Entrance Counseling

Promissory Note

A promissory note is a legally binding contract between the borrower of a Direct Loan, and the lender - the U.S. Department of Education. It contains the terms and conditions of the loan and explains how and when it should be repaid. Before you receive your loan funds, you must sign a promissory note. In the past years, borrowers completed a separate promissory note for each new loan borrowed. Now, in most cases, a borrower will sign only one promissory note that is used for all of the borrower's Direct Loans. This new note is called a Master Promissory Note(MPN).

When you sign the MPN, you are confirming your understanding that your school may make multiple loans for you for the duration of your education (up to ten years) without having you sign another promissory note. You are also agreeing to repay your lender, the U.S. Department of Education, all loans made to you under the terms of the MPN. Therefore, it is very important that you completely read and understand all of the information on the MPN before you sign it.

Although your signature on the MPN allows your school to make multiple loans to you under a single promissory note, your school must have a process for confirming whether or not you want these loans. The confirmation process helps to ensure your control over borrowing multiple loans made under an MPN. Your school will inform you of the confirmation process it uses. In addition, you have the right to sign a separate MPN for each loan you borrow. You also have the right to "close" an MPN so that it cannot be used for additional loans. To do this you must send written notification to your school or to the Direct Loan Servicing Center.

You Must Repay

Plan ahead for repayment and budget wisely. At some point you must begin repaying your loan(s), even if you do not finish school, do not graduate, are not satisfied with your educational experience or cannot find employment after graduation.

After you graduate, leave school, or drop below half time enrollment, you havesix months before you must begin repayment on your Direct Stafford (Subsidized and/or Unsubsidized) Loan. This is called a grace period. The first actual payment is due within 60 days after your grace period ends. If you return to school at least half-time before that six month period ends, the repayment of your Direct Loan(s) will not begin until the day after your grace period ends.

Students have the option of repaying unsubsidized interest while they are in school, or allow it to accrue and be capitalized (that is, added to the principal amount of the loan). If the borrower chooses not to pay the interest as it accrues, this will increase the total amount repaid because of charged interest on a higher principal amount.

Avoid Default

Loans are not gifts. They must be repaid. Remember, if you are having trouble making your payments, call the Direct Loan Servicing Center. The Direct Loan Servicing Center will work with you to help you avoid the serious consequences of default. Don't let your loan get into this situation.

Take advantage of the Electronic Services options offered on this web site to help you keep track of your payments and benefit from the on-time payment discounts offered by the U.S. Department of Education. Don't default on your loans.

Here are the consequences if you default:

• The entire unpaid balance and accrued interest becomes due and payable immediately.
• You lose your deferment options.
• You lose eligibility for additional federal student financial aid.
• Your account is assigned to a collection agency.
• Your account will be reported as delinquent to credit bureaus, damaging your credit rating.
• The Federal Government can intercept any income tax refund due to you or you and your spouse.
• Late fees, additional interest, court costs, collection fees, attorney's fees, and other costs incurred in collecting your loan will increase your loan debt.
• Your employer (at the request of the Federal Government) can garnish part of your wages and send them to the government.
• The Federal Government can take legal action against you

Repayment Alternatives

Deferment: A deferment is a period during which your monthly loan payments are temporarily postponed. If you are enrolled in school at least half-time, unemployed, experiencing economic hardship, or meet other specific criteria, you may qualify for a deferment. However, you will be responsible for the interest that accrues on your Direct Unsubsidized Loan during the deferment period.

Forbearance: A forbearance is a period during which your monthly loan payments are temporarily postponed or reduced. You may request a forbearance if you are willing but unable to make loan payments due to certain types of financial hardships. You will be responsible for the interest that accrues on all of your loans during the forbearance period.

In addition to completing this online loan counseling session, you should also read the Direct Loan Repayment Book and the Counseling Guide for Direct Loan Borrowers. Both publications are available from your Financial Aid Office and on the Direct Loan Web site. (See the list of resources on the "Additional Resources" page of this counseling session.) You will also receive information about your options for repayment during exit counseling. You will receive exit counseling before you separate from school or before you drop below half-time enrollment.

Examples of Debt Levels, Beginning Monthly Payments, and Total Amounts Repaid for All Direct Loan Repayment Plans*

Non-Consolidation Borrowers

Consolidation Borrowers

ENROLLMENT STATUS

Full-time and Part-time

Full-time enrollment is defined as twelve (12) hours for fall and spring semesters and six (6) hours for the summer semester. 

Part-time enrollment is considered anything less than twelve (12) hours.   Other enrollment status for financial aid purposes include:

• Three-quarter (3/4) time is enrollment of nine (9) to eleven (11) hours for fall and spring semesters and four (4) hours for the summer semester. 
• One-half (1/2) time is enrollment of eight (8) to six (6) hours for fall and spring semesters and three (3) hours for the summer semester. 
• Less than Half-time is considered any enrollment less than six (6) hours for fall and spring semesters and less than three (3) hours for the summer semester. 

WITHDRAWAL FROM THE COLLEGE

A student may withdraw from Saint Luke’s College of Health Sciences at any time.  To officially withdraw from the College, a student must obtain a Student Withdrawal Form from the Registrar.  The form must be completed and returned to the Registrar.  The official date of the withdrawal is used to compute tuition and financial aid.  A grade of “W” is recorded on the academic record for the semester.  As designated by policies, the transcript will state if the student is dismissed from the nursing program. 

Notification of the student’s withdraw is sent to each course instructor.  A financial aid exit interview is required if the student received Financial Aid while enrolled at the College.  The Saint Luke’s College of Health Sciences student identification badge must also be returned. 

Verbal communication to individual instructors of intent to withdraw or failure to attend classes in not considered an official withdrawal.

Students can access their aggregate loan totals at the National Student Loan Database www.nslds.gov. Schools are required to update the NSLDS for each loan.

For additional information, please contact the Financial Aid Administrator, Jennifer Wright @ 816-932-6749 or the College Business Office @ 816-932-6740.