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Disclosure statement

To keep an up-front interest rebate that you receive on your loan, you must make all f your first 12 required monthly payments on time (we must receive each payment no later than 6 days after the due date) when your loan enters repayment. You will lose the rebate if you do not make all of your first 12 required monthly payments on time. This will increase the amount that you must repay. Net Loan Amount – This is the amount of your loan money that remains after the Loan Fee Amount is subtracted and the Interest Rebate Amount is added.

The school will disburse the Net Loan Amount to you by crediting your account at the school, paying you directly, or both. Item 9 shows the school’s plan for disbursing your Net Loan Amount to you. The actual disbursement dates and amounts may be different than the dates and amounts that are shown. The school and your servicer will notify you of the actual disbursement dates and amounts. Before your loan money is disbursed, you may cancel all or part of your loan(s) 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(s): 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 ccount at the school, you may tell the school that you want to cancel all or part of the 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 account, you may cancel all or part of the loan by informing the school within 30 days of the date the school notifies you of our right to cancel all or part of the loan. In either case, the school will return the cancelled loan amount to us. If you ask the school to cancel all or part of your loan(s) outside the timetrames described above, the school may process your cancellation request, but it is not required to do so.

Within 120 days of the date the school disburses your loan money (by crediting the loan money to your account at the school, by paying it directly to you, or both), you may return all or part of your loan(s) 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, and if you received an up-front interest rebate, the rebate does not apply.

Your loan will be adjusted to eliminate any interest, loan fee, and rebate amount that applies to the amount of the loan that is cancelled or returned. If you have questions regarding the next steps in the processing of your loan, contact your school. After the first disbursement of your loan has been made, your loan will be assigned to a loan servicer and you will be rovided with the servicer’s name, address and contact information. Your servicer will service, answer questions about, and process payments on your loan after you enter repayment.

DISSU2 Addendum to the Direct Subsidized Loan/Direct Unsubsidized Loan Master Promissory Note William D. Ford Federal Direct Loan Program The Consolidated Appropriations Act, 2012 (Public Law 112-74), signed into law on December 23, 2011, changed one of the terms of Federal Direct Stafford/Ford Loans (Direct Subsidized Loans). Specifically, the new law temporarily eliminated the interest subsidy provided on Direct Subsidized Loans during the six month grace eriod provided to students when they are no longer enrolled on at least a half-time basis.

This change is effective for new Direct Subsidized Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. As a result of this law, the terms of Direct Subsidized Loans that you receive under a Direct Subsidized Loan/Direct Unsubsidized Loan Master Promissory Note (MPN) may differ from the terms described in the MPN and the Borrower’s Rights and Responsibilities Statement. This Addendum modifies the MPN to reflect the change to the terms of Direct Subsidized Loans made by Public Law 112-74.

The changes made by this Addendum are incorporated into and made part of the MPN and the Borrower’s Rights and Responsibilities Statement. You should keep a copy of this Addendum with your MPN and Borrower’s Rights and Responsibilities Statement. 1. MPN, Section E: MPN Terms and Conditions, Interest. The first sentence of the second paragraph under the heading “Interest” is revised to read as follows: “Except as provided in the Note below, interest does not accrue on a Direct Subsidized Loan during an in-school, grace, or deferment period, and during certain periods of repayment under the Income-Based Repayment Plan. “

The following Note is added immediately after the paragraph that begins “If I do not pay the interest… “: “Note: Interest accrues during the grace period on any Direct Subsidized Loan for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. ” 2. MPN, Section E, Grace Period. The last sentence of the paragraph under the heading “Grace Period” is revised to read as follows: “However, interest will accrue during the grace period on all of my Direct Unsubsidized Loans, and on my Direct Subsidized Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.

Interest that accrues during the grace period on these loans will be capitalized if I do not repay it. ” 3. Borrower’s Rights and Responsibilities Statement, Item 9, Payment of Interest. The first sentence of the first paragraph is revised to read as follows: “Except as provided in the Note below, interest does not accrue on a Direct Subsidized Loan while you are enrolled in school at least half time, during your grace period, during deferment periods, and during certain periods of repayment under the Income-Based Repayment Plan. ” The following Note is added at the end of Item 9: 06/2012

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