Importance of Repayment
Unlike the grants and scholarships that you may have received as part of your award package, a Federal Stafford Loan and Private Loans comes with fees, accrues (or collects) interest, and must be repaid.
In fact, you must repay your loan even if you have failed to complete your degree, are unhappy with your education, or can't find immediate employment after graduation.
If you are late with just one payment - or simply miss a payment - you will be considered delinquent and you may incur late fees. If you stop making Stafford Loan payments altogether, you will be considered in default after 270 days have passed with no payment.
Consequences of Default
Default is serious and may come with these consequences:
- Your credit rating will be negatively affected for years.
- The entire unpaid amount of your loan (including interest) will become immediately due and payable.
- Your wages may be garnished.
- Your federal and state income tax refunds can be withheld.
- You will get calls from bill collectors and you may be subject to litigation
- You will be ineligible to receive any other federal aid in the future.
The Master Promissory Note
The Master Promissory Note is the borrowers promise to pay the lender all loan amounts disbursed under the terms of the application and Master Promissory Note plus interest and other charges and fees that may become due as provided in this MPN.
NOTICE REGARDING NEW LOAN LIMITS: Effective July 1, 2008 (award period 2008-09), there is an additional $2,000 in Unsubsidized loans an undergraduate (independent and dependent) student may borrow annually. In addition, the aggregate amount of Unsubsidized Stafford Loan eligibility for a dependent student has increased from $23,000 to $31,000 and for independent students; the Unsubsidized Stafford Loan eligibility aggregate amount has increased from $ 46,000 to $57,000. This information is provided as a result of the federal increase in additional Unsubsidized Stafford Loan eligibility. Under the Stafford Loan programs, a dependent undergraduate student may borrow up to.
If you have any questions regarding the information shown above, your Financial Aid Office will answer any questions you may have in this regard. You may contact the Financial Aid Office at 800.553.9369.