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## Federal Direct Stafford/Ford Loan Federal Direct Unsubsidized Stafford/Ford Loan Master Promissory Note [60

- DAY DRAFT 0 8 / 1 4 /201 3 ] William D. Ford Federal Direct Loan Program

Warning: Any person who knowingly makes a false statement or misrepresentatio n on this form or any accompanying document is subject to penalties that may include fines, imprisonment, or both, under the U.S. Criminal Code and 20 U.S.C. 1097.

SECTION A: BORROWER INFORMATION READ THE INSTRUCTIONS IN SECTION G BEFORE COMPLETING THIS SECTION
1. Driver’s License State and No. 2. Social Security No.

3. E

- mail Address (optional)

4. Name and Address
5. Date of Birth 6. Area Code/Telephone No

.

7. References: List two persons with different U.S. address es who have known you for at least three years. The first reference should be a parent or legal guardian.

Name 1. 2.

Permanent Street Address

City, State, Zip Code

E

- Mail Address (optional)

Area Code /Telephone No. ( ) ( )

Relationship to Borrower

SECTION B: SCHOOL INFORMATION

– TO BE COMPLETED BY THE SCHOOL
8. School Name and Address 9. School Code/Branch 10. Identification No.

SECTION C: BORROWER REQU EST, CERTIFICATIONS, AUTHORIZATIONS, AND UNDERSTANDINGS

– READ CAREFULLY BEFORE SIGNING B E LOW

11. This is a Master Promissory Note (MPN) for one or more Federal Direct Stafford/Ford (Direct Subsidized) Loans and/or Federal Direct Unsubsidized Stafford/For d (Direct Unsubsidized) Loans. I request a total amount of Direct Subsidized Loans and/or Direct Unsubsidized Loans under this MPN not to e x ceed the allowable maximums under the Act (“the Act” is defined in Section E under Governing Law). My school will no tify me of the loan type and loan amount that I am eligible to borrow

. Within certain timeframes, I may cancel a loan or request a lower amount by contacting my school, or by refusing to accept or returning all or a portion of a loan disbursement that is m ade to me. The Borrower’s Rights and Responsibilities Statement that accompanies this MPN and the disclosure statements that will be pr o vided to me contain additional information about my right to cancel a loan or request a lower amount.

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. Under penalty of perjury, I certify that:

A. The information I have provided on this MPN and as updated by me from time to time is true, co m plete, and co r rect to the best of my knowledge and belief and is made in good faith.

B. I will use the proceeds of loans made unde r this MPN for authorized educational expenses that I incur and I will immediately repay any loan proceeds that cannot be att ributed to educational expenses for attendance on at least a half

- time basis at the school that certified my loan elig i bility.

C. I f I owe an overpayment on a Federal Perkins Loan, Federal Pell Grant, Federal Supplemental Educational Oppo r tunity Grant, Academic Competitiveness Grant (ACG), National Science and Mathematics Access to Retain Talent (SMART) Grant, or Leveraging Educationa l Assistance Partnership Grant, I have made satisfactory arrang e ments to repay the amount owed.

D. If I am in default on any loan I received under the Federal Perkins Loan Program (inclu d ing National Direct Student Loans), the William D. Ford Federal Direc t Loan (Direct Loan) Program, or the Federal Family Education Loan (FFEL) Program, I have made satisfactory r e payment arrangements with the holder to repay the amount owed.

E. If I have been convicted of, or if I have pled nolo contendere (no contest) or g uilty to, a crime involving fraud in obtaining funds under Title IV of the Higher Education Act of 1965, as amended, (HEA), I have fully repaid the funds to the U.S. Department of Education (ED) or to the loan holder in the case of a Title IV federal stude nt loan.

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. For each Direct Subsidized Loan and Direct Unsubsidized Loan I receive under this MPN:

A. I authorize my school to certify my eligibility for the loan

. B. I authorize my school to credit my loan proceeds to my student account at the school , an d to pay to ED any refund that may be due up to the full loan amount

. C

. I authorize ED to investigate my credit record and report information about my loan status to persons and o r ganizations permitted by law to receive that information.

D

. I authorize ED to defer repayment of principal on my loan while I am enrolled at least half time at an eligible school, unless I notify ED d ifferently.

E

. I authorize my school and ED to release information about my loan to the references on the loan and to members of m y immediate family, unless I submit written directions otherwise.

F

. I authorize my schools, ED, and their agents to release i n formation about my loan to each other.

G

. I authorize my schools, ED, and their respective agents and contractors to contact me r egarding my loan request or my loan, including repayment of my loan, at the number that I provide on this MPN or any future number that I provide for my cellular telephone or other wireless device using automated dialing equip ment or artificial or prerecor ded voice or text messages.

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. I understand that:

A. ED will give me the opportunity to pay the interest that accrues on each loan made under this MPN during grace, in

- school, deferment (including in

- school deferment), forbearance, and other periods as pr ovided under the Act. If I do not pay the i n terest that accrues during these periods, ED may add unpaid interest that accrues on each loan made under this MPN to the pri ncipal balance of 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
amount of inte r est I must pay.

B. ED has the authority to verify information reported on this MPN with other federal age ncies.

SECTION D : PROMISE TO PAY

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. 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.

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. If I do not make a payment on a loan made under this MPN when it is due, I will also pay reasonable colle ction costs, including but not limited to attorney fees, court costs, and other fees.

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. 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 r ead it. I am entitled to an exact copy of this MPN and the Borrower’s Rights and Responsibilities Statement.

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. My signature certifies that I have read, understand, and agree to the terms and conditions of this MPN, i n cluding the Borrower Request, Certifications, Authorizations, and Understa nding in Section C, the terms and conditions described in Section E, the Notice About Subsequent Loans Made Under this MPN in Section E, and 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.

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. Borrower’s Signature 2 0

. Today’s Date (mm

- dd

- yyyy) OMB No. 1845

- 0007 Form Approved Exp. Date xx/xx/xxxxPage 2 of 10 

## Direct Subsidized Loan and Direct Unsubsidized Loan MPN (continued)

SECTION E: MPN TERMS AND CONDITIONS

GOVERNING LAW

The t erms of this Application and Master Promissory Note (MPN) will be interpreted in accordance with the Higher Education Act of 1965, as amended (the HEA) (20 U.S.C.

1070 et seq .), the U.S. Department of Education’s (ED’s) regulations, any amendments to the H EA and the regulations in accordance with the effective date of those amendments, and other applicable federal laws and regulations (collectively referred to as the “Act”).
Under applicable state law, I may have certain borrower rights, remedies, and defen ses in addition to those stated
in this MPN and the Borrower’s Rights and Responsibilities Statement , e x cept as preempted by
federal law.

DISCLOSURE OF LOAN TERMS This MPN applies to Federal Direct Stafford/Ford (Direct Subsidized) Loans and Federal Direct Unsubsidized Stafford/Ford (Direct Unsubsidized) Loans. Under this MPN, the principal amount that I owe, and am required to repay, will be the sum of all di s bursements that are made (unless I reduce or cancel any disbursements as explained below under Loa n Cancellation), plus any unpaid interest that is capitalized and added to the principal amount.

I understand that each loan made under this MPN is

sep a rately enforceable based on a true and exact copy of
this MPN. At or before the time of the first disbur sement of each loan, I will receive a disclosure statement identifying the amount of the loan and additional terms of the loan. The Borrower’s Rights and Responsibilities

Statement a c companying this MPN also contains important additional information. The B orrower’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.
The Act specifies annual and aggregate limits on the amount of loans I may receive unde r this MPN. I may request additional loan funds to pay for my educational costs up to the a n nual and aggregate loan limits by contacting my school’s financial aid office. My school will determine if I am eligible for any additional loan funds. I
will be no t i fied of any increase or other change in the amount of my loan.

The amount of Direct Subsidized Loans and Direct Unsubsidized Loans I am eligible to receive may increase or decrease based on changes in my financial circumstances. My school will notify me of any changes in my eligibility. I will be notified of any increase or
d e crease in the amount of my loan.
I understand that ED may use a servicer to handle billing and other communications related to my loan.

TIME LIMITATION ON DIRECT SUBSIDIZED LOAN

ELI GIBILITY FOR FIRST

- TIME BORROWERS ON OR AFTER JULY 1, 2013

If I am a first

- time borrower on or after July 1, 2013 (see Note below), there is a limit on the maximum period of time (measured in academic years) for which I can receive
Direct Subsidized Loans. In general, I may not receive
Direct Subsidized Loans for more than 150% of the published length of my program of study. This is called my “maximum eligibility period.”
After I have received Direct Subsidized Loans for my maximum eligibility period, I am no longer eligible to
receive additional Direct Subsidized Loans , and if I am enrolled in school I may become responsible for paying interest on my Direct Subsidized Loans

. I may continue to
receive Direct Unsubsidized Loans.
With certain exceptions a s pro vided under the Act (such as if I graduate from my program of study before I receive or at the time I receive Direct Subsidized Loans for my maximum eligibility period) , if I cont inue to be enrolled in any undergraduate program after I have received Direct Subsidized Loans for my maximum eligibility period, or if I enroll in another undergraduate program that is the same length as or shorter than my previous program, I will become responsible for paying the interest that accrues on my Direct Subsidized Loan s during all periods. The Borrower’s Rights and Responsibilities Statement that accompanies this MPN provides additional information concerning the limitation on Direct Subsidized Loan eligibility for first

- time borrowers on or after July 1, 2013.

Note: A first

- time borrower on or after July 1, 2013 is an individual who has no outstanding balance on a Direct Loan Program loan or a Federal Family Education Loan (FFEL) Program loan on July 1, 2013, or who has no outstanding balance on a Direct Loan or FFEL pr ogram loan on the date he or she obtains a Direct Loan Program loan after July 1, 2013.

LOAN CANCELLATION
I may pay back all or part of a loan disbursement within the timeframes set by the Act, as explained in the Borrower’s Rights and Responsibilities Sta tement and in a
discl o sure statement that I will receive. If I return the full loan amount within those timeframes, I will not have to pay any loan fee or interest charges. If I return part of a disbursement within those timeframes, ED will reduce the
loan fee and interest charges 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 a
fixed rate that is calculated in accordance with a formula specified in the Act. The interest rate for Direct Subsidized
Loans and Direct Unsubsidized Loans is calculated each year. When the rate is calculated, it applies to all Direct
Subsidized Loans and Direct Unsubsidized Loans for which
the first disbursement is made on o r after July 1 through June 30 of the following year . Different fixed interest rates may apply to different loans that I receive under this MPN, depending on when the loan is first disbursed and whether I am an undergraduate student or a graduate or profes sional student. The maximum interest rate for
Direct Subsidized Loans and Direct Unsubsidized Loans made to undergraduate students will not exceed 8.25%.
The maximum interest rate for Direct Unsubsidized Loans made to graduate or professional students will not exceed 9.5%. ED will notify me of the interest rate on
each loan that I receive.
Except as explained below, I am not required to pay the interest that accrues on a Direct Subsidized Loan during

an in

- school, grace, or deferment period, and during

cert ain periods of repayment under the Income

- Based Repayment Plan and the Pay As You Earn Repayment Plan. I must pay the interest that accrues on a Direct
Subs i dized Loan during all other periods (including forbearance periods), starting on the day after my g race period ends.
I must pay the interest that accrues during the grace period on any Direct Subsidized Loan for which the first disbursement is made on or after July 1, 2012 and before July 1, 2014. In addition, if I am a first

- time borrower on
or after July 1, 2013, I must pay the interest that accrues during all periods on any Direct Subsidized Loans for which I have become responsible for paying all interest that accrues, as described under “ Time li mitation on Direct Subsidized Loan Eligibility for Fi rst

- Time Borrowers On or After July 1, 2013.”
I must pay the interest that accrues on a Direct
Unsubs i dized Loan during all periods (including in

- school, grace, deferment, and forbearance periods), starting on
the date of the first disbursement.

I agree t o pay all interest that accrues on my Direct Loan(s) during the periods described above. I will be given the opport u nity to pay the interest that accrues during in

school, grace, deferment, forbearance, or other periods as provided under the Act. If I do n ot pay this interest, ED may capitalize the interest (add it to the principal balance of my loans) at the end of the grace, deferment,
forbea r ance, or other period.

LOAN FEE
As provided by the Act, ED charges a loan fee for each
Direct Subsidized Loan and Direct Unsubsidized Loan that I receive under this MPN. The loan fee is a percentage of
the loan amount and will be d e ducted proportionately from each disbursement of each of my loans. The specific loan fee that I am charged will be shown on disclosure

sta tements that will be sent to me. ED may refund the loan fee only as permitted by the Act.

LATE CHARGES AND COLLECTION COSTS
ED may collect from me:

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

of each late payment if I do not make any part of a required installment payment within 30 days after it
b e comes due, and

• 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 atto r ney fees.

GRACE PERIOD

I will receive a 6

- month grace period on repayment of each loan made under this MPN. The grace period begins the day after I cease to be enrolled at least half time at an eligible school.
I am not required to make any pa y ments on my loan during the grace period. However, I am responsible for paying the interest that accrues on my Direct Unsubsidized Loan and, in some cases (see “Interest” in this section of the MPN) on my Direct Subsidized Loan during the grace period, and this interest will be capitalized at the end of the grace period if I do not pay it.

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
b egins on the day immediately following my 6

- month grace period on that loan. Pa y ments that I make or that someone else makes 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 pri n cipal amount of the loan, except during periods of repayment
under the Income

- Based Repayment Plan or the Pay As You Earn Plan, when payments will be applied first to interest that is due, then to fees that are due, and then to the princ ipal amount.
ED will provide me with a choice of repayment plans. The

Bo r rower’s Rights and Responsibil i ties Statement includes Information on these repayment plans.
ED will provide me with a repayment schedule that identifies my payment amounts and due da tes. If I intend to repay my loan but am unable to make my scheduled loan payments, ED may grant a forbearance that allows
me to tempora r ily stop making pa y ments, temporarily make a smaller payment amount, or extend the time for making payments.
ED may adj ust payment dates on my loans or may grant me forbearance to eliminate a delinquency that remains even though I am making scheduled installment

pa y ments.
I may prepay all or any part of the unpaid balance on my loans at any time without penalty. If I do no t specify which loans I am prepaying, ED will determine how to apply the prepayment in acco r dance 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 DEFA ULT
At ED’s option, the entire unpaid balance of a loan made under this MPN will become immediately due and

pa y able (this is called “acceleration”) if any one of the
follo w ing events occurs:

(1) I do not enroll as at least a half

- time student at the
schoo l that certified my loan eligibility; (2) I do not use the proceeds of the loan solely for my educational expenses; (3) I make a false representation that results in my receiving a loan for which I am not eligible; or (4) I d e fault on the loan.

Section E continues on next pagePage 3 of 10 

## Direct Subsidized Loan and Direct Unsubsidized Loan MPN (continued)

S ECTION E : MPN TERMS AND CONDITIONS (continued)

The following events will co nstitute 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) above; (2) I do not make installment payments when due and my failure to make payments has continued 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 re payment obligation.
If I default, ED may cap i talize all outstanding interest. This will increase the principal balance of my loan, and the full amount of the loan, including the new principal bal ance and colle c tion costs, will become immediately due and

pa y able.
If I default, the default will be reported to national consumer reporting agencies (credit bureaus) and will significantly and adversely affect my credit history. I
understand that a defau lt will have additional a d verse consequences to me as explained in the Borrower’s Rights and Responsibilities Statement. Following default, I may be required to repay the loan (potentially including amounts in excess of the principal and interest) under th e Income

- Based Repayment Plan or the Income

- Contingent Repayment Plan in accordance with the Act.

LEGAL NOTICES
Any notice required to be give n to me will be effective if it is sent by first

- class mail to the most recent address ED has for me, by electroni c means to an address I have provided, or by any other method of notification that is permitted or required by applicable statute and regulation. I will immediately notify ED of a change in my contact information or status as spec i fied in the
Borrower’s Ri ghts and Responsibil i ties Statement under “Information you must report to us after your receive your loan.”
If ED does not 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 modif ied or waived except in writing by ED. If any provision of this MPN is determined to be unenforceable, the remaining

prov i sions will remain in force.
Information about my loans will be submitted to the National Student Loan Data System (NSLDS). Information in NSLDS is accessible to schools, lenders, and guarantors for specific purposes as authorized by ED.

NOTICE ABOUT SUBSEQUENT LOANS MADE U N DER THIS

MPN
This MPN authorizes ED to make multiple loans to me to pay my educational e x penses during the multi

- yea r term of this MPN, upon my request and upon my school’s annual certification of my loan el i gibility.

At schools that are authorized to use the multi

- year feature of the MPN and choose to do so, subsequent loans may be made under this MPN for su b sequent

ac ademic years. At any school, subsequent loans may be made under this MPN for the same academic year.
I understand that no subsequent loans will be made
under this MPN after the earliest of the fo l lowing dates:
(1) The date ED or my school receives my writ ten notice that no further loans may be made;
(2) One year after the date I sign the MPN or the date ED
receives the MPN if no disburs e ments are made under the MPN; or
(3) Ten years after the date I sign the MPN or the date ED

r e ceives the MPN.

SECTION F : 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 info rmation about you to any third parties for marketing purposes.
We protect the security and confidentiality of nonpublic personal information by implemen t ing the following policies and practices. All physical access to the sites where nonpublic personal inf o r mation 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 Pr ivacy 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 s eq. ) and the authorities for collecting and using your Social Security Number (SSN) are §484(a)(4) of the HEA (20 U.S.C. 1091(a)(4)) and 31 U.S.C. 7701(b). Participating in the William D. Ford Federal Direct Loan (Direct Loan) Program and giving us your SS N 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 recei ve 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) b e come 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 matc hing 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 suc h as relatives, present and former employers, business and personal associates, to consumer reporting agencies, to financial and educational instit u tions, 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 e n force 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 pa y ments 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, d isclosures 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 provi de 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 t o guaranty agencies, to financial and educational institutions, or to federal, state, or local agencies.
In the event of litigation, we may send records to the Department of Justice, a court, adjudicative body, counsel, party, or witness if the disclosur e 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 appr o priate authority for action. We may send information to members of Congress if y ou 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
bar gaining 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 a ny 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 req uired to respond to a collection of information unless the collection displays a valid OMB control number. Public reporting burden for this collection of information is estimated to average 0.5 hours (30 minutes) per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The obligation to respond to this collection is required to
obtain a benefit in accordance with 34 CFR 685 .201(a)(2). Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the U.S. Department of Education, 400 Maryland Ave., SW, Washington, DC 20210

- 4537 or e

- mail ICDocketMgr@ed.gov and reference OMB Control
Number 1845

- 0007. Note: Please do not return the completed Direct Subsidized Loan and Direct
Unsubsidized Loan MPN to this address.
If you have any comments or co n cerns r egarding the
status of your individual submission of this form, write directly to:
U.S. Department of Education Common Origination and Disbursement School Relations

Ce n ter Attn: Applicant Services

PO Box 9002 Niagara Falls, NY 14302Page 4 of 10 

## Direct Subsidized L oan and Direct Unsubsidized Loan MPN (continued)

SECTION G : INSTRUCTIONS FOR COMPLETING THE MPN

Print using a blue or black ink ballpoint pen or type. Do
not use pe n cil. Report all dates as month

- day

- year (mm

dd

- yyyy) . Use only numbers. Example: June 24, 1995 = 06

- 24

- 1995.
Some of the items in Section A may have been completed for you. If so, review these items carefully to make sure that the information is correct. Cross out any information that is incorrect and enter the correct info r mation. Put your in itials next to any information that you change.

SECTION A: BORROWER INFORMATION

Item 1. Enter the two

- letter 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
licen se, enter N/A.

Item 2. Enter your nine

- digit Social Security Number.

Item 3. Enter your preferred e

- mail address for receiving communications. You are not require d to provide this
information. If you do, ED may use your e

- mail address to

commun i cate with y ou. If you do not have an e

- mail address or do not wish to provide one, enter N/A. Item 4. Enter your last name, then your first name and middle initial. 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 different from your permanent address, you must list
both addresses. A temporary school address is not acceptable.

Item 5. Enter your date of birth.

Item 6. Enter the area code and telephone number a t which you can most easily be reached. If you do not have
a tel e phone, enter N/A.

Item 7. Enter the requested information for two adults with different U.S. addresses who have known you for at least three years and who will know how to contact you in
the future. The first reference should be a paren t or legal guardian. References who live outside the United States
are not accep t able. Enter the e

- mail addresses for the two references (this is optional). If you provide an e

- mail address for a reference, ED m ay use it to communicate
with the reference. If a reference does not have a telephone number or e

- mail address, or does not wish to provide an e

- mail address, enter N/A. SECTION B: SCHOOL INFORMATION
This section will be completed by the school that cer tifies your loan eligibility.

SECTION C: BORROWER REQUEST, CERTIFIC A TIONS, AUTHORIZATIONS, AND UNDERSTANDINGS
Items 11, 12, 13, and 1 4

. Read these items car e fully.

SECTION D: PROMISE TO PAY

Items 1 5 , 1 6 , 1 7 , and 1 8

. Read these items carefully.

Items 19 and 2 0

. Sign your full legal name, in blue or black ink, and enter the date you signed this MPN.

By signing this MPN, you:
(1) Acknowledge that you have read, understand, and agree to the terms and conditions of the MPN, including the Borrower Request, Cert ifications, Authorizations, and
Understan d ings in Section C and the accompanying Borrower’s Rights and Responsibilities Statement; and
(2) Agree to repay the loan(s) in full according to the

t erms and conditions of the MPN.



## William D. Ford Federal Direc t Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement

Important Notice: This Borrower’s Rights and Responsibilities Statement provides additional information about the terms and conditions of the loans you receive under the accompanying Master Promissory Note (MPN) for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans) and Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans). 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 your

servicer.
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 accompanying MPN.
1. The William D. Ford Federal Direct Loan Program. The William D. Ford Federal Direct Loan (Direct Loan) Program

inc ludes the fo l lowing types of loans, known collectively as
“Direct Loans”:

• Federal Direct Stafford/Ford Loans (D i rect Subsidized Loans)

• Federal Direct Unsubsidized Sta f ford/Ford Loans (Direct Unsubsidized Loans)

• Federal Direct PLUS Loans (Direct PLUS Loans)

• Federal Direct Consolidation Loans (D i rect Consolidation Loans)
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (HEA), 20

U.S.C. 1070 et seq

. You must complete a Free Application for Federal Stude nt Aid (FAFSA) before you receive a Direct Subsidized Loan or
Direct Unsubsidized Loan.
Direct Loans are made by the U.S. Depar t ment of Education. We contract with servicers to process Direct Loan payments, deferment and forbearance requests, and
other tra nsactions, and to answer questions about Direct Loans. We will provide you with the address and tel e phone number of your servicer 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 HEA and other applicable federal laws and regul a tions. These laws and regulations are referred to as “the Act” throughout this Borrower’s Rights and Responsibilities Statement. Under appli cable state law, you may have certain borrower rights, remedies, and defenses in addition to those stated in the MPN and this Borrower’s Rights and Responsibilities Statement, e x cept as preempted by federal
law. NOTE: Any amendment to the Act that affects the terms of this MPN will be applied to your loans in accordance
with the effective date of the amendment.

3. Direct Subsidized Loans and Direct Unsubsidized Loans.
Direct Subsidized Loans and Direct Unsubsidized Loans are made to students to help pay fo r the cost of education beyond high school.
Direct Subsidized Loans are available only to undergraduate
students. Direct Unsubsidized Loans are available to both undergraduate students and graduate or professional
students.

To receive a Direct Subsidized Loan, you must have financial need. Except as explained in Item 10 of this Borrower’s Rights and Responsibilities Statement (“Payment of interest”), you are not required to pay the interest that accrues on Direct Subsidized Loans while you are in school, during the grace period, during deferment periods, and during certain periods of repayment under the

Income

- Based Repayment Plan and the Pay As You Earn Repayment Plan.

Direct Unsubsidized Loans are not based on financial need. You must pay the interest t hat accrues on Direct Unsubsidized Loans during all periods. For more information on interest charges, see Item #10.

4. Time l imitation on Direct Subsidized Loan eligibility for
first

- time borrowers on or after July 1, 2013.
If you are a first

- time borrowe r on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized

Loans.

You are a first

- time borrower on or after July 1, 2013 if you had no outstanding balance on a Direct Loan Program loan or a Federal Family Education Loan (FFEL) Program loan on July 1, 2013, or you have no outstanding balance on a Direct Loan or FFEL program loan on the date you obtain a Direct Loan Program loan after July 1, 2013.
In general, if you are a fi rst

- time borrower on or after July 1, 2013 you may not receive Direct Subsidized Loans for more than 150% of the published length of your program of study. This is called your “maximum eligibility period.” For example, if you are enrolled in a 4

- year bache lor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years).
Your maximum eligibility period is based on the published length of the program in which you are currently enrolled.
This mea ns that your maximum eligibility period can change if you change programs. If you receive Direct Subsidized Loans for one program and then change to a different program, the period of time for which you received Direct Subsidized Loans for the earlier prog ram will generally count against your new maximum eligibility period.
After you have received Direct Subsidized Loans for your maximum eligibility period, you are no longer eligible to
receive additional Direct Subsidized Loans , and if you are
enrolled in school you may become responsible for paying interest on your Direct Subsidized Loans. Y ou may continue to receive Direct Unsubsidized Loans. We will notify you if you are no longer eligible to receive additional Direct
Subsidized Loans.

With certain exce ptions as provided under the Act (for example, if you graduate from your program of study before or at the time you receive Direct Subsidized Loans for your maximum eligibility period) , i f you continue to be enrolled in any undergraduate program after you have received Direct Subsidized Loans for your maximum eligibility period, or if you enroll in another undergraduate program that is the same length as or shorter than your previous program, you will become responsible for paying
all of the interest that a ccrues on your Direct Subsidized Loans, during all periods, beginning on the date of the enrollment that causes you to become responsible for paying the interest. We will notify you if you become responsible for paying all of the interest that accrues on

y our Direct Subsidized Loans.

Additional information about the limitation on Direct Subsidized Loan eligibility for first

- time borrowers on or after July 1, 2013 will be provided during entrance counseling (see Item 13 of this Borrower’s Rights and Responsi bilities Statement). You may also obtain additional information from your school’s financial aid office, or at StudentAid.gov

. 5. 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 c osts, as long as the school you are attending is authorized to use the multi

- year feature of the
MPN and chooses to do so.
If your 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 m ore than one loan under this MPN, you must sign a new MPN for each loan that you r e ceive. If you do not want to receive more than one loan under this MPN, you must notify your school or your servicer in writing.
6. Use of your loan money. You may use the l oan money you receive only to pay for your authorized educational expenses for attendance at the school that determined you were eligible to receive the loan. Authorized expenses include the following:

• Tuition;

## William D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement

Page 5 of 10 • Room;

• Board;

• Institutional fees;

• Books;

• Suppl ies;

• Equipment;

• Dependent child care expenses;

• Transportation;

• Commuting expenses;

• Rental or purchase of a personal co m puter;

• Loan fees; and/or

• Other documented, authorized costs
7. Information you must report to us after you receive your loan. You must no tify your servicer and/or the
fina n cial aid office at your school about certain changes.
Until you graduate or otherwise leave school, you must notify your school’s financial aid office if you:

• Change your address or telephone number;

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

• Do not enroll at least half

- time for the loan period certified by the school;

• Do not enroll at the school that determined you were eligible to r e ceive the loan;

• Stop attending school or drop below half

- time
enrollmen t;

• Transfer from one school to another school; or

• Graduate.
You must also notify your servicer if any of the above events occur at any time after you receive your loan. In addition, you must notify your servicer if you:

• Change your employer, or your e m ploy er’s address or telephone number changes; or

• Have any other change in status that would affect your loan (for example, if you receive a deferment while you are unemployed, but you find a job and therefore no longer meet the eligibi l ity requirements
for the deferment).
8 Amount you may borrow. The charts that follow show
the maximum amounts of Direct Subsidized Loans and Direct Unsubsidized Loans that you may borrow for a single academic year (annual loan limits), and the maximum amounts that you may borrow in total for undergraduate and graduate study (aggregate loan limits).
The aggregate loan limits are combined limits for Direct Subsidized Loans and Direct Unsubsidized Loans, and any
Subsidized Federal Stafford Loans and Unsubsidized Federal
Stafford Loa ns you may have previously received through the Federal Family Education Loan (FFEL) Program.
The annual and aggregate loan limits for independent undergraduates also apply to dependent undergraduates whose parents are unable to borrow under the PLUS

pro gram. If you are enrolled in certain health professions programs, you may qualify for higher annual and aggregate limits on
Direct Unsubsidized Loans.
The actual loan amount you receive will be determined by your school, based on your academic level, dep endency status, and other factors such as:

• The length of the program or the remaining portion of the program in which you are enrolled, if it is less than a full academic year;

• Your cost of attendance;

• Your Expected Family Contribution;

• Other financial ai d you receive; and

• Your remaining eligibility under the annual or aggregate loan limits.
The actual amount you receive for an academic year may
be less than the maximum annual amounts shown in the
charts.
If you are an undergraduate student, your school mu st determine your eligibility for a Federal Pell Grant before you may receive a Direct Subsidized Loan or a Direct Unsubsidized Loan, and must determine your eligibility for a Direct Subsidized Loan before determining your eligibility
for a Direct Unsubsid ized Loan.

Annual Loan Limits for Direct Subsidized Loans and Direct
Unsubsidized Loans: Dependent Undergraduate Students ( except students whose parents cannot borrow PLUS loans)

First Year Total (maximum $3,500 subsidized) $5,500

Second Year Total (ma ximum $4,500 subsidized) $6,500

Third Year & Beyond ( Total E ach Y ear) (maximum $5,500 subsidized) $7,500

Independent Undergraduate Students (and dependent students whose parents cannot borrow PLUS loans)

First Year Total (maximum $3,500 subsidized) $9, 500

Second Year Total (maximum $4,500 subsidized) $10,500

Third Year & Beyond ( Total E ach Y ear) (maximum $5,500 subsidized) $12,500

Graduate and Professional Students

For loan periods beginning before July 1, 2012:

Total Amount ( E ach Y ear) (maximum $8 ,500 subsidized) $20,500

For loan periods beginning on or after July 1, 2012:

Total Amount ( E ach Y ear) (unsubsidized only) $20,500

Aggregate Loan Limits for Direct Subsidized and Direct
Unsubsidized Loans:

Dependent Undergraduate Students ( except studen ts whose parents cannot borrow PLUS loans)

Total Amount Cumulative (maximum $23,000 subsidized) $31,000

Independent Undergraduate Students (and dependent students whose parents cannot borrow PLUS loans)

Total Amount Cumulative (maximum $23,000 subsidize d) $57,500

Graduate and Professional Students

Total Amount Cumulative (maximum $65,500 subsidized;
includes loans received for undergraduate study) $138,500

9. Interest rate. The interest rate on Direct Subsidized
Loans and Direct Unsubsidized Loans is a fixed rate that is
calculated in accordance with a formula specified in the

Act

. The interest rate is calculated each year . When the

ra te is calculated, it applies to all Direct Subsidized Loans
and Direct Unsubsidized Loans for which the first disbursement is made on or after July 1 through June 30 of the following year. Different fixed interest rates may apply to separate loans made und er this MPN depending on when the loan is first disbursed, and whether you are an undergraduate student or a graduate or professional
student

. The maximum interest rate for Direct Subsidized

Loan s and Direct Unsubsidized Loans made to undergraduate students will not exceed 8.25%. The
maximum interest rate for Direct Unsubsidized Loans made to graduate or professional students will not exceed 9.5%.

We will notify you of the interest rate for each loan you receive in a disclosure statement that we send to you.
If you qualify under the Servicemembers Civil Relief Act, the interest rate on your loans obtained prior to military service may be limited to 6% during your military service. To receive this benefit, you must contact your servicer for information about the documentation you must provide to show that you qualify.
10. Payment of interest. In general, you are not required to pay the interest that accrues on Direct Subsidized Loans during certain periods, but you must pay the interest that accrues on Direct Unsubsidized Loans during all periods, as explained below.

Direct Subsidized Loans Except as explained below, you are not required to pay the interest that accrues on a Direct Subsidized Loan while you

are enro lled in school at least half time, during your grace period, during deferment periods, and during certain periods of repayment under the Income

- Based Repayment Plan and the Pay As You Earn Repayment plan. Except as
discussed below for certain borrowers who are active duty service members, you must pay the interest that accrues on a Direct Subsidized Loan during all other periods (starting on the day after your grace period ends), including forbearance periods.
You must pay the interest that accrues during t he grace period on any Direct Subsidized Loan for which the first disbursement is made on or after July 1, 2012 and before July 1, 2014. In addition, if you are a first

- time borrower on or after July 1, 2013, you must pay the interest that accrues during a ll periods on any Direct Subsidized Loans for which you have become responsible for paying all interest, as explained in Item 4 of this Borrower’s Rights and Responsibilities Statement (“ Time l imitation on Direct Subsidized Loan eligibility for first

- time borrowers on or after July 1, 2013”).

Direct Unsubsidized Loans
Except as provided below for certain borrowers who are active duty service members, you must pay the interest that accrues on a Direct Unsubsidized Loan during all periods (starting on the dat e of the first disbursement). This includes periods while you are enrolled in school at least half time, during your grace period, and during deferment and forbearance periods. Therefore, you will pay more
interest on a Direct Unsubsidized Loan than on a D irect
Subsidized Loan.
No accrual of interest benefit for active duty service
members
Under the no accrual of interest benefit for active duty service members, you are not required to pay the interest that accrues on any type of Direct Loan Program Loan fi rst disbursed on or after October 1, 2008 during periods of qualifying active duty military service (for up to 60 months).
Interest capitalization
If you do not pay the interest as it accrues on either a
Direct Subsidized Loan or a Direct Unsubsidized Lo an (during periods when you are responsible for payment of interest), 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
interest then accrues on the increased principal amount. We capitalize unpaid interest when you resume payment after periods of deferment or forbearance. We may also capitalize unpaid interest that has accrued since the first disbursement of a Direct Unsubsidized Loan when yo u enter repayment for the first time.

The chart below shows the difference in the total amount you would repay on a $15,000 Direct Unsubsidized Loan if you pay the interest as it accrues during a 12

- month deferment or forbearance period, compared to the am ount you would repay if you do not pay the interest and it is capitalized.
If you pay
the
interest
as it

accrues... If you do not pay the
interest and it is capitalized...

Loan Amount $15,000 $15,000

Interest for 12
Months $1,238 (paid as accrued) $1,23 8 (unpaid and capitalized)

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

Monthly Payment $184 $199

Number of Payments 120 120

Total Repaid $22,077 $23,899

The example in the chart above shows payments made under the Standard Repayment Plan at an interest ra te of 8.25%, the maximum interest rate for Direct Unsubsidized Loans made to undergraduate students. In this example, you would pay $15 less per month and $1,822 less

## William D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement

Page 6 of 10 altogether if you pay the interest as it accrues during a 12

- month deferment or forbearan ce 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.ustrea s.gov

. 11. Loan fee. For each Direct Subsidized Loan or Direct Unsubsidized Loan that you receive under this MPN, we charge a loan fee that is a percentage of the principal
amount of each loan. This fee will be subtracted proportionally from each disburse ment of your loan and
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. The repayment incentive pr o gram described
b elow may be available to you.
Interest Rate Reduction for Automatic Withdrawal of Payments
Under the automatic withdrawal option, your bank automatically deducts your monthly loan payment from your checking or savings account and sends it to us.

Automati c withdrawal helps to ensure that your payments are made on time. In addition, you receive a 0.25% interest rate reduction while you repay under the automatic withdrawal option. Your servicer will provide you with
information about the automatic withdrawal option. You can also get the information on your servicer’s web site, or by calling your servicer. Your servicer’s web site a d dress
and toll

- free telephone number are pr o vided on correspondence that your servicer sends you.

13. Disbursement (how your loan money will be paid out). Generally, your 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 your school does

not use a cademic terms or does not have academic terms that meet certain requirements, 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 th at period of study. Your school determines the schedule for disbursing your loan money in accordance with the Act.
In most cases, if the Direct Subsidized Loan or Direct Unsubsidized Loan that you are receiving is your first
student loan under either the D irect Loan Program or the FFEL Program, you must complete entrance counseling before your school can make the first disbursement of your loan. Your school will tell you if entrance counseling is required, and will provide instructions for completing

entran ce counseling.
Your school may disburse your loan money by crediting it to your account at the school, or may give some or all of it to you directly by check or other means.
If your school credits your loan money to your account and
the amount credited is more than the amount of your tuition and fees, room and board, and other authorized charges, the excess amount is called a credit balance. Unless you authorize your school to hold the credit balance for you, your school must pay you the credit balance wit hin the following timeframes:

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

occurs.

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

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

• You may notify your school (within certain timeframes). If your school obtains your written
confir mation of the types and amounts of Title IV loans that you want to receive for an award year before crediting loan money to your account at the school, you may tell the school that you want to cancel all or part of that loan within 14 days after the
date t he school notifies you of your right to cancel all or part of the loan, or by the first day of your school’s payment period, whichever is later (your school can tell you the first day of the payment period).
If your school does not obtain your written

con firmation of the types and amounts of loans you want to receive before crediting the loan money to your account, you may cancel all or part of that loan by informing the school within 30 days of the date the school notifies you of your right to cancel all or part of the loan.
If you ask your school to cancel all or part of your loan within the timeframes described above, the
school will return the cancelled loan amount to us. If you ask your school to cancel all or part of your loan
outside the timeframes described above, your school may process your cancellation request, but it is not required to do so.

• You may return all or part of your loan to us. Within 120 days of the date your school disbursed your loan money (by crediting the loan money to your acco unt at the school, by paying it directly to you, or both), you may cancel all or part of your loan by returning all or part of the loan money to us. Contact your servicer for guidance on how and where to return your loan money.
You do not have to pay int erest or the loan fee on the part of your loan that is cancelled or returned within the timeframes described above. We will adjust your loan

amount to eliminate any interest and loan fee that applies
to the amount of the loan that was cancelled or returned

. 15. Grace period. You will receive a 6

- month grace period on repayment of each Direct Subsidized Loan and Direct Unsubsidized Loan that you receive. Your 6

- month grace period begins the day after you stop attending school or drop below half

- time enrollme nt. You do not have to begin making payments on your loan until after your grace period
ends.
If you are called or ordered to active duty for more than 30 days from a reserve component of the U.S. Armed Forces, the period of your active duty service and the time necessary for you to re

- enroll in school after your active duty ends are not counted as part of your grace period. However, the total period that is excluded from your grace period may not exceed three years. If the call or order to active duty oc curs while you are in school and requires you to drop below half

- time enrollment, the start of your grace period will be delayed until after the end of the excluded period. If the call or order to active duty occurs during your grace period, you will recei ve a full 6

- month grace period at the end of the excluded period.
16. Repaying your loan. The repayment period for each
Direct Subsidized Loan and Direct Unsubsidized Loan that you receive begins on the day after your grace period ends.
Your servicer will notify you of the date your first payment
is due.
You must make payments on your loan even if you do not receive a bill or repayment notice.
You must repay all of your Direct Loans under the same repayment plan, unless you want to repay your loans under
the Income

- Based Repayment (IBR), the Pay As You Earn, or
the Income Contingent Repayment (ICR) p lan and you have other types of Direct Loans that may not be repaid under those plans. In that case, you may select the IBR, Pay As You Earn, or ICR plan for t he loans that are eligible for repayment under those plans, and may select a different repayment plan for the loans that may not be repaid under IBR, Pay As You Earn, or ICR

. You may choose one of the following repayment plans to repay your Direct Subsid ized Loans and Direct Unsubsidized

Loans:
Standard Repayment Plan
Under this plan, you will make fixed monthly pa y ments and repay your loan in full within 10 years (not including periods of defe r ment or forbearance) from the date the loan entered repayment . Your payments must be at least $50 a month ($600 a year) and will be more, if necessary, to repay the loan within the required time period. Graduated Repayment Plan
Under this plan, you will usually make lower payments at first, and your payments will gr adually 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.

Ext ended Repayment Plan
You are eligible for this plan only if (1) you have an outstanding balance on Direct Loan Program loans that exceeds $30,000, and (2) 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.
Under this plan, you will repay your loan in full over a period not to exceed 25 years (not including periods of deferment or forbearance) from the date the loan entered repayment. You may choose to make fixed monthly payments or graduated monthly payments that start out lower and gradually increase over time. If you make fixed monthly payments, your payments must be at least $50 a month ($600 a year) and will be more, if necessary, to repay the lo an within the required time period.

Income

- Based Repayment (IBR) Plan
Under the IBR Plan, your monthly payment amount is generally 15% of your annual discretionary income, divided by 12. Discretionary income for this plan is the difference between your ad justed gross income and 150% of the poverty guideline amount for your state of residence and family size. If you are married and file a joint federal income tax return, the income used to determine your IBR Plan payment amount will be the combined adjusted gross income of you and your spouse.
To initially qualify for the IBR Plan and to continue to make payments that are based on your income, the amount you would be required to pay on your eligible student loans under the IBR Plan (as described above) must be less than the amount you would have to pay under the Standard Repayment Plan. If your IBR Plan payment amount is less than the amount you would have to pay under the Standard Repayment Plan, you are considered to have a “partial financial hardship.”

If you are married and file a joint federal income tax return, the loan amount we use to determine whether you have a partial financial hardship will include your eligible loans and your spouse’s eligible loans.
While you are repaying under the IBR Plan, you must annually provide documentation of your income and certify your family size so that we may determine whether you continue to have a partial financial hardship. Your monthly payment amount may be adjusted annually based on the updated income and family size information that you provide. If we determine that you no longer have a partial financial hardship, you may remain on the IBR Plan, but your monthly payment will no longer be based on your income. Instead, your monthly payment will be what you
would be required to pay under the Standard Repayment Plan, based on the amount you owed on your eligible loans at the time you entered the IBR Plan.
Under the IBR Plan, if your loan is not repaid in full after you have made the equivalent of 25 years of qualif ying monthly payments and at least 25 years have elapsed, any remaining loan amount will be forgiven. You may have to pay federal income tax on the loan amount that is forgiven.
Pay As You Earn Plan
Under the Pay As You Earn Plan, your monthly payment

amou nt is generally 10% of your annual discretionary income, divided by 12. Discretionary income for this plan is the difference between your adjusted gross income and 150% of the poverty guideline amount for your state of residence and family size. If you are married and file a joint federal income tax return, the income used to determine your Pay As You Earn Plan payment amount will be the combined adjusted gross income of you and your spouse.
The Pay As You Earn Plan is available only to new
borrowers. You a re a new borrower for the Pay As You Earn
Plan if:

(1) You had no outstanding balance on a Direct Loan Program or FFEL Program loan as of October 1, 2007, or

## William D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement

Page 7 of 10 you have no outstanding balance on a Direct Loan Program or FFEL Program loan when you obtain a ne w loan on or after October 1, 2007, and
(2) You receive a disbursement of a Direct Subsidized Loan, Direct Unsubsidized Loan, or student Direct PLUS Loan (a Direct PLUS Loan made to a graduate or professional student) on or after October 1, 2011, or

you re ceive a Direct Consolidation Loan based on an application received on or after October 1, 2011. However, you are not considered to be a new borrower for the Pay As You Earn Plan if the Direct Consolidation Loan you receive repays loans that would make you ineligible under part (1) of this definition.
In addition to being a new borrower, to initially qualify for the Pay As You Earn Plan and to continue to make payments that are based on your income, the amount you would be required to pay on your eligible s tudent loans under the Pay As You Earn Plan (as described above) must be less than the amount you would have to pay under the Standard Repayment Plan. If your Pay As You Earn Plan payment amount is less than the amount you would have to pay under the Stand ard Repayment Plan, you are considered to have a “partial financial hardship.”
If you are married and file a joint federal income tax return, the loan amount we use to determine whether you have a partial financial hardship will include your eligible loan s and your spouse’s eligible loans.
While you are repaying under the Pay As You Earn Plan, you must annually provide documentation of your income and certify your family size so that we may determine whether you continue to have a partial financial hardshi p. Your monthly payment amount may be adjusted annually based on the updated income and family size information that you provide. If we determine that you no longer have a partial financial hardship, you may remain on the Pay As You Earn Plan, but your mon thly payment will no longer be based on your income. Instead, your monthly payment will be what you would be required to pay under the Standard Repayment Plan, based on the amount you owed on your eligible loans at the time you entered the IBR Plan.

Under the Pay As You Earn Plan, if your loan is not repaid in full after you have made the equivalent of 20 years of qualifying monthly payments and at least 20 years have elapsed, any remaining loan amount will be forgiven. You may have to pay federal income ta x on the loan amount that is forgiven.
Income Contingent Repayment (ICR) Plan
Under this plan, your monthly payment amount will be either 20% of your discretionary income or a percentage of what you would repay under a Standard Repayment Plan
with a 12

- yea r repayment period, whichever is less. Discretionary income for this plan is the difference between your adjusted gross income and the poverty guideline amount for your state of residence and family

size. If you are married and file a joint federal income tax return, the income used to determine your ICR Plan payment amount will be the combined adjusted gross income of you and your spouse. Until we obtain the information needed to calculate your monthly payment amount, your payment will equal the amount of interest that accrues monthly on your loan unless you request a
forbearance.
While you are repaying under the ICR Plan, you must annually provide documentation of your income and certify your family size. Your monthly payment amount may be adjusted annuall y based on the updated income and family size information that you provide.
Under the ICR Plan, if your loan is not repaid in full after you have made the equivalent of 25 years of qualifying monthly payments and at least 25 years have elapsed, any

remaini ng loan amount will be forgiven. You may have to pay federal income tax on the loan amount that is forgiven.
Additional repayment plan information
Under each plan, the number or amount of payments may need to be adjusted to reflect capitalized interest and /or new loans made to you.
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 “Repaying Your Loans” charts at the end of this Borrower’s Rights and Responsibilities Statement allow you to estimate the monthly and total amounts you would repay under the repayment plans listed above based on
various initial loan amounts.

You can also use the Repayment Estimator at StudentLoans.gov to estim ate your monthly and total payment amounts under the different repayment plans and

to evaluate your eligibility for the IBR and Pay As You Earn plans. The calculators are for informational purposes only. Your servicer will make the official determination of your payment amount and, for the IBR and Pay As You Earn plans, your eligibility fo r the plan.
You may change repayment plans at any time after you have begun repaying your loan. However, you may not change to a different repayment plan that has a maximum repayment period of less than the number of years your loan has already been in rep ayment, except that you may change to the IBR Plan, the Pay As You Earn Plan, or the ICR Plan at any time. There is no penalty if you make loan payments before they are due, or pay more than the
amount due each month.
We apply your payments and prepayments made under any repayment plan other than the IBR Plan and the Pay As You Earn Plan in the following order: (1) late charges and

co l lection costs, (2) outstanding interest, and (3) outstanding principal. We apply your payments and prepayments made under th e IBR Plan or the Pay As You Earn Plan in the following order: (1) interest, (2) late fees and collection costs, and (3) outstanding principal.
When you have repaid a loan in full, your servicer will send you a notice telling you that you have paid off you r loan. You should keep this notice in a safe place.

17. Transfer of loan. We may transfer the servicing of one or all of your loans to another servicer without your consent. If the address to which you must send payments or direct communications changes, we will notify you of the new servicer’s name, address and telephone number, the effective date of the transfer, and the date when you must begin sending payments or directing communications to
that servicer. Transfer of a loan to a different servicer does not affect your rights and responsibilities under that loan.
18. 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 c ents 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.
19. Demand for immediate repayment. The entire unpaid amount of your loan becomes d ue and payable (this is called “acceleration”) if you:

• Receive loan money, but 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 education at the school that
d e termined 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.
20. Defaulting on your loan. Default (failing to repay y our loan) is defined in detail in the Terms and Conditions section of your MPN (Section E). If you default:

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

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

pa y ments, 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.

• Y ou may be denied a professional license.

• You will lose eligibility for other federal student aid and assistance under most federal benefit programs.

• You will lose eligibility for loan defe r ments. • We will report your default to national consumer reporting a gencies (see #21, “Consumer reporting agency notification”). This will harm your credit history and may make it difficult for you to obtain credit cards, home or car loans, or other forms of
consumer credit.
21. Consumer reporting agency notification. We w ill r e port information about your loan to national consumer reporting agencies (commonly known as “credit bureaus”) on a regular basis. This information will include the disbursement dates, amount, and repayment status of your loan (for exa m ple, whether yo u are current or delinquent in making payments). Your loan will be identified as an
education loan.
If you default on a loan, we will also report this to national consumer reporting agencies. We will notify you at least 30 days in advance that we plan to r eport default information to a consumer reporting agency unless you resume making payments on the loan within 30 days of the date of the notice. You will be given a chance to ask for a review of the debt before we report it.
If a consumer reporting agency contacts us regarding obje c tions you have raised about the accuracy or completeness of any information we have reported, we are required to provide the agency with a prompt response.
22. Deferment and forbearance (postpo n ing payments)

. If you meet certain requirements, you may receive a
deferment that allows you to temp o rarily stop making payments on your loan. If you cannot make your scheduled loan pa y ments, but do not qualify for a deferment, we may give you a forbearance . A forbearance allows you to
temp orarily stop making pa y ments on your loan, temporarily make smaller payments, or extend the time for making pa y ments. Deferment
You may receive a deferment:

• While you are enrolled at least half

- time at an eligible school;

• While you are in a full

- time cours e of study in a grad u ate fellowship program;

• While you are in an approved full

- time rehabilitation program for individuals with disabilities;

• While you are unemployed (for a maximum of three years; you must be diligently seeking, but unable to find, full

- t ime employment);

• While you are experiencing an economic hardship (i n cluding Peace Corps service), as defined in the Act (for a maximum of three years);

• While you are serving on active duty during a war or other military operation or national emergency or performing qualifying National Guard duty during a war or other military operation or national emergency and, if you were serving on or after October 1, 2007, for an additional 180

- day period following the demobilization date for your qualifying service; o r

• If you are a member of the National Guard or other reserve component of the U.S. Armed forces (current or retired) and you are called or ordered to active duty while you are enrolled at least half time at an eligible school or within 6 months of having b een enrolled at least half time, during the 13 months following the conclusion of your active duty service, or until you return to enrolled student status on at
least a half

- time basis, whichever is earlier.
You may be eligible to receive additional d e ferm ents 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, contact your servicer for
information about ad ditional deferments that may be
available.
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 to your servicer along with documentation of your eligibility for the deferment, o r (2) your servicer receives information from the school you are attending that indicates you are enrolled at least half

- time. If your servicer processes a deferment based on information received from your school, you will be notified

## William D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement

Page 8 of 10 of the deferment and will have the option of canceling the deferment and continuing to make payments on your loan.
For all other deferments, you (or, for a deferment based on active duty military service or qualifying National Guard duty during a war or other military operatio n or national

emergency , a representative acting on your behalf) must submit a deferment request to your servicer, along with documentation of your eligibility for the deferment. In certain circumstances, you may not be required to provide
documentation of your eligibility if your servicer confirms that you have been granted the same deferment for the same period of time on a FFEL Program loan. Your servicer can provide you with a deferment request form that explains the eligibility and documentation requir ements for the type of deferment you are requesting. You may also obtain deferment request forms and information on deferment eligibility requirements from your servicer’s web

site.
If you are in default on your loan, you are not eligible for a
deferment.
You are not responsible for paying the interest on a Direct Subsidized Loan during a period of deferment, except as explained in Item 10 of this Borrower’ Rights and Responsibilities Statement (“Payment of interest”). However, you are responsible for payi ng the interest on a Direct Unsubsidized Loan during a period of deferment.

Forbearance
We may give you a forbearance if you are temporarily unable to make your scheduled loan payments for reasons including, but not limited to, financial hardship and ill ness. We will give you a forbearance if:

• You are serving in a medical or dental internship or residency program, and you meet specific requirements;

• The total amount you owe each month for all of the student loans you r e ceived under Title IV of the Act (D irect Loan Program loans, FFEL Program loans, and Federal Perkins Loans) is 20% or more of your total monthly gross income (for a maximum of three years);

• You are serving in a national service position for which you receive a national service award under t he National and Community Service Trust Act of 1993. In some cases, the interest that accrues on a qualified loan during the service period will be paid by the Corporation for National and Community Service;

• You are performing service that would qualify yo u for loan forgiveness under the teacher loan forgiveness program that is available to certain Direct Loan and FFEL program borrowers;

• You qualify for partial repayment of your loans under the Student Loan Repayment Program, as administered by the Departme nt of Defense; or

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

Forces.
To request a forbearance, contact your servicer. Your servicer can provide you with a forbea r ance request form that explains the eligibility and documentation requirements for the ty pe of forbearance you are requesting. You may also obtain forbearance request forms and information on forbearance eligibility requir e ments from your servicer’s web site.
Under certain circumstances, we may also give you a forbearance without requiring you to submit a request or documentation. These circumstances include, but are not limited to, the following:

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

• A period of up to 60 days in order for us to collect and process documen tation r e lated to your request for a deferment, forbearance, change in repayment plan, or consolidation loan (we do not capita l ize the interest that is charged during this period); or

• Periods when you are involved in a mil i tary mobilization, or a local or national emergency.
You are responsible for paying the interest on both Direct Subsidized Loans and Direct Unsubsidized Loans during a period of forbearance. 23. Discharge (having your loan forgiven). We will discharge (forgive) your loan under certain cir cumstances.
Loan discharge due to death, bankruptcy, total and permanent disability, school closure, false certification, identity theft, or unpaid refund

• You die. Your servicer must receive acceptable documentation of your death, as defined in the Act;

• Yo ur loan is discharged in bankruptcy. However,
Direct Loans and other 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

repa y in g the loan would cause undue har d ship; or

• You become totally and permanently disabled (as defined in the Act) and meet certain other requirements.
In certain cases, we may also discharge all or a portion of your loan if:

• You 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 p ay under federal regulations.
Teacher Loan Forgiveness
We may forgive a portion of eligible student loans you received under the Direct Loan or FFEL program after October 1, 1998 if you:

(1) Teach full time for five consecutive years in certain
low

- income elementary or secondary schools, or for
certain low

- income educational service agencies;

(2) Meet certain other qualifications; and

(3) If you did not owe a Direct Loan or FFEL program loan as of October 1, 1998, or as of the date you obtain
a loan afte r October 1, 1998.
Public Service Loan Forgiveness
A public service loan forgiveness program is also available. Under this program, we will forgive the remaining balance due on your eligible Direct Loan Program loans after you have made 120 payments on tho se loans (after October 1, 2007) under certain repayment plans while you are employed full

- time in certain public service jobs.
Additional loan discharge information
The Act may provide for certain loan forgiveness or repayment benefits on your loans in ad dition to the benefits described above. If other forgiveness or repayment options become available, your servicer will provide information about these benefits.
To request a loan discharge based on one of the conditions described above (except for dischar ges due to death or bankruptcy), you must complete an application that you may obtain from your servicer.
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 sho uld 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

t o 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 your servicer.
We do not guarantee the quality of the ac a demic programs provided by schools that partici pate in federal student financial aid pr o grams. You must repay your loan even if you do not complete the educ a tion paid for with the loan, are unable to obtain employment in the field of study for which your school provided training, or are dissatisfied

wi th, or do not receive, the education you paid for with the
loan.

24. Loan consolidation. A Direct Consolid a tion Loan Program is available that allows you to consolidate one or more of your eligible federal education loans into a new loan with a single mont hly payment, and may allow you to extend the period of time that you have to repay your loans. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your

repa y ment period through consolidation, since you wil l be making payments for a longer period of time. Contact your
servicer for more information about loan consolid a tion.

25. Department of Defense and other fe d eral 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 Forc es. 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 d e partment for more information.

26. AmeriCorps program education awards. Under the National and Community Service Act of 1990, you may receive an education award that can be used to repay a Direct Subsidized Loan or Direct Unsubsidized Loan if you

succes sfully complete a term of service in an AmeriCorps program. For more information, contact an official of your

program.

## William D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement

Page 9 of 10 

### Repaying Your Loans: Standard, Graduated, and Extended Repayment Plans

Debt Standard Repayment Plan (10

- year repayment period) Gradua ted Repayment Plan (10

- year repayment period) Extended

- Fixed Repayment Plan (25

- year repayment period) Extended

- Graduated Repayment Plan (25

- year repayment period)

Payment Total Paid Minimum Payment Maximum Payment Total Paid Payment Total Paid Minimum Payment Maximum Payment Total Paid

$10,000 $123 $14,718 $72 $216 $16,088 N/A N/A N/A N/A N/A

$20,00 0 $245 $29,437 $144 $431 $32,177 N/A N/A N/A N/A N/A

$30,000 $368 $44,155 $216 $647 $48,265 N/A N/A N/A N/A N/A

$40,000 $491 $58,873 $287 $862 $64,353 $ 315 $94,614 $275 $417 $101,515

$50,000 $613 $73,592 $359 $1,078 $80,442 $394 $118,268 $344 $521 $126,899

$60,000 $736 $88,310 $431 $1,294 $96,530 $473 $141,921 $413 $625 $152,280

$70,000 $859 $103,028 $503 $1,509 $112,618 $552 $165,575 $481 $730 $177,66 4

$80,000 $981 $117,747 $575 $1,725 $128,706 $631 $189,228 $550 $834 $203,046

$90,000 $1,104 $132,465 $647 $1,940 $144,795 $710 $212,882 $619 $938 $228,427

$100,000 $1,227 $147,183 $719 $2,156 $160,883 $788 $236,535 $688 $1,042 $253,806

Notes:

• All est imated payments shown in the chart above are calculated using a fixed interest rate of 8.25%, the maximum interest rate for D irect Subsidized Loans and Direct Unsubsidized Loans made to undergraduate students.

• For the Extended Repayment Plan, an entry of “ N/A” means that you are not eligible for this plan based on the amount owed when your loan enters repayment.

• You may use the Repayment Estimator at StudentLoans.gov to estimate payment amounts based o n your actua l loan debt

.



### Repaying Your Loans: Income

- Based Repayment (IBR) Plan , Pay As You Earn Plan, and Income

- Contingent Repayment Plan

IBR Plan

Debt Starting income of $25,000 Starting income of $40,000 Starting income of $60,000

Initial Payment Final Paymen t Total Paid Time to Repay (Months) Initial Payment Final Payment Total Paid Time to Repay (Months) Initial Payment Final Payment Total Paid Time to Repay (Months)

$20,000 $97 $245 $45,835 240 N/A N/A N/A N/A N/A N/A N/A N/A

$40,000 $97 $491 $80,171 300 $285 $491 $74,134 179 N/A N/A N/A N/A

$60,000 $97 $538 $80,919 300 $285 $736 $155,029 283 $535 $736 $97,632 145

$80,000 $97 $538 $80,919 300 $285 $981 $184,670 300 $535 $981 $158,503 198

$100,000 $97 $538 $80,919 300 $285 $1,143 $188,307 300 $535 $1,227 $241,490 259

## William D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement

Page 10 of 10 Pay As You Earn Plan

Debt Starting income of $25,000 Starting income of $40,000 Starting income of $60,000

Initial Payment Final Payment Total Paid Time to Repay (Months) Initial Payment Final Payment Total Paid Time to Repay (Months) I nitial Payment Final Payment Total Paid Time to Repay (Months)

$20,000 $65 $245 $34,735 240 $190 $245 $31,449 136 N/A N/A N/A N/A

$40,000 $65 $260 $34,914 240 $190 $491 $82,552 240 $356 $491 $65,087 145

$60,000 $65 $260 $34,914 240 $190 $576 $84,514 240 $356 $736 $131,919 229

$80,000 $65 $260 $34,914 240 $190 $576 $84,514 240 $356 $981 $150,454 240

$100,000 $65 $260 $34,914 240 $190 $576 $84,514 240 $356 $997 $150,647 240

ICR Plan

Debt Starting income of $25,000 Starting income of $40,000 Starting i ncome of $60,000

Initial Payment Final Payment Total Paid Time to Repay (Months) Initial Payment Final Payment Total Paid Time to Repay (Months) Initial Payment Final Payment Total Paid Time to Repay (Months)

$20,000 $151 $189 $43,755 253 $193 $217 $33, 978 168 $219 $244 $30,930 134

$40,000 $225 $420 $99,772 286 $385 $434 $67,957 168 $438 $489 $61,860 134

$60,000 $225 $676 $140,178 300 $475 $666 $108,859 184 $658 $733 $92,790 134

$80,000 $225 $926 $151,474 300 $475 $956 $179,997 238 $809 $978 $125,235 137

$100,000 $225 $926 $151,474 300 $475 $1,372 $280,318 300 $809 $1,243 $173,158 162

Notes:

• For the IBR Plan, the Pay As You Earn Plan, and the ICR Plan, the estimated payment amounts shown in the charts above are cal culated based on an assumption that you are single (not married), do not have any children or anyone else in your household, and that your income will increase at a rate of 5% per year. In addition, the calculations use a fixed interest ra te of 8.25% (the maximum interest rate for Direct Su bsidized Loans and Direct Unsubsidized Loans made to undergraduate students) and assume that the Poverty Guidelines (calculated annually by the US Department of Health and Human Services) will increase at an annual rate of 3.3%.

• For the IBR Plan and the Pa y As You Earn Plan, an entry of “N/A ” means that you would not have a partial financial hardship based on the loan debt and starting income shown and therefore would not be e ligible to initially select the plan.

• You may use the Repayment Estimator at Stude ntLoans.gov to evaluate your eligibility for the IBR and Pay As You Earn plans, and to estimate your payment amounts under the IBR, Pay As You Earn, and ICR plans based on your actual loan debt, income, and family size

.