<table style="width:100%;">
<colgroup>
<col style="width: 14%" />
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<col style="width: 5%" />
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<col style="width: 4%" />
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<col style="width: 2%" />
<col style="width: 13%" />
<col style="width: 0%" />
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</colgroup>
<tbody>
<tr class="odd">
<td colspan="2"><img src="media/image1.bmp" /></td>
<td colspan="14"><h6 id="endorser-addendum">Endorser Addendum</h6>
<h6 id="federal-direct-plus-loan">Federal Direct PLUS Loan</h6>
<h6 id="application-and-master-promissory-note">Application and Master
Promissory Note </h6>
<p><strong>William D. Ford Federal Direct Loan Program</strong></p>
<p>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.</p></td>
<td colspan="3"><h1 id="section"></h1></td>
</tr>
<tr class="even">
<td colspan="19"><p><strong>NOTE TO ENDORSER:</strong></p>
<h2
id="by-signing-this-endorser-addendum-addendum-you-agree-to-repay-the-loan-under-the-terms-and-conditions-of-the-federal-direct-plus-direct-plus-loan-application-and-master-promissory-note-mpn-signed-by-the-borrower-if-the-borrower-does-not-repay-the-loan.-the-terms-and-conditions-of-the-mpn-are-presented-in-section-e-of-this-addendum-and-in-the-borrowers-rights-and-responsibilities-statement.">By
signing this Endorser Addendum (Addendum), you agree to repay the loan
under the terms and conditions of the Federal Direct PLUS (Direct PLUS)
Loan Application and Master Promissory Note (MPN) signed by the borrower
if the borrower does not repay the loan. The terms and conditions of the
MPN are presented in Section E of this Addendum and in the Borrower’s
Rights and Responsibilities Statement.</h2></td>
</tr>
<tr class="odd">
<td colspan="19"><h2
id="section-a-endorser-information-to-be-completed-by-endorser">SECTION
A: ENDORSER INFORMATION – TO BE COMPLETED BY ENDORSER</h2></td>
</tr>
<tr class="even">
<td colspan="7"><strong>1. Name (last, first, middle
initial)</strong></td>
<td colspan="6"><strong>2. Social Security No.</strong></td>
<td colspan="6"><strong>3. Date of Birth (mm-dd-yyyy)</strong></td>
</tr>
<tr class="odd">
<td colspan="7" rowspan="2"><strong>4. Permanent Address (see
instructions)</strong></td>
<td colspan="6"><strong>5. Area Code/Telephone No.</strong></td>
<td colspan="6"><strong>6. Driver’s License State and No.</strong></td>
</tr>
<tr class="even">
<td colspan="12"><p><strong>7. U.S. Citizenship Status (check
one)</strong></p>
<p>(1) U.S. Citizen or National</p>
<p>(2) Permanent Resident/Other Eligible Non-Citizen</p>
<p>If (2), Alien Registration No.</p></td>
</tr>
<tr class="odd">
<td colspan="7"><strong>8. Employer’s Name</strong></td>
<td colspan="7"><strong>9. Work Area Code/Telephone Number</strong></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="19"><strong>10. Employer’s Address (street, city, state,
zip code)</strong></td>
</tr>
<tr class="odd">
<td colspan="19"><strong>11. References: List two persons with different
U.S. addresses who do not live with you and who have known you for at
least three years. Do not list the Direct PLUS Loan borrower or the
dependent undergraduate student as a reference.</strong></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td></td>
<td colspan="5"></td>
<td></td>
<td colspan="9"></td>
</tr>
<tr class="odd">
<td colspan="3"><h3 id="name">Name</h3></td>
<td>1.</td>
<td colspan="5"></td>
<td>2.</td>
<td colspan="8"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td></td>
<td colspan="5"></td>
<td></td>
<td colspan="8"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">Permanent Street Address</td>
<td></td>
<td colspan="5"></td>
<td></td>
<td colspan="8"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td></td>
<td colspan="5"></td>
<td></td>
<td colspan="8"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">City, State, Zip Code</td>
<td></td>
<td colspan="5"></td>
<td></td>
<td colspan="8"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td></td>
<td colspan="5"></td>
<td></td>
<td colspan="8"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">Area Code/Telephone No.</td>
<td colspan="2">( )</td>
<td colspan="4"></td>
<td colspan="3">( )</td>
<td colspan="6"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td colspan="6"></td>
<td colspan="10"></td>
</tr>
<tr class="odd">
<td colspan="19"><h2
id="section-b-borrower-information-to-be-completed-by-the-u.s.-department-of-education">SECTION
B: BORROWER INFORMATION – TO BE COMPLETED BY THE U.S. DEPARTMENT OF
EDUCATION</h2></td>
</tr>
<tr class="even">
<td colspan="6"><strong>12. Borrower’s Name (last, first, middle
initial)</strong></td>
<td colspan="5"><strong>13. Borrower’s Social Security No.</strong></td>
<td colspan="8"><strong>14. Borrower’s Date of Birth
(mm-dd-yyyy)</strong></td>
</tr>
<tr class="odd">
<td colspan="6"><strong>15. Borrower’s Permanent Address (street, city,
state, zip code)</strong></td>
<td colspan="5"><strong>16. Loan Identification No.</strong></td>
<td colspan="8"><strong>17. Direct PLUS Loan Amount</strong></td>
</tr>
<tr class="even">
<td colspan="6"><strong>18. Borrower’s Home Area Code/Telephone
No.</strong></td>
<td colspan="13"><strong>19. Name and Address of School</strong></td>
</tr>
<tr class="odd">
<td colspan="19"><h2
id="section-c-dependent-undergraduate-student-information-completed-only-if-the-borrower-is-the-parent-of-a-dependent-undergraduate-student">SECTION
C: DEPENDENT UNDERGRADUATE STUDENT INFORMATION – COMPLETED ONLY IF THE
BORROWER IS THE PARENT OF A DEPENDENT UNDERGRADUATE STUDENT</h2></td>
</tr>
<tr class="even">
<td colspan="11"><strong>20. Student’s Name (last, first, middle
initial)</strong></td>
<td colspan="8"><strong>21. Student’s Social Security No.</strong></td>
</tr>
<tr class="odd">
<td colspan="19"><h2
id="section-d-endorsers-promise-to-pay-read-carefully-before-signing-below">SECTION
D: ENDORSER’S PROMISE TO PAY – READ CAREFULLY BEFORE SIGNING
BELOW</h2></td>
</tr>
<tr class="even">
<td colspan="19"><p>22. Under penalty of perjury, I certify that (1) the
information contained in Section A of this Addendum is true and
accurate, and (2) if the borrower is a parent, I am not the student on
whose behalf the borrower is receiving the Direct PLUS Loan.</p>
<p>23. I understand that this is an Addendum to a Direct PLUS Loan MPN.
I will not sign the Addendum before reading the entire Addendum, even if
I am told not to read it, or told that I am not required to read it.</p>
<p>24. I am entitled to an exact copy of this Addendum and the
Borrower’s Rights and Responsibilities Statement. My signature below
certifies that I have read, understand, and agree to the terms and
conditions of the MPN (as shown in Section E of this Addendum), this
Addendum, and the Borrower’s Rights and Responsibilities Statement.</p>
<p>25. I authorize the U.S. Department of Education (ED) to investigate
my credit record and report information about my loan status to persons
and organizations permitted by law to receive that information. I
understand that if the borrower becomes delinquent in making payments or
defaults on the loan made under the MPN, ED may report my name to credit
bureaus in connection with the delinquent or defaulted loan.</p>
<p>26. If the borrower identified in Section B does not repay the loan
that is disbursed under the MPN, I promise to repay the full amount of
the loan to ED, including unpaid principal, accrued interest, and other
charges and fees which may become due, as provided on the MPN and this
Addendum. If I fail to make payments on the loan made under the MPN and
this Addendum when due, I will also pay reasonable collection costs,
including but not limited to attorney’s fees, court costs, and other
fees. I understand that ED may use the same collection efforts against
me that may be used against the borrower. These methods may include, but
are not limited to, suing me and garnishing my wages.</p>
<p>27. The maximum loan amount that may be disbursed to the borrower
under this MPN is shown in Item 17 of Section B of this Addendum. The
actual amount disbursed to the borrower may be less than the amount
shown.</p>
<p><strong>I UNDERSTAND THAT THIS IS A FEDERAL LOAN THAT I MUST REPAY IF
THE BORROWER DOES NOT REPAY THE LOAN.</strong></p></td>
</tr>
<tr class="odd">
<td><strong>28.</strong> <strong>Endorser’s Signature</strong></td>
<td colspan="7"></td>
<td colspan="7"><strong>29.</strong> <strong>Today’s Date</strong>
<em>(</em>mm-dd-yyyy<em>)</em></td>
<td colspan="2"></td>
<td colspan="2"></td>
</tr>
<tr class="even">
<td colspan="19"></td>
</tr>
</tbody>
</table>

  -----------------------------------------------------------------------
  **Endorser Addendum to Direct PLUS Loan MPN** *(continued)*

  -----------------------------------------------------------------------

+-----------------------------------------------------------------------+
| ### *SECTION E: MPN TERMS AND CONDITIONS*                             |
+-----------------------------------------------------------------------+

### *NOTE TO ENDORSER:*

*This is an Addendum to the Federal Direct PLUS (Direct PLUS) Loan
Application and Master Promissory Note (MPN) signed by the borrower of
the Direct PLUS Loan. The borrower of a Direct PLUS Loan may be a
graduate or professional student, or the parent of a dependent
undergraduate student. By signing this Addendum, you are agreeing to
repay only the loan that is identified in Section B of this Addendum, if
the borrower does not repay that loan. No additional loans may be made
to the borrower under this MPN.*

*This section of the Addendum contains the terms and conditions of the
MPN signed by the borrower. Important additional information is also
contained in the Borrower's Rights and Responsibilities Statement. As an
endorser, you are not entitled to all of the same benefits as a Direct
PLUS Loan borrower. For complete information regarding your rights and
responsibilities as an endorser, please read the Borrower's Rights and
Responsibilities Statement.*

### GOVERNING LAW

### The terms of this Application and Master Promissory Note (MPN) will be interpreted in accordance with the Higher Education Act of 1965, as amended (20. U.S.C. 1070 *et seq*.), the U.S. Department of Education's (ED's) regulations, as they may be amended in accordance with their effective date, and other applicable federal laws and regulations (collectively referred to as the "Act"). Applicable state law, except as preempted by federal law, may provide for certain borrower rights, remedies, and defenses in addition to those stated in this MPN.

### DISCLOSURE OF LOAN TERMS

This MPN applies to Federal Direct PLUS (Direct PLUS) Loans. Under this
MPN, the principal amount that I owe, and am required to repay, will be
the sum of all disbursements that are made (unless I reduce or cancel
any disbursements as explained below under Loan Cancellation), plus any
unpaid interest that is capitalized and added to the principal amount.

At or before the time of the first disbursement of each loan, a
disclosure statement will be sent to me identifying the amount of the
loan and additional terms of the loan. Important additional information
is also contained in the Borrower's Rights and Responsibilities
Statement accompanying this MPN. The Borrower's Rights and
Responsibilities Statement and any disclosure statement I receive in
connection with any loan under this MPN are hereby incorporated into
this MPN.

I may request additional loan funds to pay for my or the student's
educational costs by contacting the school's financial aid office. The
school will determine if I am eligible for any additional loan funds. I
will be notified of any increase or other change in the amount of my
loan.

I understand that each loan made under this MPN is separately
enforceable based on a true and exact copy of this MPN.

### LOAN CANCELLATION

I may pay back all or part of a disbursement within the timeframes set
by the Act, as explained in the Borrower's Rights and Responsibilities
Statement and in a disclosure statement that I will receive. If I return
the full loan amount within those timeframes, I will not incur any loan
fee or interest charges. If I return part of a disbursement within those
timeframes, the loan fee and interest charges will be reduced in
proportion to the amount returned.

### INTEREST

Unless ED notifies me in writing of a lower rate, the interest rate for
any loan I receive under this MPN is determined using a formula
specified in the Act. As explained in the Borrower's Rights and
Responsibilities Statement, I will be notified of the actual interest
rate for each loan that I receive.

ED charges interest on the unpaid principal balance of each loan from
the date of disbursement until the loan is paid in full. This includes
interest that accrues during deferment, forbearance, or other periods. I
agree to pay all interest charges on my loan. I will be given the
opportunity to pay the interest that accrues during a period of
authorized deferment or forbearance. If I do not pay the interest, I
understand that ED may capitalize the interest at the end of the
deferment or forbearance, as provided under the Act.

**LOAN FEE**

A loan fee is charged for each Direct PLUS Loan as provided by the Act,
and will be deducted proportionately from each disbursement of each of
my loans. The loan fee will be shown on disclosure statements that will
be issued to me. I understand the loan fee may be refundable only as
permitted by the Act.

### LATE CHARGES AND COLLECTION COSTS

ED may collect from me: (1) a late charge of not more than six cents for
each dollar of each late payment if I fail to make any part of a
required installment payment within 30 days after it becomes due, and
(2) any other charges and fees that are permitted by the Act related to
the collection of my loans. If I default on my loans, I will pay
reasonable collection costs, plus court costs and attorney fees.

### REPAYMENT

I must repay the full amount of the loans made under this MPN, plus
accrued interest. I will repay each loan in monthly installments during
a repayment period that begins on the day of the final disbursement of
that loan. Payments made by me or on my 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.

ED will provide me with a choice of repayment plans. Information on
these repayment plans is included in the Borrower's Rights and
Responsibilities Statement.

ED will provide me with a repayment schedule that identifies my payment
amounts and due dates. If I am unable to make my scheduled loan
payments, ED may allow me to temporarily stop making payments, reduce my
payment amount, or extend the time for making payments, as long as I
intend to repay my loan. Allowing me to temporarily delay or reduce loan
payments is called forbearance.

ED may adjust payment dates on my loans or may grant me forbearance to
eliminate a delinquency that remains even though I am making scheduled
installment payments.

I may prepay all or any part of the unpaid balance on my loans at any
time without penalty. If I do not specify which loans I am prepaying, ED
will determine how to apply the prepayment in accordance with the Act.
After I have repaid in full a loan made under this MPN, ED will send me
a notice telling me that I have paid off my loan.

### ACCELERATION AND DEFAULT

At ED's option, the entire unpaid balance of a loan made under this MPN
will become immediately due and payable (this is called "acceleration")
if any one of the following events occurs: (1) I (or the student) do not
enroll as at least a half-time student at the school that certified my
loan eligibility; (2) I do not use the proceeds of the loan solely for
my or the student's educational expenses; (3) I make a false
representation that results in my receiving a loan for which I am not
eligible; or (4) I default on the loan.

The following events will constitute a default on my loan: (1) I do not
pay the entire unpaid balance of the loan after ED has exercised its
option under items (1), (2), and (3) in the preceding paragraph; (2) I
do not make installment payments when due, provided my failure has
persisted for at least 270 days; or (3) I do not comply with other terms
of the loan, and ED reasonably concludes that I no longer intend to
honor my repayment obligation. If I default, ED may capitalize all the
outstanding interest into a new principal balance, and collection costs
will become immediately due and payable.

If I default, the default will be reported to national credit bureaus
and will significantly and adversely affect my credit history. I
understand that a default will have additional adverse consequences to
me as disclosed in the Borrower's Rights and Responsibilities Statement.

####### LEGAL NOTICES

Any notice required to be given to me will be effective if mailed by
first class mail to the most recent address ED has for me. I will
immediately notify ED of a change of address or status as specified in
the Borrower's Rights and Responsibilities Statement.

If ED fails to enforce or insist on compliance with any term of this
MPN, this does not waive any right of ED. No provision of this MPN may
be modified or waived except in writing by ED. If any provision of this
MPN is determined to be unenforceable, the remaining provisions will
remain in force.

  -----------------------------------------------------------------------
  **Endorser Addendum to Direct PLUS Loan MPN** *(continued)*

  -----------------------------------------------------------------------

  -----------------------------------------------------------------------
  **SECTION F: INSTRUCTIONS FOR COMPLETING THE ENDORSER ADDENDUM**

  -----------------------------------------------------------------------

*Print using a blue or black ink ballpoint pen or type to complete
Sections A and D of this Addendum. Do not use pencil. Report all dates
as month-day-year (mm-dd-yyyy). Use only numbers. Example: June 24, 1982
= 06-24-1982.*

###### SECTION A: ENDORSER INFORMATION

**Item 1.** Enter your last name, then your first name and middle
initial.

**Item 2.** Enter your nine-digit Social Security Number.

**Item 3.** Enter your date of birth.

**Item 4.** Enter your permanent address (number, street, apartment
number, or rural route number and box number, then city, state, zip
code). If your mailing address is a post office box or general delivery,
you must list **both** your street address and your mailing address.

**Item 5.** Enter the area code and telephone number at which you can
most easily be reached. (Do not list your work telephone number here.)
If you do not have a telephone, enter N/A.

**Item 6.** Enter the two-letter state abbreviation for the state that
issued your current driver's license, followed by your driver's license
number. If you do not have a driver's license, enter N/A.

**Item 7.** Place a check in the box that corresponds to your
citizenship status. If you check box (2), enter your Alien Registration
Number.

**(1)** "U.S. Citizen" includes citizens of the 50 states, the District
of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and the
Northern Mariana Islands. "National" includes not only all U.S.
citizens, but also citizens of American Samoa and Swain's Island.

> **(2)** "Permanent Resident" means someone who can provide
> documentation of this status from the U.S. Citizenship and Immigration
> Services (USCIS). "Other Eligible Non-Citizen" includes individuals
> who can provide documentation from the USCIS that they are in the
> United States for a purpose that is not temporary, with the intention
> of becoming a citizen or permanent resident. This category includes
> refugees, persons granted asylum, Cuban-Haitian entrants, temporary
> residents under the Immigration Reform and Control Act of 1986, and
> others.

**NOTE: If your citizenship status is not one of the categories
described above, you are not eligible to be an endorser.**

**Item 8.** Enter your employer's name. If your are self-employed, enter
the name of your business. If you are not employed, enter N/A.

**Item 9.** Enter your employer's address (street, city, state, zip
code) or, if you are self-employed, the address of your business.

**Item 10.** Enter your work area code and telephone number. If you are
self-employed, enter the area code and telephone number of your
business.

**Item 11.** Enter the requested information for two adults with
different U.S. addresses who do not live with you and who have known you
for at least three years. Do not list the Direct PLUS Loan borrower or
the student as references. If a reference does not have a telephone
number, enter N/A.

# SECTION B: BORROWER INFORMATION

This section will be completed by the U.S. Department of Education.

# SECTION C: DEPENDENT UNDERGRADUATE STUDENT INFORMATION

This section will be completed by the U.S. Department of Education if
the Direct PLUS Loan borrower is the parent of a dependent undergraduate
student. If the Direct PLUS Loan borrower is a graduate or professional
student, this section will be blank.

**SECTION D: ENDORSER'S PROMISE TO REPAY**

**Items 22, 23, 24, 25, 26, and 27**. Read these items carefully.

**Items 28 and 29.** Sign your full legal name, in blue or black ink,
and enter the date you signed this Addendum.

***SECTION G: 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 §§428B(f) and 484(a)(4)
of the HEA (20 U.S.C. 1078-2(f) and 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.

*(Privacy Act Notice continues on next page.)*

  -----------------------------------------------------------------------
  **Endorser Addendum to Direct PLUS Loan MPN** *(continued)*

  -----------------------------------------------------------------------

  -----------------------------------------------------------------------
  ***SECTION G: IMPORTANT NOTICES (CONTINUED)***

  -----------------------------------------------------------------------

*(Privacy Act Notice -- continued.)*

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 it displays a
currently valid OMB control number. The valid OMB control number for
this information collection is 1845-0068. 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 improving the form,
please write to:** U.S. Department of Education, Washington, DC
20202-4700. **If you have any comments or concerns regarding the status
of *your individual submission* of this form, write directly to:**

U.S. Department of Education

Common Origination and Disbursement School Relations Center

Attn: Applicant Services

PO Box 9002

Niagara Falls, NY 14302

***Important Notice:** This Borrower's Rights and Responsibilities
Statement provides additional information about the terms and conditions
of the loans you receive under the accompanying Federal Direct PLUS Loan
(Direct PLUS Loan) Application and Master Promissory Note (MPN).
**Please keep 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 the Direct Loan
Servicing Center.*

*Throughout this Borrower's Rights and Responsibilities Statement, the
words "we," "us," and "our" refer to the U.S. Department of Education.
The word "loan" refers to one or more loans made under the Direct PLUS
Loan MPN.*

***Note to Endorser:** An endorser is someone who agrees to repay a
Direct PLUS Loan if the borrower does not repay the loan. If you are the
endorser of a Direct PLUS Loan, you are not entitled to all of the same
benefits as a Direct PLUS Loan borrower, and not all of the terms and
conditions of a Direct PLUS Loan apply to you. However, you should read
the entire Borrower's Rights and Responsibilities Statement. We have
highlighted important information that applies to you as an endorser.*

## 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)

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-   Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized
    Loans)

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-   Federal Direct PLUS Loans (Direct PLUS Loans)

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-   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.

Direct Loans are made by the U.S. Department of Education. Our Direct
Loan Servicing Center services, answers questions about, and processes
payments on Direct Loans. We will provide you with the address and
telephone number of the Direct Loan Servicing Center after the school
notifies us that the first disbursement of your loan has been made.

**2. Laws that apply to this MPN.** The terms and conditions of loans
made under this MPN are determined by the Higher Education Act of 1965,
as amended (20 U.S.C. 1070 *et seq.*) 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. State
law, unless it is preempted by federal law, may provide you with certain
rights, remedies, and defenses in addition to those stated in the MPN
and this Borrower's Rights and Responsibilities Statement.

**NOTE: Any change to the Act applies to loans in accordance with the
effective date of the change.**

**3. Direct PLUS Loans.** Direct PLUS Loans are loans made to graduate
or professional students or to parents of dependent undergraduate
students to help pay for the cost of education beyond high school. To be
eligible for a Direct PLUS Loan:

-   You must be a graduate or professional student or the biological or
    adoptive parent of the dependent undergraduate student for whom you
    are borrowing. If you are the spouse of the dependent undergraduate
    student's parent, you may borrow a Direct PLUS Loan if your income
    and assets were reported on the Free Application for Federal Student
    Aid (FAFSA), or would be reported if a FAFSA were filed.

-   You and (if you are a parent borrower) your child must be a U.S.
    citizen or national, a permanent resident of the United States, or
    an otherwise eligible non-citizen.

-   You and (if you are a parent borrower) your child must not be in
    default on a federal education loan or owe an overpayment on a
    federal education grant, and must not have been convicted of, or
    pled *nolo contendere* (no contest) or guilty to, a crime involving
    fraud in obtaining funds under the Act.

-   You must not have an adverse credit history (unless you meet certain
    other requirements -- see below).

-   You or (if you are a parent borrower) your child must be enrolled at
    a school that participates in the Direct Loan Program.

We will check your credit history each time you request a Direct PLUS
Loan. If you have an adverse credit history, you may still borrow a
Direct PLUS Loan if you (1) document to our satisfaction that there are
extenuating circumstances, or (2) obtain an endorser who does not have
an adverse credit history. An endorser is someone who agrees to repay
the Direct PLUS Loan if you do not repay it. If you are a parent
borrower, the endorser of a Direct PLUS Loan may not be the student for
whom you are borrowing the loan.

If you are a graduate or professional student, you must complete a Free
Application for Federal Student Aid (FAFSA) and your school must
determine your eligibility for the maximum annual Direct Subsidized Loan
and Direct Unsubsidized amount before you apply for a Direct PLUS Loan.

If you have questions about your eligibility for a Direct PLUS Loan,
contact the financial aid office at the school you or (if you are a
parent borrower) the student attend or are planning to attend.

**4. About the MPN.** You may receive more than one loan under this MPN
over a period of up to 10 years to pay for your educational costs (if
you are a graduate or professional student borrower) or for the
educational costs of the student identified in Section C of the MPN (if
you are a parent borrower), as long as the school is authorized to use
the multi-year feature of the MPN and chooses to do so.

If the school is not authorized to use the multi-year feature of the MPN
or chooses not to do so, or if you do not want to receive more than one
loan under this MPN, you must sign a new MPN for each loan that you
receive. If you do not want to receive more than one loan under this
MPN, you must notify the school or the Direct Loan Servicing Center in
writing.

If we determine that you have an adverse credit history and you obtain
an endorser (see #3, "Direct PLUS Loans"), you may receive only one loan
under this MPN. If you later want to receive another Direct PLUS Loan,
you must sign a new MPN. If you receive a loan under this MPN without an
endorser, but are later determined to have an adverse credit history and
obtain an endorser for a future Direct PLUS Loan, you will have to sign
a new MPN for that loan.

**5. Direct PLUS Loans and eligibility for other financial aid.** If you
borrow a Direct PLUS Loan, this may affect eligibility for other
financial aid. Therefore, we suggest that you contact the school's
financial aid office to determine eligibility for grants, work-study
funds, or other forms of private and federal student aid that do not
have to be repaid before you apply for a Direct PLUS Loan.

**6. Use of your loan money.** You may use the loan money you receive
only to pay for your authorized educational expenses or, if you are a
parent borrower, for the student's authorized educational expenses for
attendance at the school that determined you were eligible to receive
the loan. Authorized expenses include the following:

-   Tuition

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-   Room

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-   Board

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-   Institutional fees

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-   Books

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-   Supplies

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-   Equipment

-   Dependent child care expenses

-   Transportation

-   Commuting expenses

-   Rental or purchase of a personal computer

-   Loan fees

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-   Other documented, authorized costs

**7. Information you must report to us after you receive your loan.**
You must notify the Direct Loan Servicing Center and/or the financial
aid office at the school about certain changes.

Until you or (if you are a parent borrower) the student graduate or
otherwise leave school, you must notify the school's financial aid
office if:

-   You change your address or telephone number;

-   You change your name (for example, maiden name to married name);

-   You or (if you are a parent borrower) the student) \--

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-   Do not enroll at least half-time for the loan period certified by
    the school, or

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-   Do not enroll at the school that determined you were eligible to
    receive the loan;

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-   You or (if you are a parent borrower) the student stop attending
    school or drop below half-time enrollment;

-   You or (if you are a parent borrower) the student transfer from one
    school to another school; or

-   You or (if you are a parent borrower) the student graduate.

You must also notify the Direct Loan Servicing Center if any of the
above events occur at any time after you receive your loan. In addition,
you must notify the Direct Loan Servicing Center if you:

-   Change your employer, or your employer's address or telephone number
    changes; or

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-   Have any other change in status that would affect your loan (for
    example, if you received a deferment while you were unemployed, but
    you have found a job and therefore no longer meet the eligibility
    requirements for the deferment).

> ***Note to Endorser:*** You must notify the Direct Loan Servicing
> Center if you change your address, telephone number, name, or
> employer, or if your employer's address or telephone number changes.

**8. Amount you may borrow.** For each academic year, you may borrow up
to -- but not more than -- the amount of your estimated cost of
attendance (if you are a graduate or professional student borrower) or
the student's estimated cost of attendance (if you are a parent
borrower), minus the amount of any other financial aid received for that
academic year. The school determines the cost of attendance using
federal guidelines. It is important not to borrow more than you can
afford to repay, even if you are eligible to borrow more.

**9. Interest rate.** The interest rate on a Direct PLUS Loan is a fixed
rate of 7.9 percent.

**10. Payment of interest.** We charge interest on each Direct PLUS Loan
that you receive from the date the loan is first disbursed until it is
repaid in full, including during periods of deferment or forbearance. If
you do not pay the interest as it is charged, we will add it to the
unpaid principal amount of your loan. This is called "capitalization."
Capitalization increases the unpaid principal balance of your loan, and
we will then charge interest on the increased principal amount.

The chart that follows shows the difference in the total amount you
would repay on a \$15,000 Direct PLUS Loan if you pay the interest as it
is charged 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. In this example, you would pay \$15 less per month and
\$1,718 less altogether if you pay the interest as it is charged during
a 12-month deferment or forbearance period.

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]{.underline}.

  ----------------------- --------------------- -------------------------
                          **If you pay the      **If you do not pay the
                          interest as it is     interest and it is
                          charged...**          capitalized...**

  **Loan Amount**         \$15,000              \$15,000

  **Capitalized Interest  \$0                   \$1,185
  for 12 months (at the                         
  maximum rate of 7.9%)**                       

  **Principal to be       \$15,000              \$16,185
  Repaid**                                      

  **Monthly Payment       \$181                 \$196
  (Standard Repayment                           
  Plan)**                                       

  **Number of Payments**  120                   120

  **Total Amount Repaid** \$21,744              \$23,462
  ----------------------- --------------------- -------------------------

**11. Loan fee.** We charge a loan fee of 4 percent of the principal
amount of each loan you receive. This fee will be subtracted
proportionately from each disbursement of your loan. The loan fee will
be shown on a disclosure statement that we send to you.

**12. Repayment incentive programs.** A repayment incentive is a benefit
that we offer to encourage you to repay your loan on time. Under a
repayment incentive program, the interest rate we charge on your loan
may be reduced. Some repayment incentive programs require you to make a
certain number of payments on time to keep the reduced interest rate.
The two repayment incentive programs described below may be available to
you. The Direct Loan Servicing Center can provide you with more
information on other repayment incentive programs that may be available.

***(1)** Interest Rate Reduction for Electronic Debit Account Repayment*

Under the Electronic Debit Account (EDA) repayment option, your bank
automatically deducts your monthly loan payment from your checking or
savings account and sends it to us. EDA helps to ensure that your
payments are made on time. In addition, you receive a 0.25 percent
interest rate reduction while you repay under the EDA option. We will
include information about the EDA option in your first bill. You can
also get the information on the Direct Loan Servicing Center's web site,
or by calling the Direct Loan Servicing Center. The Direct Loan
Servicing Center's web site address and toll-free telephone number are
provided on all correspondence that the Direct Loan Servicing Center
sends you.

***(2)*** *Up-Front Interest Rebate*

You may receive an up-front interest rebate on your Direct PLUS Loan.
The rebate is equal to a percentage of the loan amount that you borrow.
This is the same amount that would result if the interest rate on your
loan were lowered by a specific percentage, but you receive the rebate
up front. The correspondence that you receive about your loan will tell
you if you received an up-front interest rebate.

To keep an up-front interest rebate that you receive on your loan, you
must make all of your first 12 required monthly payments on time when
your loan enters repayment. "On time" means that we must receive each
payment no later than 6 days after the due date.

You will lose the rebate if you do not make all of your first 12
required monthly payments on time. If you lose the rebate, we will add
the rebate amount back to the principal balance on your loan account.
This will increase the amount that you must repay.

**13. Disbursement (how your loan money will be paid out).** Generally,
the school will disburse (pay out) your loan money in more than one
installment, usually at the beginning of each academic term (for
example, at the beginning of each semester or quarter). If the school
does not use academic terms, it will generally disburse your loan in at
least two installments, one at the beginning of the period of study for
which you are receiving the loan, and one at the midpoint of that period
of study.

The school may disburse some or all of your loan money by crediting it
to your account at the school (if you are a graduate or professional
student borrower) or to the student's account at the school (if you are
a parent borrower), or may give it to you directly by check or other
means. The Direct Loan Servicing Center will notify you in writing each
time the school disburses part of your loan money.

If the school credits your loan money to your or the student's account
and the amount credited is more than the amount of the tuition and fees,
room and board, and other authorized charges, the excess amount is
called a credit balance.

Unless you authorize the school to hold the credit balance for you, the
school must pay you the credit balance within the following timeframes:

-   If the credit balance occurs after the first day of class of a
    payment period (the school can tell you this date), the school must
    pay you the credit balance no later than 14 days after the date the
    balance occurs.

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-   If the credit balance occurs on or before the first day of class of
    a payment period, the school must pay you the credit balance no
    later than 14 days after the first day of class of the payment
    period.

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

**14. Canceling your loan.** Before your loan money is disbursed, you
may cancel all or part of your loan at any time by notifying the school.
After your loan money is disbursed, there are two ways to cancel all or
part of your loan:

-   Within 14 days after the date the school notifies you that it has
    credited loan money to your or the student's account at the school,
    or by the first day of the school's payment period, whichever is
    later (the school can tell you the first day of the payment period),
    you may tell the school that you want to cancel all or part of the
    loan money that was credited to your or the student's account. The
    school will return the cancelled loan amount to us. You do not have
    to pay interest or the loan fee on the part of your loan that you
    tell the school to cancel within this timeframe. If you received an
    up-front interest rebate on your loan, the rebate does not apply to
    the part of your loan that you tell the school to cancel. Your loan
    will be adjusted to eliminate any interest, loan fee, and rebate
    amount that applies to the amount of the loan that was cancelled.

> If you ask the school to cancel all or part of your loan outside the
> timeframe described above, the school may process your cancellation
> request, but it is not required to do so.

-   Within 120 days of the date the school disbursed your loan money (by
    crediting the loan money to your or the student's account at the
    school, by paying it directly to you, or both), you may return all
    or part of your loan to us. Contact the Direct Loan Servicing Center
    for guidance on how and where to return your loan money. You do not
    have to pay interest or the loan fee on the part of your loan that
    you return within 120 days of the date that part of your loan is
    disbursed. If you received an up-front interest rebate on your loan,
    the rebate does not apply to the part of your loan that you return.
    Your loan will be adjusted to eliminate any interest, loan fee, and
    rebate amount that applies to the amount of the loan that you
    return.

**15. Repaying your loan.** The repayment period for each Direct PLUS
Loan made under this MPN begins on the date of the final disbursement
for that loan. This means that the repayment period for each loan you
receive under this MPN will begin on a different date. Your first
payment on each loan will be due within 60 days of the final
disbursement of that loan. The Direct Loan Servicing Center 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. Billing information is sent to you as a convenience,
and you are obligated to make payments even if you do not receive any
notice.

You may choose one of the following repayment plans to repay your Direct
PLUS Loan:

-   ***Standard Repayment Plan*** -- Under this plan, you will make
    fixed monthly payments and repay your loan in full within 10 years
    (not including periods of deferment or forbearance) from the date
    the loan entered repayment. Your payments must be at least \$50 a
    month and will be more, if necessary, to repay the loan within the
    required time period.

-   ***Graduated Repayment Plan*** -- Under this 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 years
    (not including periods of deferment or forbearance) from the date
    the loan entered repayment. No single payment will be more than
    three times greater than any other payment.

-   ***Extended Repayment Plan*** -- 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. Your payments must be at least \$50 a
    month and will be more, if necessary, to repay the loan within the
    required time period. You are eligible for this repayment plan only
    if (1) you had no outstanding balance on a Direct Loan Program loan
    as of October 7, 1998 or on the date you obtained a Direct Loan
    Program loan after October 7, 1998, and (2) you have an outstanding
    balance on Direct Loan Program loans that exceeds \$30,000.

If you can show to our satisfaction that the terms and conditions of the
above repayment plans are not adequate to meet your exceptional
circumstances, we may provide you with an alternative repayment plan.

If you do not choose a repayment plan, we will place you on the Standard
Repayment Plan.

The chart at the end of this Borrower's Rights and Responsibilities
Statement ("Repaying Your Loans") allows you to estimate the monthly and
total amounts you would repay under each of the three repayment plans
for various initial loan amounts.

You may change repayment plans at any time after you have begun repaying
your loan. There is no penalty if you make loan payments before they are
due, or pay more than the amount due each month.

> ***Note to Endorser:*** If you are making payments on the borrower's
> Direct PLUS Loan, you may request a change of repayment plans by
> contacting the Direct Loan Servicing Center.

We apply your payments and prepayments in the following order: (1) late
charges and collection costs first, (2) outstanding interest second, and
(3) outstanding principal last.

When you have repaid a loan in full, the Direct Loan Servicing Center
will send you a notice telling you that you have paid off your loan. You
should keep this notice in a safe place.

**16. 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.

**17. Demand for immediate repayment.** The entire unpaid amount of your
loan becomes due and payable (on your MPN this is called "acceleration")
if you:

-   Receive loan money, but you or the student for whom you obtained the
    loan do not enroll at least half-time at the school that determined
    you were eligible to receive the loan;

-   Use your loan money to pay for anything other than expenses related
    to your or the student's education at the school that determined you
    were eligible to receive the loan;

-   Make a false statement that causes you to receive a loan that you
    are not eligible to receive; or

-   Default on your loan.

**18. Defaulting on your loan.** Default (failing to repay your loan) is
defined in detail in the Terms and Conditions section of your MPN. 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 tax refund or other
    federal 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.

> ***Note to Endorser:*** If the borrower defaults on the loan, and you
> do not make payments on the loan, you may also be subject to the
> actions described above.

-   We will also report your default to national credit bureaus (see
    #19, "Credit bureau notification").

**19. Credit bureau notification.** We will report information about
your loan to one or more national credit bureaus. 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).

If you default on a loan, we will also report this to national credit
bureaus. We will notify you at least 30 days in advance that we plan to
report default information to a credit bureau unless you resume making
payments on the loan within 30 days. You will be given a chance to ask
for a review of the debt before we report it.

If a credit bureau contacts us regarding objections you have raised
about the accuracy or completeness of any information we have reported,
we are required to provide the credit bureau with a prompt response.

> ***Note to Endorser:*** If the borrower of a Direct PLUS Loan becomes
> delinquent in making payments or defaults on the loan, we may also
> report your name to credit bureaus in connection with the delinquent
> or defaulted loan.

**20. Deferment and forbearance (postponing payments)**

### *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;

-   In a full-time course of study in a graduate fellowship program;

-   In an approved full-time rehabilitation program for individuals with
    disabilities;

-   Unemployed (for a maximum of three years; you must be diligently
    seeking, but unable to find, full-time employment); or

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-   Experiencing an economic hardship (including Peace Corps service),
    as determined under the Act (for a maximum of three years).

For loans that were first disbursed on or after July 1, 2001, you may
receive a deferment for up to three years while you are serving on
active duty during a war or other military operation or national
emergency, or while you are performing qualifying National Guard duty
during a war or other military operation or national emergency.

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 Federal Family Education Loan (FFEL) Program before
July 1, 1993. If you meet this requirement, you may receive a deferment
while you are:

-   Temporarily totally disabled, or unable to work because you are
    required to care for a spouse or dependent who is disabled (for a
    maximum of three years);

-   On active duty in the U.S. Armed Forces or serving full-time as an
    officer in the Commissioned Corps of the Public Health Service (for
    a combined maximum of three years);

-   Serving in the Peace Corps (for a maximum of three years);

-   A full-time paid volunteer for a tax-exempt organization or an
    ACTION program (for a maximum of three years);

-   In a medical internship or residency program (for a maximum of two
    years); or

-   While the student for whom you borrowed a Direct PLUS Loan is
    dependent and is enrolled at least half-time at an eligible school;
    or

-   While the student for whom you borrowed a Direct PLUS Loan is
    dependent and is in an approved full-time rehabilitation training
    program for individuals with disabilities.

You may receive a deferment based on your enrollment in school on at
least a half-time basis if (1) you submit a deferment request form to
the Direct Loan Servicing Center along with documentation of your
eligibility for the deferment, or (2) the Direct Loan Servicing Center
receives information from the school you are attending that indicates
you are enrolled at least half-time. If the Direct Loan Servicing Center
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 must submit a deferment request form to
the Direct Loan Servicing Center, along with documentation of your
eligibility for the deferment. The Direct Loan Servicing Center 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 the Direct Loan Servicing
Center's web site.

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

You are responsible for paying the interest on a Direct PLUS Loan during
a period of deferment.

> ***Note to Endorser:*** You are not eligible to receive a 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;

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-   The total amount you owe each month for all of the student loans you
    received under Title IV of the Act is 20 percent 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 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 qualify for partial repayment of your loans under the Student
    Loan Repayment Program, as administered by the Department of
    Defense; or

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

To request a forbearance, contact the Direct Loan Servicing Center. The
Direct Loan Servicing Center can provide you with a forbearance request
form that explains the eligibility and documentation requirements for
the type of forbearance you are requesting. You may also obtain
forbearance request forms and information on forbearance eligibility
requirements from the Direct Loan Servicing Center'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 on a Direct PLUS Loan during
a period of forbearance.

> ***Note to Endorser:*** Although you are not eligible to receive a
> deferment, you may receive a forbearance.

**21. Discharge (having your loan forgiven).** We will discharge
(forgive) your loan if:

-   You die, or the student for whom you borrowed a Direct PLUS Loan
    dies. The Direct Loan Servicing Center must receive an original or
    certified copy of a death certificate for you or for the student. In
    exceptional circumstances, we may discharge your loan based on other
    reliable documentation of your death or the death of the student.

-   Your loan is discharged in bankruptcy. However, federal student
    loans are not automatically discharged if you file for bankruptcy.
    In order to have your loan discharged in bankruptcy, you must prove
    to the bankruptcy court that repaying the loan would cause undue
    hardship.

-   We determine that you are totally and permanently disabled (as
    defined in the Act), based on a physician's certification, and you
    meet additional requirements during a 3-year conditional discharge
    period. During that period, your earnings from work must not exceed
    the poverty line amount for a family of two, and you must not
    receive any additional loans under the Direct Loan, FFEL, or Federal
    Perkins Loan programs. You may not receive a discharge due to total
    and permanent disability based on a condition that existed before
    your loan was made, unless a doctor certifies that the condition
    substantially deteriorated after the loan was made.

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

-   You (or the student) could not complete a program of study because
    the school closed;

-   Your loan eligibility was falsely certified by the school;

-   A loan in your name was falsely certified as a result of a crime of
    identity theft; or

-   The school did not pay a refund of your loan money that it was
    required to pay under federal regulations.

To request a loan discharge based on one of the conditions described
above (except for discharges due to death or bankruptcy), you must
complete a loan discharge application that you may obtain from the
Direct Loan Servicing Center.

In some cases, you may assert, as a defense against collection of your
loan, 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 your loan or to the
educational services that the loan was intended to pay for, and if what
the school did or did not do would give rise to a legal cause of action
against the school under applicable state law. If you believe that you
have a defense against repayment of your loan, contact the Direct Loan
Servicing Center.

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 or (if you are a parent borrower) the
student 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
paid for with the loan.

> ***Note to Endorser:*** If we discharge the full amount of the
> borrower's loan for any of the conditions described above, you are no
> longer obligated to make any payments on the loan.

**22. Loan consolidation.** A Direct Consolidation Loan Program is
available that allows you to consolidate (combine) one or more of your
eligible federal education loans into one loan. Consolidation allows you
to extend the period of time that you have to repay your loans, and to
combine several loan debts into a single monthly payment. This may make
it easier for you to repay your loans. However, you will pay more
interest if you extend your repayment period through consolidation,
since you will be making payments for a longer period of time. Contact
the Direct Loan Servicing Center for more information about loan
consolidation.

> ***Note to Endorser:*** You are not eligible to apply for a Direct
> Consolidation Loan to repay a Direct PLUS Loan for which you are the
> endorser.

**23. 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.

**^Repaying\ Your\ Loans^**1

  ------------- ----------- -- -------------- ------- -- -- --------- -- --------------- ---------- -- -- --------- -- ----------------- ------- --- ----------- --------- --
  **Initial                    **Standard**                              **Graduated**                                 **Extended**^3^                                     
  Debt When You                                                                                                                                                            
  Enter                                                                                                                                                                    
  Repayment**                                                                                                                                                              

                                              Per           Total                        Per              Total                          Per                     Total     
                                              Month                                      Month^2^                                        Month                             

                \$2,500                       50            3,042                        25               3,746        Not Available                 Not                   
                                                                                                                                                     Available             

                \$5,000                       60            7,248                        42               7,694        Not Available                 Not                   
                                                                                                                                                     Available             

                \$7,500                       91            10,872                       63               11,543       Not Available                 Not                   
                                                                                                                                                     Available             

                \$10,000                      121           14,496                       84               15,388       Not Available                 Not                   
                                                                                                                                                     Available             

                \$15,000                      181           21,744                       127              23,083       Not Available                 Not                   
                                                                                                                                                     Available             

                \$20,000                      242           28,992                       169              30,778       Not Available                 Not                   
                                                                                                                                                     Available             

                \$25,000                      302           36,240                       211              38,472       Not Available                 Not                   
                                                                                                                                                     Available             

                \$30,000                      362           43,488                       253              46,166       Not Available                 Not                   
                                                                                                                                                     Available             

                \$35,000                      423           50,736                       295              53,859                         268                     80,346    

                \$40,000                      483           57,984                       338              61,554                         306                     91,824    

                \$45,000                      544           65,232                       380              69,248                         344                     103,302   

                \$50,000                      604           72,480                       422              76,942                         383                     114,781   

                \$55,000                      664           79,708                       464              84,636                         421                     126,259   

                \$60,000                      725           86,976                       507              92,330                         459                     137,737   

                \$65,000                      785           94,224                       549              100,023                        497                     149,215   

                \$70,000                      846           101,472                      591              107,718                        536                     160,693   

                \$75,000                      906           108,720                      633              115,413                        574                     172,171   

                \$80,000                      966           115,968                      675              123,107                        612                     183,649   

                \$90,000                      1,087         130,464                      760              138,496                        689                     206,605   

                \$100,000                     1,208         144,960                      844              153,882                        765                     229,561   

                \$110,000                     1,329         159,456                      929              169,270                        842                     252,517   

                \$120,000                     1,450         173,952                      1,013            184,661                        918                     275,473   

                \$130,000                     1,570         188,448                      1,097            200,047                        995                     298,429   

                \$140,000                     1,691         202,944                      1,182            215,435                        1,071                   321,385   

                \$150,000                     1,812         217,440                      1,266            230,824                        1,148                   344,342   
  ------------- ----------- -- -------------- ------- -- -- --------- -- --------------- ---------- -- -- --------- -- ----------------- ------- --- ----------- --------- --

^1^ The **estimated** payments were calculated using the maximum
interest rate for Direct PLUS Loan borrowers,7.9%.

^2^ This is your beginning payment, which may increase.

^3^ You may choose the Extended Repayment Plan only if (1) you had no
outstanding balance on a Direct Loan Program loan as of October 7, 1998
or on the date you obtained a Direct Loan Program loan after October 7,
1998, and (2) you have an outstanding balance on Direct Loan Program
loans that exceeds \$30,000. Under the Extended Repayment Plan, you may
choose to make fixed or graduated monthly payments. This example shows
fixed monthly payments.