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Student Loan Provisions
Federal regulations regarding student loans are sometimes confusing. We have tried to help
you by setting the student loan provisons in a table format. However, please refer to your
promissory note for exact details.
Master Promissory Note
Before you receive your loan funds, you must sign a promissory note authorizing your school
to credit the funds to your student account. In past years, borrowers completed a separate promissory
note for each new loan borrowed. Now, if you attend a four-year school or graduate school, you will
sign only one promissory note that will be used for all of your loans at a single school. This new
note is called a Master Promissory Note (MPN).
When you sign the Master Promissory Note, you are confirming your understanding that your school may make new loans
for you for the duration of your education (up to 10 years) without having you sign another promissory note.
You are also agreeing to repay your lender all loans made to you under the terms of the MPN. You should read all
of the information on the MPN before signing it.
While the signature on the MPN allows the school to make multiple loans to you on a single note,
you are not required to accept the amount that your school awards you. If you want to
lower the amount, you should notify the school. You should also notify your school in writing
or by returning the funds within specific time frames if you want to cancel all or a portion of the loans
after the loan funds have been credited to your account. Your school must noify you when it credits loan funds to your account
and allow you to return funds that you do not want.
Student Loan Repayment
If you wish to estimate your payment amounts after graduation, use the chart listed below.
| Estimated Monthly Loan Payment Table |
| Total Loan Balance
| Number of Payments
| 5%
| 7%
| 9%
| 10%
|
2,000 |
36 |
59.94 |
61.75 |
62.67 |
64.53 |
2,625 |
48 |
60.45 |
62.86 |
64.08 |
66.58 |
| 3,000 |
72 |
48.31 |
51.15 |
52.60 |
55.57 |
| 4,000 |
108 |
46.07 |
50.03 |
52.08 |
56.31 |
| 5,000 |
120 |
53.03 |
58.05 |
60.66 |
66.08 |
| 6,000 |
120 |
63.64 |
69.66 |
72.80 |
79.29 |
| 7,000 |
120 |
74.25 |
81.28 |
84.93 |
92.50 |
| 8,000 |
120 |
84.85 |
92.89 |
97.06 |
105.72 |
| 9,000 |
120 |
95.46 |
104.50 |
109.19 |
118.93 |
| 10,000 |
120 |
106.07 |
116.11 |
121.33 |
132.15 |
| 12,000 |
120 |
127.28 |
139.33 |
145.59 |
158.58 |
| 15,000 |
120 |
159.10 |
174.16 |
181.99 |
198.23 |
| 17,000 |
120 |
180.31 |
197.38 |
206.26 |
224.66 |
| 20,000 |
120 |
212.13 |
232.21 |
242.65 |
264.30 |
| 22,500 |
120 |
238.65 |
261.24 |
272.99 |
297.34 |
| 26,000 |
120 |
275.77 |
301.88 |
315.45 |
343.59 |
| 30,000 |
120 |
318.20 |
348.32 |
363.98 |
396.45 |
| 35,000 |
120 |
371.23 |
406.38 |
424.65 |
462.53 |
| 40,000 |
120 |
424.26 |
464.43 |
485.31 |
528.60 |
| 45,000 |
120 |
477.29 |
522.49 |
545.97 |
594.68 |
| 50,000 |
120 |
530.33 |
580.54 |
606.63 |
660.75 |
| 60,000 |
120 |
636.39 |
696.65 |
727.97 |
793.00 |
| 70,000 |
120 |
742.46 |
812.76 |
849.29 |
925.00 |
| 80,000 |
120 |
848.52 |
928.87 |
970.62 |
1057.00 |
| 90,000 |
120 |
954.59 |
1044.98 |
1091.95 |
1189.00 |
| 100,000 |
120 |
1060.66 |
1161.08 |
1213.28 |
1321.00 |
|
Note: The interest rates are variable for Direct Loans and Federal
Family Education Loans and are adjusted once a year, on July 1. The other Federal loans
have fixed interest rates and remain the same throughout the life of the loan. |
- These figures are fixed payment amounts in which principal and interest are included.
- Loans are all simple interest loans. Interest is always calculated on the unpaid balance at the time of billing.
- These amounts are meant to be used as guidelines. The actual payment amount of your loan may vary.
Repayment Provisions
Please select the loan type from below to view its general repayment provisions.
Grace Periods, Deferments and Forbearances
To determine whether you are eligible for any deferments or forbearance, contact the lender
who has your specific loan. For instance, contact the Department of Education's Direct Loan Servicing Center for your Direct Loan.
If you are not sure who to contact or how, always contact the Financial Aid Office at the school that awarded
you the loan(s). In the case of a deferment, for instance, the borrower is expected to make the request to the
Direct Loan Servicer, the lender, or the school, depending on the type of loan.
Student Loan Cancellation
Cancellation of a student loan means that the borrower does not have to repay the loan. Typically,
student loans are eligible for partial or full cancellation only if the borrower becomes permanently
and totally disabled or dies. The Student Loan Cancellation Table gives general cancellation
provisions by loan type. For detailed information on cancellation provisions for your loans,
please refer to your promissory notes or contact your loan servicer.
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