INSTRUCTIONS ON COMPLETING A LLU PROMISSORY NOTE

Transcription

1 INSTRUCTIONS ON COMPLETING A LLU PROMISSORY NOTE IMPORTANT NOTICE: The ORIGINAL promissory note must be completed and submitted to the Office of Financial Aid before you can obtain financial clearance and/or disbursements can be paid to your student account. Please complete and submit your promissory note as soon as possible as this verification process will take time during periods of high volume. COMPLETING A LLU PROMISSORY NOTE Print the full promissory note. The promissory note should have three, four or seven pages depending on the loan type. Read through the promissory note before signing it to ensure that there are no printing errors. Errors to look for include squished text, faded lines, garbled characters, and ASCII characters. Sign and date each line where required. Use Blue or Black ink. Be sure to sign and date the Schedule of Advances section. If you make a mistake while completing the promissory note, please reprint that page and complete it again. Promissory notes with whiteout (liquid paper) and/or crossed out information will not be processed. Review the completed promissory note to ensure that all information requested is included. Where the promissory note asks for an address, please be sure to provide a complete address including city, state and zip code. For promissory notes with an Entrance Interview Checklist/Questionnaire, complete EVERY line. If the information does not apply, write N/A. Keep a copy for your record. SUBMITTING YOUR LLU PROMISSORY NOTE Promissory notes that are missing signature(s), dates or have incomplete information will not be processed. A properly completed promissory note is required in order to receive these loan funds. The Financial Aid Office staff can only accept an ORIGINAL document. Please do not Fax or a scanned copy of the promissory note. Mail or bring your promissory note to: Office of Financial Aid Loma Linda University Anderson St. Loma Linda, CA If you have any questions regarding your promissory note, please call the Office of Financial Aid at (909)

2 LOMA LINDA UNIVERSITY LOMA LINDA, CALIFORNIA COUNTY OF SAN BERNARDINO MAJOR GRADUATION DATE (A fund administered by Loma Linda University) (Updated May, 2018) Borrower Name and Permanent Address: Social Security Number: Fund Account Number: Interest Rate: Loan Amount Loan Period Date Signed Borrower s Signature TERMS AND CONDITIONS: INTEREST RATE: A fixed interest rate of per annum shall begin to accrue after I cease to be enrolled at least halftime at the University and shall continue until this note is paid in full. REPAYMENT: I am obligated to repay the total amount of principal and interest that accrues on this loan. The repayment period starts when interest begins to accrue and ends years later, unless the repayment period is shorter as required by the minimum monthly payment requirement. I will make my payments in equal monthly installments as determined by the University; however, the minimum monthly payment shall not be less than per month. Payments are due on the 10 th of each month. Payments received shall be applied first to unpaid interest and then to unpaid principal. The University is not responsible for mailing monthly bills, invoices or statements, so failure to receive one does not exonerate the borrower from making a payment when due. A penalty of $25.00 shall be assessed for all returned checks. DELINQUENCY AND DEFAULT: If I fail to make a scheduled payment when due; if I fail to submit to the University, on or before the due date of a scheduled payment, documentation that I qualify for a deferment; or if I fail to comply with the terms and conditions of this promissory note or written repayment agreement, my loan will be in default and the University may, at its option, choose to accelerate my loan (demand immediate payment of the entire unpaid balance of the loan, including principal, interest, late charges, collection costs plus legal costs/fees). I will lose my right to defer payments if I default on my loan. In addition, if I am past due, the University may disclose to credit bureau organizations my delinquency status and all other relevant loan information. FORBEARANCE: There are no provisions for forbearance on this loan. DEFERMENT: I may defer making scheduled installment payments by submitting proper paperwork and will not be liable for any interest that might otherwise accrue during any period that 1) I am enrolled and attending as a regular student in at least a half-time course of study at Loma Linda University; or 2) serving in a medical or dental internship or residency program. To receive deferment benefits, I must make a written request to the University's designated loan servicer and must submit with the request any documentation that is required to prove my eligibility for this benefit. I am responsible for submitting the appropriate requests on time, and I may lose my benefits if I fail to file my request on time. I realize that I should continue making any required payments until I receive notification from my loan servicer that I am in deferment. CANCELLATION: In the event of my death or total and permanent disability, the University will cancel the total amount owed on this loan. (Documentation will be required) PREPAYMENT: I may repay all or any part of my unpaid loan balance, plus any accrued interest, at any time without penalty. CHANGE OF STATUS: I will immediately inform the University's designated loan servicer of any change in my name, address, telephone number, Social Security number, or enrollment status. AUTHORIZATION: I authorize Loma Linda University, and their respective agents and contractors to contact me regarding my loan request or my loan(s), including repayment of my loan(s), at the current or future number that I provide for my home and cellular phone or other wireless device using automated telephone dialing equipment or artificial or pre-recorded voice or text messages. STATUTE OF LIMITATIONS: I waive any and all defense afforded by the statute of limitations, and the pleading of any statute of limitations as a defense to any demand for payment of this note or any part thereof of any sum payable hereunder. If action is instituted on this note, the undersigned promise(s) to pay all attorney s fees and other costs and charges necessary for the collection of any amount not paid when due. PROMISE TO PAY: I promise to pay the University the sum of amount(s) advanced to me under the terms of this Note, plus interest and other fees which may become due as provided in this Note. I will not sign this Note before reading it, including the provisions on the reverse side. This loan has been made to me without any security or endorsement. My signature certifies that I have read, understand, and agree to the terms and conditions of this Promissory Note. THIS IS A LOAN THAT MUST BE REPAID. Borrower s Signature Page 1 of 4 Date

3 Truth-in-Lending Statement PRIOR LOAN BALANCE NEW LOAN AMOUNT CUMULATIVE BALANCE BASED ON YOUR CUMULATIVE LOAN BALANCE THE FOLLOWING WILL APPLY: ANNUAL PERCENTAGE RATE The cost of your credit as a yearly rate. FINANCE CHARGE The dollar amount the credit will cost you. AMOUNT FINANCED The amount of credit provided to you or on your behalf. TOTAL OF PAYMENTS The amount paid if you make all the payments as scheduled. $ $ See your promissory note for any additional information about nonpayment, default, and any required repayment in full before the scheduled date. Your payments are due on the 10 th of each month and your payment schedule will be: Number of Payments (maximum 120) Minimum Payment Amount Reminder: If you pay off early, you will not have any penalty and you will reduce your total Finance Charges. Page 2 of 4

4 LOMA LINDA UNIVERSITY Office of Financial Aid Loma Linda University Administered Loans Pre-Loan Interview and Statement of Rights and Responsibilities A student loan is a serious legal obligation. Therefore, it is extremely important that you understand your rights and responsibilities and agree to honor them. 1) I understand that I am accepting a Loma Linda University (LLU) administered loan for the academic year. This is a loan and must be repaid. 2) I understand that I must, without exception, report any of the following changes to Loma Linda University, Student Loan Accounts Office if: a) I withdraw from school; b) My address, phone number or address changes; c) I drop below half-time status; take a Leave of Absence; d) I change my name, or Social Security Number. 3) I understand that when I fall below half-time status, take a Leave of Absence, graduate, or withdraw from LLU, I must arrange for and complete an exit interview with the Student Loan Accounts Office by calling (909) ) I understand that my minimum payment will be at least a month. It will be more if the amount borrowed is sufficient to require larger payments. Maximum repayment period is years. If I pay off this loan early, I will not have to pay a penalty. 5) I understand that, as specified on my promissory note, interest begins to accrue and repayment commences 0 to 12 months after I cease to be enrolled at LLU as at least a half-time student (Refer to promissory note). My first monthly payment will be due at that time. 6) I understand that if I drop below half-time status and then return to LLU as at least a half-time student, I may defer making scheduled principal and interest payments on my LLU loan, providing the account is current. To defer my LLU loan, I must obtain a deferment form from the Student Loan Accounts Office, or their designated servicer. I must indicate the date I re-entered LLU and the date I plan to finish. I must have the form certified by the Office of University Records and mail it to LLU s designated loan servicer. A new deferment form must be filed at least annually and not less than 30 days before the previous deferment s expiration date. If I fail to file for deferment on time, which is before the previous deferment s expiration date, my next monthly payment will be due. There is no additional grace period after deferment. I must also submit a request for enrollment verification on-line thru University Records Office, so that enrollment information can be sent to LLU s designated loan servicer along with my deferment form. 7) I understand that if I am serving in a medical or dental internship or residency program I may defer making scheduled principal and interest payments on my LLU loan. To receive this deferment benefit, I must make a written request and submit it along with any documentation that is required, to the University s designated loan servicer. 8) I understand that cancellation may be granted for death or permanent and total disability. I also understand that the school must be informed of such a status and that documentation will be required. 9) I understand that if I fail to repay my loan as agreed, or fail to file cancellation or deferment forms with LLU on time, my loan will be considered in default. The entire unpaid balance, including interest due and accrued thereon, plus any applicable penalty charges, will, at the option of LLU, become immediately due and payable. Delinquent accounts will be sent to a collection agency, which can result in collection costs of up to 50% of my account balance. In addition, delinquency may jeopardize my future credit ratings. 10) I understand that I must promptly answer any communication regarding my loan. 11) I understand that if I cannot make a payment on time, I must contact LLU s designated loan servicer. 12) I understand that failure to repay the loan and/or complete the exit interview will result in the holding of academic transcripts, diplomas and other services until the loan is brought current and/or the exit interview if fully completed. 13) I agree to refer to my promissory note for any additional information about nonpayment, default, and any required repayment in full before the scheduled date. 14) I authorize LLU to report information regarding this loan to credit bureaus. I understand my rights and responsibilities, and I agree to the terms and conditions, of the Loma Linda University Administered Loan I have been awarded. Furthermore, I have received a copy of this statement. Borrower s Name (Please Print) Borrower s Signature Page 3 of 4

5 Date LLU Representative s Signature Page 4 of 4