may use the loan money you receive only to pay for your authorized

borrower), minus the amount of any other financial aid received for that academic

educational expenses or, if you are a parent borrower, for the student's authorized

year. The school determines the cost of attendance using federal guidelines. It is

educational expenses for attendance at the school that determined you were

important not to borrow more than you can afford to repay, even if you are eligible

eligible to receive the loan. Authorized expenses include the following:

to borrow more.

•

Tuition

•

Room

9. INTEREST RATE

•

Board

•

Institutional fees

The interest rate on a Direct PLUS Loan is a fixed rate that is calculated in

•

Books

accordance with a formula specified in the Act. The interest rate is calculated each

•

Supplies

year. When the rate is calculated, it applies to all Direct PLUS Loans for which the

•

Equipment

•

Dependent care expenses

first disbursement is made during the period beginning on July 1 of one year and

•

Transportation

ending on June 30 of the following year. Different fixed interest rates may apply to

•

Commuting expenses

•

Rental or purchase of a personal computer

separate loans made under this MPN depending on when the loan is first

•

Loan fees

disbursed. The maximum interest rate for Direct PLUS Loans is 10.5%. We will

•

Master Promissory Note Template Direct Plus Loans Page 7

Related Articles

Related forms

Related Categories