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Federal Direct Stafford/Ford Loan

Federal Direct Unsubsidized Stafford/Ford Loan

Master Promissory Note [60-DAY DRAFT 08/14/2013]

William D. Ford Federal Direct Loan Program

Warning: Any person who knowingly makes a false statement or misrepresentation on this form or any accompanying document is 

subject to penalties that may include fines, imprisonment, or both, under the U.S. Criminal Code and 20 U.S.C. 1097.

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. addresses 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 REQUEST, CERTIFICATIONS, AUTHORIZATIONS, AND UNDERSTANDINGS – READ CAREFULLY BEFORE SIGNING BELOW

11. This is a Master Promissory Note (MPN) for one or more Federal Direct Stafford/Ford (Direct Subsidized) Loans and/or Federal Direct Unsubsidized Stafford/Ford (Direct Unsubsidized) Loans. I 

request a total amount of Direct Subsidized Loans and/or Direct Unsubsidized Loans under this MPN not to exceed the allowable maximums under the Act (“the Act” is defined in Section E under 

Governing Law). My school will notify me of 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 made to me. The Borrower’s Rights and Responsibilities Statement that accompanies this MPN and the 

disclosure statements that will be provided to me contain additional information about my right to cancel a loan or request a lower amount.

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

B. I will use the proceeds of loans made under this MPN for authorized educational expenses that I incur and I will immediately repay any loan proceeds that cannot be attributed to educational 

expenses for attendance on at least a half-time basis at the school that certified my loan eligibility.

C. If I owe an overpayment on a Federal Perkins Loan, Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Academic Competitiveness Grant (ACG), National Science and 

Mathematics Access to Retain Talent (SMART) Grant, or Leveraging Educational Assistance Partnership Grant, I have made satisfactory arrangements to repay the amount owed.

D. If I am in default on any loan I received under the Federal Perkins Loan Program (including National Direct Student Loans), the William D. Ford Federal Direct Loan (Direct Loan) Program, or 

the Federal Family Education Loan (FFEL) Program, I have made satisfactory repayment 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 guilty 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 student loan.

13. 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, and 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 organizations 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 differently.

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

F. I authorize my schools, ED, and their agents to release information about my loan to each other.

G. I authorize my schools, ED, and their respective agents and contractors to contact me regarding 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 equipment or artificial or prerecorded voice or text messages.

14. 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 provided under the Act. If I do not pay the interest that accrues during these periods, ED may add unpaid interest that accrues on each loan made under this MPN to the principal 

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 interest I must pay.

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

SECTION D: PROMISE TO PAY

15. 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. 

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

17. I will not sign this MPN before reading the entire MPN, even if I am told not to read it, or told that I am not required to read it. I am entitled to an exact copy of this MPN and the Borrower’s 

Rights and Responsibilities Statement. 

18. My signature certifies that I have read, understand, and agree to the terms and conditions of this MPN, including the Borrower Request, Certifications, Authorizations, and Understanding in 

Section C, the 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.

19. Borrower’s Signature 20. Today’s Date (mm-dd-yyyy)

OMB No. 1845-0007

Form Approved

Exp. Date xx/xx/xxxx
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Direct Subsidized Loan and Direct Unsubsidized Loan MPN (continued)

SECTION E: MPN TERMS AND CONDITIONS

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 (the HEA) (20 U.S.C. 

1070 et seq.), the U.S. Department of Education’s (ED’s) 

regulations, any amendments to the HEA and the 

regulations in accordance with the effective date of those 

amendments, and other applicable federal laws and 

regulations (collectively referred to as the “Act”).

Under applicable state law, I may have certain borrower 

rights, remedies, and defenses in addition to those stated 

in this MPN and the Borrower’s Rights and 

Responsibilities Statement, except 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 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.

I understand that each loan made under this MPN is 

separately enforceable based on a true and exact copy of 

this MPN. At or before the time of the first disbursement 

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 accompanying this MPN also contains 

important additional information. 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.

The Act specifies annual and aggregate limits on the 

amount of loans I may receive under this MPN. I may 

request additional loan funds to pay for my educational 

costs up to the annual 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 notified 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 

decrease 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 

ELIGIBILITY 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 as provided 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 continue 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 Loans 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 program 

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 Statement and in a 

disclosure 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 or 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 

professional 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 

certain 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 

Subsidized Loan during all other periods (including 

forbearance periods), starting on the day after my grace 

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 limitation on 

Direct Subsidized Loan Eligibility for First-Time Borrowers 

On or After July 1, 2013.”

I must pay the interest that accrues on a Direct 

Unsubsidized Loan during all periods (including in-school, 

grace, deferment, and forbearance periods), starting on 

the date of the first disbursement. 

I agree to pay all interest that accrues on my Direct 

Loan(s) during the periods described above. I will be given 

the opportunity to pay the interest that accrues during inschool, grace, deferment, forbearance, or other periods 

as provided under the Act. If I do not pay this interest, ED 

may capitalize the interest (add it to the principal balance 

of my loans) at the end of the grace, deferment, 

forbearance, 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 deducted proportionately 

from each disbursement of each of my loans. The specific 

loan fee that I am charged will be shown on disclosure 

statements 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 

becomes 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 attorney 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 payments 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 

begins on the day immediately following my 6-month 

grace period on that loan. Payments 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 principal 

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 principal amount.

ED will provide me with a choice of repayment plans. The 

Borrower’s Rights and Responsibilities Statement includes 

Information on these repayment plans.

ED will provide me with a repayment schedule that 

identifies my payment amounts and due dates. 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 temporarily stop making payments, temporarily 

make a smaller payment amount, or extend the time for 

making payments.

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 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 

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.

Section E continues on next page
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Direct Subsidized Loan and Direct Unsubsidized Loan MPN (continued)

SECTION E: MPN TERMS AND CONDITIONS (continued)

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) 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 repayment obligation. 

If I default, ED may capitalize all outstanding interest. This 

will increase the principal balance of my loan, and the full 

amount of the loan, including the new principal balance 

and collection costs, will become immediately due and 

payable.

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 default will have additional adverse 

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 the 

Income-Based Repayment Plan or the Income-Contingent 

Repayment Plan in accordance with the Act.

LEGAL NOTICES

Any notice required to be given to me will be effective if it 

is sent by first-class mail to the most recent address ED 

has for me, by electronic 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 specified in the 

Borrower’s Rights and Responsibilities 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 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.

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 UNDER THIS 

MPN

This MPN authorizes ED to make multiple loans to me to 

pay my educational expenses during the multi-year term 

of this MPN, upon my request and upon my school’s 

annual certification of my loan eligibility.

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 subsequent 

academic 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 following dates: 

(1) The date ED or my school receives my written 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 disbursements are made under 

the MPN; or

(3) Ten years after the date I sign the MPN or the date ED 

receives 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 information about you to any third 

parties for marketing purposes.

We protect the security and confidentiality of nonpublic 

personal information by implementing the following 

policies and practices. All physical access to the sites 

where nonpublic personal information is maintained is 

controlled and monitored by security personnel. Our 

computer systems offer a high degree of resistance to 

tampering and circumvention. These systems limit data 

access to our staff and contract staff on a “need-to-know” 

basis, and control individual users’ ability to access and 

alter records within the systems. All users of these 

systems are given a unique user ID with personal 

identifiers. All interactions by individual users with the 

systems are recorded.

PRIVACY ACT NOTICE

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

following notice be provided to you: 

The authority for collecting the requested information 

from and about you is §451 et seq. of the Higher 

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

1087a et seq.) and the authorities for collecting and using 

your Social Security Number (SSN) are §484(a)(4) of the 

HEA (20 U.S.C. 1091(a)(4)) and 31 U.S.C. 7701(b). 

Participating in the William D. Ford Federal Direct Loan 

(Direct Loan) Program and giving us your SSN are 

voluntary, but you must provide the requested 

information, including your SSN, to participate.

The principal purposes for collecting the information on 

this form, including your SSN, are to verify your identity, 

to determine your eligibility to receive a loan or a benefit 

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

forgiveness) under the Direct Loan Program, to permit the 

servicing of your loan(s), and, if it becomes necessary, to 

locate you and to collect and report on your loan(s) if 

your loan(s) become delinquent or in default. We also use 

your SSN as an account identifier and to permit you to 

access your account information electronically.

The information in your file may be disclosed, on a caseby-case basis or under a computer matching program, to 

third parties as authorized under routine uses in the 

appropriate systems of records notices. The routine uses 

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

disclosure to federal, state, or local agencies, to private 

parties such as relatives, present and former employers, 

business and personal associates, to consumer reporting 

agencies, to financial and educational institutions, and to 

guaranty agencies in order to verify your identity, to 

determine your eligibility to receive a loan or a benefit on 

a loan, to permit the servicing or collection of your 

loan(s), to enforce the terms of the loan(s), to investigate 

possible fraud and to verify compliance with federal 

student financial aid program regulations, or to locate you 

if you become delinquent in your loan payments or if you 

default. To provide default rate calculations, disclosures 

may be made to guaranty agencies, to financial and 

educational institutions, or to state agencies. To provide 

financial aid history information, disclosures may be 

made to educational institutions. To assist program 

administrators with tracking refunds and cancellations, 

disclosures may be made to guaranty agencies, to 

financial and educational institutions, or to federal or 

state agencies. To provide a standardized method for 

educational institutions to efficiently submit student 

enrollment status, disclosures may be made to guaranty 

agencies or to financial and educational institutions. To 

counsel you in repayment efforts, disclosures may be 

made to guaranty agencies, to financial and educational 

institutions, or to federal, state, or local agencies. 

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

Department of Justice, a court, adjudicative body, 

counsel, party, or witness if the disclosure is relevant and 

necessary to the litigation. If this information, either 

alone or with other information, indicates a potential 

violation of law, we may send it to the appropriate 

authority for action. We may send information to 

members of Congress if you ask them to help you with 

federal student aid questions. In circumstances involving 

employment complaints, grievances, or disciplinary 

actions, we may disclose relevant records to adjudicate or 

investigate the issues. If provided for by a collective 

bargaining agreement, we may disclose records to a labor 

organization recognized under 5 U.S.C. Chapter 71. 

Disclosures may be made to our contractors for the 

purpose of performing any programmatic function that 

requires disclosure of records. Before making any such 

disclosure, we will require the contractor to maintain 

Privacy Act safeguards. Disclosures may also be made to 

qualified researchers under Privacy Act safeguards.

FINANCIAL PRIVACY ACT NOTICE

Under the Right to Financial Privacy Act of 1978 (12 U.S.C. 

3401-3421), ED will have access to financial records in 

your student loan file maintained in compliance with the 

administration of the Direct Loan Program.

PAPERWORK REDUCTION NOTICE

According to the Paperwork Reduction Act of 1995, no 

persons are required to respond to a collection of 

information unless the collection displays a valid OMB 

control number. 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 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
Page 4 of 10

Direct Subsidized Loan 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 pencil. Report all dates as month-day-year (mmdd-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 information. Put 

your initials 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 

license, 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 required to provide this 

information. If you do, ED may use your e-mail address to 

communicate with you. 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 at 

which you can most easily be reached. If you do not have 

a telephone, 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 parent or legal 

guardian. References who live outside the United States 

are not acceptable. Enter the e-mail addresses for the 

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

address for a reference, ED may 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 certifies 

your loan eligibility.

SECTION C: BORROWER REQUEST, CERTIFICATIONS, 

AUTHORIZATIONS, AND UNDERSTANDINGS

Items 11, 12, 13, and 14. Read these items carefully.

SECTION D: PROMISE TO PAY

Items 15, 16, 17, and 18. Read these items carefully.

Items 19 and 20. 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, Certifications, Authorizations, and 

Understandings 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 

terms and conditions of the MPN.

William D. Ford Federal Direct 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 

includes the following types of loans, known collectively as 

“Direct Loans”:

• Federal Direct Stafford/Ford Loans (Direct Subsidized 

Loans)

• Federal Direct Unsubsidized Stafford/Ford Loans 

(Direct Unsubsidized Loans)

• Federal Direct PLUS Loans (Direct PLUS Loans)

• Federal Direct Consolidation Loans (Direct 

Consolidation Loans)

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

the Higher Education Act of 1965, as amended (HEA), 20 

U.S.C. 1070 et seq.

You must complete a Free Application for Federal Student 

Aid (FAFSA) before you receive a Direct Subsidized Loan or 

Direct Unsubsidized Loan.

Direct Loans are made by the U.S. Department of 

Education. We contract with servicers to process Direct 

Loan payments, deferment and forbearance requests, and 

other transactions, and to answer questions about Direct 

Loans. We will provide you with the address and telephone 

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 regulations. These 

laws and regulations are referred to as “the Act” 

throughout this Borrower’s Rights and Responsibilities 

Statement. Under applicable 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, except 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 for 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 that accrues on Direct 

Unsubsidized Loans during all periods. For more 

information on interest charges, see Item #10.

4. Time limitation on Direct Subsidized Loan eligibility for 

first-time borrowers on or after July 1, 2013.

If you are a first-time borrower 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 first-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 bachelor’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 means 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 program 

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. You 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 exceptions 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), if 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 accrues 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 

your 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 

Responsibilities 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 costs, 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 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 your school or your servicer in 

writing.

6. Use of your loan money. You may use the loan 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;

• Supplies;

• Equipment;

• Dependent child care expenses;

• Transportation;

• Commuting expenses;

• Rental or purchase of a personal computer;

• Loan fees; and/or

• Other documented, authorized costs

7. Information you must report to us after you receive 

your loan. You must notify your servicer and/or the 

financial 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 receive the loan;

• Stop attending school or drop below half-time 

enrollment;

• 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 employer’s address 

or telephone number changes; or

• Have any other change in status that would affect 

your loan (for example, if you receive a deferment 

while you are unemployed, but you find a job and 

therefore no longer meet the eligibility requirements 

for the deferment).

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 Loans 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 

program. 

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, dependency 

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 aid 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 must 

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 Unsubsidized 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

(maximum $4,500 subsidized) 

$6,500

Third Year & Beyond (Total Each Year)

(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 Each Year)

(maximum $5,500 subsidized)

$12,500

Graduate and Professional Students

For loan periods beginning before July 1, 2012:

Total Amount (Each Year)

(maximum $8,500 subsidized)

$20,500

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

Total Amount (Each Year)

(unsubsidized only)

$20,500

Aggregate Loan Limits for Direct Subsidized and Direct 

Unsubsidized Loans:

Dependent Undergraduate Students

(except students 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 subsidized)

$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 

rate 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 under 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 

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%.

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 enrolled 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 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 you are a first-time borrower on 

or after July 1, 2013, you must pay the interest that accrues 

during all 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 limitation 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 date 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 Direct 

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 first 

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 Loan 

(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 you 

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 amount 

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)

$1,238

(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 rate 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 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.

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 disbursement 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 program described 

below 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. 

Automatic withdrawal helps to ensure that your payments 

are made on time. In addition, you receive a 0.25% interest 

rate reduction while you repay under the automatic 

withdrawal option. Your servicer will provide you with 

information about the automatic withdrawal option. You 

can also get the information on your servicer’s web site, or 

by calling your servicer. Your servicer’s web site address 

and toll-free telephone number are provided on 

correspondence that your servicer sends you.

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 academic 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 that 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 Direct 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 

entrance 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 within 

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 credit 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 

confirmation 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 the 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 

confirmation 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 account 

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 interest 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 enrollment. 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 occurs 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 receive 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) plan 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 the loans that are eligible for 

repayment under those plans, and may select a different 

repayment plan for the loans that may not be repaid under 

IBR, Pay As You Earn, or ICR. 

You may choose one of the following repayment plans to 

repay your Direct Subsidized Loans and Direct Unsubsidized 

Loans:

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 ($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 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

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 loan 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 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 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 qualifying 

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 

amount 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 are 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 new 

loan on or after October 1, 2007, and

(2) You receive a disbursement of a Direct Subsidized 

Loan, Direct Unsubsidized Loan, or student Direct PLUS 

Loan (a Direct PLUS Loan made to a graduate or 

professional student) on or after October 1, 2011, or 

you receive a Direct Consolidation Loan based on an 

application received on or after October 1, 2011. 

However, you are not considered to be a new borrower 

for the 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 student 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 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 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 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 Pay As 

You Earn 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 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 tax 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-year repayment period, whichever is less. 

Discretionary income for this plan is the difference 

between your adjusted gross income and the poverty 

guideline amount for your state of residence and family 

size. 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 annually 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 

remaining 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 estimate 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 for the plan.

You may change repayment plans at any time after you 

have begun repaying your loan. However, you may not 

change to a different repayment plan that has a maximum 

repayment period of less than the number of years your 

loan has already been in repayment, except that you may 

change to the 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 

collection costs, (2) outstanding interest, and (3)

outstanding principal. We apply your payments and 

prepayments made under the 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 your 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 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.

19. Demand for immediate repayment. The entire unpaid 

amount of your loan becomes due and payable (this is 

called “acceleration”) if you:

• Receive loan money, but do not enroll at least halftime 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 

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.

20. Defaulting on your loan. Default (failing to repay your 

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 refunds and other federal or state 

payments, and/or garnish your wages so that your 

employer is required to send us part of your salary to 

pay off your loan.

• We will require you to pay reasonable collection fees 

and costs, plus court costs and attorney fees.

• You 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 deferments.

• We will report your default to national consumer 

reporting agencies (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 will report 

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 example, whether you are current or delinquent in 

making payments). Your loan will be identified as an 

education loan.

If you default on a loan, we will also report this to national 

consumer reporting agencies. We will notify you at least 30 

days in advance that we plan to report default information 

to a consumer reporting agency unless you resume making 

payments on the loan within 30 days of the date of the 

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

debt before we report it.

If a consumer reporting agency contacts us regarding 

objections you have raised about the accuracy or 

completeness of any information we have reported, we are 

required to provide the agency with a prompt response.

22. 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;

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

graduate 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-time employment); 

• While you are experiencing an economic hardship 

(including Peace Corps service), as defined in the Act 

(for a maximum of three years);

• While you are serving on active duty during a war or 

other military operation or national emergency or 

performing qualifying National Guard duty during a 

war or other military operation or national 

emergency and, if you were serving on or after 

October 1, 2007, for an additional 180-day period 

following the demobilization date for your qualifying 

service; or

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

reserve component of the U.S. Armed forces (current 

or retired) and you are called or ordered to active 

duty while you are enrolled at least half time at an 

eligible school or within 6 months of having been 

enrolled at least half time, during the 13 months 

following the conclusion of your active duty service, 

or until you return to enrolled student status on at 

least a half-time basis, whichever is earlier.

You may be eligible to receive additional deferments if, at 

the time you received your first Direct Loan, you had an 

outstanding balance on a loan made under the Federal 

Family Education Loan (FFEL) Program before July 1, 1993. 

If you meet this requirement, contact your servicer for 

information about additional deferments that may be 

available.

You may receive a deferment based on your enrollment in 

school on at least a half-time basis if (1) you submit a 

deferment request to your servicer along with 

documentation of your eligibility for the deferment, or (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 operation or national 

emergency, a representative acting on your behalf) must 

submit a deferment request to your servicer, along with 

documentation of your eligibility for the deferment. In 

certain circumstances, you may not be required to provide 

documentation of your eligibility if your servicer confirms 

that you have been granted the same deferment for the 

same period of time on a FFEL Program loan. Your servicer 

can provide you with a deferment request form that 

explains the eligibility and documentation requirements for 

the type of deferment you are requesting. You may also 

obtain deferment request forms and information on 

deferment eligibility requirements from your servicer’s web 

site. 

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

deferment.

You are not responsible for paying the interest on a Direct 

Subsidized 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 paying 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 illness.

We will give you a forbearance if:

• You are serving in a medical or dental internship or 

residency program, and you meet specific 

requirements; 

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

student loans you received under Title IV of the Act 

(Direct Loan Program loans, FFEL Program loans, and 

Federal Perkins Loans) is 20% or more of your total 

monthly gross income (for a maximum of three 

years);

• You are serving in a national service position for 

which you receive a national service award under the 

National and Community Service Trust Act of 1993. In 

some cases, the interest that accrues on a qualified 

loan during the service period will be paid by the 

Corporation for National and Community Service;

• You are performing service that would qualify you for 

loan forgiveness under the teacher loan forgiveness 

program that is available to certain Direct Loan and 

FFEL program borrowers;

• You qualify for partial repayment of your loans under 

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 your servicer. Your 

servicer 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 your servicer’s web site.

Under certain circumstances, we may also give you a 

forbearance without requiring you to submit a request or 

documentation. These circumstances include, but are not 

limited to, the following:

• Periods necessary for us to determine your eligibility 

for a loan discharge;

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

and process documentation related to your request 

for a deferment, forbearance, change in repayment 

plan, or consolidation loan (we do not capitalize the 

interest that is charged during this period); or

• Periods when you are involved in a military 

mobilization, or a local or national emergency.

You are responsible for paying the interest 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 circumstances.

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;

• Your 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 

repaying the loan would cause undue hardship; 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 pay 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 after 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 those 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 addition 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 discharges 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 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 your servicer.

We do not guarantee the quality of the academic programs 

provided by schools that participate in federal student 

financial aid programs. You must repay your loan even if 

you do not complete the education paid for with the loan, 

are unable to obtain employment in the field of study for 

which your school provided training, or are dissatisfied 

with, or do not receive, the education you paid for with the 

loan.

24. Loan consolidation. A Direct Consolidation 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 monthly 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 

repayment period through consolidation, since you will be 

making payments for a longer period of time. Contact your 

servicer for more information about loan consolidation.

25. 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.

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 

successfully 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)

Graduated 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

$20,000 $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 $177,664

$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 estimated payments shown in the chart above are calculated using a fixed interest rate of 8.25%, the maximum interest rate for Direct 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 on your actual 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 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 $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) Initial 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 income 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 calculated 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 rate of 8.25% (the maximum interest rate for Direct Subsidized 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 Pay 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 eligible to initially select the plan.

• You may use the Repayment Estimator at StudentLoans.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.