EVERYTHING YOU NEED TO KNOW ABOUTA STUDENT LOAN

South Carolina State University (SCSU) utilizes an electronic data exchange process to transmit most Federal Stafford Loan requests to lenders. Please detach and complete the Federal Stafford Loan Request Form and submit it to the Office of Financial Aid at South Carolina State University if you wish to borrow Subsidized and/or Unsubsidized Federal Stafford Loans. After we electronically transmit your loan request, a preprinted Master Promissory Note (MPN) will be mailed to your home address for you to complete, sign and return to your lender.

The Subsidized Federal Stafford Loan annual borrowing limits are $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors. Independent students may borrow additional unsubsidized amounts up to $4,000 for freshmen and sophomores and $5,000 for juniors and seniors. Graduate students may borrow up to $8,500 annually in subsidized loans and up to $12,500 in unsubsidized loans. Annual loan limits are also subject to the annual cost of attendance established by the SCSU Office of Financial Aid for your specific program of study. Please note that some loan programs are subject to a 1.50% origination fee and a federal default fee of up to 1.00% of the loan principal. Both will be deducted from your loan proceeds prior to disbursement.

The following terms will help you to understand the loan program.

Subsidized Loans - Loans on which interest is paid by the federal government while you are in school at least half-time, during the grace period and during authorized deferment periods are called subsidized loans.

Unsubsidized Loans - You are responsible for paying the interest on an unsubsidized loan while you are in school, during the grace period, during deferment periods and during repayment. Interest can either be paid while you are in school, or it can be postponed until graduation or withdrawal from school. If you postpone paying interest, once you enter repayment (for example, after your grace period), it will be capitalized.

Capitalizing Interest - This is a process where a lender adds any unpaid interest on a loan to the principal, thereby increasing the outstanding balance on which interest accrues daily.

Default - Failure to pay your loan back according to terms disclosed in your promissory note results in default. You are in default on your student loan if your payments are 270 days past due or if you fail to comply with other terms of the loan. When this occurs, any of the following may happen: the default will be reported to national credit bureaus, recorded on your permanent credit record, can significantly and adversely affect your credit history; you may be subject to legal action by the holder of the loan; your wages may be garnished; you may be ineligible to receive additional federal or state financial aid, including additional student loans.

Hour Requirements - An undergraduate or a graduate student must be enrolled in 6 semester hours or more each semester to be eligible to receive a student loan.

300 College Street • Orangeburg, SC 29117 • Telephone 803/536-7067

Taking Out AStudent Loanis a Serious

Responsibility!

BORROWCONSERVATIVELY

Helpful tips for completing your Stafford Loan Application.

Read all the terms of the Stafford Loan Master Promissory Note and Addendum.

Type/print all information in black ballpoint pen. Be sure to press down hard enough so all copies of the application are legible.

Do not alter the text of the application or the whole application will be voided.

Be sure not to leave any items blank. Instead, use the word “none” or “N/A” where applicable.

Complete all required items neatly and accurately (items 1-17). If something is missing, processing may be delayed.

If you make an error, cross out the mistake, correct it, and initial it. Do not use “white-out”.

Sign and date your Stafford Loan Master Promissory Note.

Retain your copy of the Stafford Loan Master Promissory Note and Addendum for your records.

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Return your original completed Stafford Loan Master Promissory Note to your college's Financial Aid Office for processing.

Use only your full legal name — no nicknames.

Enter your nine-digit Social Security Number. If this item has been completed for you, review it for accuracy. If it is incorrect, cross out the entire incorrect number and replace it with the correct number. Your loan(s) cannot be pro-cessed without the correct Social Security Number.

Insert your permanent home street address, apartment number, city, state and zip code. If you have a P.O. Box and a street address, list both. A temporary school address is not acceptable.

Enter the two-letter abbreviation for the state that issued your driver’s license, followed by the driver's license number. If you do not have a driver’s license, enter “N/A.”

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Enter the requested reference information for two adults who do not share a common U.S. address. The first reference should be a parent (if living), legal guardian, or an adult relative. References with addresses outside the U.S. are not acceptable. Both references must be completed in full. If a reference does not have an e-mail address, enter “N/A” in the appropriate space. If you provide an e-mail address for a reference, the lender or holder of your loan(s) may use it to communicate with the reference. All requested items must be completed or your loan may be delayed.

Check this box only if you want to make interest payments while in school.

Read all the information contained on the MPN, sign and date the note in black ink.

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Name:____________________________________________________ SSN:_______________________________________

1. Select a lender. Students with previous outstanding student loans are encouraged to select the same lender for all subsequent student loans. If you are a first-time borrower, we recommend that you consider one of the lenders listed below. See the attached list of preferred lenders for contact information. If you previously have a loan and have signed the Master Promissory Note (MPN), this information will serve as your promissory note. You will receive a disclosure notice from your lender. If you do not have a loan and thus have not signed the MPN, you will receive a MPN from your preferred lender. Complete this MPN and return it to the lender.

____ Citibank ____ Chase Manhattan Bank

____ SC Student Loan Corp.

____ Wachovia ____ Other: _________________________________

2. Designate a loan period. Loans are processed for a maximum period of two semesters. If you plan to attend year round, you will only have eligibility for the Summer Semester if you did not borrow the annual maximums during Fall and Spring Semesters. The academic year begins with Fall Semester and ends with Summer Semester. Please check one loan period below.

____Fall/Spring Semesters ____Spring/Summer Semesters ____Fall/Spring/Summer

____Fall Semester only ____Spring Semester only ____Summer Semester only

3. Indicate the loan type and requested amount. Please refer to your Financial Aid Award Letter to determine your eligibility for Subsidized and/or Unsubsided Stafford Loans for this award period. Remember to borrow conservatively - a student loan is a serious responsibility!

Loan Type and Amount (Check only one option and enter the requested amount): ____ Subsidized Stafford Only $______________________

____ Subsidized and/or Unsubsidized Stafford Total Amount $______________________

Note: If you are eligible for a subsidized loan, it will always be processed before an unsubsidized loan.

Capitalizing Interest (This is applicable only if you are requesting an Unsubsidized Stafford Loan. Refer to Capitalizing Interest on the front page.)

____I choose to capitalize all accrued interest. ____I choose to begin repayment of interest.

Borrower Authorization

I authorize South Carolina State University to process my Federal Stafford Loan request. I understand that my Federal Stafford Loan constitutes a debt that will enter repayment upon the expiration of my grace period, six months after I graduate, withdraw or otherwise drop below half-time enrollment. I have received payment information and realize that this is a loan that must be repaid. I have read the front and back of this page and understand the information.

Borrower’s Signature ____________________________________________________________ __________________________ (Required) Anticipated Graduation Date

Please return to:South Carolina State University

Office of Financial Aid300 College St.

Orangeburg, SC 29117

If this is your first time to borrow at SC State University, please complete the reverse side.

FEDERAL STAFFORD LOAN REQUEST FORM

SOUTH CAROLINA STATE UNIVERSITY

Student Loan Entrance Interview

()Name(Pleaseprintclearly) TelephoneNumberSocialSecurityNumber

PermanentAddress City/StateZipCodeDriver’sLicenseNumber

Entrance Interview

300 College St.Orangeburg, SC 29117

Telephone 803/536-7067

Shouldyouhavequestionsconcerninganyofthisinformation,pleasecontacttheSouthCarolinaUniversityOfficeofFinancialAidat(803)536-7067.

Ihavereceivedrepaymentoptionsanddebtmanagementinformation.

_________________________________________________________ ______________________StudentSignature Date

1. The Stafford Loan Master Promissory Note (MPN) is a legally binding agreement the borrower signs to obtain a loan under the Federal Family Education Loan Program (FFELP), in which the borrower promises to repay the loan, with interest, in periodic installments. The MPN may be used to receive loans for either a single period of enrollment or multiple periods of enrollment. If used as a multi-year note, loans may be obtained through the 10 year period from the date the note is signed.

2. A Stafford Loan is a debt that must be repaid according to the terms of the promissory note, with all accrued interest and applicable fees.

3. I must repay my entire loan even if I do not complete my education, am not satisfied with my education, cannot find employment, or do not receive the education or other services I purchased from your school.

4. Repayment of my loan(s) will begin as follows, when I graduate, withdraw or become enrolled less than half-time:

n Subsidized Federal Stafford Loan - following a 6-month grace period.

n Unsubsidized Federal Stafford Loan - following a 6-month grace period. Remember that interest accrues on an unsubsidized loan from the date of disbursement. Interest payments can be postponed while you are in-school and during grace, but any unpaid interest will be capitalized (added to the principal balance) when your loan enters repayment.

5. The standard repayment term is 10 years. There are other repayment options available, which may allow me to reduce my monthly payment and/or extend my repayment term. They include: Graduated, Income Sensitive, Extended Repayment and consolidation. Loan consolidation allows me to combine my student loans, from multiple federal programs and lenders, into one loan. I must contact my lender to obtain information on any of these repayment options. I should then carefully consider which may be best for me, keeping in mind that the total interest paid will be greater when the repayment term is extended.

6. The required minimum monthly payment is $50.00. The monthly payment could be more depending on the total amount I borrow. I may prepay all or part of my loan at any time without penalty.

7. The interest rate of my loan is specified on my disclosure statement. If my loan has a variable rate, it is subject to change each July 1st and can vary depending on the status of my loan (i.e. the repayment interest rate is higher than the in-school and grace rate).

8. If I am temporarily unable to make payments I may qualify for a postponement of my monthly payments. This is known as a deferment. Deferment time is excluded from the repayment term of my loan. I may be eligible for a deferment if I am still attending school, if I am unemployed, or I am experiencing financial difficulties. I must contact my lender to apply for a deferment.

9. If I do not qualify for a deferment, but am unable to make payments on my own, I may be eligible for forbearance. Although my monthly payments will be postponed, I should be aware that interest will continue to accrue during a forbearance.

10. There are certain situations which may result in the balance on my student loan(s) being discharged. Those situations include: total and permanent disability, death, closed school, or false certification. There are also two loan forgiveness programs for borrowers meeting specific criteria as defined by the U.S. Department of Education - one for teachers and one for child care providers.

11. If I fail to repay my student loan(s), I will be considered in default and the following may occur:

n My default will be reported to all national credit bureaus, which will negatively affect my credit record; possibly preventing me from obtaining additional credit (for a car, home, other educational loans, etc.)

n The entire unpaid amount, including interest, will immediately become due and payable.

n My federal and state income tax refunds may be withheld, as well as any other payments made to me by the Federal Government, or my wages may be garnished.

n My loan may be referred to a collection agency and I could become responsible for all collection costs.

n I may be sued by the holder of my loans for all amounts owed, including attorney fees.

12. I must notify my lender(s) in writing within 10 days if I:

n Change my name n Change my telephone number

n Transfer to another school n Withdraw from school

n Change my address n Change my graduation date

n Enroll for less than half-time

13. Information about my federal student loans is available from the National Student Loan Data System (NSLDS). I may call 1-800-4FED-AID or go to www.nslds.ed.gov.

14. The Department of Education’s SFA Ombudsman’s Office works with student loan borrowers to help resolve loan disputes and problems. If I am unable to resolve my dispute with my school, lender, servicer, or guaranty agency, I may contact the SFA Ombudsman at (877) 557-2575 or visit the web site at www.ombudsman.ed.gov.

15. My school is required to forward the information obtained from my Exit Counseling session to the agency that guaranteed my loans within 60 days of receipt.