Federal Direct Stafford/Ford Loan OMB No.

1845-0007
Form Approved
Federal Direct Unsubsidized Stafford/Ford Loan Exp. Date 05/31/2011

Master Promissory Note

William D. Ford Federal Direct Loan Program
Warning: Any person who knowingly makes a false statement or misrepresentation on this form will be subject to penalties
which may include fines, imprisonment, or both, under the U.S. Criminal Code and 20 U.S.C. 1097.

SECTION A: BORROWER INFORMATION READ THE INSTRUCTIONS IN SECTION F BEFORE COMPLETING THIS SECTION
1. Driver’s License State and No. 2. Social Security No.
PA 29444491 202720630
3. E-mail Address (optional)
[email protected]
4. Name and Address
5. Date of Birth 08/08/1991
ELDRIDGE , KYLE C 6. Area Code/Telephone No
4 EMERY LN
6109334097
PHOENIXVILLE , PA UNITED STATES 19460

7. References: List two persons with different U.S. addresses who have known you for at least three years. The first reference should be a parent or legal guardian.
Name 1. Marie Hennessy 2. Cory Dolbashian
Permanent Street Address 30 Nutt Road 7 Sylvan Glen Road
City, State, Zip Code Phoenixville , PA UNITED STATES 19460 Phoenixville , PA UNITED STATES 19460

Area Code/Telephone No. 6109335531 6109353733

Relationship to Borrower GRANDMOTHER FRIEND

SECTION B: SCHOOL INFORMATION – TO BE COMPLETED BY THE SCHOOL

8. School Name and Address TEMPLE UNIVERSITY 9. School Code/Branch 10. Identification No.
CONWELL HALL, GROUND FLOOR 1801 NORTH BROAD STREETG03371 202720630M11G03371999
PHILADELPHIA , PA 191226003

SECTION C: BORROWER REQUEST, CERTIFICATIONS, AUTHORIZATIONS, AND UNDERSTANDINGS – READ CAREFULLY BEFORE SIGNING BELOW
11. This is a Master Promissory Note (MPN) for one or more Federal Direct Stafford/ 13. For each Direct Subsidized Loan and Direct Unsubsidized Loan I receive under this MPN,
Ford (Direct Subsidized) Loans and/or Federal Direct Unsubsidized Stafford/Ford (Direct I make the following authorizations:
Unsubsidized) Loans. I request a total amount of Direct Subsidized Loans and/or Direct
A. I authorize my school to certify my eligibility for the loan.
Unsubsidized Loans under this MPN not to exceed the allowable maximums under the
Act (“the Act” is defined in Section E under Governing Law). My school will notify me of B. I authorize my school to credit my loan proceeds to my student account at the school.
the loan type and loan amount that I am eligible to receive. I may cancel a loan or request C. I authorize my school to pay to ED any refund that may be due up to the full amount of
a lower amount by contacting my school. Additional information about my right to cancel the loan.
a loan or request a lower amount is included in the Borower’s Rights and Responsibilities
Statement and in the disclosure statements that will be provided to me. D. I authorize ED to investigate my credit record and report information about my loan status
to persons and organizations permitted by law to receive that information.
12. Under penalty of perjury, I certify that:
E. I authorize ED to investigate my credit record and report information about my loan status
A. The information I have provided on this MPN and as updated by me from time to time to persons and organizations permitted by law to receive that information.
is true, complete, and correct to the best of my knowledge and belief and is made in
good faith. F. I authorize my school and ED to release information about my loan to the references
on the loan and to members of my immediate family, unless I submit written directions
B. I will use the proceeds of loans made under this MPN for authorized educational expenses otherwise.
that I incur and I will immediately repay any loan proceeds that cannot be attributed
to educational expenses for attendance on at least a half-time basis at the school that G. I authorize my schools, lenders and guarantors, ED, and their agents to release
certified my loan eligbility. information about my loan to each other.

C. If I owe an overpayment on a Federal Perkins Loan, Federal Pell Grant, Federal H. I authorize my schools, ED, and their respective agents and contractors to contact me
Supplemental Educational Opportunity Grant, Academic Competitiveness Grant (ACG), regarding my loan request or my loan, including repayment of my loan, at the current or
National Science or Mathematics Access to Retain Talent (SMART) Grant, or Leveraging any future number that I provide for my cellular telephone or other wireless device using
Educational Assistance Partnership Grant, I have made satisfactory arrangements to automated dialing equipment or artificial or prerecorded voice or text messages.
repay the amount owed. 14. I will be given the opportunity to pay the interest that ED charges during grace, in school,
D. If I am in default on any loan received under the Federal Perkins Loan Program deferment, forbearance, and other periods as provided under the Act, including during in-
(including National Direct Student Loans), the William D. Ford Federal Direct Loan (Direct school deferment periods. Unless I pay the interest, I understand that ED may add unpaid
Loan) Program, or the Federal Family Education Loan (FFEL) Program, I have made interest that is charged on each loan made under this MPN to the principal balance of
satisfactory repayment arrangements with the holder to repay the amount owed. that loan (this is called “capitalization”) at the end of the grace, deferment, forbearance,
or other period. Capitalization will increase the principal balance on my loan and the total
E. If I have been convicted of, or pled nolo contendere(no contest) or guilty to, a crime amount of interest I must pay.
involving fraud in obtaining funds under title IV of the Higher Education Act of 1965 (HEA),
as amended, I have completed the repayment of the funds to the U.S. Department of 15. I understand that ED has the authority to verify information reported on this MPN with
Education (ED) or to the loan holder in the case of a Title IV federal student loan. other federal agencies.

SECTION D: PROMISE TO PAY

16. I promise to pay to ED all loan amounts disbursed under the terms of this MPN, plus interest and other charges and fees that may become due as provided in this MPN. I understand that
more than one loan may be made to me under this MPN. I understand that by accepting any disbursement issued at any time under this MPN, I agree to repay the loan associated with
that disbursement. I understand that, within certain timeframes, I may cancel or reduce the amount of a loan by refusing to accept or by returning all or a portion of any disbursement that
is issued. Unless I make interest payments, interest that ED charges on my loans during grace, in-school, deferment, forbearance, and other periods will be added to the principal balance
of the loan as provided under the Act. If I do not make a payment on a loan made under this MPN when it is due, I will also pay reasonable collection costs, including but not limited to
attoney’s fees, court costs, and other fees. I will not sign this MPN before reading the entire MPN, 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 MPN and the Borrower’s Rights and Responsibilities Statement. My signature certifies that I have read, understand, and agree to the terms and conditions of this MPN,
including the Borrower Request, Certifications, Authorizations, and Understanding in Section C, the Notice About Subsequent Loans Made Under this MPN in Section E, and the terms
and conditions described in Section E of this MPN and in the Borrower’s Rights and Responsibilities Statement.

I UNDERSTAND THAT I MAY RECEIVE ONE OR MORE LOANS UNDER THIS MPN, AND THAT I MUST REPAY ALL LOANS THAT I RECEIVE UNDER THIS MPN.

17. Borrower's Signature Kyle C Eldridge 18. Today’s Date (mm-dd-yyyy) 08/18/2010

Page 1 of 8 Revised 03/2009

 Direct Subsidized Loan and Direct Unsubsidized Loan MPN (continued)
SECTION E: MPN TERMS AND CONDITIONS If I do not pay the interest, I understand that ED to honor my repayment obligation. If I default, ED
GOVERNING LAW may capitalize the interest at the end of the grace, may capitalize all the outstanding interest into a new
deferment, forbearance, or other period. principal balance, and collection costs will become
The terms of this Application and Master Promissory
LOAN FEE immediately due and payable.
Note (MPN) will be interpreted in accordance with
the Higher Education Act of 1965, as amended (20. A loan fee is charged for each Direct Subsidized Loan If I default, the default will be reported to
U.S.C. 1070.), the U.S. Department of Education’s and Direct Unsubsidized Loan as provided by the national consumer reporting agencies and will
(ED’s) regulations, as they may be amended in Act, and will be deducted proportionately from each significantly and adversely affect my credit history. I
accordance with their effective date, and other disbursement of each of my loans. The loan fee will understand that a default will have additional adverse
applicable federal laws and regulations (collectively be shown on disclosure statements that will be issued consequences to me as disclosed in the Borrower’s
referred to as the “Act”). Applicable state law, except to me. I understand the loan fee may be refundable Rights and Responsibilities Statement.
as preempted by federal law, may provide for certain only as permitted by the Act. LEGAL NOTICES
borrower rights, remedies, and defenses in addition Any notice required to be given to me will be effective
LATE CHARGES AND COLLECTION COSTS
to those stated in this MPN. if mailed by first class mail to the most recent address
ED may collect from me: (1) a late charge of not more ED has for me. I will immediately notify ED of a
DISCLOSURE OF LOAN TERMS than six cents for each dollar of each late payment change of address or status as specified in the
This MPN applies to Federal Direct Stafford/ if I fail to make any part of a required installment
Ford (Direct Subsidized) Loans and Federal Direct Borrower’s Rights and Responsibilities Statement.
payment within 30 days after it becomes due, and (2)
Unsubsidized Stafford/Ford (Direct Unsubsidized) If ED fails to enforce or insist on compliance with
any other charges and fees that are permitted by the
Loans. Under this MPN, the principal amount that I any term of this MPN, this does not waive any right
Act related to the collection of my loans. If I default
owe, and am required to repay, will be the sum of of ED. No provision of this MPN may be modified
on my loans, I will pay reasonable collection costs,
all disbursements that are made (unless I reduce or or waived except in writing by ED. If any provision
plus court costs and attorney fees.
cancel any disbursements as explained below under of this MPN is determined to be unenforceable, the
GRACE PERIOD remaining provisions will remain in force.
Loan Cancellation), plus any unpaid interest that is
I will receive a six-month grace period on repayment Information about my loans will be submitted to
capitalized and added to the principal amount.
of each loan made under this MPN. The grace period the National Student Loan Data System (NSLDS).
At or before the time of the first disbursement begins the day after I cease to be enrolled at least Information in NSLDS is accessible to schools,
of each loan, a disclosure statement will be sent
half-time at an eligible school. I am not required to lenders, and guarantors for specific purposes as
to me identifying the amount of the loan and make any payments on my loan during the grace authorized by ED.
additional terms of the loan. Important additional period. However, interest will accrue on my Direct
information is also contained in the Borrower’s Rights Unsubsidized Loan during the grace period and will NOTICE ABOUT SUBSEQUENT LOANS MADE
and Responsibilities Statement a companying this be capitalized if I do not repay it. UNDER THIS MPN
MPN. The Borrower’s Rights and Responsibilities
REPAYMENT This MPN authorizes ED to disburse multiple loans to
Statement and any disclosure statement I receive in
I must repay the full amount of the loans made under me to pay my educational expenses during the multi-
connection with any loan under this MPN are hereby
this MPN, plus accrued interest. I will repay each loan year term of this MPN, upon my request and upon my
incorporated into this MPN.
in monthly installments during a repayment period school’s annual certification of my loan eligibility.At
Loans disbursed under this MPN are subject to the
that begins on the day immediately following my 6- schools that are authorized to use the multi-year
annual and aggregate loan limits specified under the
month grace period on that loan. Payments made by feature of the MPN and choose to do so, subsequent
Act. I may request additional loan funds to pay for
me or on my behalf will be applied first to late charges loans may be made under this MPN for subsequent
my educational costs up to the annual and aggregate
and collection costs that are due, then to interest that academic years. At any school, subsequent loans
loan limits by contacting my school’s financial aid
has not been paid, and finally to the principal amount may be made under this MPN for the same academic
office. My school will determine if I am eligible for any
of the loan, except during periods of repayment under year.
additional loan funds. I will be notified of any increase
an Income-Based Repayment Plan, when payments I understand that no subsequent loans will be made
or other change in the amount of my loan.
will be applied first to interest that is due, then to fees under this MPN after the earliest of the following
My eligibility for Direct Subsidized Loans and Direct that are due, and then to the principal amount. dates: (1) the date ED or my school receives my
Unsubsidized Loans may increase or decrease
ED will provide me with a choice of repayment plans. written notice that no further loans may be made;
based on changes in my financial circumstances. My
Information on these repayment plans is included (2) one year after the date I sign the MPN or the
school will notify me of any changes in my eligibility.
in the Borrower’s Rights and Responsibilities date ED receives the MPN if no disbursements are
I will be notified of any increase or decrease in the
Statement. made under the MPN; or (3) ten years after the date
amount of my loan.
ED will provide me with a repayment schedule that I sign the MPN or the date ED receives the MPN.
I understand that each loan made under this MPN
identifies my payment amounts and due dates. If I Any amendment to the Act governs the terms of any
is separately enforceable based on a true and exact
am unable to make my scheduled loan payments, ED loan disbursed on or after the effective date of the
copy of this MPN.
may allow me to temporarily stop making payments, amendment, and any amended terms are considered
LOAN CANCELLATION part of this MPN.
reduce my payment amount, or extend the time for
I may pay back all or part of a disbursement within making payments, as long as I intend to repay my
the timeframes set by the Act, as explained in the loan. Allowing me to temporarily delay or reduce loan
Borrower’s Rights and Responsibilities Statement payments is called forbearance.
and in a disclosure statement that I will receive. If I ED may adjust payment dates on my loans or may
return the full loan amount within those timeframes, grant me forbearance to eliminate a delinquency
I will not incur any loan fee or interest charges. that remains even though I am making scheduled
If I return part of a disbursement within those installment payments.
timeframes, the loan fee and interest charges will be
I may prepay all or any part of the unpaid balance
reduced in proportion to the amount returned.
on my loans at any time without penalty. If I
INTEREST do not specify which loans I am prepaying, ED
Unless ED notifies me in writing of a lower rate, will determine how to apply the prepayment in
the interest rate for any loan I receive under this accordance with the Act. After I have repaid in full a
MPN is determined using a formula specified in loan made under this MPN, ED will send me a notice
the Act. As explained in the Borrower’s Rights and telling me that I have paid off my loan.
Responsibilities Statement, I will be notified of the ACCELERATION AND DEFAULT
actual interest rate for each loan that I receive.
At ED’s option, the entire unpaid balance of a loan
ED does not charge interest on a Direct Subsidized made under this MPN will become immediately due
Loan during an in school, grace, or deferment period, and payable (this is called “acceleration”) if any one
and during certain periods of repayment under of the following events occurs: at least a half-time
the Income-Based Repayment Plan. ED charges student at the school that certified my loan eligibility;
interest on a Direct Subsidized Loan during all other (2) I do not use the proceeds of the loan solely for my
periods (including forbearance periods), starting on educational expenses; (3) I make a false represent
the day after my grace period ends. ED charges ation that results in my receiving a loan for which I
interest on a Direct Unsubsidized Loan during all am not eligible; or (4) I default on the loan.
periods (including in-school, grace, deferment, and
The following events will constitute a default on my
forbearance periods), starting on the date of the
loan: (1) I do not pay the entire unpaid balance of the
first disbursement. I agree to pay all interest that
loan after ED has exercised its option under items
is charged to me. I will be given the opportunity to
(1), (2), and (3) in the preceding paragraph; (2) I do
pay the interest that accrues during grace, in school,
not make installment payments when due, provided
deferment, forbearance, or other periods as provided
my failure has persisted for at least 270 days; or
under the Act.
(3) I do not comply with other terms of the loan,
and ED reasonably concludes that I no longer intend
Page 2 of 8 Revised 03/2009
 Direct Subsidized Loan and Direct Unsubsidized Loan MPN (continued)
SECTION F: INSTRUCTIONS FOR COMPLETING THE MPN PRIVACY ACT NOTICE
The Privacy Act of 1974 (5 U.S.C. 552a) requires that the following notice be
This is a Master Promissory Note (MPN) under which you may receive multiple
provided to you:
Direct Subsidized Loans and/or Direct Unsubsidized Loans over a maximum ten-
year period. The authority for collecting the requested information from and about you is §451
of the Higher Education Act (HEA) of 1965, as amended (20 U.S.C. 1087a et seq.)
Print using a blue or black ink ballpoint pen or type. Do not use pebcil. Report all 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
dates as month-day-year (mm-dd-yyyy). Use only numbers. Example: June 24, 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
1982 = 06-24-1982. your SSN, to participate.
Some of the items in Section A may have been completed for you. If so, review The principal purposes for collecting the information on this form, including your
these items carefully to make sure that the information is correct. Cross out any SSN, are to verify your identity, to determine your eligibility to receive a loan or a
information that is incorrect and enter the correct information. Put your initials next benefit on a loan (such as a deferment, forbearance, discharge, or forgiveness)
to any information that you change. under the Direct Loan Program, to permit the servicing of your loan(s), and, if it
SECTION A: BORROWER INFORMATION 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
Item 1. Enter the two-letter abbreviation for the state that issued your current identifier and to permit you to access your account information electronically.
driver’s license, followed by your driver’s license number. If you do not have a The information in your file may be disclosed, on a case-by-case basis or
driver’s license, enter N/A. under a computer matching program, to third parties as authorized under routine
Item 2. Enter your nine-digit Social Security Number. uses in the appropriate systems of records notices. The routine uses of this
Item 3. Enter your preferred e-mail address for receiving communications. You information include, but are not limited to, its disclosure to federal, state, or local
are not required to provide this information. If you do, we may use your e-mail agencies, to private parties such as relatives, present and former employers,
address to communicate with you. If you do not have an e-mail address or do not business and personal associates, to consumer reporting agencies, to finacial and
wish to provide one, enter N/A. educational institutions, and to guaranty agencies in order to verify your identity,
Item 4. Enter your last name, then your first name and middle initial. Enter your to determine your eligibility to receive a loan or a benefit on a loan, to permit
permanent address (number, street, apartment number, or rural route number and the servicing or collection of your loan(s), to enforce the terms of the loan(s), to
box number, then city, state, zip code). If your mailing address is a post office box or investigate possible fraud and to verify compliance with federal student financial
general delivery, you must list both your street address and your mailing address. aid program regulations, or to locate you if you become delinquent in your loan
A temporary school address is not acceptable. payments or if you default. To provide default rate calculations, disclosures may
Item 5. Enter your date of birth. be made to guaranty agencies, to financial and educational institutions, or to state
Item 6. Enter the area code and telephone number at which you can most easily agencies. To provide financial aid history information, disclosures may be made
be reached. If you do not have a telephone, enter N/A. to educational institutions. To assist program administrators with tracking refunds
and cancellations, disclosures may be made to guaranty agencies, to financial and
Item 7. Enter the requested information for two adults with different U.S
educational institutions, or to federal or state agencies. To provide a standardized
addresses who have known you for at least three years. The first reference should
method for educational institutions to efficiently submit student enrollment status,
be a parent or legal guardian. References who live outside the United States are
disclosures may be made to guaranty agencies or to financial and educational
not acceptable. If a reference does not have a telephone number, enter N/A.
institutions. To counsel you in repayment efforts, disclosures may be made to
guaranty agencies, to financial and educational institutions, or to federal, state, or
SECTION B: SCHOOL INFORMATION local agencies.
This section will be completed by the school that certifies your loan eligibility. 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
SECTION C: BORROWER REQUEST, CERTIFICATIONS, AUTHORIZATIONS, necessary to the litigation. If this information, either alone or with other information,
AND UNDERSTANDINGS 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
Items 11, 12, 13, 14, and 15. Read these items carefully.
help you with federal student aid questions. In circumstances involving employment
complaints, grievances, or disciplinary actions, we may disclose relevant records
SECTION D: PROMISE TO PAY to adjudicate or investigate the issues. If provided for by a collective bargaining
Item 16. Read this item carefully. 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
Items 17 and 18. Sign your full legal name, in blue or black ink, and enter the performing any programmatic function that requires disclosure of records. Before
making any such disclosure, we will require the contractor to maintain Privacy Act
date you signed this MPN. safeguards. Disclosures may also be made to qualified researchers under Privacy
Act safeguards.
By signing this MPN, you: FINANCIAL PRIVACY ACT NOTICE
Under the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401-3421), ED will
(1) Acknowledge that you have read, understand, and agree to the terms have access to financial records in your student loan file maintained in compliance
and conditions of the MPN, including the Borrower Request, Certifications, with the administration of the Direct Loan Program.
Authorizations, and Understanding in Section C and the accompanying Borrower’s
PAPERWORK REDUCTION NOTICE
Rights and Responsibilities Statement; and
(2) Agree to repay the loan(s) in full according to the terms and conditions of the According to the Paperwork Reduction Act of 1995, no persons are required to
MPN. respond to a collection of information unless it displays a currently valid OMB
control number. The valid OMB control number for this information collection is
1845-0007. The time required to complete this information collection is estimated
to average 0.5 hours (30 minutes) per response, including the time to review
instructions, search existing data sources, gather and maintain the data needed,
and complete and review the information. If you have any comments concerning
the accuracy of the time estimate(s) or suggestions for mproving the form, please
SECTION G: IMPORTANT NOTICES write to: U.S. Department of Education, Washington, DC 20202-4537.
GRAMM-LEACH-BLILEY ACT NOTICE
In 1999, Congress enacted the Gramm-Leach-Bliley Act (Public Law 106-102). If you have any comments or concerns regarding the status of your individual
This Act requires that lenders provide certain information to their customers submission of this form, write directly to:
regarding the collection and use of nonpublic personal information.
U.S. Department of Education
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 Common Origination and Disbursement School Relations Center
the Privacy Act Notice below. We do not sell or otherwise make available any Attn: Applicant Services
information about you to any third parties for marketing purposes. PO Box 9002
We protect the security and confidentiality of nonpublic personal information by Niagara Falls, NY 14302
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.

Page 3 of 8 Revised 03/2009

William D. Ford Federal Direct Loan Program
Direct Unsubsidized Loan Borrower's Rights and Responsibilities Statement
Important Notice: This Borrower’s Rights and If you do not want to receive more than one loan under The actual amount you receive for an academic year
Responsibilities Statement provides additional this MPN, you must notify your school or the Direct may be less than the maximum annual amounts shown
information about the terms and conditions of the Loan Servicing Center in writing. in the charts.
loans you receive under the accompanying Master If you are an undergraduate student, your school
5. Use of your loan money. You may use the loan
Promissory Note (MPN) for Federal Direct Stafford/Ford must determine your eligibility for a Federal Pell Grant
money you receive only to pay for your authorized
Loans (Direct Subsidized Loans) and Federal Direct before you may receive a Direct Subsidized Loan or
educational expenses for attendance at the school
Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Direct Unsubsidized Loan. Your school is also required
that determined you were eligible to receive the loan.
Loans). Please keep this Borrower’s Rights and to determine your eligibility for a Direct Subsidized
Authorized expenses include the following:
Responsibilities Statement for your records. You may Loan before determining your eligibility for a Direct
request another copy of this Borrower's Rights and • Tuition
Unsubsidized Loan.
Responsibilities Statement at any time by contacting the • Room
Direct Loan Servicing Center. • Board If you have received student loans from another federal
• Institutional fees student loan program, you are responsible for informing
Throughout this Borrower’s Rights and Responsibilities • your school and your lender of your other student loans.
Books
Statement, the words “we,” “us,” and “our” refer to the • In some cases, you may not be eligible for loans for
Supplies
U.S.Department of Education. The word “loan” refers to • which you have applied.
Equipment
one or more loans made under the accompanying MPN. • Dependent child care expenses Annual Loan Limits for Direct Subsidized Loans and
1. The William D. Ford Federal Direct Loan Program. • Transportation Direct Unsubsidized Loans:
The William D. Ford Federal Direct Loan (Direct Loan) • Commuting expenses
Program includes the following types of loans, known • Rental or purchase of a personal computer Dependent Undergraduate Students
collectively as “Direct Loans”: • Loan fees (except students whose parents cannot
• Other documented, authorized costs
• Federal Direct Stafford/Ford Loans (Direct borrow PLUS loans)
Subsidized Loans) 6. Information you must report to us after you
First Year Total $5,500
• Federal Direct Unsubsidized Stafford/Ford Loans receive your loan. You must notify the Direct Loan
(maximum $3,500 subsidized)
(Direct Unsubsidized Loans) Servicing Center and/or the financial aid office at your
• Federal Direct PLUS Loans (Direct PLUS Loans) school about certain changes. Second Year Total $6,500
• Federal Direct Consolidation Loans (Direct Until you graduate or otherwise leave school, you must (maximum $4,500 subsidized)
Consolidation Loans) notify your school’s financial aid office if you:
The Direct Loan Program is authorized by Title IV, Part Third Year and Beyond (each year) $7,500
• Change your address or telephone number; (maximum $5,500 subsidized)
D, of the Higher Education Act of 1965, as amended.
• Change your name (for example, maiden name to
You must complete a Free Application for Federal married name); Independent Undergraduate Students
Student Aid (FAFSA) before you receive a Direct • Do not enroll at least half-time for the loan period (and dependent students whose parents
Subsidized Loan or Direct Unsubsidized Loan. certified by the school cannot borrow PLUS loans)
Direct Loans are made by the U.S. Department of • Do not enroll at the school that determined you were
First Year Total $9,500
Education. Our Direct Loan Servicing services, answers eligible to receive the loan;
(maximum $3,500 subsidized)
questions about, and processes payments on Direct • Stop attending school or drop below half-time
Loans. We will provide you with the address and enrollment; Second Year $10,500
telephone number of the Loan Servicing Center after • Transfer from one school to another school; or (maximum $4,500 subsidized)
the school notifies us that the first disbursement of your • Graduate.
loan has been made. Third Year and Beyond (each year) $12,500
You must also notify the Direct Loan Servicing Center
(maximum $5,500 subsidized)
2. Laws that apply to this MPN. The terms and if any of the above events occur at any time after you
conditions of loans made under this MPN are receive your loan. In addition, you must notify the Direct Graduate and Professional Students
determined by the Higher Education Act of 1965, as Loan Servicing Center if you:
amended (20 U.S.C. 1070 et seq.) and other applicable Total Amount (each year) $20,500
• Change your employer, or your employer’s address
federal laws and regultions. These laws and regulations (maximum $8,500 subsidized)
or telephone number changes; or
are referred to as “the Act” throughout this Borrower’s • Have any other change in status that would affect Aggregate Loan Limits for Direct Subsidized and
Rights and Responsibilities Statement. State law, your loan (for example, if you received a deferment Direct Unsubsidized Loans:
unless it is preempted by federal law, may provide you while you were unemployed, but you have found
with certain rights, remedies, and defenses in addition a job and therefore no longer meet the eligibility Dependent Undergraduate Students
to those stated in the MPN and this Borrower’s Rights requirements for the deferment). (except students whose parents cannot
and Responsibilities Statement.
7. Amount you may borrow. The charts that follow borrow PLUS loans)
NOTE: Any change to the Act applies to loans in show the maximum amounts of Direct Subsidized
accordance with the effective date of the change. Total Amount Cumulative $31,000
Loans and Direct Unsubsidized Loans that you may
(maximum $23,000 subsidized)
3. Direct Subsidized Loans and Direct Unsubsidized borrow for a single academic year (annual loan limits),
Loans. Direct Subsidized Loans and Direct and the maximum amounts that you may borrow in Independent Undergraduate Students
Unsubsidized Loans are made to students to help total for undergraduate and graduate study (aggregate (and dependent students whose parents
pay for the cost of education beyond high school. loan limits). The annual and aggregate loan limits for cannot borrow PLUS loans)
To receive a Direct Subsidized Loan, you must have independent undergraduates also apply to dependent
financial need. We do not charge interest on Direct undergraduates whose parents are unable to borrow Total Amount Cumulative $57,500
Subsidized Loans while you are in school and during under the PLUS program. If you are enrolled in certain (maximum $23,000 subsidized)
certain other periods. Direct Unsubsidized Loans are health professions programs, you may qualify for higher
annual and aggregate limits on Direct Unsubsidized Graduate and Professional Students
not based on financial need. We charge interest on
Direct Unsubsidized Loans during all periods. For Loans. $138,500
Total Amount Cumulative
more information on interest charges, see item #9 of The actual loan amount you receive will be determined (maximum $65,500 subsidized;
this Borrower’s Rights and Responsibilities Statement by your school, based on your academic level, includes Stafford Loans received
(“Payment of interest”). dependency status, and other factors such as: for undergraduate study)
4. About the MPN. You may receive more than one •The length of the program or the remaining portion of 8. Interest rate. The interest rate on Direct Subsidized
loan under this MPN over a period of up to 10 years to the program in which you are enrolled, if it is less Loans and Direct Unsubsidized Loans is a fixed rate.
pay for your educational costs, as long as the school than a full academic year; Different fixed interest rates may apply to separate
you are attending is authorized to use the multi-year •Your cost of attendance; loans made under this MPN depending on whether
feature of the MPN and chooses to do so. •Your Expected Family Contribution; the loan is subsidized or unsubsidized, when the loan
If your school is not authorized to use the multi-year •Other financial aid you receive; and is first disbursed, and whether you are a graduate or
feature of the MPN or chooses not to do so, or if you do •Your remaining eligibility under the annual or aggregate undergraduate student. You will be notified of the actual
not want to receive more than one loan under this MPN, loan limits. interest rate for each loan you receive in a disclosure
you must sign a new MPN for each loan that you rceive. statement that we send to you. If you qualify under
Page 4 of 8 Revised 03/2009
William D. Ford Federal Direct Loan Program
Direct Unsubsidized Loan Borrower's Rights and Responsibilities Statement
the Servicemembers Civil Relief Act, the interest rate You may be able to claim a federal income tax you must complete entrance counseling before your
on your loans obtained prior to military service may deduction for interest payments you make on Direct school can make the first disbursement of your loan.
be limited to 6 percent during your military service. To Loans. For further information, refer to IRS Publication
Your school may disburse your loan money by crediting
receive this benefit, you must contact the Direct Loan 970, which is available at http://www.irs.ustreas.gov.
it to your account at the school, or may give some or
Servicing for information about the documentation you
10. Loan fee. We charge a loan fee that is a all of it to you directly by check or other means. The
must provide to show that you qualify.
percentage of the principal amount of each loan you DirectLoanServicingCenter will notify you in writing each
9. Payment of interest. We do not charge interest receive. The percentage is determined by the Act and time your school disburses part of your loan money.
on a Direct Subsidized Loan while you are enrolled varies depending on when a loan is first disbursed. The
If your school credits your loan money to your account
in school at least half -time, during your grace period, specific loan fee that you are charged will be shown on
and the amount credited is more than the amount
during deferment periods, and during certain periods of a disclosure statement that we send to you. This fee will
of your tuition and fees, room and board, and other
repayment under the Income-Based Repayment Plan. be subtracted proportionally from each disbursement of
authorized charges, the excess amount is called a
Except as provided below for certain military borrowers, your loan.
credit balance. Unless you authorize your school to hold
we charge interest on a Direct Subsidized Loan during
11. Repayment incentive programs. A repayment the credit balance for you, your school must pay you the
all other periods (starting on the day after your grace
incentive is a benefit that we offer to encourage you to credit balance within the following timeframes:
period ends), including forbearance periods.
repay your loan on time. Under a repayment incentive • If the credit balance occurs after the first day of class
Except as provided below for certain military borrowers, program, the interest rate we charge on your loan
of a payment period (your school can tell you this
we charge interest on a Direct Unsubsidized Loan may be reduced. Some repayment incentive programs
date), your school must pay you the credit balance
during all periods (starting on the day your loan is paid require you to make a certain number of payments
no later than 14 days after the date the balance
out). This includes periods while you are enrolled in on time to keep the reduced interest rate. The two
occurs.
school at least half- time, during your grace period, and repayment incentive programs described below may be
during deferment and forbearance periods. Therefore, available to you. The DirectLoanServicingCenter can • If the credit balance occurs on or before the first day
you will pay more interest on a Direct Unsubsidized provide you with more information on other repayment of class of a payment period, your school must pay
Loan than on a Direct Subsidized Loan. incentive programs that may be available. you the credit balance no later than 14 days after the
first day of class of the payment period.
If you do not pay the interest as it is charged on either (1) Interest Rate Reduction for Electronic Debit Account
type of loan, we will add it to the unpaid principal Repayment 13. Canceling your loan. Before your loan money is
amount of your loan. This is called “capitalization.” disbursed, you may cancel all or part of your loan at any
Under the Electronic Debit Account (EDA) repayment
Capitalization increases the unpaid principal balance time by notifying your school. After your loan money is
option, your bank automatically deducts your monthly
of your loan, and we will then charge interest on the disbursed, there are two ways to cancel all or part of
loan payment from your checking or savings account
increased principal amount. your loan:
and sends it to us. EDA helps to ensure that your
Under the no accrual of interest benefit for active payments are made on time. In addition, you receive • If your school obtains your written confirmation of
duty service members, we do not charge interest a 0.25 percent interest rate reduction while you repay the types and amounts of Title IV loans that you
on Direct Loan Program Loans first disbursed on or under the EDA option. We will include information about want to receive for an award year before crediting
after October 1, 2008 during periods of qualifying the EDA option in your first bill. You can also get the loan money to your account at the school, you may
active duty military service (for up to 60 months). For information on the Direct >Loan Servicing Center’s web tell the school that you want to cancel all or part of
Direct Consolidation Loans, this benefit applies to the site, or by calling the Direct Loan Servicing Center. that loan within 14 days after the date the school
portion of the consolidation loan that repaid loans first The Direct Loan Servicing Center’s web site address notifies you of your right to cancel all or part of the
disbursed on or after October 1, 2008. and toll-free telephone number are provided on all loan, or by the first day of your school’s payment
correspondence that the DirectLoan Servicing Center period, whichever is later (your school can tell you
The chart below shows the difference in the total
sends you. the first day of the payment period). If the school
amount you would repay on a $15,000 Direct
does not obtain your written confirmation of the
Unsubsidized Loan if you pay the interest as it is (2)Up-Front Interest Rebate
types and amounts of loans you want to receive
charged during a 12-month deferment or forbearance
You may receive an up-front interest rebate on your before crediting the loan money to your account, you
period, compared to the amount you would repay if you
loan. The rebate is equal to a percentage of the loan may cancel all or part of that loan by informing the
do not pay the interest and it is capitalized.
amount that you borrow. This is the same amount school within 30 days of the date the school notifies
If you If you do that would result if the interest rate on your loan were you of your right to cancel all or part of the loan. In
pay the not pay the lowered by a specific percentage, but you receive the either case, your school will return the cancelled
interest interest and it rebate up front. The correspondence that you receive loan amount to us. You do not have to pay interest
as it is is capitalized… about your loan will tell you if you received an up-front or the loan fee on the part of your loan that you tell
charged… interest rebate. your school to cancel within these timeframes. If you
Loan $15,000 $15,000 received an up-front interest rebate on your loan,
To keep an up-front interest rebate that you receive on
Amount the rebate does not apply to the part of your loan
your loan, you must make all of your first 12 required
that you tell your school to cancel. Your loan will
Interest for $1,020 $1,020 monthly payments on time when your loan enters
be adjusted to eliminate any interest, loan fee, and
12 months (paid as (unpaid and repayment. “On time” means that we must receive each
rebate amount that applies to the amount of the loan
(at an accrued) capitalized) payment no later than 6 days after the due date.
that was cancelled.
interest rate You will lose the rebate if you do not make all of your
of 6.8%) If you ask your school to cancel all or part of your
first 12 required monthly payments on time. If you
loan outside the timeframes described above, your
Principal to $15,000 $16,020 lose the rebate, we will add the rebate amount back
school may process your cancellation request, but it
be Repaid to the principal balance on your loan account. This will
is not required to do so.
Monthly $173 $184 increase the amount that you must repay.
Payment • Within 120 days of the date your school disbursed
12. Disbursement (how your loan money will be
your loan money (by crediting the loan money to
(Standard paid out). Generally, your school will disburse (pay out)
your account at the school, by paying it directly to
Repayment your loan money in more than one installment, usually
you, or both), you may return all or part of your loan
Plan) at the beginning of each academic term (for example,
to us. Contact the DirectLoanServicingCenter for
Number of 120 120 at the beginning of each semester or quarter). If your
guidance on how and where to return your loan
Payments school does not use academic terms or does not have
money. You do not have to pay interest or the
Total $21,734 $22,123 academic terms that meet certain requirements, it will
loan fee on the part of your loan that you return
Amount generally disburse your loan in at least two installments,
within 120 days of the date that part of your loan
Repaid one at the beginning of the period of study for which you
is disbursed. If you received an up-front interest
are receiving the loan, and one at the midpoint of that
rebate on your loan, the rebate does not apply to
period of study.
the part of your loan that you return. Your loan will
In this example, you would pay $11 less per month be adjusted to eliminate any interest, loan fee, and
In most cases, if the Direct Subsidized Loan or Direct
and $389 less altogether if you pay the interest as it is rebate amount that applies to the amount of the loan
Unsubsidized Loan that you are receiving is your first
charged during a 12-month deferment or forbearance that you return.
student loan under either the Direct Loan Program or
period. the Federal Family Education Loan (FFEL) Program,

Page 5 of 8 Revised 03/2009

William D. Ford Federal Direct Loan Program
Direct Unsubsidized Loan Borrower's Rights and Responsibilities Statement
14. Grace period. You will receive a six-month grace after 25 years under this plan, the unpaid portion will • You will lose eligibility for loan deferments.
period on repayment of each Direct Subsidized Loan be forgiven. You may have to pay income tax on any • We will report your default to national consumer
and Direct Unsubsidized Loan that you receive. Your amount forgiven. reporting agencies (see #19, “Consumer reporting
six-month grace period begins the day after you stop agency notification”).
• Income-Based Repayment Plan (effective July
attending school or drop below half-time enrollment.
1, 2009) – Under this plan, your required monthly 19. Consumer reporting agency notification. We will
You do not have to begin making payments on your
payment amount will be based on your income report information about your loan to national consumer
loan until after your grace period ends.
during any period when you have a partial financial reporting agencies. This information will include the
If you are called or ordered to active duty for more hardship. Your monthly payment amount may be disbursement dates, amount, and repayment status
than 30 days from a reserve component of the U.S. adjusted annually. The maximum repayment period of your loan (for example, whether you are current
Armed Forces, the period of your active duty service under this plan may exceed 10 years. If you meet or delinquent in making payments). Your loan will be
and the time necessary for you to re-enroll in school certain requirements over a 25-year period, you may identified as an education loan.
after your active duty ends are not counted as part of qualify for cancellation of any outstanding balance
If you default on a loan, we will also report this to
your grace period. However, the total period that is on your loans.
national consumer reporting agencies. We will notify
excluded from your grace period may not exceed three
If you can show to our satisfaction that the terms you at least 30 days in advance that we plan to report
years. If the call or order to active duty occurs while you
and conditions of the above repayment plans are not default information to a consumer reporting agency
are in school and requires you to drop below half-time
adequate to meet your exceptional circumstances, we unless you resume making payments on the loan within
enrollment, the start of your grace period will be delayed
may provide you with an alternative repayment plan. 30 days. You will be given a chance to ask for a review
until after the end of the excluded period. If the call or
of the debt before we report it.
order to active duty occurs during your grace period, If you do not choose a repayment plan, we will place
you will receive a full six-month grace period at the end you on the Standard Repayment Plan. If a consumer reporting agency contacts us regarding
of the excluded period. objections you have raised about the accuracy or
The chart at the end of this Borrower’s Rights and
completeness of any information we have reported,
15. Repaying your loan. The repayment period for Responsibilities Statement (“Repaying Your Loans”)
we are required to provide the agency with a prompt
each Direct Subsidized Loan and Direct Unsubsidized allows you to estimate the monthly and total amounts
response.
Loan that you receive begins on the day after your you would repay under the Standard, Graduated,
grace period ends. The DirectLoanServicingCenter will Extended, and Income Contingent repayment plans 20. Deferment and forbearance (postponing
notify you of the date your first payment is due. based on various initial loan amounts. payments)

You must make payments on your loan even if you do You may change repayment plans at any time after you If you meet certain requirements, you may receive
not receive a bill or repayment notice. Billing information have begun repaying your loan. There is no penalty if a deferment that allows you to temporarily stop
is sent to you as a convenience, and you are obligated you make loan payments before they are due, or pay making payments on your loan. If you cannot make
to make payments even if you do not receive a notice or more than the amount due each month. your scheduled loan payments, but do not qualify
bill. for a deferment, we may give you a forbearance. A
Except as provided by the Act for payments made
forbearance allows you to temporarily stop making
You may choose one of the following repayment plans under the Income-Based Repayment Plan, we apply
payments on your loan, temporarily make smaller
to repay your loan: your payments and prepayments in the following
payments, or extend the time for making payments.
order: (1) late charges and collection costs first, (2)
• Standard Repayment Plan – Under this plan, you Deferment
outstanding interest second, and (3) outstanding
will make fixed monthly payments and repay your
principal last.
loan in full within 10 years (not including periods of You may receive a deferment while you are:
deferment or forbearance) from the date the loan When you have repaid a loan in full, the • Enrolled at least half-time at an eligible school;
entered repayment. Your payments must be at least DirectLoanServicingCenter will send you a notice telling • In a full-time course of study in a graduate fellowship
$50 a month and will be more, if necessary, to repay you that you have paid off your loan. You should keep
program;
the loan within the required time period. this notice in a safe place. • In an approved full-time rehabilitation program for
• Graduated Repayment Plan – Under this plan, you 16. Late charges and collection costs. If you do not individuals with disabilities;
will usually make lower payments at first, and your make any part of a payment within 30 days after it is • Unemployed (for a maximum of three years; you
payments will gradually increase over time. You will due, we may require you to pay a late charge. This must be diligently seeking, but unable to find, full-
repay your loan in full within 10 years (not including charge will not be more than six cents for each dollar time employment); or
periods of deferment or forbearance) from the date of each late payment. If you do not make payments • Experiencing an economic hardship (including
the loan entered repayment. No single payment will as scheduled, we may also require you to pay other Peace Corps service), as determined under the Act
be more than three times greater than any other charges and fees involved in collecting your loan. (for a maximum of three years).
payment. • Serving on active duty during a war or other military
17. Demand for immediate repayment. The entire
operation or national emergency or performing
• Extended Repayment Plan – Under this plan, unpaid amount of your loan becomes due and payable
qualifying National Guard duty during a war or
you will repay your loan in full over a period not to (on your MPN this is called “acceleration”) if you:
other military operation or national emergency
exceed 25 years (not including periods of deferment • Receive loan money, but do not enroll at least half- and, if you were serving on or after October 1,
or forbearance) from the date the loan entered time at the school that determined you were eligible 2007, for an additional 180-day period following the
repayment. You may choose to make fixed monthly to receive the loan; demobilization date for your qualifying service.
payments or graduated monthly payments that • Use your loan money to pay for anything other than
start out lower and gradually increase over time. If If you are a member of the National Guard or other
expenses related to your education at the school
you make fixed monthly payments, your payments reserve component of the U.S. Armed forces (current
that determined you were eligible to receive the loan;
must be at least $50 a month and will be more, if • Make a false statement that causes you to receive a or retired) and you are called or ordered to active duty
necessary, to repay the loan within the required time while you are enrolled at least half- time at an eligible
loan that you are not eligible to receive; or
period. You are eligible for this repayment plan only • Default on your loan. school or within 6 months of having been enrolled at
if (1) you have an outstanding balance on Direct least half- time, you are also eligible for a deferment
Loan Program loans that exceeds $30,000, and 18. Defaulting on your loan. Default (failing to during the 13 months following the conclusion of your
(2) you had no outstanding balance on a Direct repay your loan) is defined in detail in the Terms and active duty service, or until you return to enrolled
Loan Program loan as of October 7, 1998 or on the Conditions section of your MPN. If you default: student status on at least a half-time basis, whichever is
date you obtained a Direct Loan Program loan after • We will require you to immediately repay the entire earlier.
October 7, 1998. unpaid amount of your loan. You may be eligible to receive additional deferments
• Income Contingent Repayment Plan – Under this • We may sue you, take all or part of your federal if, at the time you received your first Direct Loan, you
plan, your monthly payment amount will be based on and state tax refunds and other federal or state had an outstanding balance on a loan made under the
your annual income (and that of your spouse if you payments, and/or garnish your wages so that your Federal Family Education Loan (FFEL) Program before
are married), your family size, and the total amount employer is required to send us part of your salary to July 1, 1993. If you meet this requirement, you may
of your Direct Loans. Until we obtain the information pay off your loan. receive a deferment while you are:
needed to calculate your monthly payment amount, • We will require you to pay reasonable collection fees
• Temporarily totally disabled, or unable to work
your payment will equal the amount of interest and costs, plus court costs and attorney fees.
• You may be denied a professional license. because you are required to care for a spouse or
that has accrued on your loan unless you request dependent who is disabled (for a maximum of three
a forbearance. As your income changes, your • You will lose eligibility for other federal student aid
years);
payments may change. If you do not repay your loan and assistance under most federal benefit programs.
Page 6 of 8 Revised 03/2009
William D. Ford Federal Direct Loan Program
Direct Unsubsidized Loan Borrower's Rights and Responsibilities Statement
• On active duty in the U.S. Armed Forces, on active paid by the Corporation for National and Community plans while you are employed in certain public service
duty in the National Oceanic and Atmospheric Service; jobs.
Administration (NOAA), or serving full-time as an • You are performing service that would qualify you for
The Act may provide for certain loan forgiveness
officer in the Commissioned Corps of the Public loan forgiveness under the teacher loan forgiveness
or repayment benefits on your loans in addition to
Health Service (for a combined maximum of three program that is available to certain Direct Loan and
the benefits described above. If other forgiveness
years); FFEL program borrowers;
or repayment options become available, the
• Serving in the Peace Corps (for a maximum of three • You qualify for partial repayment of your loans
DirectLoanServicingCenter will provide information
years); under the Student Loan Repayment Program, as
about these benefits.
• A full-time paid volunteer for a tax-exempt administered by the Department of Defense; or
organization or an ACTION program (for a maximum • You are called to active duty in the U.S. Armed To request a loan discharge based on one of the
of three years); Forces. conditions described above (except for discharges
• In a medical internship or residency program (for a due to death or bankruptcy), you must complete
To request a forbearance, contact
maximum of two years); an application that you may obtain from the
the DirectLoanServicingCenter. The
• Teaching in a designated teacher shortage area (for DirectLoanServicingCenter.
DirectLoanServicingCenter can provide you with a
a maximum of three years); In some cases, you may assert, as a defense against
forbearance request form that explains the eligibility and
• On parental leave (for a maximum of six months); or
documentation requirements for the type of forbearance collection of your loan, that the school did something
• A working mother entering or re-entering the
you are requesting. You may also obtain forbearance wrong or failed to do something that it should have
workforce (for a maximum of one year). done. You can make such a defense against repayment
request forms and information on forbearance eligibility
You may receive a deferment based on your enrollment requirements from the DirectLoanServicingCenter’s web only if the school’s act or omission directly relates to
in school on at least a half-time basis if (1) you submit site. your loan or to the educational services that the loan
a deferment request form to the Direct Loan Servicing was intended to pay for, and if what the school did or
Under certain circumstances, we may also give you a
Center along with documentation of your eligibility for did not do would give rise to a legal cause of action
forbearance without requiring you to submit a request or
the deferment, or (2) the Direct Loan Servicing Center against the school under applicable state law. If you
documentation. These circumstances include, but are
receives information from the school you are attending believe that you have a defense against repayment of
not limited to, the following:
that indicates you are enrolled at least half-time. If the your loan, contact the DirectLoanServicingCenter.
DirectLoanServicingCenter processes a deferment • Periods necessary for us to determine your eligibility
We do not guarantee the quality of the academic
based on information received from your school, you for a loan discharge;
programs provided by schools that participate in federal
will be notified of the deferment and will have the option • A period of up to 60 days in order for us to collect
student financial aid programs. You must repay your
of canceling the deferment and continuing to make and process documentation related to your request
loan even if you do not complete the education paid for
payments on your loan. for a deferment, forbearance, change in repayment
with the loan, are unable to obtain employment in the
plan, or consolidation loan (we do not capitalize the
For all other deferments, you (or, for a deferment field of study for which your school provided training, or
interest that is charged during this period); or
based on active duty military service or qualifying are dissatisfied with, or do not receive, the education
• Periods when you are involved in a military
National Guard duty during a war or other military you paid for with the loan.
mobilization, or a local or national emergency.
operation or national emergency, a representative 22. Loan consolidation. A Direct Consolidation Loan
acting on your behalf) must submit a deferment You are responsible for paying the interest on both
Program is available that allows you to consolidate
request form to the Direct Loan Servicing Center, Direct Subsidized Loans and Direct Unsubsidized
(combine) one or more of your eligible federal education
along with documentation of your eligibility for the Loans during a period of forbearance.
loans into one loan. Consolidation allows you to extend
deferment. In certain circumstances, you may not be 21. Discharge (having your loan forgiven). We will the period of time that you have to repay your loans,
required to provide documentation of your eligibility discharge (forgive) your loan if: and to combine several loan debts into a single monthly
if the DirectLoanServicingCenter confirms that you payment. This may make it easier for you to repay your
have been granted the same deferment for the • You die. The DirectLoanServicingCenter must
loans. However, you will pay more interest if you extend
same period of time on a FFEL Program loan. The receive acceptable documentation of your death, as
your repayment period through consolidation, since
DirectLoanServicingCenter can provide you with a defined in the Act.
• Your loan is discharged in bankruptcy. However, you will be making payments for a longer period of
deferment request form that explains the eligibility and time. Contact the DirectLoanServicingCenter for more
documentation requirements for the type of deferment federal student loans are not automatically
information about loan consolidation.
you are requesting. You may also obtain deferment discharged if you file for bankruptcy. In order to have
request forms and information on deferment eligibility your loan discharged in bankruptcy, you must prove 23. Department of Defense and other federal agency
requirements from the DirectLoanServicingCenter’s web to the bankruptcy court that repaying the loan would loan repayment. Under certain circumstances, military
site. cause undue hardship. personnel may have their federal education loans
• You become totally and permanently disabled repaid by the Secretary of Defense. This benefit is
If you are in default on your loan, you are not eligible for (as defined in the Act) and meet certain other offered as part of a recruitment program that does not
a deferment. requirements. apply to individuals based on their previous military
You are not responsible for paying the interest on a service or to those who are not eligible for enlistment in
In certain cases, we may also discharge all or a portion
Direct Subsidized Loan during a period of deferment. the U.S. Armed Forces. For more information, contact
of your loan if:
However, you are responsible for paying the interest your local military service recruitment office.
on a Direct Unsubsidized Loan during a period of • You could not complete a program of study because
Other agencies of the federal government may also
deferment. the school closed;
• Your loan eligibility was falsely certified by the offer student loan repayment programs as an incentive
Forbearance to recruit and retain employees. Contact the agency’s
school;
• A loan in your name was falsely certified as a result human resources department for more information.
We may give you a forbearance if you are temporarily
unable to make your scheduled loan payments for of a crime of identity theft; or 24. AmeriCorps program education awards. Under
reasons including, but not limited to, financial hardship • The school did not pay a refund of your loan money the National and Community Service Act of 1990, you
and illness. that it was required to pay under federal regulations. may receive an education award that can be used to
repay a Direct Subsidized Loan or Direct Unsubsidized
We will give you a forbearance if: We may forgive a portion of any student loans you
Loan if you successfully complete a term of service in
received under the Direct Loan or FFEL program
• You are serving in a medical or dental internship an AmeriCorps program. For more information, contact
after October 1, 1998 if you teach full time for five
or residency program, and you meet specific an official of your program.
consecutive years in certain low-income elementary
requirements;
and/or secondary schools and meet certain other
• The total amount you owe each month for all of the
qualifications, and if you did not owe a Direct Loan or
student loans you received under Title IV of the Act
FFEL program loan as of October 1, 1998, or as of the
is 20 percent or more of your total monthly gross
date you obtain a loan after October 1, 1998.
income (for a maximum of three years);
• You are serving in a national service position for A public service loan forgiveness program is also
which you receive a national service award under available Under this program, the remaining balance
the National and Community Service Trust Act of due on your eligible Direct Loan Program loans may be
1993. In some cases, the interest that accrues on cancelled after you have made 120 payments on those
a qualified loan during the service period will be loans (after October 2, 2007) under certain repayment

Page 7 of 8 Revised 03/2009

William D. Ford Federal Direct Loan Program
Direct Unsubsidized Loan Borrower's Rights and Responsibilities Statement
1
Repaying Your Loans
5, 6 5, 6 5, 6
Income Contingent Income Contingent Income Contingent
Income = $15,000 Income = $15,000 Income = $15,000
Initial Standard Extended
2, 3 Graduated
7 7 7
Debt Single Married/HOH Single Married/HOH Single Married/HOH
When 4
Per Per Per Per Per Per Per Per Per
You Total Total Total Total Total Total Total Total Total
Enter Month Month Month Month Month Month Month Month Month
Repayment
3,500 50 4,471 Not Available 25 5,157 21 6,939 20 6,673 27 6,092 25 6,405 36 5,128 36 5,128
5,000 58 6,905 Not Available 40 7,278 30 9,912 29 9,533 38 8,703 36 9,150 51 7,326 51 7,326
5,500 63 7,595 Not Available 43 8,007 33 10,903 30 10,463 42 9,574 40 10,065 56 8,059 56 8,059
7,500 86 10,357 Not Available 59 10,919 45 14,868 30 14,019 57 13,055 54 13,725 76 10,989 76 10,989
10,500 121 14,500 Not Available 83 15,283 64 20,815 30 18,877 80 18,277 76 19,215 107 15,385 107 15,385
15,000 173 20,714 Not Available 119 21,834 87 29,685 30 25,229 114 26,110 108 27,451 153 21,978 153 21,978
18,500 213 25,548 Not Available 146 26,929 87 35,992 30 29,465 140 32,203 134 33,856 188 27,106 188 27,106
23,000 265 31,762 Not Available 182 33,479 87 43,141 30 34,128 174 40,036 166 42,091 234 33,699 234 33,699
30,000 345 41,429 Not Available 237 43,668 87 52,340 30 39,756 228 52,221 197 55,743 407 43,956 407 43,956
40,000 460 55,239 277 83,289 316 58,229 87 62,005 30 44,827 253 72,717 197 84,352 468 58,608 468 58,608
46,000 529 63,524 319 95,782 363 66,956 87 66,084 30 46,378 253 89,828 197 105,472 509 67,399 509 67,399
50,000 575 69,048 347 104,111 395 72,778 87 68,153 30 46,860 253 103,268 197 111,575 587 73,260 587 73,260
60,000 690 82,858 391 140,816 474 87,334 87 71,219 30 46,934 253 136,615 197 124,085 587 88,251 587 88,251
70,000 806 96,667 456 164,285 535 101,890 87 71,721 30 46,934 253 148,551 197 133,106 587 106,551 587 106,551
80,000 920 110,477 522 187,754 632 116,445 87 71,721 30 46,934 253 157,373 197 138,907 587 128,146 587 128,146
90,000 1,036 124,287 587 211,224 711 131,002 87 71,721 30 46,934 253 163,227 197 141,925 587 152,967 587 152,967
100,000 1,151 138,096 652 234,693 790 145,556 87 71,721 30 46,934 253 166,457 197 142,386 587 181,224 587 181,224
110,000 1,266 151,906 717 258,162 869 160,111 87 71,721 30 46,934 253 167,172 197 142,386 587 213,485 587 213,485
120,000 1,381 165,716 782 281,632 948 174,668 87 71,721 30 46,934 253 167,172 197 142,386 587 250,281 587 250,281
130,000 1,496 179,525 848 305,101 1,024 189,224 87 71,721 30 46,934 253 167,172 197 142,386 587 292,313 587 292,313
138,500 1,594 191,264 903 325,050 1,094 201,596 87 71,721 30 46,934 253 167,172 197 142,386 587 332,912 587 332,912
1

2
The estimated payments were calculated using a fixed interest rate of 6.80%.
This repayment plan is available only to borrowers who have an outstanding balance on Direct Loan Program loans that exceeds $30,000, and who had no outstanding
balance
3
on a Direct Loan Program loan as of October 7, 1998 or on the date they obtained a Direct Loan Program loan on or after October 7, 1998.
4
These amounts are fixed, rounded to the nearest dollar, and calculated based on a 25-year repayment term.
5
This is your beginning payment, which may increase during your 10-year repayment term.
6
Assumes a 5% annual income growth (Census Bureau).
7
The payments were calculated using the formula requirements in effect during 2006.
HOH is Head of Household; assumes a family size of two.

TRANSACTION HISTORY

Below is a summary of the actions that you completed during the electronic Master Promissory Note (MPN) process:

Your identity was confirmed by the PIN Web site on 08/18/2010 14:29:43
You agreed to use an electronic MPN on 08/18/2010 14:31:01
You reviewed your draft MPN and confirmed that you read, understood, and agreed to the Borrower Request, 08/18/2010 14:55:10
Certifications, Authorizations, and Understandings, Promise to Pay, MPN Terms and Conditions, Important Notices and
Borrower's Rights and Responsibilities Statement on
You signed your MPN on 08/18/2010 14:54:21
You reviewed your signed MPN on 08/18/2010 14:55:16
You confirmed your acceptance of the terms and conditions of this MPN and submitted it to us on 08/18/2010 14:55:23

Page 8 of 8 Revised 03/2009