Fill - Free fillable Form Approved: Direct Consolidation Loan Application and Promissory PDF form

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AGE 1 OF 17

Direct Consolidation Loan Application and Promissory Note

William D. Ford Federal Direct Loan Program

OMB No. 1845-0053

Form Approved

Exp. Date 04/30/2019

WARNING: Any person who knowingly makes a false statement or misrepresentation on this form or any accompanying document is subject to penalties that may

include fines, imprisonment, or both, under the U.S. Criminal Code and 20 U.S.C. 1097.

BEFORE YOU BEGIN

Read the Instructions for Completing the Direct Consolidation Loan Application and Promissory Note (“Instructions”).

NOTE: PAGES 1 THROUGH 5 MUST BE SUBMITTED FOR YOUR LOAN APPLICATION TO BE PROCESSED.

BORROWER INFORMATION

1. Last Name: ______________________________________________ First Name: ___________________________________________ Middle Initial: __________

2. Former Name(s): ______________________________________________________________________________________________________________________

3. Social Security Number: ___ ___ ___ - ___ ___ - ___ ___ ___ ___

4. Date of Birth: ___ ___ - ___ ___ - ___ ___ ___ ___

5. Permanent Address (Street, City, State, Zip Code) (if P.O. box or general delivery, see Instructions):

6. Area Code/Telephone Number: ( ______ ) ______ - _ _______

7. Email Address (optional): __________________________________________________________________________

8. Driver’s License State and Number: ___________________________________________________________________

9. Employer’s Name and Address (Street, City, State, Zip Code):

10. Work Area Code/Telephone Number: ( ______ ) ______ - ________

REFERENCE INFORMATION

List two persons with different U.S. addresses who do not live with you and who have known you for at least three years.

11. Last Name: _________________________________________________ First Name: _______________________________________ Middle Initial: _________

Permanent Address (Street, City, State, Zip Code):

Email Address (optional): ____________________________________________________________________________

Area Code/Telephone Number: ( ______ ) ______ - ________

Relationship to You: _________________________________________________________________________________

12. Last Name: _______________________________ ___________________First Name: _______________________________________ Middle Initial: _________

Permanent Address (Street, City, State, Zip Code):

Email Address (optional): ____________________________________________________________________________

Area Code/Telephone Number: ( ______ ) ______ - ________

Relationship to You: _________________________________________________________________________________

Borrower’s Name: ________________________________________________________________ Social Security Number: ___ ___ ___ - ___ ___ - ___ ___ ___ ___

LOANS YOU WANT TO CONSOLIDATE

READ THE INSTRUCTIONS BEFORE COMPLETING THIS SECTION. List each federal education loan that you want to consolidate, including any Direct Loan Program

loans that you want to include in your Direct Consolidation Loan. If you need more space to list loans, use the Additional Loan Listing Sheet included with this Note.

List each loan separately.

We will send you a notice before we consolidate your loans. This notice will (1) provide you with information about the loans and payoff amounts that we have

verified, and (2) tell you the deadline by which you must notify us if you want to cancel the Direct Consolidation Loan, or if you do not want to consolidate one or

more of the loans listed in the notice. The notice will include information about loans that you listed in this section. If you have additional loans with a holder of a loan

that you listed in this section, the notice may also include information about those additional loans. SEE THE INSTRUCTIONS FOR MORE INFORMATION ABOUT THE

NOTICE WE WILL SEND.

IN THIS SECTION, LIST ONLY LOANS THAT YOU WANT TO CONSOLIDATE

13. Loan Code

(see Instructions)

14. Loan Holder/Servicer Name, Address, and

Area Code/Telephone Number (see Instructions)

15. Loan Account

Number

16. Estimated Payoff

Amount

17. Grace Period End Date. If any of the loans you want to consolidate are in a grace period, you can have the processing of your Direct Consolidation Loan

application delayed until the end of your grace period by entering your expected grace period end date in the space provided.

If you leave this item blank or if you are not consolidating any loans that are in a grace period, we will begin processing your Direct Consolidation Loan application as

soon as we receive this Note and any other required documents. Any loans listed in the Loans You Want to Consolidate section that are in a grace period will enter

repayment immediately upon consolidation. You will then lose the remaining portion of the grace period on those loans.

Expected Grace Period End Date (month/year): ___ ___ - ___ ___ ___ ___

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AGE 2 OF 17

Borrower’s Name: ________________________________________________________________ Social Security Number: ___ ___ ___ - ___ ___ - ___ ___ ___ ___

LOANS YOU DO NOT WANT TO CONSOLIDATE

READ THE INSTRUCTIONS BEFORE COMPLETING THIS SECTION. List all education loans that you are not consolidating, but want us to consider when we calculate the

maximum repayment period for your Direct Consolidation Loan (see Item 11 of the Borrower’s Rights and Responsibilities Statement that accompanies this Note).

Remember to include any Direct Loan Program loans that you do not want to consolidate. If you need more space to list loans, use the Additional Loan Listing Sheet

included with this Note. List each loan separately.

We will send you a notice before we consolidate your loans. This notice will (1) provide you with information about the loans and payoff amounts that we have

verified, and (2) tell you the deadline by which you must notify us if you want to cancel the Direct Consolidation Loan, or if you do not want to consolidate one or

more of the loans listed in the notice. The notice may also include information about any loans you listed in this section, but these loans listed will not be

consolidated. SEE THE INSTRUCTIONS FOR MORE INFORMATION ABOUT THE NOTICE WE WILL SEND.

IN THIS SECTION, LIST ONLY LOANS THAT YOU DO NOT WANT TO CONSOLIDATE

18. Loan Code

(see Instructions)

19. Loan Holder/Servicer Name, Address, and

Area Code/Telephone Number (see Instructions)

20. Loan Account

Number

21. Current Balance

REPAYMENT PLAN SELECTION

To understand your repayment plan options, carefully read the repayment plan information in Item 11 of the Borrower’s Rights and Responsibilities Statement that

accompanies this Note and in any supplemental materials you receive with this Note. Then select a repayment plan for your Direct Consolidation Loan:

• To select the Standard Repayment Plan, the Graduated Repayment Plan, or the Extended Repayment Plan, complete the Repayment Plan Selection form

that accompanies this Note.

• To select the Revised Pay As You Earn Repayment Plan (REPAYE Plan), the Pay As You Earn Repayment Plan (PAYE Plan), the Income-Based Repayment Plan

(IBR Plan), or the Income-Contingent Repayment Plan (ICR Plan), complete the Income-Driven Repayment Plan Request form that accompanies this Note

or visit StudentLoans.gov to complete the Income-Driven Repayment Plan Request online.

NOTE: You must select the REPAYE Plan, the PAYE Plan, the IBR Plan, or the ICR Plan for repayment of your Direct Consolidation Loan if:

1. You want to consolidate a defaulted loan and you have not made a satisfactory repayment arrangement with your current loan holder(s); or

2. You are consolidating a delinquent Federal Consolidation Loan that the lender has submitted to the guaranty agency for default aversion, or you are

consolidating a defaulted Federal Consolidation Loan, and you are not consolidating any additional eligible loans.

BORROWER UNDERSTANDINGS, CERTIFICATIONS, AND AUTHORIZATIONS

22. I understand that:

A. Applying for a Direct Consolidation Loan does not obligate me to agree to

take the loan. The U.S. Department of Education (ED) will provide me with:

• The deadline by which I must notify ED if I want to cancel the Direct

Consolidation Loan, or if I do not want to consolidate any of the loans

that ED has verified; and

• A notice containing information about the loans and payoff amounts

that ED has verified with the holders of my loans or through ED’s

National Student Loan Data System (NSLDS) before the actual payoffs

occur.

The notice that ED sends will include information about the loans I listed in

the Loans You Want to Consolidate section of this Note. If I have additional

loans that are with a holder of a loan listed in the Loans You Want to

Consolidate section, but I did not list those loans in that section, the notice

may also include information about those additional loans. I must inform

ED by the deadline specified in the notice if I do not want all of the loans

listed in the notice to be consolidated.

The notice that ED sends may also include information about loans I listed in

the Loans You Do Not Want to Consolidate section of this Note, but these

loans will not be consolidated.

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AGE 3 OF 17

Borrower’s Name: ________________________________________________________________ Social Security Number: ___ ___ ___ - ___ ___ - ___ ___ ___ ___

BORROWER UNDERSTANDINGS, CERTIFICATIONS, AND AUTHORIZATIONS (CONTINUED)

B. I understand that if ED accepts this application for a Direct Consolidation

Loan, ED will send funds to the holders of the loans that I want to

consolidate to pay off those loans. The amount of my Direct Consolidation

Loan will be the sum of the balances of my outstanding eligible loans that I

have chosen to consolidate. The payoff amount may be greater than or less

than the estimated total balance I have indicated in the Loans You Want to

Consolidate section.

The outstanding balance on each loan to be consolidated includes unpaid

principal, unpaid accrued interest and late charges as defined by federal

regulations and as certified by the loan holder. Collection costs may also be

included. For a Direct Loan Program or Federal Family Education Loan (FFEL)

Program loan that is in default, the amount of any collection costs that may

be included in the payoff balances of the loans is limited to a maximum of

18.5% of the outstanding principal and interest. For any other defaulted

federal education loans, all collection costs that are owed may be included

in the payoff balances of the loans.

C. If the amount ED sends to my loan holders is more than the amount

needed to pay off the balances of the selected loans, the holders will refund

the excess amount to ED and this amount will be applied against the

outstanding balance of my Direct Consolidation Loan. If the amount that ED

sends to my holders is less than the amount needed to pay off the balances

of the loans selected for consolidation, ED will include the remaining

amount in my Direct Consolidation Loan.

D. If I am consolidating loans made under the FFEL, Direct Loan, or Federal

Perkins Loan (Perkins Loan) programs, the outstanding balance of my Direct

Consolidation Loan counts against the applicable aggregate loan limits for

each type of loan. Under the Act, as defined under “Governing Law” in the

Note Terms and Conditions section of this Note, the percentage of the

original amount of my Direct Consolidation Loan that is attributable to each

loan type is counted against the loan limit for that type of loan.

E. I agree to repay my Direct Consolidation Loan under the REPAYE Plan, the

PAYE Plan, the IBR Plan, or the ICR Plan if:

• I am consolidating a defaulted loan and I have not made a satisfactory

repayment arrangement with the current holder of the defaulted loan,

• I am consolidating a delinquent Federal Consolidation Loan (a Federal

Consolidation Loan is a consolidation loan made under the FFEL

Program) that the lender has submitted to the guaranty agency for

default aversion or a defaulted Federal Consolidation loan, and I am

not including another eligible loan in the consolidation.

F. I may not consolidate an existing Direct Consolidation Loan unless I

include at least one additional eligible loan in the consolidation.

G. I may consolidate an existing Federal Consolidation Loan without

including an additional eligible loan in the consolidation if I am:

• Consolidating a delinquent Federal Consolidation Loan that the lender

has submitted to the guaranty agency for default aversion, or

consolidating a defaulted Federal Consolidation Loan, and I agree to

repay my new Direct Consolidation Loan under the REPAYE Plan, the

PAYE Plan, the IBR Plan, or the ICR Plan;

• Consolidating a Federal Consolidation Loan to use the Public Service

Loan Forgiveness Program; or

• Consolidating a Federal Consolidation Loan to use the no accrual of

interest benefit for active duty service members.

H. If I consolidate my loans, I may no longer be eligible for certain

deferments, subsidized deferment periods, certain types of loan discharges

or loan forgiveness, borrower defenses to repayment based on acts or

omissions of the school I attended, reduced interest rates, or repayment

incentive programs that were available on the loans I am consolidating.

I. If I am consolidating a Perkins Loan:

• I will no longer be eligible for interest-free periods while I am enrolled

in school at least half time, in the grace period on my loan, and during

deferment periods; and

• I will no longer be eligible for full or partial loan cancellation under the

Perkins Loan Program based on years of service in one of the following

occupations: teacher in a low-income elementary or secondary school;

staff member in an eligible preschool program; special education

teacher; member of the Armed Forces who qualifies for special pay;

Peace Corps volunteer or volunteer under the Domestic Volunteer

Service Act of 1973; law enforcement or corrections officer; attorney

in an eligible defender organization; teacher of mathematics, science,

foreign languages, bilingual education or any other high-need field;

nurse or medical technician providing health care services; employee

of a public or private nonprofit child or family service agency that

services high-risk children from low-income families and their families;

fire fighter; faculty member at a Tribal College or University; librarian;

or speech language pathologist.

J. Any payments I made on the loans I am consolidating before the date of

consolidation will not count toward:

• The number of years of qualifying repayment required for loan

forgiveness under the REPAYE Plan, the PAYE Plan, the IBR Plan, or the

ICR Plan (see Item 11 of the Borrower’s Rights and Responsibilities

Statement), or

• The 120 qualifying payments required for Public Service Loan

Forgiveness (see Item 18 of the Borrower’s Rights and Responsibilities

Statement).

K. If I am consolidating a Direct PLUS Loan or a Federal PLUS Loan that I

obtained to help pay for my child’s undergraduate education, I am not

eligible to repay my Direct Consolidation Loan under the REPAYE Plan, the

PAYE Plan, or the IBR Plan. However, I may repay my Direct Consolidation

Loan under the ICR Plan.

L. If I am consolidating a Direct Loan Program loan first disbursed before

July 1, 2012 on which I received an up-front interest rebate, and I have not

yet made the first 12 required on-time payments on that loan at the time

the loan is consolidated, I will lose the rebate. This means that the rebate

amount will be added back to the principal balance of the loan before it is

consolidated.

M. ED will give me the opportunity to pay the interest that accrues on the

unsubsidized portion of my Direct Consolidation Loan during deferment

periods (including in-school deferment periods) and on the entire portion of

my Direct Consolidation Loan during forbearance periods. If I do not pay the

interest that accrues during these periods, ED may add the unpaid interest

that accrues to the principal balance of my loan (this is called

“capitalization”) at the end of the deferment or forbearance period.

Capitalization will increase the principal balance on my loan and the total

amount of interest I must pay.

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Borrower’s Name: ________________________________________________________________ Social Security Number: ___ ___ ___ - ___ ___ - ___ ___ ___ ___

BORROWER UNDERSTANDINGS, CERTIFICATIONS, AND AUTHORIZATIONS

(CONTINUED)

N. If I consolidate my loans after I have begun active duty military service,

my new Direct Consolidation Loan will not qualify for the 6% interest rate

limit under the Servicemembers Civil Relief Act as described in Item 7 of the

Borrower’s Rights and Responsibilities Statement during that period of

military service.

O. ED has the authority to verify information reported on this Note with

other federal agencies.

23. Under penalty of perjury, I certify that:

A. The information I have provided on this Note is true, complete, and

correct to the best of my knowledge and belief and is made in good faith.

B. All of the loans I have selected for consolidation have been used to

finance my education or the education of one or more of my children.

C. All of the loans I have selected for consolidation are in a grace period or

in repayment (“in repayment” includes loans in deferment or forbearance).

D. If I owe an overpayment on a Federal Perkins Loan, Federal Pell Grant,

Federal Supplemental Educational Opportunity Grant, Academic

Competitiveness Grant (ACG), National Science and Mathematics Access to

Retain Talent (SMART) Grant, or Leveraging Educational Assistance

Partnership Grant, I have made satisfactory arrangements to repay the

amount owed.

E. If I am in default on any loan I am consolidating, I have either made a

satisfactory repayment arrangement with the holder of that defaulted loan,

or I will repay my Direct Consolidation Loan under the REPAYE Plan, the

PAYE Plan, the IBR Plan, or the ICR Plan, except that I MUST repay my Direct

Consolidation Loan under the REPAYE Plan, the PAYE Plan, the IBR Plan, or

the ICR Plan under the conditions described above in Item 22.E.

F. If I have been convicted of, or if I have pled nolo contendere (no contest)

or guilty to, a crime involving fraud in obtaining funds under a program

authorized under Title IV of the Higher Education Act of 1965, as amended

(HEA), I have fully repaid the funds to ED or to the loan holder in the case of

a Title IV federal student loan. The Title IV, HEA programs include the

Federal Pell Grant, FSEOG, ACG, SMART Grant, Leveraging Educational

Assistance Partnership Grant, Teacher Education Assistance for College and

Higher Education (TEACH) Grant, Federal Work-Study (FWS), Federal Perkins

Loan, Direct Loan, and FFEL programs.

24. I make the following authorizations:

A. I authorize ED to contact the holders of the loans I have selected for

consolidation to determine the eligibility for consolidation and the payoff

amounts of:

• The loans listed in the Loans You Want to Consolidate section of this

Note, and

• Any of my other federal education loans that are held by a holder of a

loan listed in the Loans You Want to Consolidate section.

I further authorize the release of any information required to consolidate

my education loans, in accordance with the Act, to ED or its agents and

contractors.

B. I authorize ED to issue the proceeds of my Direct Consolidation Loan to

the holders of the selected loans to pay off those loans.

C. I authorize ED and its agents and contractors to investigate my credit

record and report information about my loan status to persons and

organizations permitted by law to receive that information.

D. I authorize my schools, ED, and their agents and contractors to release

information about my Direct Consolidation Loan to the references I provide

and to my immediate family members, unless I submit written directions

otherwise.

E. I authorize my schools, ED, and their agents and contractors to share

information about my loan with each other.

F. I authorize my schools, ED, and their agents and contractors to contact

me regarding my loan request or my loan, including repayment of my loan,

at any cellular telephone number I provide now or in the future using

automated dialing equipment or artificial or prerecorded voice or text

messages.

PROMISE TO PAY

25. I promise to pay ED all sums disbursed under the terms of this Note to

pay off my prior loan obligations, plus interest and other charges and fees

that may become due as provided in this Note.

26. If I do not make a payment on my Direct Consolidation Loan when it is

due, I will also pay reasonable collection costs, including but not limited to

attorney fees, court costs, and other fees.

27. My signature on this Note serves as my authorization to pay off the

balances of the loans I have selected for consolidation as provided by the

holders of the loans.

28. I will not sign this Note before reading the entire Note, even if I am told

not to read it, or told that I am not required to read it. I am entitled to an

exact copy of this Note and the Borrower’s Rights and Responsibilities

Statement.

29. My signature certifies that I have read, understand, and agree to the

terms and conditions of this Note, including the Borrower Understandings,

Certifications, and Authorizations section, and the Borrower’s Rights and

Responsibilities Statement.

I UNDERSTAND THAT THIS IS A LOAN THAT I MUST REPAY.

30. Borrower’s Signature:

Today’s Date (mm-dd-yyyy) ___ ___ - ___ ___ - ___ ___ ___ ___

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NOTE TERMS AND CONDITIONS

GOVERNING LAW

The terms of this Direct Consolidation Loan Application and Promissory

Note (Note) will be interpreted in accordance with the HEA (20 U.S.C. 1070

et seq.), ED’s regulations, any amendments to the HEA and the regulations

in accordance with the effective date of those amendments, and other

applicable federal laws and regulations. Throughout this Note, we refer to

these laws and regulations collectively as the “Act”.

Under applicable state law, except as preempted by federal law, you may

have certain borrower rights, remedies, and defenses in addition to those

stated in this Note and in the Borrower’s Rights and Responsibilities

Statement.

DISCLOSURE OF LOAN TERMS

This Note applies to a Federal Direct Consolidation Loan (Direct

Consolidation Loan). Under this Note, the principal amount that you owe

and are required to repay will be equal to all sums disbursed to pay off your

prior loans, plus any unpaid interest that is capitalized and added to the

principal balance.

Although you will have a single Direct Consolidation Loan, your loan may

have up to two separate loan identification numbers depending on the

loans you consolidate. These loan identification numbers will represent

prior subsidized loans and prior unsubsidized loans. Each applicable loan

identification number is represented by this Note.

When the loans you are consolidating are paid off, a disclosure statement

will be provided to you. The disclosure will identify the amount of your

Direct Consolidation Loan, the loan identification number(s), and additional

terms of the loan, such as the interest rate and repayment schedule. If you

have questions about the information disclosed, you may contact your

servicer.

The Borrower’s Rights and Responsibilities Statement accompanying this

Note also contains important additional information. The Borrower’s Rights

and Responsibilities Statement and any disclosure you receive in connection

with the loan made under this Note are hereby incorporated into this Note.

We may use a servicer to handle billing and other communications related

to your loan.

INTEREST

Unless we notify you in writing that a different rate will apply, the interest

rate on your Direct Consolidation Loan is a fixed rate that is calculated in

accordance with a formula specified in the Act. The interest rate for a Direct

Consolidation Loan is based on the weighted average of the interest rates

on the loans being consolidated, rounded to the nearest higher one-eighth

of one percent. There is no cap on the interest rate that is determined

under this formula. This is a fixed interest rate, which means that the rate

will remain the same throughout the life of the loan.

If you are in the military and the interest rate on your loan is greater than

6%, you may qualify to have the rate limited to 6% during your period of

service. In addition, under the no accrual of interest benefit for active duty

service members, you are not required to pay the interest that accrues on

any type of Direct Loan Program loan first disbursed on or after October 1,

2008 during periods of qualifying active duty military service (for up to 60

months).

Except as provided under the Act, you must pay the interest that accrues on

your Direct Consolidation Loan during all periods, from the date of

disbursement until the loan is paid in full or discharged. You are not

required to pay the interest that accrues during deferment periods on the

portion of your Direct Consolidation Loan that repaid subsidized loans,

except as explained under the heading “Responsibility for Paying All Interest

on All or Part of the Subsidized Portion of a Direct Consolidation Loan (for

First-Time Borrowers on or after July 1, 2013).”

You will be given the opportunity to pay the interest that accrues during

deferment, forbearance, or other periods as provided under the Act. If you

do not pay this interest, we may capitalize the interest (add it to the

principal balance of your loan) at the end of the deferment, forbearance, or

other period.

RESPONSIBILITY FOR PAYING ALL INTEREST ON ALL OR PART OF THE

SUBSIDIZED PORTION OF A DIRECT CONSOLIDATION LOAN (FOR FIRST-

TIME BORROWERS ON OR AFTER JULY 1, 2013)

If you were a first-time borrower on or after July 1, 2013 when you

received a Direct Subsidized Loan and you are now consolidating that loan,

you may be responsible for paying the interest that accrues during all

periods on the portion of your Direct Consolidation Loan that repaid the

Direct Subsidized Loan. See Item 9 of the Borrower’s Rights and

Responsibilities Statement that accompanies this Note for more

information.

LATE CHARGES AND COLLECTION COSTS

We may collect from you:

• A late charge of not more than six cents for each dollar of each late

payment if you do not make any part of a required installment

payment within 30 days after it becomes due, and

• Any other charges and fees that are permitted by the Act related to

the collection of your Direct Consolidation Loan.

If you default on your loan, you must pay reasonable collection costs, plus

court costs and attorney fees.

REPAYMENT

You must repay the full amount of the Direct Consolidation Loan made

under this Note, plus accrued interest. You will repay your loan in monthly

installments during a repayment period that begins on the date of the first

disbursement of the loan, unless the loan is in a deferment or forbearance

period. Generally, payments that you make or that someone else makes on

your behalf will be applied first to late charges and collection costs that are

due, then to interest that has not been paid, and finally to the principal

amount of the loan. However, any payments made under the REPAYE Plan,

the PAYE Plan, or the IBR Plan will be applied first to interest that is due,

then to fees that are due, and then to the principal amount.

You have a choice of repayment plans. The Borrower’s Rights and

Responsibilities Statement includes information on these repayment plans.

You must select a repayment plan. If you do not select a repayment plan,

we will choose a plan for you in accordance with the Act.

Once you choose a repayment plan, we will provide you with a repayment

schedule that identifies your payment amounts and due dates. Your first

payment will be due within 60 days of the first disbursement of your Direct

Consolidation Loan unless the loan is in a deferment or forbearance period.

If you intend to repay your loan but are unable to make your scheduled loan

payments, we may grant you a forbearance that allows you to temporarily

stop making payments, or to temporarily make a smaller payment amount,

which extends the time for making payments.

We may adjust payment dates on your Direct Consolidation Loan or may

grant you a forbearance to eliminate a delinquency that remains even

though you are making scheduled installment payments.

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AGE 7 OF 17

NOTE TERMS AND CONDITIONS (CONTINUED)

You may prepay all or any part of the unpaid balance on your loan at any

time without penalty. We will determine how to apply the prepayment in

accordance with the Act.

After you have repaid your Direct Consolidation Loan in full, we will send

you a notice telling you that you have paid off your loan.

ACCELERATION AND DEFAULT

At our option, the entire unpaid balance of your Direct Consolidation Loan

will become immediately due and payable (this is called “acceleration”) if

either of the following events occurs:

1. You make a false representation that results in your receiving a loan

for which you are not eligible; or

2. You default on the loan.

You will be considered in default on your loan if:

1. The full unpaid balance of the loan becomes immediately due and

payable because event 1 above occurs and you do not pay the amount

due;

2. You do not make installment payments when due and your failure to

make payments has continued for at least 270 days; or

3. You do not comply with other terms of the loan, and we reasonably

conclude that you no longer intend to honor your repayment

obligation.

If you default, we may capitalize all outstanding interest. This will increase

the principal balance of your loan, and the full amount of the loan, including

the new principal balance and collection costs, will become immediately

due and payable.

If you default, the default will be reported to nationwide consumer

reporting agencies (credit bureaus) and will significantly and adversely

affect your credit history. A default will have additional adverse

consequences as explained in the Borrower’s Rights and Responsibilities

Statement. Following default, you may be required to repay the loan

(potentially including amounts in excess of the principal and interest) under

the IBR Plan, the PAYE Plan, the REPAYE Plan, or the ICR Plan in accordance

with the Act.

LEGAL NOTICES

Any notice required to be given to you will be effective if it is sent by first

class mail to the most recent address that we have for you, by electronic

means to an email address you have provided, or by any other method of

notification that is permitted or required by applicable law and regulation.

You must immediately notify us of a change in your contact information or

status as specified in the Borrower’s Rights and Responsibilities Statement

under “Information you must report to us.”

If we do not enforce or insist on compliance with any term of this Note, this

does not waive any of our rights. No provision of this Note may be modified

or waived unless we do so in writing. If any provision of this Note is

determined to be unenforceable, the remaining provisions will remain in

force.

Information about your loan will be submitted to the National Student Loan

Data System (NSLDS). Information in NSLDS is accessible to schools, lenders,

and guarantors for specific purposes that we authorize.

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AGE 8 OF 17

IMPORTANT NOTICES

GRAMM-LEACH-BLILEY ACT NOTICE

In 1999, Congress enacted the Gramm-Leach-Bliley Act (Public Law 106-

102). This Act requires that lenders provide certain information to their

customers regarding the collection and use of nonpublic personal

information.

We disclose nonpublic personal information to third parties only as

necessary to process and service your loan and as permitted by the Privacy

Act of 1974. See the Privacy Act Notice below. We do not sell or otherwise

make available any information about you to any third parties for marketing

purposes.

We protect the security and confidentiality of nonpublic personal

information by implementing the following policies and practices. All

physical access to the sites where nonpublic personal information is

maintained is controlled and monitored by security personnel. Our

computer systems offer a high degree of resistance to tampering and

circumvention. These systems limit data access to our staff and contract

staff on a “need-to-know” basis, and control individual users’ ability to

access and alter records within the systems. All users of these systems are

given a unique user ID with personal identifiers. All interactions by

individual users with the systems are recorded.

PRIVACY ACT NOTICE

The Privacy Act of 1974 (5 U.S.C. 552a) requires that the following notice be

provided to you:

The authority for collecting the requested information from and about you

is §451 et seq. of the Higher Education Act (HEA) of 1965, as amended (20

U.S.C. 1087a et seq.) and the authorities for collecting and using your Social

Security Number (SSN) are §484(a)(4) of the HEA (20 U.S.C. 1091(a)(4)) and

31 U.S.C. 7701(b). Participating in the William D. Ford Federal Direct Loan

(Direct Loan) Program and giving us your SSN are voluntary, but you must

provide the requested information, including your SSN, to participate.

The principal purposes for collecting the information on this form, including

your SSN, are to verify your identity, to determine your eligibility to receive

a loan or a benefit on a loan (such as a deferment, forbearance, discharge,

or forgiveness) under the Direct Loan Program, to permit the servicing of

your loan(s), and, if it becomes necessary, to locate you and to collect and

report on your loan(s) if your loan(s) become delinquent or in default. We

also use your SSN as an account identifier and to permit you to access your

account information electronically.

The information in your file may be disclosed, on a case-by-case basis or

under a computer matching program, to third parties as authorized under

routine uses in the appropriate systems of records notices. The routine uses

of this information include, but are not limited to, its disclosure to federal,

state, or local agencies, to private parties such as relatives, present and

former employers, business and personal associates, to consumer reporting

agencies, to financial and educational institutions, and to guaranty agencies

in order to verify your identity, to determine your eligibility to receive a loan

or a benefit on a loan, to permit the servicing or collection of your loan(s),

to enforce the terms of the loan(s), to investigate possible fraud and to

verify compliance with federal student financial aid program regulations, or

to locate you if you become delinquent in your loan payments or if you

default. To provide default rate calculations, disclosures may be made to

guaranty agencies, to financial and educational institutions, or to state

agencies. To provide financial aid history information, disclosures may be

made to educational institutions. To assist program administrators with

tracking refunds and cancellations, disclosures may be made to guaranty

agencies, to financial and educational institutions, or to federal or state

agencies. To provide a standardized method for educational institutions to

efficiently submit student enrollment status, disclosures may be made to

guaranty agencies or to financial and educational institutions. To counsel

you in repayment efforts, disclosures may be made to guaranty agencies, to

financial and educational institutions, or to federal, state, or local agencies.

In the event of litigation, we may send records to the Department of Justice,

a court, adjudicative body, counsel, party, or witness if the disclosure is

relevant and necessary to the litigation. If this information, either alone or

with other information, indicates a potential violation of law, we may send it

to the appropriate authority for action. We may send information to

members of Congress if you ask them to help you with federal student aid

questions. In circumstances involving employment complaints, grievances,

or disciplinary actions, we may disclose relevant records to adjudicate or

investigate the issues. If provided for by a collective bargaining agreement,

we may disclose records to a labor organization recognized under 5 U.S.C.

Chapter 71. Disclosures may be made to our contractors for the purpose of

performing any programmatic function that requires disclosure of records.

Before making any such disclosure, we will require the contractor to

maintain Privacy Act safeguards. Disclosures may also be made to qualified

researchers under Privacy Act safeguards.

FINANCIAL PRIVACY ACT NOTICE

Under the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401-3421), ED

will have access to financial records in your student loan file maintained in

compliance with the administration of the Direct Loan Program.

PAPERWORK REDUCTION NOTICE

According to the Paperwork Reduction Act of 1995, no persons are required

to respond to a collection of information unless the collection displays a

valid OMB control number. The valid OMB control number for this

information collection is 1845-0053. Public reporting burden for this

collection of information is estimated to average 30 minutes (0.5 hours) per

response, including time for reviewing instructions, searching existing data

sources, gathering and maintaining the data needed, and completing and

reviewing the collection of information. The obligation to respond to this

collection is required to obtain a benefit in accordance with 34 CFR

685.201(c)(1).

If you have comments or concerns regarding the status of your individual

submission of this form, contact:

UBMIT PAGES 1 THROUGH 5

AGE 9 OF 17

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

DIRECT CONSOLIDATION LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

IMPORTANT NOTICE

This Borrower’s Rights and Responsibilities Statement provides additional

information about the terms and conditions of the loan you will receive

under the accompanying Federal Direct Consolidation Loan (Direct

Consolidation Loan) Application and Promissory Note (Note). Please keep a

copy of the Note and this Borrower’s Rights and Responsibilities Statement

for your records. You may request another copy of this Borrower’s Rights

and Responsibilities Statement at any time by contacting your servicer.

Throughout this Borrower’s Rights and Responsibilities Statement, the

words “we,” “us,” and “our” refer to the U.S. Department of Education.

1. THE WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

The William D. Ford Federal Direct Loan (Direct Loan) Program includes the

following types of loans, known collectively as “Direct Loans”:

• Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)

• Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized

Loans)

• Federal Direct PLUS Loans (Direct PLUS Loans)

• Federal Direct Consolidation Loans (Direct Consolidation Loans)

The Direct Loan Program is authorized by Title IV, Part D, of the Higher

Education Act of 1965, as amended (HEA), 20 U.S.C. 1070 et seq.

Direct Loans are made by the U.S. Department of Education. We contract

with servicers to process Direct Loan payments, deferment and forbearance

requests, and other transactions, and to answer questions about Direct

Loans. Your servicer will provide you with its address and telephone

number. It is important to keep in contact with your servicer.

2. LAWS THAT APPLY TO THIS NOTE

The terms and conditions of loans made under this Note are determined by

the HEA and other applicable federal laws and regulations. These laws and

regulations are referred to as “the Act” throughout this Borrower’s Rights

and Responsibilities Statement. Under applicable state law, except as

preempted by federal law, you may have certain borrower rights, remedies,

and defenses in addition to those stated in the Note and this Borrower’s

Rights and Responsibilities Statement.

NOTE: Any amendment to the Act that affects the terms of this Note will

be applied to your loan in accordance with the effective date of the

amendment.

3. DIRECT CONSOLIDATION LOAN IDENTIFICATION NUMBERS

Depending on the type(s) of federal education loan(s) that you choose to

consolidate, your Direct Consolidation Loan may have up to two individual

loan identification numbers. However, you will have only one Direct

Consolidation Loan and will receive only one bill.

3a. The subsidized portion of your Direct Consolidation Loan (“Direct

Subsidized Consolidation Loan”) will have one loan identification number

representing the amount of the following types of loans that you

consolidate:

• Subsidized Federal Stafford Loans

• Direct Subsidized Loans

• Subsidized Federal Consolidation Loans

• Direct Subsidized Consolidation Loans

• Federal Insured Student Loans (FISL)

• Guaranteed Student Loans (GSL)

3b. The unsubsidized portion of your Direct Consolidation Loan (“Direct

Unsubsidized Consolidation Loan”) will have one identification number

representing the amount of the following types of loans that you

consolidate:

• Unsubsidized and Nonsubsidized Federal Stafford Loans

• Direct Unsubsidized Loans

• Unsubsidized Federal Consolidation Loans

• Direct Unsubsidized Consolidation Loans

• Federal PLUS Loans (for parents or for graduate and professional

students)

• Direct PLUS Loans (for parents or for graduate and professional

students)

• Direct PLUS Consolidation Loans

• Federal Perkins Loans

• National Direct Student Loans (NDSL)

• National Defense Student Loans (NDSL)

• Federal Supplemental Loans for Students (SLS)

• Auxiliary Loans to Assist Students (ALAS)

• Health Professions Student Loans (HPSL)

• Health Education Assistance Loans (HEAL)

• Nursing Student Loans (NSL) and Nurse Faculty Loans

• Loans for Disadvantaged Students (LDS)

4. ADDING ELIGIBLE LOANS TO YOUR DIRECT CONSOLIDATION LOAN

You may add eligible loans to your Direct Consolidation Loan by submitting

a request to us within 180 days of the date your Direct Consolidation Loan is

made. (Your Direct Consolidation Loan is “made” on the date we pay off the

first loan that you are consolidating.) After we pay off any loans that you

add during the 180-day period, we will notify you of the new total amount

of your Direct Consolidation Loan and of any adjustments that must be

made to your monthly payment amount and/or interest rate.

If you want to consolidate any additional eligible loan(s) after the 180-day

period, you must apply for a new Direct Consolidation Loan.

5. LOANS THAT MAY BE CONSOLIDATED

General

Only the federal education loans listed in Items 3a.and 3b. of this

Borrower’s Rights and Responsibilities Statement may be consolidated into

a Direct Consolidation Loan. You may only consolidate loans that are in a

grace period or in the repayment period (including loans in deferment or

forbearance).

Defaulted loans

You may consolidate a loan that is in default if:

• You first make satisfactory repayment arrangements with the holder

of the defaulted loan, or

• You agree to repay your Direct Consolidation Loan under the REPAYE

Plan, the PAYE Plan, the IBR Plan, or the ICR Plan (see Item 11).

UBMIT PAGES 1 THROUGH 5

AGE 10 OF 17

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

DIRECT CONSOLIDATION LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

Existing consolidation loans

You may not consolidate an existing Direct Consolidation Loan unless you

include at least one additional eligible loan in the consolidation.

You

may consolidate an existing Federal Consolidation Loan (a Federal

Consolidation Loan is a consolidation loan that was made under the FFEL

Program) into a new Direct Consolidation Loan without including an

additional loan if you are:

• Consolidating a delinquent Federal Consolidation Loan that the lender

has submitted to the guaranty agency for default aversion, or

consolidating a defaulted Federal Consolidation Loan, and you agree

to repay your new Direct Consolidation Loan under the REPAYE Plan,

the PAYE Plan, the IBR Plan, or the ICR Plan;

• Consolidating a Federal Consolidation Loan to use the Public Service

Loan Forgiveness program described in Item 18 of this Borrower’s

Rights and Responsibilities Statement; or

• Consolidating a Federal Consolidation Loan to use the no accrual of

interest benefit for active duty service members described in Item 8.

You may not consolidate an existing joint consolidation loan. A joint

consolidation loan is a Direct Consolidation Loan or a Federal Consolidation

that was made jointly to you and your spouse.

6. INFORMATION YOU MUST REPORT TO US

Until your loan is repaid, you must notify your servicer if you:

• Change your address or telephone number;

• Change your name (for example, maiden name to married name);

• Change your employer or your employer’s address or telephone

number changes; or

• Have any other change in status that would affect your loan (for

example, if you receive a deferment while you are unemployed, but

you find a job and therefore no longer meet the eligibility

requirements for the deferment).

7. INTEREST RATE

The interest rate on your Direct Consolidation Loan will be the weighted

to average of the interest rates on the loans you are consolidating, rounded

the nearest higher one-eighth of one percent. There is no cap on the

interest rate that is determined under this formula. We will send you a

notice that tells you the interest rate on your loan.

The interest rate on a Direct Consolidation Loan is a fixed rate. This means

that the interest rate will remain the same throughout the life of your loan.

Servicemembers Civil Relief Act

If you are in military service, you may qualify for a lower interest rate on

your loans.

Under the Servicemembers Civil Relief Act (SCRA), the interest rate on loans

you received before you began your military service may be limited to 6%

during your military service. In most cases, your servicer will determine if

you are eligib

le for this benefit based on information from the U.S.

Department of Defense, and, if any of your qualifying loans have an interest

rate greater than 6%, will automatically reduce that rate to 6% during your

military service. If you think you qualify for the 6% interest rate but have

not received it, contact your servicer. Your servicer can also provide more

information about this benefit.

Because the SCRA interest rate benefit applies only to loans obtained prior

to military service, if you consolidate your loans after you have entered a

period of active duty military service, your new Direct Consolidation Loan

will not

be eligible for the 6% interest rate limit under the SCRA for that

period of active duty.

If you consolidate loans you obtained prior to a period of active duty

military service and the interest rate on those loans is reduced to 6% under

the SCRA, the 6% interest rate will be used to determine the fixed weighted

average interest rate on your Direct Consolidation Loan.

8. PAYMENT OF INTEREST

General

In general, interest accrues on a Direct Consolidation Loan from the date

the loan is made until it is paid in full or discharged. You are responsible for

ying the interest that accrues as explained below.

Payment of interest on a Direct Subsidized Consolidation Loan

Except as explained in Item 9 of this Borrower’s Rights and Responsibilities

Statement, you are not required to pay the interest that accrues on a Direct

Subsidized Consolidation Loan (see Item 3a. of this Borrower’s Rights and

Responsibilities Statement) during deferment periods, and during certain

periods of repayment under the REPAYE Plan, the PAYE Plan, and the IBR

Plan. Except as explained below under No accrual of interest benefit for

active duty service members, you are responsible for paying the interest

that accrues on a Direct Subsidized Consolidation Loan during all other

periods.

If you were a first-time borrower on or after July 1, 2013 when you received

a Direct Subsidized Loan that you are now consolidating, you may be

responsible for paying the interest that accrues during all periods on the

portion of your Direct Consolidation Loan that repaid the Direct Subsidized

Loan, as explained in Item 9 of this Borrower’s Rights and Responsibilities

Statement.

Payment of interest on a Direct Unsubsidized Consolidation Loan

Except as explained below for certain borrowers who are active duty service

members, and during certain periods of repayment under the REPAYE Plan,

you are responsible for paying the interest that accrues on a Direct

Unsubsidized Consolidation Loan (see Item 3b. of this Borrower’s Rights and

Responsibilities Statement) during all periods.

No accrual of interest benefit for active duty service members

Under the no accrual of interest benefit for active duty service members,

you are not required to pay the interest that accrues during periods of

qualifying active duty military service (for up to 60 months) on the portion

of a Direct Consolidation Loan that repaid a Direct Loan Program or FFEL

Program loan first disbursed on or after October 1, 2008.

Interest capitalization

If you do not pay the interest as it accrues on either a Direct Subsidized

Consolidation Loan or a Direct Unsubsidized Consolidation Loan (during

eriods when you are responsible for paying the interest), we will add the

accrued interest to the unpaid principal balance of your loan at the end of

the deferment or forbearance period. This is called “capitalization.”

Capitalization increases the unpaid principal balance of your loan, and

interest then accrues on the increased principal balance.

The chart that follows shows the difference in the total amount you would

repay on a $15,000 Direct Unsubsidized Consolidation Loan if you pay the

UBMIT PAGES 1 THROUGH 5

AGE 11 OF 17

interest as it accrues during a 12-month deferment or forbearance period,

compared to the amount you would repay if you do not pay the interest and

it is capitalized.

The example in the chart shows payments made under the Standard

Repayment Plan (with a repayment period of 15 years based on the amount

of the Direct Consolidation Loan) at an interest rate of 8.25%. In this

example, you would pay $12 less per month and $912 less altogether if you

pay the interest as it accrues during a 12-month deferment or forbearance

period.

If you pay the interest

as it accrues…

If you do not pay

the interest and it

is capitalized…

Loan Amount $15,000 $15,000

Interest for 12 Months $1,238 $1,238

(paid as accrued) (unpaid and

capitalized)

Principal to be Repaid $15,000 $16,238

Monthly Payment $146 $158

Number of Payments 180 180

Total Repaid $27,447 $28,359

Federal income tax deduction

You may be able to claim a federal income tax deduction for interest

payments you make on Direct Loans. For further information, refer to IRS

Publication 970, which is available at http://www.irs.ustreas.gov.

9. RESPONSIBILITY FOR PAYING ALL INTEREST ON ALL OR PART OF THE

SUBSIDIZED PORTION OF A DIRECT CONSOLIDATION LOAN (FOR FIRST-

TIME BORROWERS ON OR AFTER JULY 1, 2013)

If you were a first-time borrower on or after July 1, 2013 (see Note below)

when you received a Direct Subsidized Loan and you are now consolidating

that loan, you may be responsible for paying the interest that accrues

during all periods on the portion of your Direct Consolidation Loan that

repaid the Direct Subsidized Loan, as explained below.

There is a limit on the maximum period of time (measured in academic

years) for which a first-time borrower on or after July 1, 2013 can receive

Direct Subsidized Loans. In general, a first-time borrower may not receive

Direct Subsidized Loans for more than 150% of the published length of his

or her program of study. This is called the “maximum eligibility period.”

Generally, a first-time borrower on or after July 1, 2013 will become

responsible for paying the interest that accrues during all periods on

previously received Direct Subsidized Loans if the borrower:

•

Continues to be enrolled in any undergraduate program after having

received Direct Subsidized Loans for his or her maximum eligibility

period, or

•

Enrolls in another undergraduate program that is the same length as

or shorter than the borrower’s previous program.

There are a few exceptions to this rule. Your school or servicer can provide

you with more information about this requirement and the exceptions.

You must pay the interest that accrues during all periods (including

deferment periods) on the portion of your Direct Consolidation Loan that

repaid a Direct Subsidized Loan you received as a first-time borrower on or

after July 1, 2013 if:

•

Before consolidating the D irect Subsidized Loan, you become responsible

for paying all interest that accrues on that loan, as explained above; or

•

After consolidating the Direct Subsidized Loan you become responsible

for paying all interest that accrues on that loan, as explained

above.

Note:

A first-time borrower

on or after July 1, 2013 is an individual who has

no outstanding balance on a Direct Loan Program loan or a Federal Family

Education Loan (FFEL) Program loan

on July 1, 2013, or who has no

outstanding balance

on a Direct Loan

or FFEL program loan on the date he

or she obtains a Direct Loan Program loan after July 1, 2013.

10. INTEREST RATE REDUCTION FOR AUTOMATIC WITHDRAWAL OF

PAYMENTS

Under the automatic withdrawal option, your bank automatically deducts

your monthly loan payment from your checking or savings account and

sends it to us. Automatic withdrawal helps to ensure that your payments

are made on time. In addition, you

receive a 0.25% interest rate reduction

while you repay under

the automatic withdrawal option.

Your servicer will

provide you with information about the automatic withdrawal option. You

can also get the

information on your

servicer’s web site, or by calling your

servicer. Your servicer’s web site address and toll-free telephone number

are provided on correspondence that your servicer sends you.

Note: Another repayment incentive program, the up-front interest rebate,

was available on Direct Subsidized Loans, Direct Unsubsidized Loans, and

Direct PLUS Loans that were first disbursed before July 1, 2012. The rebate

is equal to a percentage of the loan amount, and is the same amount that

would result if the interest rate on the loan were lowered by a specific

percentage. To permanently keep an up-front interest rebate, a borrower

must make each of the first 12 required monthly payments on time when

the loan enters repayment. If you consolidate a Direct Loan on which you

received an up-front interest rebate before you have permanently earned

the rebate (the correspondence you received about your loan will tell you if

you received a rebate), you will lose the rebate. The rebate amount will be

added back to the principal balance of the loan before it is consolidated.

11. REPAYING YOUR LOAN

General

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

DIRECT CONSOLIDATION LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

Unless you receive a deferment or forbearance on your loan (see Item 17),

your first payment will be due within 60 days of the first disbursement of

your Direct Consolidation Loan. Your servicer will notify you of the date your

first payment is due.

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

repayment notice.

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

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

the IBR Plan, or the ICR Plan (see below) and you have other Direct Loans

that do not qualify for repayment under those plans. In that case, you may

select the REPAYE, PAYE, IBR, or ICR plan for the loans that are eligible for

repayment under those plans, and may select a different repayment plan

for the loans that may not be repaid under the REPAYE, PAYE, IBR, or ICR

plan. Direct Consolidation Loans that repaid Direct PLUS Loans or FFEL

Program PLUS Loans made to parent borrowers may not be repaid under

the REPAYE, PAYE, or IBR plans. However, they may be repaid under the ICR

Plan.

We will ask you to choose a repayment plan for your Direct Consolidation

Loan. If you do not choose a repayment plan, we will place you on the

Standard Repayment Plan.

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AGE 12 OF 17

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

DIRECT CONSOLIDATION LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

Repayment plans for all Direct Consolidation Loans

You may choose the Standard Repayment Plan, the Graduated Repayment

Plan, the Extended Repayment Plan, or the Income-Contingent Repayment

Plan to repay any Direct Consolidation Loan.

Standard Repayment Plan

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

and repay your loan in full within 10 to 30 years (not including periods of

deferment or forbearance) from the date the loan entered repayment,

depending on the amount of your Direct Consolidation Loan and the

amount of your other student loan debt (not to exceed the amount you are

consolidating) as listed in the Loans You Do Not Want to Consolidate

section of your Note (see the chart below). Your payments must be at least

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

within the required time period.

Graduated Repayment Plan

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 in full within 10 to 30 years (not including periods of

deferment or forbearance) from the date the loan entered repayment,

depending on the total amount of your Direct Consolidation Loan and the

amount of your other student loan debt (not to exceed the amount you are

consolidating) as listed in Loans You Do Not Want to Consolidate section of

your Note (see the chart below). Your scheduled monthly payment must at

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

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

payment.

Standard and Graduated Plans: Maximum Repayment Periods

Total Education Loan Indebtedness

Maximum Repayment Period

Less than $7,500

10 years

$7,500 to $9,999

12 years

$10,000 to $19,999

15 years

$20,000 to $39,999

20 years

$40,000 to $59,999

25 years

$60,000 or more

30 years

Extended Repayment Plan

You are eligible for the Extended Repayment Plan only if (1) you have an

outstanding balance on Direct Loans that exceeds $30,000, and (2) you had

no outstanding balance on a Direct Loan as of October 7, 1998, or on the

date you obtained a Direct Loan on or after October 7, 1998.

Under this plan, you will repay your loan in full over a period not to exceed

25 years (not including periods of deferment or forbearance) from the date

the loan entered repayment. You may choose to make fixed monthly

payments or graduated monthly payments that start out lower and

gradually increase over time. If you make fixed monthly payments, your

payments must be at least $50 a month ($600 a year) and will be more, if

necessary, to repay the loan within the required time period. If you make

graduated payments, your scheduled monthly payment must at least be

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

scheduled payment under the graduated option will be more than three

times greater than any other payment.

ncome-Contingent Repayment Plan (ICR Plan)

Under the ICR plan, your monthly payment amount will be either 20% of

your discretionary income or a percentage of what you would repay under a

Standard Repayment Plan with a 12-year repayment period, whichever is

less. Discretionary income for this plan is the difference between your

adjusted gross income and the poverty guideline amount for your state of

residence and family size, divided by 12.

If you are married and file a joint federal income tax return, the income

used to determine your ICR Plan payment amount will be the combined

adjusted gross income of you and your spouse.

If you are married and file a separate federal income tax return from your

spouse, only your individual adjusted gross income will be used to

determine your ICR Plan payment amount.

Until we obtain the information needed to calculate your monthly payment

amount, your payment will equal the amount of interest that accrues

monthly on your loan unless you request a forbearance.

While you are repaying under the ICR Plan, you must provide

documentation of your income and certify your family size each year so that

we may recalculate your payment amount.

Under the ICR Plan, if your loan is not repaid in full after you have made the

equivalent of 25 years of qualifying monthly payments over a period of at

least 25 years have elapsed, any remaining loan amount will be forgiven.

You may have to pay federal income tax on the loan amount that is

forgiven.

Additional repayment plans for Direct Consolidation Loans that did not

epay parent PLUS loans

Note: Direct Consolidation Loans that repaid parent plus loans may not be

repaid under these plans

A parent PLUS loan is a Direct PLUS Loan or FFEL PLUS Loan that you

obtained to help pay for your child’s undergraduate education.

If you are not consolidating any parent PLUS loans, you may also choose the

REPAYE Plan, the PAYE Plan, or the IBR Plan to repay your Direct

Consolidation Loan.

If you are consolidating a parent PLUS loan, you may not choose the REPAYE

Plan, the PAYE Plan, or the IBR Plan, but you may choose the ICR Plan (see

above).

Revised Pay As You Earn Repayment Plan (REPAYE Plan)

Under the REPAYE Plan, your monthly payment amount is generally 10% of

your discretionary income. Discretionary income for this plan is the

difference between your adjusted gross income and 150% of the poverty

guideline amount for your state of residence and family size, divided by 12.

If you are married, the income used to determine your REPAYE Plan

payment amount will generally be the combined income of you and your

spouse, regardless of whether you file a joint or separate federal income tax

return.

While you are repaying under the REPAYE Plan, you must provide

documentation of your income (and, if you are married, your spouse’s

income) and certify your family size each year so that we may recalculate

your payment amount.

UBMIT PAGES 1 THROUGH 5

AGE 13 OF 17

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

DIRECT CONSOLIDATION LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

Under the REPAYE Plan, if all of the loans you are repaying under the plan

were obtained for undergraduate study, any remaining loan amount will be

forgiven after you have made the equivalent of 20 years of qualifying

monthly payments over a period of at least 20 years. If any of the loans you

are repaying under the REPAYE Plan were obtained for graduate or

professional study, any remaining loan amount will be forgiven after you

have made the equivalent of 25 years of qualifying monthly payments over

a period of at least 25 years. You may have to pay federal income tax on the

loan amount that is forgiven.

Pay As You Earn Repayment Plan (PAYE Plan)

Under the PAYE Plan, your monthly payment amount is generally 10% of

your discretionary income. Discretionary income for this plan is the

difference between your adjusted gross income and 150% of the poverty

guideline amount for your state of residence and family size, divided by 12.

If you are married and file a joint federal income tax return, the income

used to determine your PAYE Plan payment amount will be the combined

adjusted gross income of you and your spouse.

If you are married and file a separate federal income tax return from your

spouse, only your individual adjusted gross income will be used to

determine your PAYE Plan payment amount.

The PAYE Plan is available only to new borrowers. You are a new borrower

for the PAYE Plan if:

1. You had no outstanding balance on a Direct Loan or a FFEL Program

loan as of October 1, 2007, or you have no outstanding balance on a

Direct Loan or a FFEL Program loan when you obtain a new loan on or

after October 1, 2007, and

2. You receive a disbursement of a Direct Subsidized Loan, Direct

Unsubsidized Loan, or student Direct PLUS Loan (a Direct PLUS Loan

made to a graduate or professional student) on or after October 1,

2011, or you receive a Direct Consolidation Loan based on an

application received on or after October 1, 2011. However, you are

not considered to be a new borrower for the PAYE Plan if the Direct

Consolidation Loan you receive repays loans that would make you

ineligible under part 1 of this definition.

In addition to being a new borrower, to initially qualify for the PAYE Plan,

the monthly amount you would be required to pay under this plan, based

on your income and family size, must be less than the amount you would

have to pay under the Standard Repayment Plan with a 10-year repayment

period.

If you are married and file a joint federal income tax return, the loan

amount we use to determine whether you qualify for the PAYE Plan will

include your eligible loans and your spouse’s eligible loans.

If you are married and file a separate federal income tax return from your

spouse, the loan amount we use to determine whether you qualify for the

PAYE Plan will include only your eligible loans.

While you are repaying under the PAYE Plan, you must provide

documentation of your income and certify your family size each year so that

we may recalculate your payment amount. If your income increases to the

point that the amount you would have to pay under the PAYE Plan based on

your income is more than what you would have to pay under the Standard

Repayment Plan, you will remain on the PAYE Plan, but your monthly

payment will no longer be based on your income. Instead, your monthly

payment will be what you would be required to pay under the Standard

Repayment Plan.

Under the PAYE Plan, if your loan is not repaid in full after you have made

the equivalent of 20 years of qualifying monthly payments over a period of

at least 20 years, any remaining loan amount will be forgiven. You may have

to pay federal income tax on the loan amount that is forgiven.

Income-Based Repayment Plan (IBR Plan)

Under the IBR Plan, your monthly payment amount is generally 15% (10% if

you are a new borrower; see Note below) of your discretionary income.

Discretionary income for this plan is the difference between your adjusted

gross income and 150% of the poverty guideline amount for your state of

residence and family size, divided by 12.

If you are married and file a joint federal income tax return, the income

used to determine your IBR Plan payment amount will be the combined

adjusted gross income of you and your spouse.

If you are married and file a separate federal income tax return from your

spouse, only your individual adjusted gross income will be used to

determine your IBR Plan payment amount.

To initially qualify for the IBR Plan, the monthly amount you would be

required to pay under this plan, based on your income and family size, must

be less than the amount you would have to pay under the Standard

Repayment Plan with a 10-year repayment period.

If you are married and file a joint federal income tax return, the loan

amount we use to determine whether you qualify for the IBR Plan will

include your eligible loans and your spouse’s eligible loans.

If you are married and file a separate federal income tax return from your

spouse, the loan amount we use to determine whether you qualify for the

IBR Plan will include only your eligible loans.

While you are repaying under the IBR Plan, you must provide

documentation of your income and certify your family size each year so that

we may recalculate your payment amount. If your income increases to the

point that the amount you would have to pay under the IBR Plan based on

your income is more than what you would have to pay under the Standard

Repayment Plan with a 10-year repayment period, you will remain on the

IBR Plan, but your monthly payment will no longer be based on your

income. Instead, your monthly payment will be what you would be required

to pay under the Standard Repayment Plan with a 10-year repayment

period.

Under the IBR Plan, if your loan is not repaid in full after you have made the

equivalent of 25 years (20 years if you are a new borrower) of qualifying

monthly payments over a period of at least 25 years (20 years if you are a

new borrower), any remaining loan amount will be forgiven. You may have

to pay federal income tax on the loan amount that is forgiven.

Note: You are a new borrower for the IBR Plan if you have no outstanding

balance on a Direct Loan or a FFEL Program loan on July 1, 2014, or if you

have no outstanding balance on a Direct Loan or a FFEL Program loan on the

date you obtain a Direct Loan after July 1, 2014. Your servicer will determine

whether you are a new borrower based on the information about your

loans in the U.S. Department of Education’s National Student Loan Data

System.

Additional repayment plan information

If you can show to our satisfaction that the terms and conditions of the

repayment plans described above are not adequate to meet your

UBMIT PAGES 1 THROUGH 5

AGE 14 OF 17

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

DIRECT CONSOLIDATION LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

exceptional circumstances, we may provide you with an alternative

repayment plan.

You can use the Repayment Estimator at StudentAid.gov/Repayment-

Estimator to estimate your monthly and total payment amounts under the

different repayment plans and to evaluate your eligibility for the PAYE and

IBR plans. The calculators are for informational purposes only. Your servicer

will make the official determination of your payment amount and, for the

PAYE and IBR plans, your eligibility for the plan.

You may change repayment plans at any time after you have begun

repaying your loan. However, you may not change to a different repayment

plan that has a maximum repayment period of less than the number of

years your loan has already been in repayment, except that you may change

to the REPAYE Plan, the PAYE Plan, the IBR Plan, or the ICR Plan at any time.

If you are making payments under any repayment plan other than the

REPAYE Plan, the PAYE Plan, and the IBR Plan, we apply your payments in

the following order:

1. Late charges and collection costs,

2. Outstanding interest, and

3. Outstanding principal.

If you are making payments under the REPAYE Plan, the PAYE Plan, or the

IBR Plan, we apply your payments in the following order:

1. Outstanding interest,

2. Late charges and collection costs, and

3. Outstanding principal.

There is no penalty if you make loan payments before they are due, or pay

more than the amount due each month (prepayments). We apply any

prepayments in accordance with the Act. Your servicer can provide more

information about how prepayments are applied.

When you have repaid your loan in full, your servicer will send you a notice

telling you that you have paid off your loan. You should keep this notice in a

safe place.

12. TRANSFER OF LOAN

We may transfer the servicing of one or all of your loans to another servicer.

If there is a change in the address to which you must send payments or

direct communications, we will notify you of the new servicer’s name,

address and telephone number, the effective date of the transfer, and the

date when you must begin sending payments or directing communications

to that servicer. Transfer of a loan to a different servicer does not affect

your rights and responsibilities under that loan.

13. LATE CHARGES AND COLLECTION COSTS

If you do not make any part of a payment within 30 days after it is due, we

may require you to pay a late charge. This charge will not be more than six

cents for each dollar of each late payment. If you do not make payments as

scheduled, we may also require you to pay other charges and fees involved

in collecting your loan.

14. DEMAND FOR IMMEDIATE REPAYMENT

The entire unpaid amount of your loan becomes due and payable (this is

called “acceleration”) if you:

• Make a false statement that causes you to receive a loan that you are

not eligible to receive; or

• Default on your loan.

15. DEFAULTING ON YOUR LOAN

Default (failing to repay your loan) is defined in detail in the Note Terms and

Conditions section of this Note. If you default:

• We will require you to immediately repay the entire unpaid amount of

your loan.

• We may sue you, take all or part of your federal and state tax refunds

and other federal or state payments, and/or garnish your wages so

that your employer is required to send us part of your salary to pay off

your loan.

• We will require you to pay reasonable collection fees and costs, plus

court costs and attorney fees.

• You will lose eligibility for other federal student aid and assistance

under most federal benefit programs.

• You will lose eligibility for loan deferments.

• We will report your default to nationwide consumer reporting

agencies (see Item 16). This will harm your credit history and may

make it difficult for you to obtain credit cards, home or car loans, or

other forms of consumer credit.

If you default on your loan, you will not be charged collection costs if you

respond within 60 days to the initial notice of default that we send to you,

and you enter into a repayment agreement with us, including a loan

rehabilitation agreement, and fulfill that agreement.

16. CONSUMER REPORTING AGENCY NOTIFICATION

We will report information about your loan to nationwide consumer

reporting agencies (commonly known as “credit bureaus”) on a regular

basis. This information will include the disbursement dates, amount, and

repayment status of your loan (for example, whether you are current or

delinquent in making payments). Your loan will be identified as an

education loan.

If you default on a loan, we will report this to nationwide consumer

reporting agencies. We will notify you at least 30 days in advance that we

plan to report default information to a consumer reporting agency unless

you resume making payments on the loan within 30 days of the date of the

notice. You will be given a chance to ask for a review of the debt before we

report it.

If a consumer reporting agency contacts us regarding objections you have

raised about the accuracy or completeness of any information we have

reported, we are required to provide the agency with a prompt response.

17. DEFERMENT AND FORBEARANCE (POSTPONING PAYMENTS)

General

If you meet certain requirements, you may receive a deferment that allows

you to temporarily stop making payments on your loan. If you cannot make

your scheduled loan payments, but do not qualify for a deferment, we may

give you a forbearance. A forbearance allows you to temporarily stop

making payments on your loan, temporarily make smaller payments, or

extend the time for making payments.

Deferment

You may receive a deferment:

• While you are enrolled at least half time at an eligible school;

• While you are in a full-time course of study in a graduate fellowship

program;

UBMIT PAGES 1 THROUGH 5

AGE 15 OF 17

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

DIRECT CONSOLIDATION LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

• While you are in an approved full-time rehabilitation program for

individuals with disabilities;

• While you are unemployed (for a maximum of three years; you must

be diligently seeking, but unable to find, full-time employment);

• While you are experiencing an economic hardship (including Peace

Corps service), as defined in the Act (for a maximum of three years);

• While you are 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 and, if you were serving on or after October 1, 2007, for an

additional 180-day period following the demobilization date for your

qualifying service; or

• If you are a member of the National Guard or other reserve

component of the U.S. Armed Forces (current or retired) and you are

called or ordered to active duty while you are enrolled at least half

time at an eligible school or within 6 months of having been enrolled

at least half time, during the 13 months following the conclusion of

your active duty service, or until you return to enrolled student status

on at least a half-time basis, whichever is earlier.

You may be eligible to receive additional deferments if, at the time you

received your first Direct Loan, you had an outstanding balance on a loan

made under the FFEL Program before July 1, 1993. If you meet this

requirement, contact your servicer for information about additional

deferments that may be available.

You may receive a deferment based on your enrollment in school on at least

a half-time basis if:

• You submit a deferment request to your servicer along with

documentation of your eligibility for the deferment, or

• Your servicer receives information from the school you are attending

that indicates you are enrolled at least half time.

If your servicer processes a deferment based on information received from

your school, you will be notified of the deferment and will have the option

of canceling the deferment and continuing to make payments on your loan.

For all other deferments, you (or, for a deferment based on active duty

military service or qualifying National Guard duty during a war or other

military operation or national emergency, a representative acting on your

behalf) must submit a deferment request to your servicer, along with

documentation of your eligibility for the deferment. In certain

circumstances, you may not be required to provide documentation of your

eligibility if your servicer confirms that you have been granted the same

deferment for the same period of time on a FFEL Program loan. Your

servicer can provide you with a deferment request form that explains the

eligibility and documentation requirements for the type of deferment you

are requesting. You may also obtain deferment request forms and

information on deferment eligibility requirements from your servicer’s web

site.

If you are in default on your loan, you are not eligible for a deferment.

You are not responsible for paying the interest on a Direct Subsidized

Consolidation Loan during a period of deferment, except as explained in

Item 9 of this Borrower’s Rights and Responsibilities Statement. However,

you are responsible for paying the interest on a Direct Unsubsidized

Consolidation Loan during a period of deferment.

Forbearance

We may give you a forbearance if you are temporarily unable to make your

scheduled loan payments for reasons including, but not limited to, financial

hardship and illness.

We will give you a forbearance if:

• You are serving in a medical or dental internship or residency program,

and you meet specific requirements;

• The total amount you owe each month for all of the student loans you

received under Title IV of the Act (Direct Loan Program loans, FFEL

Program loans, and Federal Perkins Loans) is 20% or more of your total

monthly gross income (for a maximum of three years);

• You are serving in a national service position for which you receive a

national service education award under the National and Community

Service Trust Act of 1993. In some cases, the interest that accrues on a

qualified loan during the service period will be paid by the Corporation

for National and Community Service;

• You are performing service that would qualify you for loan forgiveness

under the Teacher Loan Forgiveness program that is available to

certain Direct Loan and FFEL program borrowers;

• You qualify for partial repayment of your loans under a student loan

repayment program administered by the Department of Defense; or

• You are called to active duty in the U.S. Armed Forces.

To request a forbearance, contact your servicer. Your servicer can explain

the eligibility and documentation requirements for the type of forbearance

you are requesting. You may also obtain information on forbearance

eligibility requirements from your servicer’s web site.

Under certain circumstances, we may also give you a forbearance without

requiring you to submit a request or documentation. These circumstances

include, but are not limited to, the following:

• Periods necessary for us to determine your eligibility for a loan

discharge;

• A period of up to 60 days in order for us to collect and process

documentation related to your request for a deferment, forbearance,

change in repayment plan, or consolidation loan (we do not capitalize

the interest that is charged during this period); or

• Periods when you are involved in a military mobilization, or a local or

national emergency.

You are responsible for paying the interest that accrues on your entire

Direct Consolidation Loan during a period of forbearance.

18. DISCHARGE (HAVING YOUR LOAN FORGIVEN)

Death, bankruptcy, and total and permanent disability

We will discharge (forgive) your loan if:

• You die. Your servicer must receive acceptable documentation (as

defined in the Act) of your death. We will also discharge the portion of

a Direct Consolidation Loan that repaid one or more Direct PLUS Loans

or Federal PLUS Loans obtained on behalf of a child who dies.

• Your loan is discharged in bankruptcy after you have proven to the

bankruptcy court that repaying the loan would cause undue hardship.

Direct Loans are not automatically discharged if you file for

bankruptcy.

• You become totally and permanently disabled (as defined in the Act)

and meet certain other requirements.

UBMIT PAGES 1 THROUGH 5

AGE 16 OF 17

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

DIRECT CONSOLIDATION LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

School closure, false certification, identity theft, and unpaid refund

In certain cases, we may also discharge all or a portion of your loan if:

• One or more Direct Loan Program, FFEL Program, or Federal Perkins

Loan Program loans that you consolidated was used to pay for a

program of study that you (or the child for whom you borrowed a

Direct PLUS Loan or Federal PLUS Loan) were unable to complete

because the school closed;

• Your eligibility (or the eligibility of the child for whom you borrowed a

Direct PLUS Loan or Federal PLUS Loan) for one or more of the Direct

Loan Program or FFEL Program loans that you consolidated was falsely

certified by the school;

• Your eligibility for one or more of the Direct Loan Program or FFEL

Program loans that you consolidated was falsely certified as a result of

a crime of identity theft; or

• The school did not pay a required refund of one or more Direct Loan

Program or FFEL Program loans that you consolidated.

Teacher Loan Forgiveness

We may forgive a portion of your Direct Consolidation Loan that repaid

Direct Subsidized Loans or Direct Unsubsidized Loans you received after

October 1, 1998, or subsidized or unsubsidized Federal Stafford Loans you

received under the FFEL program after October 1, 1998 if you:

• Teach full time for five consecutive years in certain low-income

elementary or secondary schools, or for low-income educational

service agencies;

• Meet certain other qualifications; and

• Did not owe a Direct Loan or a FFEL program loan as of October 1,

1998, or as of the date you obtain a loan after October 1, 1998.

Public Service Loan Forgiveness

A Public Service Loan Forgiveness (PSLF) program is also available. Under

this program, we will forgive the remaining balance due on your eligible

Direct Loan Program loans after you have made 120 payments on those

loans (after October 1, 2007) under certain repayment plans while you are

employed full-time in certain public service jobs. The required 120

payments do not have to be consecutive. Qualifying repayment plans

include the REPAYE Plan, the PAYE Plan, the IBR Plan, the ICR Plan, and the

Standard Repayment Plan with a 10-year repayment period.

Note: Although the Standard Repayment Plan with a 10-year repayment

period is a qualifying repayment plan for PSLF, to receive any loan

forgiveness under this program you must make the majority of the required

120 payments under the REPAYE Plan, the PAYE Plan, the IBR Plan, or the

ICR Plan.

Additional loan discharge information

The Act may provide for certain loan forgiveness or repayment benefits on

your loans in addition to the benefits described above.

For a discharge based on your death or the death of the child on whose

behalf you obtained a Direct PLUS Loan or Federal PLUS Loan that was

consolidated, a family member must contact your loan servicer. To request

a loan discharge based on one of the other conditions described above

(except for a discharge due to bankruptcy), you must complete an

application. Your servicer can tell you how to apply.

In some cases, you may assert, under applicable law and regulations, a

defense against repayment of your loan on the basis that the school did

something wrong or failed to do something that it should have done. You

can make such a defense against repayment only if the school’s act or

omission directly relates to one or more of the loans that you consolidated

or to the educational services that the loan(s) you consolidated was

intended to pay for. If you believe that you have a defense against

repayment of your loan, contact your servicer.

We do not guarantee the quality of the academic programs provided by

schools that participate in federal student financial aid programs. You must

repay your loan even if you do not complete the education paid for with the

loan, are unable to obtain employment in the field of study for which the

school provided training, or are dissatisfied with, or do not receive, the

education you paid for with the loan.

19. DEPARTMENT OF DEFENSE AND OTHER FEDERAL AGENCY LOAN

REPAYMENT

Under certain circumstances, military personnel may have their federal

education loans repaid by the Secretary of Defense. This benefit is offered

as part of a recruitment program that does not apply to individuals based

on their previous military service or to those who are not eligible for

enlistment in the U.S. Armed Forces. For more information, contact your

local military service recruitment office.

Other agencies of the federal government may also offer student loan

repayment programs as an incentive to recruit and retain employees.

Contact the agency’s human resources department for more information.

END OF BORROWER’S RIGHTS AND RESPONSIBILITIES STATEMENT

UBMIT PAGES 1 THROUGH 5

AGE 17 OF 17

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