Once the Counseling Session is completed and submitted,
confirmation information will display. You may print a copy for
your records. Saint Leo University will be notified of your
entrance counseling completion within 24 hours, if you recorded our
school code001526.
Online
Master Promissory Note (MPN)
A Master Promissory Note (MPN) is the binding legal document you
sign when you apply for a student loan. It lists the conditions
under which you are borrowing and the terms under which you agree
to pay back the loan. It will include information on how interest
is calculated and the deferment and cancellation provisions. It is
very important to read and save this document, because you will
want to refer to it later when you begin repaying your loan.
A first-time borrower must complete a Master Promissory Note
(MPN). To complete the MPN you will need:
- Federal PIN (this is the same one used to electronically sign
the FAFSA)
- Your full legal name as it appears on your social security
card
- Permanent mailing address
- Driver’s License number and state (if applicable)
- Phone number
- Email address
- Name, address, and phone number for two references. These
should be people who have known you for at least one year –
preferably relatives – who live at different addresses from one
another
Completing a MPN takes about 20 – 30 minutes.
- Click on “Sign In”.
- Complete the sign on, which includes providing your PIN
number.
- This will open “Welcome to StudentLoans.gov Complete the
Personal Information.
- Click on “Complete a Master Promissory Note”.
- The next web page asks you to select the type of loan.
- Complete the MPN. Read the instructions carefully.
- Once MPN is completed and submitted, confirmation information
will display. Print a copy for your records.
LOAN DISBURSEMENT
Direct Loan is awarded in two disbursements in an academic year,
i.e. one disbursement each semester (or summer term) for
semester-based students. Students in term based programs will
receive 2 disbursements per semester or one disbursement for each 8
week term. The money is credited to your student account and used
to pay tuition and fees. If there is a credit balance after paying
tuition and fees, along with room and board, if applicable, you
will receive a Higher One debit card, bank deposit, or check,
depending on which option you selected. It will be issued within 14
days of the credit balance.
A borrower may view loan summary details at www.nslds.ed.gov
LOAN
REPORTING
A student borrower’s (or parent PLUS borrower’s) loan
information will be submitted to the National Student Loan Data
System (NSLDS) and can be viewed by the borrower using his/her PIN
number. In addition, the loan information will be accessible by
guaranty agencies, lenders, and institutions determined to be
authorized users of the data system. Information is available on
the borrower’s loan history, including loan type, loan period, loan
amount (and principal), refunds (if any). lender, and loan
servicer. The loan history is reported to a school when the student
files a Free Application for Federal Student Aid (FAFSA), and the
information is updated as the loan history changes.
ENROLLMENT
REPORTING
A student borrower’s enrollment status is reported to the
National Student Loan Data System (NSLDS) throughout her/his
attendance at Saint Leo University.
When a student graduates, withdraws, or drops to less than
half-time enrollment, the in-school deferment on loan repayment
ends. The lender (or loan servicer) is notified. The borrower will
be contacted about repayment. However, it is the borrower’s
responsibility, whether or not the lender (or loan servicer)
contacts him/her, to make loan repayment arrangements.
LOAN EXIT
COUNSELING
When a student borrower graduates, withdraws, or drops to less
than half-time enrollment, Saint Leo University’s Financial Aid
Office will notify the student borrower to complete online loan
Exit Counseling.
The online loan exit counseling will include information on:
- the effect of the loan on the eligibility of the borrower for
other forms of aid;
- an explanation of the use of the Master Promissory Note;
- the seriousness and importance of the students' repayment
obligation;
- information on the accrual and capitalization of interest;
- borrowers of unsubsidized loans option of paying interest while
in school;
- definition of half-time enrollment and consequences of not
maintaining half-time enrollment;
- importance of contacting appropriate offices if student
withdraws prior to completion of program of study;
- sample monthly repayment amounts;
- the obligation of the borrower to repay the full amount of the
loan regardless of whether the borrower completes program or
completes within regular time for completion and whether or not the
borrower is able to obtain employment upon completion, or is
otherwise dissatisfied with or does not receive the educational or
other services the borrower purchased from the school;
- consequences of default;
- information about the NSLDS and how the borrower can access the
borrower's records; and
- name and contact information for individual the borrower may
contact with questions about the borrower's rights and
responsibilities or the terms and conditions of the loan.
LOAN REPAYMENT
A student borrower’s repayment amount will depend on the size of
the debt and the length of the repayment period. A loan repayment calculator is available for
each type of repayment option below.
The repayment options are:
- Standard Repayment: You arrange to pay a fixed
amount each month until your loans are paid in full. Your monthly
payments will be at least $50, and you'll have up to 10 years to
repay your loans.
- Extended Repayment: To be eligible for the
extended plan, you must have more than $30,000 in Direct Loan debt
and you must not have an outstanding balance on a Direct Loan as of
October 7, 1998. Under the Extended repayment plan, you have 25
years for repayment and two payment options: fixed or graduated.
Fixed payments are the same amount each month, as with the standard
plan, while graduated payments start low and increase every two
years, as with the graduated plan below.
- Graduated Repayment: You arrange to pay
smaller amounts initially that increase every two years. The length
of the repayment period is up to ten years. Your monthly payment
will never be less than the amount of interest that accrues between
payments. Although your monthly payment will gradually increase, no
single payment under this plan will be more than three times
greater than any other payment.
- Income Contingent Repayment: This plan gives
you the flexibility to meet your Direct Loan obligations without
causing undue financial hardship. Each year, your monthly payments
will be calculated on the basis of your adjusted gross income (AGI,
plus your spouse's income if you're married), family size, and the
total amount of your Direct Loans. Under the ICR plan you will pay
each month the lesser of:
1. the amount you would pay if you repaid your loan in 12 years
multiplied by an income percentage factor that varies with your
annual income,
OR
2. 20% of your monthly discretionary income.
If your payments are not large enough to cover the interest that
has accumulated on your loans, the unpaid amount will be
capitalized once each year. However, capitalization will not exceed
10 percent of the original amount you owed when you entered
repayment. Interest will continue to accumulate but will no longer
be capitalized.
The maximum repayment period is 25 years. If you haven't fully
repaid your loans after 25 years (time spent in deferment or
forbearance does not count) under this plan, the unpaid portion
will be discharged. You may, however, have to pay taxes on the
amount that is discharged.
- Income-Based Repayment: You arrange monthly
payments based on your income during any period when you have a
partial financial hardship. Your monthly payment may be adjusted
annually. The maximum repayment period under this plan may exceed
10 years. If you meet certain requirements over a specified period
of time, you may qualify for cancellation of any outstanding
balance of your loans.
The Direct loan servicer will send information about repayment,
and you will be notified of the date repayment begins. However, you
are responsible for beginning repayment on time, even if you do not
receive this information. Remember: Failing to make
payments on your loan can lead to default with severe
consequences.
TROUBLE MAKING YOUR
PAYMENTS
If you have trouble making payments on your loans, always
contact your loan servicer as soon as possible. Your servicer will
work with you to determine the best option for you. Options
include:
- Changing repayment plans.
- Requesting a deferment. If you meet certain requirements, a
deferment allows you to temporarily stop making payments on your
loan.
- Requesting a forbearance. If you do not meet the eligibility
requirements for a deferment but are temporarily unable to make
your loan payments, then (in limited circumstances) a forbearance
allows you to temporarily stop making payments on your loan,
temporarily make smaller payments, or extend the time for making
payments.
If you stop making payments and don't get a deferment or
forbearance, your loan could go into default, which has serious
consequences.
DEFAULT ON A STUDENT
LOAN
If you default, it means you failed to make payments on your
student loan according to the terms of your promissory note, the
binding legal document you signed at the time you took out your
loan. In other words, you failed to make your loan payments as
scheduled.
The consequences of default are severe! The federal government
may take action to recover the money, including;
- National credit bureaus can be notified of your default, which
will harm your credit rating, making it hard to buy a car or a
house.
- You will be ineligible for additional federal student aid if
you decide to return to school.
- Loan payments can be deducted from your paycheck.
- State and federal income tax refunds can be withheld and
applied toward the amount you owe.
- You will have to pay late fees and collection costs on top of
what you already owe.
- You can be sued.
In many cases, default can be avoided by submitting a request
for a deferment, forbearance, or discharge and by providing the
required documentation. To learn what actions to take if you
default on your loans, see the Department of Education’s Default Resolution Group
Web site.
DEFERMENT
A deferment is a period of time during which no payments are
required and interest does not accrue (accumulate) on a subsidized
loan (but it does accumulate on an unsubsidized loan).
Receiving a deferment is not automatic. You must apply for it by
contacting the Direct Loan servicer. You MUST continue making
payment on your loan until you are notified that your deferment has
been granted. If you stop making payments before the deferment is
approved, your loan could become delinquent or in default.
In-School deferment: While enrolled in an approved graduate
fellowship program or an approved rehabilitation training program
for the disabledEconomic hardship deferment (for up to 3 years):
Unable to find full-time employmentEconomic hardship deferment
(includes Peace Corp Service) (for up to 3 years): Economic
hardship as defined by federal regulations.Military Service
deferment: Borrower is on active duty during a war or other
military operation or national emergency and if the borrower was
serving on or after October 1, 2007, for an additional 180-day
period following the demobilization date for the qualifying
service.Post-Active Duty Student deferment: For a borrower who is a
member of the National Guard or other reserve component of the U.S.
Armed Forces (current or retired) and is called or ordered to
active duty while enrolled at least half-time at an eligible school
or within six months of having been enrolled at least half-time,
during the 13 months following the conclusion of the active duty
service, or until the borrower returns to enrolled student status
on at least a half-time basis, whichever is earlier.
| Deferment Condition |
| In-School deferment: While enrolled at least half-time study at
a postsecondary school |
| In-School deferment: While enrolled in an approved graduate
fellowship program or an approved rehabilitation training program
for the disabled |
| Economic hardship deferment (for up to 3 years): Unable to find
full-time employment |
| Economic hardship deferment (includes Peace Corp Service) (for
up to 3 years): Economic hardship as defined by federal
regulations. |
| Military Service deferment: Borrower is on active duty during a
war or other military operation or national emergency and if the
borrower was serving on or after October 1, 2007, for an additional
180-day period following the demobilization date for the qualifying
service. |
| Post-Active Duty Student deferment: For a borrower who is a
member of the National Guard or other reserve component of the U.S.
Armed Forces (current or retired) and is called or ordered to
active duty while enrolled at least half-time at an eligible school
or within six months of having been enrolled at least half-time,
during the 13 months following the conclusion of the active duty
service, or until the borrower returns to enrolled student status
on at least a half-time basis, whichever is earlier. |
FORBEARANCE
If you temporarily cannot meet your repayment schedule, and you
do not meet the requirements for a deferment, the loan servicer may
grant you forbearance. During forbearance, your loan payments are
postponed or reduced. Unlike deferment, whether your loans are
subsidized or unsubsidized, the interest continues to accrue
(accumulate). You are responsible for paying it, no matter what
kind of loan you have.
Depending on the circumstances, you may receive forbearance for
periods of up to 12 months at a time for a maximum of three years.
You will have to provide documentation to the Direct Loan Servicer
to show why you should be granted the forbearance. You MUST
continue making payment on your loan until you are notified that
your forbearance has been granted.
LOAN DISCHARGE
(CANCELLATION)
A loan discharge (cancellation) releases you from all obligation
of having to repay a student loan. However, it is only under
specific circumstances that this is possible. Two examples are your
death or your total and permanent disability. Also, your loan might
be discharged because of the type of work you do: teaching in a
designated low-income school, for example. In order to qualify for
a loan discharge, you must contact the Direct Loan Servicer.
It is important to remember that your loan can not be canceled
because you did not complete the program of study at your school
(unless you could not complete the program because the school
closed). Also, cancellation is not possible because you did not
like the school or program, or you did not obtain employment
afterwards.
For more information on Loan Discharge/Cancellation go to
Federal Student Aid and search Discharge/Cancellation at: http://studentaid.ed.gov/repay-loans/#forgiveness.
LOAN
CONSOLIDATION
Loan consolidation is a way for you to consolidate (combine)
multiple federal student loans with various repayment schedules
into one loan. When consolidated, you can make just one monthly
payment. You can consolidate during your grace period, once you
have entered repayment, or during periods of deferment or
forbearance.
With a consolidation loan, your payments might be significantly
lower, and you can take a longer time to repay (up to 30 years).
Also, you might pay a lower interest rate than you would on one or
more of your existing loans. However, it is important to remember
that consolidation significantly increases the total cost of
repaying your loans. Because you can have a longer period of time
to repay, you will pay more interest. In fact, consolidation can
double total interest expense. So, compare the cost of repaying
your unconsolidated loans with the cost of repaying a consolidation
loan.
To qualify for a consolidation loan or to receive more
information about interest rates, contact your Direct Loan Servicer
and read about Loan Consolidation on Federal Student Aid at: http://studentaid.ed.gov Search
the words Loan Consolidation.
OTHER INFORMATION
It is important to keep in touch with your Direct Loan servicer.
You must notify your lender (or its loan servicer) when you:
- graduate
- withdraw from school
- drop below half time status (6 credits=half time)
- change your name, address, or Social Security number
- transfer to another school
Failure to keep updated information with your loan servicer
could cause your loan to go into default or to be sent to a
collection agency.
- More information explaining Federal Financial Aid can be found
at www.studentaid.ed.gov
- More information on Direct Loans go to the U.S. Department of
Education’s Student Loans website at www.studentloans.gov
If you have additional questions contact the Saint Leo
University Financial Aid Office.
