Borrowing

Borrowing should be seen as the "last" resort after gift aid is exhausted, scholarships have been searched and applied for and the school payment plan has been considered.

As a Federal Direct Loan borrower, you must understand that you are about to undertake a very serious obligation. Before obtaining a loan, understand that you must repay the full amount of the loan(s) with all accrued interest and deducted fees.

Students must repay this debt regardless of completion of educational goal or securing a career in field of study upon graduation. A student loan cannot be "forgiven" or "discharged" in bankruptcy. It is "canceled" only upon death of the student.

The full details of the loan contract (including interest rates, fees, repayment terms, deferment options, etc.) are provided as apart of the loan application process. A Master Promissory Note (MPN) and/or Disclosure Statement materials must be signed by the Borrower when accepting the loan terms.

If you fail to fulfill any of the terms of your loan contract, you will be considered in default and may suffer the following negative consequences:

• Be sued by the Federal Government to force payment and pay the court and attorney costs
• Federal and/or state tax refunds will be withheld
• The default will be reported to credit bureaus affecting future borrowing and credit availability (denied loans for cars, homes and also assessed higher insurance rates).
• Lose eligibility for other federal and state financial aid
• Some states deny or revoke State Licensures for specific vocations
• Wages may be garnished (includes retirement pensions and/or social security)
• Loan becomes due in full immediately

You can be a responsible borrower and use the program to help pay for educational expenses. many students borrow using the Federal Loan Program and are successful in completing their program of study, obtaining employment and repay their loans under the conditions of their contract. The repayment of their loans has helped them build a positive credit history and credit scores.

If a need to borrow exists the student should know and understand the obligations of borrowing. The student should know the full costs of their education program, including the cost of tuition, fees and books needed for the loan period. Students should borrow the minimum amount needed.