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## Endorser Addendum

Federal Direct PLUS Loan
Application and 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 ac companying document is subject to penalties that may include fines, imprisonment, or both, under the U.S. Criminal Code and 20 U.S.C. 1097.

NOTE TO ENDORSER:
By signing this Endorser Addendum (Addendum), you agree to repay the loan under the terms and conditions of the Federal Direct PLUS (Direct PLUS) Loan Application and Master Promissory Note (MPN) signed by the borrower if the bor rower does not repay the loan. The terms and conditions of the MPN are presented in Section E of this Adde n dum and in the Borrower’s Rights and Responsibilities Stateme nt that accompanies this Addendum

.

SECTION A: ENDORSER INFORMATION

– TO BE COMPLETED BY ENDORSER 1. Name (last, first, middle initial) 2. Social Security No. 3. Date of Birth (mm

- dd

- yyyy)

4. Permanen t Address (see instructions) 5. Area Code/Telephone No. 6. Driver’s License State and No.

7. E

- Mail Address (optional)

8. U.S. Citizenship Status (check one)

(1)  U.S. Citizen or National (2)  Permanent Resident/Other Eligible Non

- Citizen

If (2), Alien Registration No. 9. Employer’s Name

10. Employer’s Address (street, city, state, zip code) 11. Work Area Code/Telephone Number

12. References: List two persons with different U.S. addresses who do not live with you an d who have known you for at least three years. Do not list the Direct PLUS Loan borrower or, for a parent borrower, the dependent undergraduate student as a reference.

Name 1. 2.

Permanent Street Address

City, State, Zip Code

E

- Mail Address (optional)
Area Code/Telephone No. ( ) ( )

SECTION B: BORROWER INFORMATION

– TO BE COMPLETED BY THE U.S. DEPARTMENT OF EDUCATION 13. Borrower’s Name (last, first, middle initial) 14. Borrower’s Social Security No. 15. Borrower’s Date of Birth (mm

- dd

- yyyy)

16. Borrower’s Permanent Address (street, city, state, zip code) 17. Loan Identification No. 18. Direct PLUS Loan Amount

19. Borrower’s Home Area Code/Telephone No. 20. Name and Address of School

SECTION C: DEPENDENT UNDERGRADUATE STUDENT INFORMATION

– COMPLETED ONLY IF THE BORROWER IS THE PARENT OF A DEPENDENT UNDERGRADUATE STUDENT 21. Student’s Name (last, first, middle initial) 22. Student’s Social Security No.

SECTIO N D: ENDORSER’S PROMISE TO PAY

– READ CAREFULLY BEFORE SIGNING B E LOW
23. Under penalty of perjury, I certify that (1) the information contained in Section A of this Addendum is true and accurate, and (2) if the borrower is a parent borrower, I am not the student on
whose behalf the borrower is recei v ing the Direct PLUS Loan.

24. I understand that this is an Adden dum to a Direct PLUS Loan MPN. I will not sign the Addendum before reading the entire Addendum, even if I am told not to read it, or told that I a m not required to read it.

25. I am entitled to an exact copy of this Addendum and the Borrower’s Rights a nd Responsibilities Statement. My signature below certifies that I have read, understand, and agree to the terms and conditions of the MPN (as shown i n Sectio n E of this Addendum), this Addendum, and the Borrower’s Rights and Responsibilities Statement.

26. I authorize the U.S. Department of Education (ED) to investigate my credit record and report information about my loan status to persons and organiz ations permitted by law t o receive that
information. I understand that if the borrower becomes delinquent in making payments or defaults on the loan made under the MPN, ED may re port my name to consumer reporting agencies in

conne c tion with the delinquent or defaulted loan.

27. I authorize the schools, ED, and their respective agents and contractors to contact me regarding the loan for which I am serv ing as an endorser, including repayment of the loan, at the number that I provide on this Addendum or any fu ture number that I provide for my cellular telephone or other wireless device using automated dialing equipment or artificial or prerecorded voice or text

messages.

28. If the borrower identified in Section B does not repay the loan that is disbursed under the MPN, I promise to repay the full amount of the loan to ED, including unpaid principal, accrued interest, and other charges and fees which may become due, as provided in the MPN and this Addendum. If I do not make payments on the loan made under the MP N and this Addendum when due, I will also pay reasonable collection costs, including but not limited to attorney’s fees , court costs, and other fees. I understand that ED may use the same collection efforts against me that

may be used against the borrower. These methods may include, but are not limited to, suing me and garnishing my wages.

29. The maximum loan amount that may be disbursed to the borrower under this MPN is shown in Item 18 of Section B of this Addendum. The actual amount disbursed to the bor rower may be
less than the amount shown.

I UNDERSTAND THAT THIS IS A FEDERAL LOAN THAT I MUST REPAY IF THE BORROWER DOES NOT REPAY THE LOAN.

30. Endorser’s Signature 31. Today’s Date ( mm

- dd

- yyyy ) OMB No. 1845

- 0068 Form Approved Exp. Date xx/xx/xxxx**Page 2**  **of 10**  

## Endorser Addendum to Direct PLUS Loan MPN (continued )

SECTION E: MPN TERMS AND CONDITIONS

NOTE TO ENDORSER:

This is an Addendum to the Federal D i rect PLUS (Direct PLUS) Loan Application and Master Promissory Note (MPN) signed by the bor rower of the Direct PLUS Loan. The borrower of a Direct PLUS Loan may be a graduate or professional student, or the parent of a de pendent undergraduate student. By sig n ing this Addendum, you are agreeing to repay only the loan that is identified in Section B of this A d dendum, if the borr ower does not repay that loan. No addi tional loans may be made to
the borrower under this MPN.

This section of the Addendum contains the terms and
cond i tions of t he MPN signed by the borrower. Important add i tional information is also contained in the Borrower’s Rights and Responsibilities Stat ement that accompanies this Addendum

. As a n endorser, you are not entitled to all of the same benefits a s a Direct
PLUS Loan borrower. For complete information regarding your rights and responsibilities as an endorser, please read the Borrower’s Rights and Respons i bilities Statement.

GOVERNING LAW
The terms of this Application and Master Promissory Note (MPN) will be interpreted in accordance with the Higher Education Act of 1965, as amended (the HEA) (20 U.S.C. 1070 et seq .), the U.S. Depar t ment of
Educati on’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 regul a tions (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 Di rect PLUS (Di rect PLUS)

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 Loan Cancellation), plus any unpaid intere st 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 disbursement of each loan, I will receive a d isclosure 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 Borrower’s Rights and Responsibilities S tatement and any disclosure statement I receive in connection with any loan under this MPN are hereby incorporated into this

MPN.
I may request additional loan funds to pay for my or
the st u dent’s educational costs by contacting the
school’s financial aid office. The school will determine if I am eligible for any add i tional loan funds. I will be notified of any increase or other change in the amount of my loan.

I understand that ED may use a servicer to handle billing and other communications related to my loan.

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 discl o sure statement that I will receive. If I
return the full l oan 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 r e ceive under this MPN is a
fixed rate that is calculated in accordance with a formula specified in the Act. The interest rate for Direct PLUS Loans is calculated each year. When t he rate is calculated, it applies to Direct PLUS 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 o n when the loan
is first disbursed. The maximum interest rate for Direct
PLUS Loans will not exceed 10.5%. ED will notify me of
the interest rate on each loan that I receive.

Interest accrues on the unpaid principal balance of
each loan from the date of di sbursement until the loan is paid in full, including during defe r ment, forbearance, or other periods. I agree to pay al l interest charges on my loan. I will be given the

oppo r tunity to pay the interest that accrues during a period of authorized defe rment o r forbearance. 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 deferment or forbea r ance.

LOAN FEE
As provided by the Act, ED charges a loan fee for each
Direct PLUS Loan that I r eceive under this MPN. The loan fee is a percentage of the loan amount and will be deducted proportionately from each dis bursement of each of my loans. The specific loan fee that I am charged will be shown on discl o sure 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 wi thin 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.

REPAYMENT

I must repay the full amount of the loans made under
th is MPN, plus accrued interest. I will repay each loan in monthly installments during a repayment period
that b e gins on the day of the fi nal disbursement of
that loan. Payments that I make or that someone els e 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 principal amount.

ED will provide me with a choice of repayment plans. The Borrower’s Rights and Responsibilities Statemen t includes Information on these repayment plans.

ED will provide me with a repayment schedule that identifies my payment amounts and due dates. If I intent to repay my loan but am unable to make my scheduled loan payments, ED may grant a forbearance
that a llows me to tempora r ily 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 ma king scheduled installment pa y ments.
I may prepay all or any part of the unpaid balance on my loan s at any time without penalty. If I do not specify which loans I am prepaying, ED will determine how to apply the prepayment in acco r dance with the

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

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

time student at the school that certified my loan eligibility; (2) I do not use the proceeds of the loan solely for
my or t he student’s educational expenses; (3) I make a false represent a tion that results in my receiving a loan for which I am not eligible; or (4) I d e fault on the loan.

The following events will constitute a default on my
loan:

(1) I do not pay the entire un paid 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 persisted for at least 270 days; or (3) I do not comply with other terms of the loan, and ED reasonably concludes that I no longer intend to honor my repayment obligation.

If I default, ED may cap i talize all outstanding interest. This will increase the principal balance of my loan, and the full amount of the loan, including t he new principal balance 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
und erstand that a default will have additional a d verse consequences to me as explained in the Borrower’s Rights a nd Responsibilities Statement. Following default, I may be required to repay the loan (potentially including amounts in excess of the principal an d 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 or regulation. I will immediately notify ED of a change of contact information or status as spec i fied in

t he Borrower’s Rights and Responsibil i ties Statement under “Information you must report to us after you receive your loan.”

If ED does not enforce or insist on compliance with any term of this MPN, this d oes not waive any right of

ED. No provision of this M PN may be modified or

w aived 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 (NSLD S). Information in NSLDS is accessible to schools, lenders, and guarantors for specific purposes as authorized by

ED.**Page 3**  **of 10**  

## Endorser Addendum to Direct PLUS Loan MPN (continued)

SECTION F: IMPORTANT NOTICES

GRAMM

- LEACH

- BLILEY ACT NOTICE

In 1999, Congre ss enacted the Gramm

- Leach

- Bl iley 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 thi rd parties only as necessary to process and service your loan and as permitt ed 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.

W e protect the security and confidentiality of nonpublic personal information by implemen t ing the fol lowing policies and practices. All physical access to the sites where nonpublic personal info r mation is maintained is controlled and mo nitored by security

p ersonnel. Our computer systems offer a high degree of resistance t o 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 alt er records wi thin 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 no tice 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 Se curity Number (SSN) are §§428B(f) and 484(a)(4) of the HEA (20 U.S.C. 1078

- 2(f) and 1091 (a)(4)) and 31 U.S.C. 7701(b). Participating in the William D. Ford Federal Direct Loan (Direct Loan) Program and giving us your SSN are voluntary, but you must provide the requested information, including your SSN, to participate.

The principal purposes for collecting the information on this form, including your SSN, are to verify your identity, to determine your eligibility to receive a loan or a benefit on a loan (suc h 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 matching program, to third parties as aut horized under routine uses in the appropriate systems of r ecords 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,

pr e sent and former em ployers, 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 perm it 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 me nts or if you
default. To provide default rate calculations, disclosures may be made to guaranty agencies,
to financial and educational insti tutions, or to state agencies. To provide financial aid history information, disclosures may be mad e 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 educatio nal 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 an d necessary to the
li tigation. 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 you ask them to help you with federal s tudent aid questions. In circumstances involving employment complaints, grievances, or disciplinary actions, we may disclose relevant records to adjudic ate or investigate the issues. If provided for by a collective bargaining agreement, we may disclose rec ords to a labor organization recognized under 5 U.S.C. C hapter 71. Disclosures may be made to our contractors for the purpose of performing any programmatic function that r equires disclosure of records. Before making any such disclosure, we will require th e contractor to ma intain 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 inf ormation unless it displays a currently valid OMB con trol number. The valid
OMB control number for this inform ation collection is 1845

- 0068. The time required to complete this information collection is estimated to average 0.5 hours (30 minutes) per

respon se, including the time to review instructions, search existing data sources, gather and maintain the data needed, and comple te and review the information. If you have any comments concerning the accuracy of the time estimate(s) or suggestions for i m proving the form, please write to: U.S. Department of Education, Washington, DC 20202

- 4537.
If you have any comments or co n cerns regarding 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 14302

SECTION G: INSTRUCTIONS FOR COMPLETING THE ENDORSER ADDENDUM

Print using a blue or black ink ballpoint pen or type to complete Sect ions A and D of this

A ddendum. Do not use pe n cil. Report all dates as month

- day

- ye ar (mm

- dd

- yyyy). Use only numbers. Example: June 24, 1982 = 06

- 24

- 1982.

SECTION A: ENDORSER INFORMATION

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

Item 2. Enter your nine

- digit Social Security Number.

Item 3. Enter your date of birth.

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

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

Item 6. Enter the two

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

Item 7. Enter your preferred e

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

- mail address to

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

- mail address or do not wish to provide one, enter N/A.

Item 8. Place a check in the box that correspon ds to your citizenship status. If you check box (2), enter your Alien Registration Number.

(1) “U.S. Citizen” includes citizens of the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands. “National” i n cludes not only all U.S. citizens, but also citizens of Amer i can Samoa and Swain’s Island.

(2) “Permanent Resident” means someone who can pr o vide documentation of this status from the U.S. Citizenship and Immigr a tion Services (USCIS). “Other Eligible Non

- Citizen” includes individuals who can provide document a tion from the USCIS that they are in the United States for a purpose that is not temporary, with the intention of becoming a citizen

or pe r manent resident. This category includes r efugees, pe r sons granted asylum, Cuban

Haitian entrants, temporary residents under the Immigration Reform and Control Act of 1986, and others.

NOTE: If your citizenship status is not one of the cat e gories described above, you are not eligible to be an endo rser.

Item 9. Enter your employer’s name. If you are self

- employed, en ter the name of your
business. If you are not employed, enter N/A.

Item 10. Enter your employer’s address (street, city, state, zip code) or, if you are self

employed, the address of you r business.

Item 11. Enter your work area code and telephone number. If you are self

- employed, enter the area code and telephone number of your business.

Item 12. Enter the requested information for two adults with different U.S. addresses who do
not li ve with you and who have known you for at least three years. Do not list the Direct PLUS
Loan borrower or the student as references. If a reference does not have a telephone

nu m ber or e

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

- mail address, enter N/A . If you provide an e

- mail address for a reference, ED may use it to communicate with the reference.

SECTION B: BORROWER INFORMATION
This section will be completed by the U.S. Department of Education.

SECTION C: DEPENDENT UNDERGRADUATE STUDENT INFORMATION

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

SECT ION D: ENDORSER’S PROMISE TO REPAY

Items 23, 24, 25, 26, 27, 28 and 29

. Read these items car e fully.

Items 30 and 31. Sign your full legal name, in blue or black ink, and enter the date you signed
this Addendum.

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

**Page 4**  **of 10**  Important Notice: This Borrower’s Rights and Responsibilities Statement provides add i tional information about the terms and cond i tions of the loans you receive under the a c companying Federal Direct PLUS Loan (Direct PLUS Loan) Application and Master

Promi s sory Note (MPN). Please keep this Borrow er’s Rights and Responsibil i ties 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 R e sponsibilities Statement, th e words “we,” “us,” and “our” refer to the U.S. Department of Ed u cation. The word “loan” refers to
one or more loans made under the Direct PLUS Loan MPN.

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

1. The William D. Ford Federal Direct Loan Program. The William D. Ford Federal Direct Loan (Direct Loan) Program
includes th e 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, 20

U.S.C. 1070 et seq (HEA).

Direct Loans are made by the U.S. Depar t ment of
Education. We contract with servicers to service, answer questions about, and pro cess payments on 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 a nd 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 PLUS Loans. Direct PLUS Loans are loans made to graduate or professional students or to parent s of dependent undergraduate students to help pay for the
cost of ed u cation beyond high school. (“Dependent” is
defined in the Act and is different from the definition used by the Internal Revenue Service.) To be eligible for a

Direct PLUS Loan:

• You must b e a graduate or professional student or the biological or adoptive parent of the dependent undergraduate student for whom you are
bo r rowing. If you are the spouse of the dependent undergraduate student’s pa r ent, you may borrow a Direct PLUS Loan if your in come and assets were reported on the Free Application for Federal

St u dent Aid (FAFSA), or would be reported if a
FAFSA were filed.

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

- citizen.

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

Act.

• You must not have an adverse credit history (unless you meet certain other r e quirements

– see below).

• You, or if you are a parent borrower your child,
must be enrolle d at least half time at a school that partic i pates in the Direct PLUS Loan Program.

We will check your credit history each time y ou request a
Direct PLUS Loan. If you have an adverse credit history, you may not borrow a Direct PLUS Loan unless you :

(1) D oc ument to our satisfaction that there are extenuating circu m stances related to the adverse credit history, or

(2) O btain an endorser who does not have an adverse
cred it history.

An e n dorser is someone who agrees to repay the Direct PLUS Loan if you do not do so. If you are a parent borrower, the endorser of a Direct PLUS Loan may not be the student for whom you are borrowing the loan.

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

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

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

- year feature of the MPN and
chooses to do so.

If the school is not authorized to use the multi

- year feature of the MPN or chooses not to do so, or if you do not want to receive more than one loan under this MPN, you must sign a new MPN for each loan that you r e ceive. If you do not want to receive more than one loan under this MPN, you must notify the school or your servicer in writing.

If you are a parent requesting more than one Direct PLUS Loan to pay for the educational costs of more than one dependent unde rgraduate student, you must sign a separate MPN for each student. You must also sign separate MPNs if you are a parent borrowing on behalf of a dependent undergraduate student and you also wish to obtain a Direct PLUS Loan to pay for your own attendance

in a graduate or professional degree program.

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

5. Dir ect PLUS Loans and eligibility for other financial
aid. If you bo r row a Direct PLUS Loan, this may affect your eligib ility for other financial aid. Therefore, we suggest that you contact the school’s financial aid office to determine eligibility for grants , work

- study funds, or other forms of federal, state and private student aid that do not have to be repaid before you apply for a Direct

PLUS Loan.

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

• Tuition

• Room

• Board

• Institutional f ees

• Books

• Supplies

• Equipment

• Dependent child care expenses

• Transportation

• Commuting expenses

• Rental or purchase of a personal co m puter

• Loan fees

• Other documented, authorized costs

7. Information you must report to us after you receive your loan. You must n otify your servicer and/or the
fina n cial aid office at the school about certain changes.

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

• You change your addre ss or telephone number;

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

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

--

• Do not enroll at least half time for the loan period

certified by the school, or

• Do not enroll at the school that determined you

were eligible to r e ceive the loan;

• You or (if you are a parent borrower) the student stop attending school or drop below half

- time enrollment;

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

• Y ou or (if you are a parent borrower) the student

graduate.

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

• Change your employer, or your e m ploye r’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).

Note to Endorser: You must notify your servicer if you change your address, telephone number, name, or employer, or if your employer’s address or telephone number changes.

8. Amount you may borrow. For each ac a demic year, you may borrow up to

– but not more than

– the amount of
your est i mated cost of attendance (if you are a graduate or professional student borrower) or the student’s estimated cost of attendance (if you are a parent borrower), minus the amount of any other financial aid

re ceived for that academic year. The school determines the cost of attendance using federal guid e lines. It is important not to borrow more than you can afford to repay, even if you are elig i ble to borrow more.

9. Interest rate. The interest rate on a Direct PLUS L oan 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 PLUS 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. The maximum interest
rate for Direct PLUS Loans will not exceed 10.5%. 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 mil itary service. To receive this benefit, you must contact your servicer for information about the documentation you must provide to show that you qualify.

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

**Page 5**  **of 10**  Note to Endorser: You are eligible for the reduced
interest rate described above based on the
borrower ’s military service or your own military service, but only for a Direct PLUS Loan for which you signed an Endorser Addendum prior to the earlier of the beginning date of the borrower’s military service or the beginning date of your military service.

10. Pa yment of interest. Except as provided below for borrowers who serve in the military, you are required to pay the interest accrues on each Direct PLUS Loan you
receive from the date the loan is first disbursed until it is repaid in full, including during pe riods of deferment or
forbearance.

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 Pro gram Loan first disbursed on or after October 1, 2008 during periods of qualifying active duty military service (for up to 6 0 months).

Interest capitalization

If you do not pay the interest as it accrues on a Direct PLUS Loan, as described above, we will add it to the unpaid principal amount of your loan. Th is is called “capitalization.” Capitalization i n creases the unpaid principal balance of your loan, and interest then accrues

on t he increased principal amount. We capitalize unpaid interest when you res ume repayment after period s of
deferment or forbearance. We may also capitalize unpaid
interest that has accrued since the first disbursement of your loan when you enter repayment for the first time.

The chart that follows shows the difference in the total amount you would repay on a $15,000 Direct PLUS Loan if you pay the i n terest as it is charged during a 12

- month
d e ferment 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 inte r est and it is capitalized...

Loan Amount $15,000 $15,000

Interest for 12
Months $1,575 (paid as accrued) $1,575 (unpaid and capitalized) Principal to be Repaid $15,000 $16,575

Monthly Payment $184 $20 3

Number of Payments 120 120

Total Repaid $22,077 $24,396

The example in the chart above shows payments made under the Standard Repayment Plan at an interest rate of 10.5% (the maximum interest rate for a Direct PLUS Loan). In this exa m ple, you would pa y $19 less per month and $2,319 less altogether if you pay the interest as it is charged during a 12

- month deferment or forbea r ance period.

You may be able to claim a federal income tax deduction for interest paym ents 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 PLUS Loan you receive under this MPN, we charge a loan fee that is a percentage of the principal amount of each loan

. This fee will b e subtracted pr o portionately from e ach disbursement of your loan. The loan fee will be shown on a discl o sure statement that we send to you.

12. Repayment incentive programs. A repayment incentive is a benefit that we offer to encourage y ou to repay your lo an on time. The repayment incentive

pr o gram 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 c hecking or savin gs 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 th e automatic withdrawal option. Your servicer will prov ide 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 all correspondence th at your servicer sends you.

13. Disbursement (how your loan money will be paid out). Generally, the school will disburse (pay out) your loan money in more than one installment, usually at the beginning of each academic term (for exa m ple, at the beginning o f each semester or qua r ter). If the 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

. The school determines the schedule for disbursing your loan money in accordance with the Act.

The school may disburse some or all of your loan money by crediting it to your accoun t at the school (if you are a graduate or professional student borrower) or to the student’s account at the school (if you are a parent borrower), or may give it to you directly by check or other

mea ns. Your servicer will notify you in writing each time
th e school disburses part of your loan money.

If you are a graduate or professional student and have not previously received a Direct PLUS Loan or a Federal PLUS Loan under the Federal Family Education Loan (FFEL) Program, you must receive entrance counselin g before your school can make the fi rst disbursement of your loan. Your school will tell you if entrance counseling is required, and will provide instructions for completing entrance counseling.

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

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

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

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

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

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

• You may notify the school (within certain timeframes). If the 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 m oney to your or the student’s 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 the school’s payment period, whichever is later (the school can tell you the first day of the payment period).

If the school does not obtain your written confirmation of the types and amounts of loans you want to receive before crediting the loan money to

yo ur or the student’s 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 the school to cancel all or part of your
loan with in the timeframes described above, the
school will return the cancelled loan amount to us.
If you ask the school to cancel all or part of your loan outside the timeframes described above, the school may process your ca n cellation request, but it is not requ ired to do so.

• You may return all or part of your loan to us. Within 120 days of the date the school disburses your loan money (by crediting the loan money to your or the student’s account at the school, by paying it directly to you, or both), you may canc el 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 retu rned within the timeframes described above. We will adjust your loan amount to eliminate any interest, loan fee, and rebate amount that applies to the amount of the loan that is
cancelled or returned.

15. Repaying your loan. The repayment period for each

D irect PLUS Loan made under this MPN begins on the
date of the final di s bursement for that loan. This means that the repayment period for each loan you receive under this MPN will begin on a different date. Unless you receive a deferment or forbearance (se e Item 21), your first payment on each loan will be due within 60 days of
the final disbursement of that loan. Your servicer will notify you of the date your first payment is due.

You must make payments on your loan even if you do not
receive a bill or re payment 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 typ es 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 ma y not be repaid under IBR, Pay As You Earn, or ICR

. You may choose one of the following repa y ment plans to repay your Direct PLUS Loan:

Standard Repayment Plan

Under this plan, you will make fixed monthly pa y ments and repay your loan in full within 10 year s (not including periods of defe r ment or forbearance) from the da te 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
da te the loan entered re payment. 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 da te the loan entered repayment. You may choose to make fixed monthly payments or graduated monthly payments that start out lower and gradually increase ove r time. Your payments must be at least $50 a month ($6 00 a year) and will be more, if necessary, to repay the loan within the required time period.

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

**Page 6**  **of 10**  The following additional repayment plans are available to graduate and professional student Direct PLUS Loan borrowers (parent Direct PLUS Loan borrowers may no t repay their loans under these plans):

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 adjus ted 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)

m ust 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 f amily 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 w ould 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 q ualifying 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 yo u 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 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

y ou 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 eligi ble 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 ha rdship. 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 you r 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.

U nder 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 inco me 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 1 2

- 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 in come 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 amoun t 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

If you are a graduate or professional student, these repayment plans will be explained in more detail during your exit counseling session.

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 rep ayment 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.

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, th e 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.

Note to Endorser: If you are making payments on the borrower’s Direct PLUS Loan, you may req uest a change of r e payment plans by contacting your

servicer.

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) outst anding 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 ha ve repaid a loan in full, your servicer will send you a notice telling you tha t you have paid off your
loan. You should keep this notice in a safe place.

16. Transfer of loan. We may transfer one or all of your
loans to another servicer without your consen t. 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 direct ing

co mmunications to that servicer. Transfer of a loan to a different servicer does not affect your rights and responsibilities under that loan.

17. Late charges and collection costs. If you do not make any part of a payment within 30 days after it is d ue, we
may req uire you to pay a late charge. This charge will not
be more than six cents for each dollar of each late

paymen t. If you do not make payments as scheduled, we may also require you to pay other charges and fees involved in collecting your loan.

18. 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 you or the student for whom you obtained the loan do not e n roll at least
half time at the sch ool that determined you were eligible to receive the loan;

• Use your loan money to pay for anything other than expenses related to your or the st u dent’s
education at the school that d e termined you were eligible to receive the loan;

• Make a false statement th at causes you to receive a loan that you are not eligible to receive; or

• Default on your loan.

19. Defaulting on your loan. Default (failing to repay your loan) is defined in detail in the Terms and C onditions section of your MPN (Section F). If you defaul t:

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

• We may sue you, take all or part of your federal tax refund or other federal pa y ments, and/or garnish your wages so that your employer is required to send us part of your sa lary to pay off your loan.

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

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

programs.

• You will lose eligib ility for loan defe r ments.

Note to Endorser: I f the borrower d e faults on the loan, and you do not make payments on the loan, you may also be subject to the actions described
above.

• We will also report your default to national consumer reporting agencies (s ee Item 20, “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.

20. Consumer reporting agency notification. We will

r e port information about your loan to national consumer

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

**Page 7**  **of 10**  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 you are current or d elinquent in making payments). Your loan will be
identified as an education loan.

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

nationa l 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 d ays 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 contac ts 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.

Note to Endorser: If the borrower of a Direct PLUS Loan becomes delinquent in m aking payments or defaults on the loan, we may also report your name to consumer reporting agencies in connection with the delinquent or defaulted loan.

21. 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 m aking 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 temporarily stop making

pa y ments o n 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;

• During the 6

- month period after you cease to be
enrolled at leas t half time;

• While the student for whom you obtained a Direct
PLUS Loan is enrolled at least half time at an eligible school;

• During the 6

- month period after the student for whom you obtained a loan ceases to be enrolled at least half time;

• While you are i n a full

- time course 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

una ble to find, full

- time 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 na tional 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

q ualifying 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 recei ve additional d e ferments if, at the time you received your first Direct Loan, you had an outstanding balance on a loan made under the FFE L Program before July 1, 1993. If you meet this requirement, contact your servicer for information about
additional def erments that may be available. You may receive a deferment while you are enrolled in
school on at least a half

- time basis (and, if you are a graduate or professional student, during the 6

- month period after you cease to be enrolled at least half time) if ( 1) you submit a deferment request form 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

e n rolled at least half time. If your servicer processes a deferment based on information received from your school, you will be notified of the deferment and will have the option of canceling the d e ferment and continuing to make payments on your loan.

For all other deferments, you (or, for a deferment based on active military duty or qualifying National Guard duty during a war or other military operation or national emergency, your representative) must submit a deferment request form to your servicer, along with documentation of your eligibi lity 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 time period on a FFEL Program loan. Your
servicer ca n provide you with a deferment request form that explains the elig i bility and documentation requirements for the type of deferment you are requesting. You may also obtain deferment request forms and information on deferment eligibility requir e ments from yo ur servicer’s web site.

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

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

Note to Endorser: You are not eligible to receive a
deferment

. Forbearance

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

We will give you a forbearance if:

• You are serving in a medical or den tal 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 (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 int erest that accrues on a qualified loan during the service period will be paid by the Corporation for National and Community Service;

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

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

Forces.
To request a forbe arance, contact your servicer. Your servicer can provide you with a forbea r ance request form that explains the eligibility and documentation requirements for the type of f orbearance 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 t o subm it 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 documenta tion 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);

• Periods when you are involved in a mil i tary mobilization, or a local or nati onal emergency; or

• Periods necessary to align repayment of Direct PLUS Loans that do not qualify for a 6

- month post

enrollment deferment with other Direct PLUS Loans that qualify for this deferment, or with Direct
Subsidized Loans and Direct Unsubsidized L oans that have a grace period. Contact your servicer for
more information.

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

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

22. 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, or the student for whom you borrowed a

Direct PL US Loan dies. Your servicer must receive acceptable documentation of your or the student’s
death.

• Your loan is discharged in bankruptcy. However,
Direct Loans and other federal st udent loans are not automatically discharg ed if you file for bankruptcy. In order to have your loan discharged in bankruptcy, you must prove to the bankruptcy court that repa y ing the loan would cause undue
har d ship.

• You become totally and permanently disab led (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 (or the student) could not complete a program of study because the school closed;

• Your loan eligibility was false ly 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.

Public Service Loan Forgiveness

A p ublic 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

repaym ent 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 forg iveness or repayment options become available, your servicer will provide information about these benefits.

To request loan discharge or forgiveness 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 somet hing 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 scho ol 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 participate in federal

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

**Page 8**  **of 10**  student financial aid pr o g rams. You must repay your loan even if you or (if you are a parent borrower) the student do not complete the educ a tion paid for with the loan, are unable to obtain employment in the field of study for which the school provided training, or are dissatisfied with, or do not receive, the education paid for with the
loan.

Note to Endorser: If we discharge the full amount of the borrower’s loan for any of the conditions described above, you are no longer obligated to make any payments on the loan. However, if a loan is reinstated after a discharge, you will again be obligated to make payments on the loan if the borrower does not make payments.

23. 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 monthly payment, and may allow you to extend the period of time that you have to repay your
loans. This may make it easie r for you to repay your loans. However, you will pay more interest if you extend your

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

Note to Endorser: You are not eligible to apply for a

Direct Cons olidation Loan to repay a Direct PLUS Loan for which you are the endorser.

24. Department of Defense and other fe d eral agency loan repayment. Under certain circumstances, military personnel may have their federal education loans repai d 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 enlist ment 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 d e partment for more information.

## William D. Ford Federal Direct Loan Program Direct PLUS 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 $135 $16,192 $88 $227 $17,865 N/A N/A N/A N/A N/A

$20,000 $270 $32,384 $175 $453 $35,731 N/A N/A N/A N/A N/A

$30,000 $405 $48,577 $263 $680 $53,597 N/A N/A N/A N/A N/A

$40,000 $540 $64,769 $350 $906 $71,463 $378 $113,302 $350 $457 $119,720

$50,000 $675 $80,961 $438 $1,133 $89,329 $472 $141,627 $438 $571 $149,662

$60,000 $810 $ 97,153 $525 $1,359 $107,195 $567 $169,953 $525 $686 $179,585

$70,000 $945 $113,345 $613 $1,586 $125,061 $661 $198,278 $613 $800 $209,518

$80,000 $1,079 $129,538 $700 $1,812 $142,927 $755 $226,604 $700 $914 $239,457

$90,000 $1,214 $145,730 $788 $2,039 $1 60,793 $850 $254,929 $788 $1,028 $269,396

$100,000 $1,349 $161,922 $875 $2,265 $178,658 $944 $283,255 $875 $1,143 $299,328

Notes:

• All estimated payments shown in the chart above are calculated using a fixed interest rate of 10.5%, the maximum interest r ate for Direct PLUS Loans.

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

• You may use the Repayment Estimator at StudentLoans.gov to estimate payment amounts based on your actual loan debt.

Repaying Your Loans: IBR, Pay As You Earn, and ICR Plans

Income

- Based Repayment (IBR) Plan

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

Initial Payment F inal 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 $270 $63,753 299 N/A N/A N/A N/A N/A N/A N/A N/A

$40,000 $97 $538 $ 80,919 300 $285 $540 $100,466 223 $535 $540 $64,875 121

$60,000 $97 $538 $80,919 300 $285 $810 $174,605 300 $535 $810 $122,145 170

$80,000 $97 $538 $80,919 300 $285 $1,079 $187,524 300 $535 $1,079 $221,369 252

$100,000 $97 $538 $80,919 300 $285 $1,143 $ 188,307 300 $535 $1,349 $304,342 300

## William D. Ford Federal Direct Loan Program Direct PLUS 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 Pa id Time to Repay (Months) Initial Payment Final Payment Total Paid Time to Repay (Months)

$20,000 $65 $260 $34,914 240 $190 $270 $38,069 154 N/A N/A N/A N/A

$40,000 $65 $260 $34,914 240 $190 $540 $84,019 240 $356 $540 $81,429 170

$60,000 $65 $260 $34,91 4 240 $190 $576 $84,514 240 $356 $810 $145,233 240

$80,000 $65 $260 $34,914 240 $190 $576 $84,514 240 $356 $997 $150,647 240

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

Income

- Contingent Repayment (ICR) Plan

Debt Startin g 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 Rep ay (Months)

$20,000 $168 $231 $59,894 300 $215 $245 $39,287 173 $245 $271 $34,295 133

$40,000 $225 $504 $120,218 300 $430 $490 $78,574 173 $490 $542 $68,589 133

$60,000 $225 $926 $151,474 300 $475 $786 $145,976 220 $734 $813 $102,884 133

$80,000 $225 $ 926 $151,474 300 $475 $1,225 $267,378 300 $809 $1,100 $147,913 148

$100,000 $225 $926 $151,474 300 $475 $1,559 $290,626 300 $809 $1,451 $227,523 194

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 anyo ne 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 10.5% (the maximum interest rate for Direct PLUS Loans) and assume that the Poverty Guidelines (calculated a nnually 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 starti ng 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 A s You Earn, and ICR plans based on your actual loan debt, income, and family siz e.