• Once you decide which loan to apply for, it is important to be aware of your rights and responsibilities as a student borrower. You should understand the seriousness and importance of the repayment obligation you are assuming.  Here is what you should know:

    Are you at least a part-time student?

    Undergraduate Students: If you fail to schedule at least 6 credits per term you may incur “out of pocket” expenses. Please refer to the list below:

    • 5 credits or less = less than half-time
    • 6–8 credits = half time
    • 9–11 credits = three-quarter time
    • 12 or more credits = full time

    Graduate Students: If you fail to schedule at least 4 credits per term, you may incur “out of pocket” expenses. 2 or 4 credits (depending on your program) = half time

    Graduate students no longer eligible to receive subsidized loans.
    Effective for loan periods that begin on or after July 1, 2012, graduate and professional students will no longer be eligible to receive subsidized loans. However, if you are a graduate or professional student, you may still qualify for up to $20,500 in unsubsidized loans each year.


    What is a Master Promissory Note and how does it affect you?

    The University will help you determine your eligibility for a federal student loan. The next steps are for you to accept the loan and sign a Master Promissory Note (MPN). An MPN is a binding legal document you sign that obligates you to repay your student loans. The MPN may be used for multiple loans for up to 10 years. You will only have to sign a new MPN if you change lenders. However, you may sign a new MPN every time you borrow, if you wish to do so.

    An MPN is canceled for future loans if:

    • you send a notice that no further loans may be distributed under the MPN;
    • there have been no disbursements within 12 months after you sign the MPN; or
    • 10 years have elapsed since you signed the MPN.

    There are other situations in which your MPN may be cancelled, such as in cases of bankruptcy; however, you remain responsible for all loans that the lender(s) made previously to the cancellation.

    What should you do if you withdraw from school?

    If you decide to withdraw from school, it is VERY important to contact the Kaplan University Financial Aid Office. You are required to complete an exit counseling information session so that you understand your loan repayment options and requirements and the option of consolidating your student loans. If you do not contact the Financial Aid Office, you are still responsible for knowing your rights and responsibilities under your loan programs.

    It is also important to contact the Kaplan University Financial Aid Office if you change your address, phone number, or email address. You can reach the Financial Aid Office at 866.458.2008 (Toll Free).

    Repayment of Federal Loans

    Accepting a loan could affect other forms of nonfederal financial aid, grants, or scholarships that may be available to you, such as private scholarships. For example, some private scholarships may take the amount of the loan into account when determining your financial need.

    Your federal student loan must be repaid, regardless of:

    • whether you complete your program of study,
    • the amount of time it takes for you to complete your program of study,
    • your employment status upon graduation, or
    • your satisfaction with the education you  received.

    If you fail to repay your student loan, there could be several consequences, including, but not limited to:

    • an unfavorable credit report,
    • a lawsuit to recover the full amount of the loan, as well as legal expenses and court costs,
    • debt collection procedures, such as garnishment of your wages or a withholding of your federal or state tax refund,
    • loss of eligibility for certain jobs,
    • loss of any professional licenses you may hold, or
    • loss of eligibility for future financial aid.

    Important information regarding your repayment options are available on the U.S. Department of Education Federal Student Aid website. Have questions regarding your repayment options? Feel free to contact a member of the Loan Counseling Service Team at 888.702.0125 (Toll Free) or use the student loan repayment option tool to find out the best repayment option for you.

    How can you review your total loan debt information?

    The U.S. Department of Education provides students an easy way to monitor all of their federal student loan debt. This tool is called the National Student Loan Data System (NSLDS) and it can be accessed at http://www.nslds.ed.gov/. To access your information, you will need your social security number and your U. S. Department of Education FSA ID.  Be sure you have this information available. If you don’t know your FSA ID, you can request a duplicate from the U.S. Department of Education’s website: FSA ID.

    What is a typical monthly loan payment for a federal student borrower?

    Please see the chart below, which provides sample monthly payments based on different amounts borrowed.  This chart uses the standard repayment plan. The standard repayment plan is the traditional approach in which your monthly payment will be either $50 per month or the amount you must pay so that your loan is paid off in 10 years.  You must pay the greater amount. 

    However, your payment may be different depending on the repayment plan you select and the interest rate. To estimate your student loan repayments, you can use a loan calculator provided by the U.S. Department of Education: Department of Education Loan Calculators.

    Federal Loans—Stafford and Grad PLUS

    Interest Rate6.8%8.5%
    Total Amount BorrowedNumber of RepaymentsMonthly PaymentTotal Amount PaidNumber of PaymentsMonthly PaymentTotal Amount Paid
    3,500.008950.004,450.009750.00 4,850.00

    Whom can you contact if you have questions about your loan or your rights and responsibilities as a student borrower?

    Have questions about your loan or rights and responsibilities as a student borrower? Feel free to ask your Student Finance Representative now. If you think of questions later, contact a member of the Loan Counseling Services Team at 888.702.0125 (Toll Free).

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