Terms and Conditions (cont.)
Page 2 of 4
DISCLOSURE OF LOAN TERMS - I understand that under this Note, the
principal amount that I owe, and am required to repay, will be the sum of all
disbursements issued unless I reduce or cancel any disbursements. The
School will determine whether to make any loan under this Note after my
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
amount of the loan and any additional terms of the loan. I may decline a loan
or request a lower amount by contacting the School. Any disclosure
statement I receive in connection with any loan under this Note is hereby
incorporated into this Note.
LOAN REHABILITATION - If I default on my Federal Perkins Loan,
and that loan has not been reduced to a judgment as a result of litigation
against me, I may rehabilitate my defaulted loan by requesting the
rehabilitation and by making a voluntary, on-time, monthly payment, as
determined by the School, each month for nine consecutive months. If I
successfully rehabilitate my defaulted Federal Perkins Loan, I will again be
subject to the terms and conditions and qualify for any remaining benefits
and privileges of this Note and the default will be removed from my credit
history. I understand that I may rehabilitate a defaulted Federal
Perkins Loan only once. After my loan is rehabilitated, collection costs on
the loan may not exceed 24 percent of the unpaid principal and accrued
interest as of the date following the application of the ninth consecutive
payment. If I default on my rehabilitated loan, the cap on collection costs is
removed.
ASSIGNMENT - A loan made under this Note may be assigned by the
School only to the United States, as represented by the United States
Department of Education. Upon assignment, the provisions of this Note
that relate to the School will, where appropriate, relate to the Department.
HARDSHIP REPAYMENT OPTIONS - Upon my written request, the
School may extend my repayment period (1) for up to an additional 10
years if I qualify as a low-income individual during the repayment period;
or (2) for the period necessary beyond my 10 year repayment period if, in
the School’s opinion, prolonged illness or unemployment prevent me from
making the scheduled repayments. Interest will continue to accrue during
any extension of a repayment period.
If I am required by the School to make a minimum monthly payment on my
loan, the School may also permit me to pay less than the minimum monthly
payment amount for a period of not more than one year at a time if I
experience a period of prolonged illness or unemployment. However, such
action may not extend the repayment period beyond 10 years.
GRACE PERIODS - Unless I am a Less-Than-Half-Time Borrower, I will
receive an initial nine-month grace period before the first payment of my
Federal Perkins Loan must be made. After the close of an authorized
deferment period, I will receive a post-deferment grace period of 6 months
before my payments resume. Interest does not accrue during the initial
grace period or during the post-deferment grace period. The nine-month
initial grace period for Federal Perkins Loans does not include any period
up to three years during which I am called or ordered to active duty for
more than 30 days from a reserve component of the Armed Forces of the
United States, including the period necessary for me to resume enrollment
at the next available enrollment period. I must notify the school that made
my loan of the beginning and ending dates of my service, and the date I
resume enrollment. If I am in my initial grace period when called or
ordered to active duty, I am entitled to a new nine-month initial grace period
upon completion of the excluded period.
If I am a Less-Than-Half-Time Borrower with outstanding Federal Perkins
Loans, my repayment period begins when the next scheduled installment of
my outstanding loan is due. If I am a Less-Than-Half-Time Borrower with
no other outstanding Federal Perkins Loans, my repayment begins the
earlier of: 9 months from the date my loan was made, or 9 months from the
date I became a less-than-half-time student, even if I received the loan after
I became a less-than-half-time student.
PREPAYMENT - I may prepay all or any part of my unpaid loan balance,
plus any accrued interest, at any time without penalty. Amounts I repay in
the academic year in which the loan was made and before the initial grace
period has ended will be used to reduce the amount of the loan and will not
be considered a prepayment. If I repay amounts during the academic year
in which the loan was made and the initial grace period has ended, only
those amounts in excess of the amount due for any repayment period shall
be considered a prepayment. If, in an academic year other than the
academic year in which the loan was made, I repay more than the amount
due for an installment, the excess funds will be used to repay principal
unless I designate it as an advance payment of the next regular installment.
MINIMUM MONTHLY PAYMENT - If required by the School, I will
make a minimum monthly payment in the amount of $40 (or $30 if I have
outstanding Federal Perkins Loans made before October 1, 1992 that
included the $30 minimum payment option or outstanding National Direct
Student Loans) or its bimonthly or quarterly equivalent. If the total monthly
payment amount on this loan and any outstanding Federal Perkins Loans I
may have is less than the minimum monthly payment amount established by
the School, the School may still require a minimum monthly payment
amount. A minimum monthly payment amount will combine my obligation
on this and all my outstanding Federal Perkins Loans, unless I have received
loans with different grace periods and deferments. At my request and if I
am eligible, the school may combine this minimum monthly payment
amount with all my outstanding Federal Perkins Loans including those
made at other schools. Under these circumstances the portions of the
minimum monthly payment that will be applied to this loan will be the
difference between the minimum monthly payment amount and the total
amounts owed on a monthly basis on my other Federal Perkins Loans. If
each school holding my outstanding Federal Perkins Loans exercises the
minimum monthly payment amount option, the minimum monthly payment
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.
FORBEARANCE - Upon making a properly documented written or oral
request to the School, I am entitled to forbearance of principal and interest
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
my monthly Title IV loan debt burden equals or exceeds 20 percent of my
total monthly gross income; if the Department authorizes a period of
forbearance due to a national military mobilization or other national
emergency; or if the School determines that I qualify due to poor health or
for other reasons, including service in AmeriCorps. Interest accrues during
any period of forbearance.
DEFERMENTS - To apply for a deferment, I must request the deferment
from the school. My request does not have to be in writing, but the School
may require that I submit supporting documentation to prove my eligibility
for a deferment. I may defer making scheduled installment payments and
will not be liable for any interest that might otherwise accrue (1) during any
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
enrollment information showing that I qualify for this deferment, the School
may grant the deferment without my request providing the School notifies
me and gives me the option to cancel the deferment); (2) during any period
that I am enrolled and attending as a regular student in a graduate fellowship
program approved by the Department; engaged in graduate or post-graduate
fellowship-supported study outside the US; enrolled and attending a
rehabilitation training program for disabled individuals approved by the
Department; or engaged in public service that qualifies me to have part or
all of my loan canceled; (3) for a period not to exceed three years during
which I am seeking but unable to find full-time employment; (4) for a
period not to exceed three years, for up to one year at a time, during which I
am experiencing an economic hardship as determined by the School. I may
qualify for an economic hardship deferment for my Federal Perkins Loan if
I provide my school with documentation showing that I have been granted
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
requesting an economic hardship deferment for my Federal Perkins Loan. If
I am serving as a volunteer in the Peace Corps, I am eligible for an
economic hardship deferment for my full term of service. An economic
hardship deferment based on service as a Peace Corps volunteer may not
exceed the lesser of three years or my remaining period of economic
hardship eligibility; (5) , during any period when I am serving on active
duty during a war or other military operation or national emergency, or
performing qualifying National Guard duty during a war or other military
operation or national emergency (as these terms are defined in 34 CFR
674.34(h) of the Perkins Loan Program regulations) and, for an additional
180-day period following the demobilization date for my service; and (6)
for at least a 30-day period, for up to 13 months following the conclusion
of my active duty military service and initial grace period or until I return
to enrolled student status, whichever is earlier, if I am a member of the
National Guard or other reserve component of the Armed Forces of the