Fillable Perkins Loan Master Promissory Note Template (Page 2 of 4) in pdf

Terms and Conditions (cont.)

DISCLOSURE OF LOAN TERMS - I understand that under this Note, the

be considered a prepayment. If, in an academic year other than the

principal amount that I owe, and am required to repay, will be the sum of all

academic year in which the loan was made, I repay more than the amount

disbursements issued unless I reduce or cancel any disbursements. The

due for an installment, the excess funds will be used to repay principal

School will determine whether to make any loan under this Note after my

unless I designate it as an advance payment of the next regular installment.

loan eligibility is determined. At or before the time of first disbursement for

each loan, a disclosure statement will be provided to me identifying the

MINIMUM MONTHLY PAYMENT - If required by the School, I will

amount of the loan and any additional terms of the loan. I may decline a loan

make a minimum monthly payment in the amount of $40 (or $30 if I have

or request a lower amount by contacting the School. Any disclosure

outstanding Federal Perkins Loans made before October 1, 1992 that

statement I receive in connection with any loan under this Note is hereby

included the $30 minimum payment option or outstanding National Direct

incorporated into this Note.

Student Loans) or its bimonthly or quarterly equivalent. If the total monthly

payment amount on this loan and any outstanding Federal Perkins Loans I

LOAN REHABILITATION - If I default on my Federal Perkins Loan,

may have is less than the minimum monthly payment amount established by

and that loan has not been reduced to a judgment as a result of litigation

the School, the School may still require a minimum monthly payment

against me, I may rehabilitate my defaulted loan by requesting the

amount. A minimum monthly payment amount will combine my obligation

rehabilitation and by making a voluntary, on-time, monthly payment, as

on this and all my outstanding Federal Perkins Loans, unless I have received

determined by the School, each month for nine consecutive months. If I

loans with different grace periods and deferments. At my request and if I

successfully rehabilitate my defaulted Federal Perkins Loan, I will again be

am eligible, the school may combine this minimum monthly payment

subject to the terms and conditions and qualify for any remaining benefits

amount with all my outstanding Federal Perkins Loans including those

and privileges of this Note and the default will be removed from my credit

made at other schools. Under these circumstances the portions of the

history. I understand that I may rehabilitate a defaulted Federal

minimum monthly payment that will be applied to this loan will be the

Perkins Loan only once. After my loan is rehabilitated, collection costs on

difference between the minimum monthly payment amount and the total

the loan may not exceed 24 percent of the unpaid principal and accrued

amounts owed on a monthly basis on my other Federal Perkins Loans. If

interest as of the date following the application of the ninth consecutive

each school holding my outstanding Federal Perkins Loans exercises the

payment. If I default on my rehabilitated loan, the cap on collection costs is

minimum monthly payment amount option, the minimum monthly payment

removed.

amount will be divided among the Schools in proportion to the loan amount

advanced by each school if I request this treatment from each School.

ASSIGNMENT - A loan made under this Note may be assigned by the

School only to the United States, as represented by the United States

FORBEARANCE - Upon making a properly documented written or oral

Department of Education. Upon assignment, the provisions of this Note

request to the School, I am entitled to forbearance of principal and interest

that relate to the School will, where appropriate, relate to the Department.

or principal only, renewable at intervals of up to 12 months for periods that

collectively do not exceed three years, under the following conditions: If

HARDSHIP REPAYMENT OPTIONS - Upon my written request, the

my monthly Title IV loan debt burden equals or exceeds 20 percent of my

School may extend my repayment period (1) for up to an additional 10

total monthly gross income; if the Department authorizes a period of

years if I qualify as a low-income individual during the repayment period;

forbearance due to a national military mobilization or other national

or (2) for the period necessary beyond my 10 year repayment period if, in

emergency; or if the School determines that I qualify due to poor health or

the School’s opinion, prolonged illness or unemployment prevent me from

for other reasons, including service in AmeriCorps. Interest accrues during

making the scheduled repayments. Interest will continue to accrue during

any period of forbearance.

any extension of a repayment period.

DEFERMENTS - To apply for a deferment, I must request the deferment

If I am required by the School to make a minimum monthly payment on my

from the school. My request does not have to be in writing, but the School

loan, the School may also permit me to pay less than the minimum monthly

may require that I submit supporting documentation to prove my eligibility

payment amount for a period of not more than one year at a time if I

for a deferment. I may defer making scheduled installment payments and

experience a period of prolonged illness or unemployment. However, such

will not be liable for any interest that might otherwise accrue (1) during any

action may not extend the repayment period beyond 10 years.

period that I am enrolled and attending as a regular student in at least a half-

time course of study at an eligible School (if the School obtains student

GRACE PERIODS - Unless I am a Less-Than-Half-Time Borrower, I will

enrollment information showing that I qualify for this deferment, the School

receive an initial nine-month grace period before the first payment of my

may grant the deferment without my request providing the School notifies

Federal Perkins Loan must be made. After the close of an authorized

me and gives me the option to cancel the deferment); (2) during any period

deferment period, I will receive a post-deferment grace period of 6 months

that I am enrolled and attending as a regular student in a graduate fellowship

before my payments resume. Interest does not accrue during the initial

program approved by the Department; engaged in graduate or post-graduate

grace period or during the post-deferment grace period. The nine-month

fellowship-supported study outside the US; enrolled and attending a

initial grace period for Federal Perkins Loans does not include any period

rehabilitation training program for disabled individuals approved by the

up to three years during which I am called or ordered to active duty for

Department; or engaged in public service that qualifies me to have part or

more than 30 days from a reserve component of the Armed Forces of the

all of my loan canceled; (3) for a period not to exceed three years during

United States, including the period necessary for me to resume enrollment

which I am seeking but unable to find full-time employment; (4) for a

at the next available enrollment period. I must notify the school that made

period not to exceed three years, for up to one year at a time, during which I

my loan of the beginning and ending dates of my service, and the date I

am experiencing an economic hardship as determined by the School. I may

resume enrollment. If I am in my initial grace period when called or

qualify for an economic hardship deferment for my Federal Perkins Loan if

ordered to active duty, I am entitled to a new nine-month initial grace period

I provide my school with documentation showing that I have been granted

upon completion of the excluded period.

such a deferment under the William D. Ford Federal Direct Loan or Federal

Family Education Loan program for the period of time for which I am

If I am a Less-Than-Half-Time Borrower with outstanding Federal Perkins

requesting an economic hardship deferment for my Federal Perkins Loan. If

Loans, my repayment period begins when the next scheduled installment of

I am serving as a volunteer in the Peace Corps, I am eligible for an

my outstanding loan is due. If I am a Less-Than-Half-Time Borrower with

economic hardship deferment for my full term of service. An economic

no other outstanding Federal Perkins Loans, my repayment begins the

hardship deferment based on service as a Peace Corps volunteer may not

earlier of: 9 months from the date my loan was made, or 9 months from the

exceed the lesser of three years or my remaining period of economic

date I became a less-than-half-time student, even if I received the loan after

hardship eligibility; (5) , during any period when I am serving on active

I became a less-than-half-time student.

duty during a war or other military operation or national emergency, or

performing qualifying National Guard duty during a war or other military

PREPAYMENT - I may prepay all or any part of my unpaid loan balance,

operation or national emergency (as these terms are defined in 34 CFR

plus any accrued interest, at any time without penalty. Amounts I repay in

674.34(h) of the Perkins Loan Program regulations) and, for an additional

the academic year in which the loan was made and before the initial grace

180-day period following the demobilization date for my service; and (6)

period has ended will be used to reduce the amount of the loan and will not

for at least a 30-day period, for up to 13 months following the conclusion

be considered a prepayment. If I repay amounts during the academic year

of my active duty military service and initial grace period or until I return

in which the loan was made and the initial grace period has ended, only

to enrolled student status, whichever is earlier, if I am a member of the

those amounts in excess of the amount due for any repayment period shall

National Guard or other reserve component of the Armed Forces of the

Page 2 of 4

Perkins Loan Master Promissory Note Template Page 2

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