1.
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Consolidation (42 CFR 57.208): If the Institution
makes more than one loan, with the same repayment terms, to the Borrower
under the Loans for Disadvantaged Students program, the sum of the amounts
advanced to the Borrower shall be consolidated for purposes of repayment.
Each payment made by the Borrower to the Institution shall be applied
first to interest which has accrued on the unpaid principal balance and
then to the principal sum of the total loan.
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2.
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Repayment (Section 722 Public Health Service Act, 42 CFR 57.210):
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a. Repayment shall be made in equal or graduated periodic installments
within the repayment period, except that the Institution may require repayment
to be made in an amount equal to not less
than $40 per month. The repayment period begins one year
after the Borrower ceases to be a full-time student
a school eligible to participate in the Loans for Disadvantaged Students program. The repayment period shall not be less than ten years, nor more
than 25 years, at the discretion of the Institution. Periods of authorized
deferment are not included as part of the repayment period.
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b. The terms and conditions of repayment shall be set forth in a separate
repayment period schedule which is approved by the Institution and agreed
to by the Borrower. Payments under the repayment schedule shall be made
to the Institution or its representative no less often than quarterly,
except that if the Borrower is more than 60 days past due on a payment,
the remaining balance of the loan shall be repaid on a monthly basis.
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3.
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Interest (Section 722 Public Health Service Act, 42 CFR
57.208): Interest shall accrue from the beginning of the repayment
period.
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4.
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Deferment (Section 722 Public Health Service Act, 42
CFR 57.210): Periodic installments of principal and interest need
not be paid, and interest shall not accrue, while the Borrower: (a) serves
on active duty as a member of a uniformed service of the United States,
for up to three years; (b) serves as a volunteer under the Peace Corps
Act, for up to three years; (c) pursues advanced professional training,
including internships and residencies; (d) pursues a full-time course
of study at a health professions school eligible for participation in
the Loans for Disadvantaged Students program; (e) leaves the Institution,
with the intent to return to the Institution as a full-time student, to
engage in a full-time educational activity which is directly related to
the health profession for which the Borrower is preparing, as determined
by the Secretary of Health and Human Services (the Secretary), for up
to two years; and (f) participates in a fellowship training program or
a full-time educational activity which is directly related to the health
profession for which the Borrower prepared at the Institution, and is
engaged in by the Borrower within 12 months after the completion of the
Borrower's participation in advanced professional training (described
in #4(c) above) or prior to the completion of the Borrower's participation
in such training, for up to two years.
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5.
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Prepayment (Section 722 Public Health Service Act):
The Borrower may, at his or her option and without penalty, prepay all or any part of the principal and accrued interest at any time.
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6.
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Exit Interview (42 CFR 57.210): The Borrower
agrees to attend an exit interview prior to completing or terminating
full-time student status at the Institution.
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7.
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Default (42 CFR 57.208): If the Borrower fails
to make an installment payment when due or fails to comply with any other
term of this Promissory Note, the loan will be considered in default.
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8.
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Late Charge (Section 721 Public Health Service Act,
42 CFR 57.210): The Institution shall assess a late penalty charge
for failure of the Borrower to pay all or any part of an installment,
or for failure to file satisfactory evidence of entitlement to deferment,
if so entitled, at a rate, not to exceed an amount equal to 6 percent
as determined by the Institution of the amount of such installment, on
loans more than 60 days past due.
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9.
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Acceleration (42 CFR 57.208): If the Borrower
fails to make a scheduled repayment or fails to comply with any other
term of this Promissory Note, the entire unpaid balance of the loan, including
interest due and accrued and any applicable penalty charges, will, at
the option of the Institution, become immediately due and payable.
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10.
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Credit Bureaus (42 CFR 57.210):
The Institution may disclose the Borrower's loan, and any other relevant information, to credit bureaus. If the Borrower is more than 120 days past due in making a scheduled repayment, the Institution will disclose the Borrower's delinquent status, and any other relevant information, to credit bureaus.
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11.
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Collection Agents, Litigation, and Withholding of Services
(Section 722 Public Health Service Act, 42 CFR 57.210): If the
Borrower fails to make a scheduled repayment, or fails to comply with
any other term of this Promissory Note, the Institution may: (a) refer
the Borrower's loan to a collection agent for further collection efforts;
(b) initiate legal proceedings against the Borrower; (c) withhold Institutional
services, such as transcripts and letters of recommendation, from the
Borrower; (d) refer the Borrower's loan to the Secretary for collection
assistance, including offset of Federal salaries; and (e) obtain the Borrower's
address from the Internal Revenue Service through the Secretary, if the
Institution has no current address for the Borrower.
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12.
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Death or Disability (42 CFR 57.211): In the
event of the Borrower's total and permanent disability or death, the unpaid
indebtedness remaining on the Promissory Note shall be canceled. Subject
to the regulations of the Secretary, the Institution may assess a charge
on the Borrower's loan to cover the costs of insuring against death or
disability cancellations.
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13.
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General: The Borrower will promptly inform
the Institution of any change in name or address after he or she ceases
to be a full-time student at the Institution. The terms of this Promissory
Note shall be construed according to the Federal statute and regulations
governing the administration of the Loans for Disadvantaged Students program,
copies of which shall be kept by the Institution.
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