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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 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.

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 borrower does not repay the loan. The terms and conditions of the MPN are presented in Section E of this Addendum and in the Borrower’s Rights 

and Responsibilities Statement 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. Permanent 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 and 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.

SECTION D: ENDORSER’S PROMISE TO PAY – READ CAREFULLY BEFORE SIGNING BELOW

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 receiving the Direct PLUS Loan.

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

required to read it.

25. I am entitled to an exact copy of this Addendum and the Borrower’s Rights and Responsibilities Statement. My signature below certifies that I have read, understand, and agree to the terms 

and conditions of the MPN (as shown in Section E of this Addendum), this Addendum, and the Borrower’s Rights and Responsibilities Statement.

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 organizations permitted by law to receive that 

information. I understand that if the borrower becomes delinquent in making payments or defaults on the loan made under the MPN, ED may report my name to consumer reporting agencies in 

connection 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 serving as an endorser, including repayment of the loan, at the number 

that I provide on this Addendum 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.

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 MPN and this Addendum when 

due, I will also pay reasonable collection costs, including but not limited to attorney’s fees, court costs, and other fees. I understand that ED may use the same collection efforts against me that 

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

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 borrower 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
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Endorser Addendum to Direct PLUS Loan MPN (continued)

SECTION E: MPN TERMS AND CONDITIONS

NOTE TO ENDORSER:

This is an Addendum to the Federal Direct PLUS (Direct 

PLUS) Loan Application and Master Promissory Note 

(MPN) signed by the borrower of the Direct PLUS Loan. 

The borrower of a Direct PLUS Loan may be a graduate 

or professional student, or the parent of a dependent 

undergraduate student. By signing this Addendum, you 

are agreeing to repay only the loan that is identified in 

Section B of this Addendum, if the borrower does not 

repay that loan. No additional loans may be made to 

the borrower under this MPN.

This section of the Addendum contains the terms and 

conditions of the MPN signed by the borrower. 

Important additional information is also contained in 

the Borrower’s Rights and Responsibilities Statement

that accompanies this Addendum. As an endorser, you 

are not entitled to all of the same benefits as a Direct 

PLUS Loan borrower. For complete information 

regarding your rights and responsibilities as an 

endorser, please read the Borrower’s Rights and

Responsibilities Statement.

GOVERNING LAW

The terms of this Application and Master Promissory 

Note (MPN) will be interpreted in accordance with the 

Higher Education Act of 1965, as amended (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 PLUS (Direct PLUS) 

Loans. Under this MPN, the principal amount that I 

owe, and am required to repay, will be the sum of all 

disbursements that are made (unless I reduce or 

cancel any disbursements as explained below under 

Loan Cancellation), plus any unpaid interest that is 

capitalized and added to the principal amount.

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.

I may request additional loan funds to pay for my or 

the student’s educational costs by contacting the 

school’s financial aid office. The school will determine 

if I am eligible for any additional loan funds. I will be 

notified of any increase or other change in the amount 

of my loan.

I understand that 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 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 PLUS Loans is calculated each year. When the 

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 on 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 disbursement until the loan 

is paid in full, including during deferment, 

forbearance, or other periods. I agree to pay all 

interest charges on my loan. I will be given the 

opportunity to pay the interest that accrues during a 

period of authorized deferment or forbearance. If I do 

not pay this interest, ED may capitalize the interest 

(add it to the principal balance of my loans) at the end 

of the deferment or forbearance.

LOAN FEE

As provided by the Act, ED charges a loan fee for each 

Direct PLUS 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.

REPAYMENT

I must repay the full amount of the loans made under 

this MPN, plus accrued interest. I will repay each loan 

in monthly installments during a repayment period 

that begins on the day of the final disbursement of 

that loan. Payments 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 

intent 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 (or the student) do not enroll as at least a halftime student at the school that certified my loan 

eligibility; 

(2) I do not use the proceeds of the loan solely for 

my or the student’s educational expenses; 

(3) I make a false representation that results in my 

receiving a loan for which I am not eligible; or 

(4) I default on the loan.

The following events will constitute a default on my 

loan: 

(1) I do not pay the entire unpaid balance of the 

loan after ED has exercised its option under items 

(1), (2), and (3) 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 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 or regulation. I will immediately notify ED of a 

change of contact information or status as specified in 

the Borrower’s Rights and Responsibilities 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 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.
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Endorser Addendum to Direct PLUS Loan MPN (continued)

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-toknow” basis, and control individual users’ ability to access and alter records within the 

systems. All users of these systems are given a unique user ID with personal identifiers. All 

interactions by individual users with the systems are recorded.

PRIVACY ACT NOTICE

The Privacy Act of 1974 (5 U.S.C. 552a) requires that the following notice be provided to 

you: 

The authority for collecting the requested information from and about you is §451 et seq. of 

the Higher Education Act (HEA) of 1965, as amended (20 U.S.C. 1087a et seq.) and the 

authorities for collecting and using your Social Security Number (SSN) are §§428B(f) and 

484(a)(4) of the HEA (20 U.S.C. 1078-2(f) and 1091(a)(4)) and 31 U.S.C. 7701(b). Participating 

in the William D. Ford Federal Direct Loan (Direct Loan) Program and giving us your SSN are 

voluntary, but you must provide the requested information, including your SSN, to 

participate.

The principal purposes for collecting the information on this form, including your SSN, are to 

verify your identity, to determine your eligibility to receive a loan or a benefit on a loan (such 

as a deferment, forbearance, discharge, or forgiveness) under the Direct Loan Program, to 

permit the servicing of your loan(s), and, if it becomes necessary, to locate you and to collect 

and report on your loan(s) if your loan(s) become delinquent or in default. We also use your 

SSN as an account identifier and to permit you to access your account information 

electronically.

The information in your file may be disclosed, on a case by case basis or under a computer 

matching program, to third parties as authorized under routine uses in the appropriate 

systems of records notices. The routine uses of this information include, but are not limited 

to, its disclosure to federal, state, or local agencies, to private parties such as relatives, 

present and former employers, business and personal associates, to consumer reporting 

agencies, to financial and educational institutions, and to guaranty agencies in order to verify 

your identity, to determine your eligibility to receive a loan or a benefit on a loan, to permit 

the servicing or collection of your loan(s), to enforce the terms of the loan(s), to investigate 

possible fraud and to verify compliance with federal student financial aid program 

regulations, or to locate you if you become delinquent in your loan payments or if you 

default. To provide default rate calculations, disclosures may be made to guaranty agencies, 

to financial and educational institutions, or to state agencies. To provide financial aid history 

information, disclosures may be made to educational institutions. To assist program 

administrators with tracking refunds and cancellations, disclosures may be made to guaranty 

agencies, to financial and educational institutions, or to federal or state agencies. To provide 

a standardized method for educational institutions to efficiently submit student enrollment 

status, disclosures may be made to guaranty agencies or to financial and educational 

institutions. To counsel you in repayment efforts, disclosures may be made to guaranty 

agencies, to financial and educational institutions, or to federal, state, or local agencies. 

In the event of litigation, we may send records to the Department of Justice, a court, 

adjudicative body, counsel, party, or witness if the disclosure is relevant and necessary to the 

litigation. If this information, either alone or with other information, indicates a potential 

violation of law, we may send it to the appropriate authority for action. We may send 

information to members of Congress if you ask them to help you with federal student aid 

questions. In circumstances involving employment complaints, grievances, or disciplinary 

actions, we may disclose relevant records to adjudicate or investigate the issues. If provided 

for by a collective bargaining agreement, we may disclose records to a labor organization 

recognized under 5 U.S.C. Chapter 71. Disclosures may be made to our contractors for the 

purpose of performing any programmatic function that requires disclosure of records. Before 

making any such disclosure, we will require the contractor to maintain Privacy Act 

safeguards. Disclosures may also be made to qualified researchers under Privacy Act 

safeguards.

FINANCIAL PRIVACY ACT NOTICE

Under the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401-3421), ED will have access to

financial records in your student loan file maintained in compliance with the administration 

of the Direct Loan Program.

PAPERWORK REDUCTION NOTICE

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a 

collection of information unless it displays a currently valid OMB control number. The valid 

OMB control number for this information collection is 1845-0068. The time required to 

complete this information collection is estimated to average 0.5 hours (30 minutes) per 

response, including the time to review instructions, search existing data sources, gather and 

maintain the data needed, and complete and review the information. If you have any 

comments concerning the accuracy of the time estimate(s) or suggestions for improving the 

form, please write to: U.S. Department of Education, Washington, DC 20202-4537. 

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

SECTION G: INSTRUCTIONS FOR COMPLETING THE ENDORSER ADDENDUM

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

Addendum. Do not use pencil. Report all dates as month-day-year (mm-dd-yyyy). Use only 

numbers. Example: June 24, 1982 = 06-24-1982.

SECTION A: ENDORSER INFORMATION

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

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

Item 3. Enter your date of birth.

Item 4. Enter your permanent address (number, street, apartment number, or rural route 

number and box number, then city, state, zip code). If your mailing address is a post office 

box or general delivery, you must list both your street address and your mailing address. 

Item 5. Enter the area code and telephone number at which you can most easily be reached. 

(Do not list your work telephone number here.) If you do not have a telephone, enter N/A.

Item 6. Enter the two-letter state abbreviation for the state that issued your current driver’s 

license, followed by your driver’s license number. If you do not have a driver’s license, enter 

N/A.

Item 7. 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 

communicate 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 corresponds to your citizenship status. If you check box 

(2), enter your Alien Registration Number.

(1) “U.S. Citizen” includes citizens of the 50 states, the District of Columbia, Puerto Rico, 

the U.S. Virgin Islands, Guam, and the Northern Mariana Islands. “National” includes not 

only all U.S. citizens, but also citizens of American Samoa and Swain’s Island.

(2) “Permanent Resident” means someone who can provide documentation of this status 

from the U.S. Citizenship and Immigration Services (USCIS). “Other Eligible Non-Citizen” 

includes individuals who can provide documentation from the USCIS that they are in the 

United States for a purpose that is not temporary, with the intention of becoming a citizen 

or permanent resident. This category includes refugees, persons granted asylum, CubanHaitian entrants, temporary residents under the Immigration Reform and Control Act of 

1986, and others.

NOTE: If your citizenship status is not one of the categories described above, you are not 

eligible to be an endorser.

Item 9. Enter your employer’s name. If you are self-employed, enter 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 selfemployed, the address of your 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 live with you and who have known you for at least three years. Do not list the Direct PLUS 

Loan borrower or the student as references. If a reference does not have a telephone 

number 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 dependent undergraduate student. If the Direct PLUS Loan 

borrower is a graduate or professional student, this section will be blank.

SECTION D: ENDORSER’S PROMISE TO REPAY

Items 23, 24, 25, 26, 27, 28 and 29. Read these items carefully.

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 additional 

information about the terms and conditions of the loans 

you receive under the accompanying Federal Direct PLUS 

Loan (Direct PLUS Loan) Application and Master 

Promissory Note (MPN). Please keep this Borrower’s 

Rights and Responsibilities Statement for your records.

You may request another copy of this Borrower’s Rights 

and Responsibilities Statement at any time by contacting 

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 Direct PLUS Loan MPN.

Note to Endorser: An endorser is someone who agrees to 

repay a Direct PLUS Loan if the borrower does not repay 

the loan. If you are the endorser of a Direct PLUS Loan, 

you are not entitled to all of the same benefits as a Direct 

PLUS Loan borrower, and not all of the terms and 

conditions of a Direct PLUS Loan apply to you. However, 

you should read the entire Borrower’s Rights and 

Responsibilities Statement. We have highlighted 

important information that applies to you as an endorser.

1. The William D. Ford Federal Direct Loan Program. The 

William D. Ford Federal Direct Loan (Direct Loan) Program 

includes the following types of loans, known collectively 

as “Direct Loans”:

• Federal Direct Stafford/Ford Loans (Direct 

Subsidized Loans)

• 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, 20 

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

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

Education. We contract with servicers to service, answer 

questions about, and process payments on 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 PLUS Loans. Direct PLUS Loans are loans made 

to graduate or professional students or to parents of 

dependent undergraduate students to help pay for the 

cost of education beyond high school. (“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 be a graduate or professional student or 

the biological or adoptive parent of the dependent 

undergraduate student for whom you are 

borrowing. If you are the spouse of the dependent 

undergraduate student’s parent, you may borrow a 

Direct PLUS Loan if your income and assets were 

reported on the Free Application for Federal 

Student Aid (FAFSA), or would be reported if a 

FAFSA were filed.

• You, and if you are a parent borrower your child, 

must be a U.S. citizen or national, a permanent 

resident of the United States, or an otherwise 

eligible non-citizen.

• You, and if you are a parent borrower your child, 

must not be in default on a federal education loan 

or owe an overpayment on a federal education 

grant, and must not have been convicted of, or 

have pled nolo contendere (no contest) or guilty to, 

a crime involving fraud in obtaining funds under the 

Act.

• You must not have an adverse credit history (unless 

you meet certain other requirements – see below).

• You, or if you are a parent borrower your child, 

must be enrolled at least half time at a school that 

participates in the Direct PLUS Loan Program.

We will check your credit history each time you request a 

Direct PLUS Loan. If you have an adverse credit history, 

you may not borrow a Direct PLUS Loan unless you:

(1) Document to our satisfaction that there are 

extenuating circumstances related to the adverse 

credit history, or 

(2) Obtain an endorser who does not have an adverse 

credit history. 

An endorser is someone who agrees to repay the Direct 

PLUS Loan if you do not 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 your 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 receive. 

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 undergraduate 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. Direct PLUS Loans and eligibility for other financial 

aid. If you borrow a Direct PLUS Loan, this may affect 

your eligibility for other financial aid. Therefore, we 

suggest that you contact the school’s financial aid office 

to determine eligibility for grants, work-study funds, or 

other forms of 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 educational 

expenses or, if you are a parent borrower, for the 

student’s authorized educational expenses for attendance 

at the school that determined you were eligible to receive 

the loan. Authorized expenses include the following:

• Tuition

• Room

• Board

• Institutional fees

• Books

• Supplies

• Equipment

• Dependent child care expenses

• Transportation

• Commuting expenses

• Rental or purchase of a personal computer

• Loan fees

• 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 the school about certain changes.

Until you or (if you are a parent borrower) the student 

graduate or otherwise leave school, you must notify the 

school’s financial aid office if:

• You change your address or telephone number;

• You change your name (for example, maiden name to 

married name);

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

• 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 receive 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

• You 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 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).

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 academic year, you 

may borrow up to – but not more than – the amount of 

your estimated cost of attendance (if you are a graduate 

or professional student borrower) or the student’s 

estimated cost of attendance (if you are a parent 

borrower), minus the amount of any other financial aid 

received for that academic year. The school determines 

the cost of attendance using federal guidelines. It is 

important not to borrow more than you can afford to 

repay, even if you are eligible to borrow more.

9. Interest rate. The interest rate on a Direct PLUS Loan is 

a fixed rate 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 military 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. Payment 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 periods 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 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 a Direct 

PLUS Loan, as described above, 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 repayment after periods 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 interest as it is charged during a 12-month 

deferment or forbearance period, compared to the 

amount you would repay if you do not pay the interest 

and it is capitalized. 

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 

$1,575

(paid as 

accrued)

$1,575

(unpaid and 

capitalized)

Principal to be 

Repaid

$15,000 $16,575

Monthly 

Payment 

$184 $203

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 example, you would pay $19 less per month 

and $2,319 less altogether if you pay the interest as it is 

charged during a 12-month deferment or forbearance 

period.

You may be able to claim a federal income tax deduction 

for interest payments you make on Direct Loans. For 

further information, refer to IRS Publication 970, which is 

available at http://www.irs.ustreas.gov.

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 be 

subtracted proportionately from each disbursement of 

your loan. The loan fee will be shown on a disclosure 

statement that we send to you.

12. Repayment incentive programs. A repayment 

incentive is a benefit that we offer to encourage you to 

repay your loan on time. 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 all correspondence that 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 example, at the 

beginning of each semester or quarter). 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 account at the school (if you are a 

graduate or professional student borrower) or to the 

student’s account at the school (if you are a parent 

borrower), or may give it to you directly by check or other 

means. Your servicer will notify you in writing each time 

the 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 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.

If the school credits your loan money to your or the 

student’s account and the amount credited is more than 

the amount of the tuition and fees, room and board, and 

other authorized charges, the excess amount is called a 

credit balance.

Unless you authorize the school to hold the credit balance 

for you, the school must pay you the credit balance within 

the following timeframes:

• If the credit balance occurs after the first day of 

class of a payment period (the school can tell you 

this date), the school must pay you the credit 

balance no later than 14 days after the date the 

balance occurs.

• If the credit balance occurs on or before the first 

day of class of a payment period, the school must 

pay you the credit balance no later than 14 days 

after the first day of class of the payment period.

If you are a parent borrower, you may authorize the 

school to pay the credit balance to the student.

14. Canceling your loan. Before your loan money is 

disbursed, you may cancel all or part of your loan at any

time by notifying the school. After your loan money is 

disbursed, there are two ways to cancel all or part of your 

loan:

• 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 money 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 

your 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 within 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 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 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 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, 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 

Direct PLUS Loan made under this MPN begins on the 

date of the final disbursement for that loan. This means 

that the repayment period for each loan you receive 

under this MPN will begin on a different date. Unless you 

receive a deferment or forbearance (see 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 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 PLUS Loan:

Standard Repayment Plan

Under this plan, you will make fixed monthly payments 

and repay your loan in full within 10 years (not including 

periods of deferment or forbearance) from the date the 

loan entered repayment. Your payments must be at least 

$50 a month ($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. 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. 
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 not 

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 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 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

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 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.

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.

Note to Endorser: If you are making payments on 

the borrower’s Direct PLUS Loan, you may request 

a change of repayment plans by contacting 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) 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.

16. Transfer of loan. We may transfer 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. 

17. 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.

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 enroll at least 

half time at the school that determined you were 

eligible to receive the loan;

• Use your loan money to pay for anything other 

than expenses related to your or the student’s 

education at the school that determined you were 

eligible to receive the loan;

• Make a false statement that causes you to receive a 

loan that you are not eligible to receive; or

• Default on your loan.

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

loan) is defined in detail in the Terms and Conditions 

section of your MPN (Section F). If you default:

• We will require you to immediately repay the 

entire unpaid amount of your loan.

• We may sue you, take all or part of your federal tax 

refund or other federal payments, and/or garnish 

your wages so that your employer is required to 

send us part of your salary to pay off your loan.

• We will require you to pay reasonable collection 

fees and costs, plus court costs and attorney fees.

• You will lose eligibility for other federal student aid 

and assistance under most federal benefit 

programs.

• You will lose eligibility for loan deferments.

Note to Endorser: If the borrower defaults on the 

loan, and you do not make payments on the loan, 

you may also be subject to the actions described 

above.

• We will also report your default to national 

consumer reporting agencies (see 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 

report 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 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.

Note to Endorser: If the borrower of a Direct PLUS 

Loan becomes delinquent in making payments or 

defaults on the loan, we may also report your name 

to consumer reporting agencies in connection with 

the delinquent or defaulted loan.

21. 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;

• During the 6-month period after you cease to be 

enrolled at least 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 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 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 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 

enrolled 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 deferment 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 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 time period 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 responsible for paying the interest on a Direct 

PLUS Loan during a period of deferment.

Note to Endorser: You are not eligible to receive a 

deferment.

Forbearance

We may give you a forbearance if you are temporarily 

unable to make your scheduled loan payments for 

reasons including, but not limited to, financial hardship 

and illness.

We will give you a forbearance if:

• You are serving in a medical or dental internship or 

residency program, and you meet specific 

requirements; 

• 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 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); 

• Periods when you are involved in a military 

mobilization, or a local or national emergency; or

• Periods necessary to align repayment of Direct 

PLUS Loans that do not qualify for a 6-month postenrollment deferment with other Direct PLUS Loans 

that qualify for this deferment, or with Direct 

Subsidized Loans and Direct Unsubsidized Loans 

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 forbearance.

Note to Endorser: Although you are not eligible to 

receive a deferment, you may receive 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 PLUS 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 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.

• 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 (or the student) could not complete a program 

of study because the school closed;

• Your loan eligibility was falsely certified by the 

school;

• A loan in your name was falsely certified as a result 

of a crime of identity theft; or

• The school did not pay a refund of your loan money 

that it was required to pay under federal 

regulations.

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 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 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 
William D. Ford Federal Direct Loan Program

Direct PLUS Loan Borrower’s Rights and Responsibilities Statement

Page 8 of 10

student financial aid programs. You must repay your loan 

even if you or (if you are a parent borrower) the student 

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

unable to obtain employment in the field of study for 

which the school provided training, or are dissatisfied

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

loan.

Note to Endorser: If we discharge the full amount 

of the borrower’s loan for any of the conditions 

described above, you are no longer obligated to 

make any payments on the loan. 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 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.

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

Direct Consolidation Loan to repay a Direct PLUS 

Loan for which you are the endorser.

24. 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.
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 $160,793 $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 rate 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 owed.

• 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 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 $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 Paid 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 $34,914 240 $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

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 $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 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 10.5% (the maximum interest rate for Direct PLUS Loans) 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.