Fillable Master Promissory Note Template Direct Plus Loans (Page 9 of 15) in pdf

William D. Ford Federal Direct Loan Program

Direct PLUS Loan Borrower's Rights and Responsibilities Statement

If you are a graduate or professional student and have not previously received a

You do not have to pay interest or the loan fee on the part of your loan that is

Direct PLUS Loan or a Federal PLUS Loan under the Federal Family Education Loan

cancelled or returned within the timeframes described above. We will adjust your

(FFEL) Program, you must receive entrance counseling before your school can

loan amount to eliminate any interest and loan fee that applies to the amount of

make the first disbursement of your loan. Your school will tell you if entrance

the loan that is cancelled or returned.

counseling is required, and will provide instructions for completing entrance

15. REPAYING YOUR LOAN

counseling.

The repayment period for each Direct PLUS Loan made under this MPN begins on

If the school credits your loan money to your or the student's account and the

the date of the final disbursement for that loan. This means that the repayment

amount credited is more than the amount of the tuition and fees, room and board,

period for each loan you receive under this MPN will begin on a different date.

and other authorized charges, the excess amount is called a credit balance. Unless

Unless you receive a deferment or forbearance (see Item 21), your first payment on

you authorize the school to hold the credit balance for you, the school must pay

each loan will be due within 60 days of the date of the final disbursement of that

you the credit balance within the following timeframes:

loan. Your servicer will notify you of the date your first payment is due.

•

If the credit balance occurs after the first day of class of a payment period (the

You must make payments on your loan even if you do not receive a bill or

school can tell you this date), the school must pay you the credit balance no

repayment notice.

later than 14 days after the date the balance occurs.

You must repay all of your Direct Loans under the same repayment plan, unless

•

If the credit balance occurs on or before the first day of class of a payment

you want to repay your loans under the REPAYE Plan, the PAYE Plan, the IBR Plan,

period, the school must pay you the credit balance no later than 14 days after

or the ICR Plan (see below) and you have other Direct Loans that do not qualify for

the first day of class of the payment period.

repayment under those plans. In that case, you may select the REPAYE, PAYE, IBR,

If you are a parent borrower, you may authorize the school to pay the credit

or ICR plan for the loans that are eligible for repayment under those plans, and may

balance to the student.

select a different repayment plan for the loans that may not be repaid under the

14. CANCELING YOUR LOAN

REPAYE, PAYE, IBR, or ICR plan. Direct PLUS Loans made to a parent borrower may

not be repaid under the REPAYE, PAYE, IBR and ICR plans.

Before your loan money is disbursed, you may cancel all or part of your loan at any

time by notifying the school. After your loan money is disbursed, there are two

Before your Direct PLUS Loan enters repayment, we will ask you to choose one of

ways to cancel all or part of your loan:

the repayment plans listed below. If you do not choose a repayment plan, we will

place you on the Standard Repayment Plan.

•

You may notify the school (within certain timeframes). If the school

obtains your written confirmation of the types and amounts of Title IV loans

Repayment plans for all Direct PLUS Loan borrowers

that you want to receive for an award year before crediting loan money to

The following repayment plans are available to all Direct PLUS Loan borrowers:

your or the student's account at the school, you may tell the school that you

want to cancel all or part of that loan within 14 days after the date the school

Standard Repayment Plan

notifies you of your right to cancel all or part of the loan, or by the first day of

Under the Standard Repayment Plan, you will make fixed monthly payments and

the school's payment period, whichever is later (the school can tell you the

repay your loan in full within 10 years (not including periods of deferment or

first day of the payment period).

forbearance) from the date the loan entered repayment. Your payments must be at

If the school does not obtain your written confirmation of the types and

least $50 a month ($600 a year) and will be more, if necessary, to repay the loan

amounts of loans you want to receive before crediting the loan money to

within the required time period.

your or the student's account, you may cancel all or part of that loan by

Graduated Repayment Plan

informing the school within 30 days of the date the school notifies you of

your right to cancel all or part of the loan.

Under the Graduated Repayment Plan, you will usually make lower payments at

first, and your payments will gradually increase over time. You will repay your loan

If you ask the school to cancel all or part of your loan within the timeframes

in full within 10 years (not including periods of deferment or forbearance) from the

described above, the school will return the cancelled loan amount to us. If

date the loan entered repayment. Your scheduled monthly payment must at least

you ask the school to cancel all or part of your loan outside the timeframes

be equal to the amount of interest that accrues each month. No single scheduled

described above, the school may process your cancellation request, but it is

payment will be more than three times greater than any other payment.

not required to do so.

You may return all or part of your loan to us. Within 120 days of the date

•

the school disbursed your loan money (by crediting the loan money to your

or the student's account at the school, by paying it directly to you, or both),

you may cancel all or part of your loan by returning all or part of the loan

money to us. Contact your servicer for guidance on how and where to return

your loan money.

Page 9 of 15

Master Promissory Note Template Direct Plus Loans Page 9

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