The information is meant as a general review of the rights and responsibilities of repayment for current and former students of the Scholl College of Podiatric Medicine. The actual terms of student loans can be found on the promissory notes. Additional information is available from the Office of Student Services.

Need help determining how much you borrowed, and which loan servicer now owns your loans? Try these information sources:

1-800-4-FEDAID The Department of Education's main information line can provide information about Stafford and Supplemental loans - which servicer now owns them, and how much is owed on the loan(s).

www.nslds.ed.gov The Department of Education's database at National Student Loan Data System should be able to provide all records of financial aid received through Title IV of the Department of Education. This includes Perkins Loans and subsidized and unsubsidized Stafford loans. This website, however, does not include Health Professions Student Loan or HEAL loan information.

www.salliemae.com Student Loan Marketing Association. Sallie Mae owns and services many Stafford and HEAL loans. Borrowers can check the status of their accounts on-line, or by calling 800 233-1193. Information about loan consolidation, incentives for prompt payment, as well as sample repayment calculators are available on this web site.

www.usagroup.com United Student Aid Group is the guarantee agency used by the Scholl College for Stafford loans. Borrowers can check the status of their accounts on line. Loan consolidation information and sample repayment calculators are also available.

800 826-4470 AFSA Data Corporation - for information on Perkins and Health Professions Student Loans borrowed from the Scholl College. Or call (312) 280-2981, Scholl College Business Office.
dpackard@scholl.edu Contact Dian Packard for records maintained by the Office of Student Services. (312) 280-2949.

Need Deferment Forms?

Deferment forms for the Stafford and Supplemental Loan program can be downloaded from www.salliemae.com or www.usagroup.com. See the section on Stafford loan below for information on which deferment form to request.

HEAL loan deferment forms can be downloaded from www.salliemae.com, or obtained from your lender.

Perkins and Health Professions Student Loan deferment forms can be obtained from the Scholl College Business Office at (312) 280-2981.

Student Loan Interest Deduction

For information on student loan interest deduction, see www.usagroup.com, or download IRS publication 970, "Tax Benefits for Higher Education" from www.irs.gov.

Federal Education Loan Programs

Information about the interest rates and grace periods for all the programs can be found in the chart, Summary of Repayment Terms, below.

Subsidized Stafford Loan Program

Unsubsidized Stafford Loan Program

Residency Deferment: For borrowers whose first Stafford loan was issued after July 1, 1993, there is no direct residency deferment. However, students may be able to qualify for an "economic hardship" deferment for up to three years. In an economic hardship deferment, the lender or servicer compares the borrower's monthly income to his/her monthly educational loan payments as calculated on a ten year repayment schedule. The borrower must furnish a copy of his/her most recent pay stub, along with verification of monthly educational loan repayment based on a ten year repayment schedule, which can be furnished by the borrower's lender or servicer. Download an economic hardship deferment form, from Sallie Mae's website at www.salliemae.com/aud/faai.html.

Mandatory Forbearance During Residency: Lenders are required to grant forbearance to medical residents during the period of their residency if the borrower does not qualify for an economic hardship deferment. During a forbearance period interest accrues on all loans, including the subsidized Stafford; therefore, it is always better to attempt to qualify for a deferment.

Incentives for Prompt Repayment: The Student Loan Marketing Association (Sallie Mae) offers several programs that can mean savings for timely repayments. The "Great Rewards" Program offers borrowers who pay on time for the first 48 months of active repayment, a full two percentage point (2%) interest rate reduction for the remaining term of all Stafford Loans in their Sallie Mae account. "Direct Repay" Plan offers a one quarter percent reduction in interest rate to all borrowers who authorize a direct transfer of money from their bank account to Sallie Mae for their monthly student loan payments. "Great Returns Program" is available to borrowers who have a Stafford which was first disbursed on or after July 1, 1995. When borrowers make their initial 24 scheduled monthly payments on time, Sallie Mae will credit their loan accounts an amount equal to any origination fees they've paid in excess of $250.

Cancellation: In the event of death or permanent and total disability, Stafford Loans are cancelled.

Federal Stafford Loans obtained through the Scholl College/Sallie Mae program are serviced by:

For Deferments & Correspondence: For Payments:

Loan Servicing Center/Florida

P.O. Box 59001

Panama City, Fl 32412-9001

customer service (800) 233-1193

Loan Servicing Center/Texas

P.O. Box 670007

Dallas, TX 75267-0007

customer service (800) 233-1193

Deferment Eligibility

Subsidized and Unsubsidized Stafford Loans

This chart is meant as a summary only. Check your promissory notes for the actual terms of your loans. Interest accrues during deferment periods for unsubsidized Stafford and Supplemental Loans.

Deferment Type Total Length New Borrower between 7/1/87 and 6/30/93 New Borrower on or after 7/1/93

Full Time School No limit X X

Half-Time School No Limit X X

Graduate Fellowship No Limit X X

Rehabilitation Training No Limit X X

Armed Forces or

Public Health Services or

National Oceanic and Atmospheric Administration

36 Months

X

X

X

Peace Corps 36 Months X

Action Programs 36 Months X

Volunteer Service for Tax Exempt Organization 36 Months X

Teaching in Designated Teacher Shortage Area 36 Months X

Internship 24 Months X

Temporarily totally disabled borrower and/or caring for disabled spouse or dependent 36 Months X

Unable to find full-time employment 24 Months X

Unable to find full time employment 36 Months X

Parental Leave 6 Months X

Mother of pre-school child (re)entering workforce 12 Months X

Economic hardship 36 Months X

Note: A borrower is considered a "new" borrower if he/she does not have an outstanding balance on the date he/she signs the promissory note.

Health Education Assistance Loan Program

Interest: HEAL loans have a variable interest rate which is calculated at the maximum of the average of 91-day Treasury Bills, plus 3% (plus 3 1/2% for loans issued prior to October 22, 1985), rounded to the next higher of 1/8 of 1%. Substantial interest savings are possible by Refinancing HEAL. See the section, below, on refinancing.

Repayment: Repayment begins 9 months after leaving school, or after leaving an accredited internship or residency program. There is no penalty for pre-payment.

Deferment: Deferment forms can be downloaded form www.salliemae.com/aud/faai.html. They must be filed once per year with the lender or servicer. Deferments up to 48 months are available for residency or internship.

Scholl borrowers may have borrowed from one or more of the following HEAL lenders:

Med Funds (Ohio College of Podiatric Medicine),

Bank One, Chase, New York College of Podiatric Medicine

(all serviced by Sallie Mae)

Send Correspondence To:

Loan Servicing Center/Florida

P.O. Box 59019

Panama City, Florida 32412-9019

(800) 872-7834

Send Payments to:

Loan Servicing Center/Pennsylvania

P.O. Box 5200

Wilkes-Barre, PA 18773-5200

(800) 643-0040

Pennsylvania Higher Education Assistance Agency

(PHEAA)

P.O. Box 3355

Harrisburg, PA 17105-3355

(800) 421-4817

HEAL Refinancing

HEAL borrowers should investigate HEAL Refinancing as it can save money on monthly payments and total payments overall.

The Department of Health and Human Services' web site has the most up to date information on Refinancing, a current list of lenders and calculators that help determine which lender has the lowest cost Refinancing program. www.hrsa.dhhs.gov/bhpr/dsa/dsa.htm.

By Refinancing their HEAL loans, borrowers can combine all of their HEAL loans into one new loan, with an interest rate as low as T-bill plus 1.80% - a significant savings. Prepayment can be made without penalty.

There is no charge for HEAL Refinancing and all of the borrower's deferment and grace privileges stay the same.

Federal Perkins Loan Program

Scholl College is the lender for the Federal Perkins Loan Program. The College contracts with an outside organization to bill the borrower and receive payments. Borrowers are urged to include their account number on their check to insure that payments are credited correctly. Payments should be sent to:

AFSA Data Corporation

P.O. Box 2301

Bedford Park, IL 60499-2301

(800) 826-4470

Deferments -- Effective for loans for which the first disbursement is made on or after 7/1/93 there is no direct deferment for residency. However, students may be able to qualify for an "economic hardship" deferment for up to three years. In an economic hardship deferment, the College Business Office compares the borrower's monthly income to his/her monthly educational loan payments as calculated on a ten year repayment schedule. The borrower must furnish a copy of his/her most recent pay stub, along with verification of monthly payments based on a ten year repayment schedule, which can be furnished by the borrower's lender or servicer.

Forbearance: Borrowers who are experiencing temporary difficulty in meeting payments can contact the Scholl College Business Office to request forbearance. Proof of the borrower's economic situation will be required.

For additional information, contact the Scholl College Business Office.

Health Professions Student Loan Program

Scholl College is the lender for the Health Professions Student Loan. The College contracts with an outside organization to send bills to the borrower and receive payments. Borrowers are urged to include their account number(s) on their checks to insure that payments are credited correctly. Payments should be sent to:

AFSA Data Corporation

P.O. Box 2301

Bedford Park, IL 60499-2301

(800) 826-4470

Deferment: Deferments for residency periods are allowed. Deferment forms are available from the College Business Office.

Loan Repayment for Service in the Indian Health Service: Individuals who are or will be in full-time clinical practice in an Indian health program may apply for participation in the Health Professions loan repayment program. An Indian health program is defined as any health program or facility funded, in whole or in part by the IHS for the benefit of American Indians and Alaska Natives and administered by the IHS or Indian tribe. For more information, and to obtain an application, contact IHS Loan Repayment Program 12300 Twinbrook Parkway, Suite 100, Rockville, Maryland 20852, or call 800 962-2817, or (301) 443-6197.

For additional information on Health Professions Student Loans contact the Scholl College Business Office.

Summary of Repayment Terms

Loan Program Interest Rate Interest Charged During In-School, Grace, Defer Grace Period After In-School Periods Grace Period After Deferment Period Length of Repay-ment Period

Federal Stafford Loan

Interest is based on the date first loan taken by borrower:

see usagroup.com/

students/intrate.

htm

No, for subsidized Stafford.Yes, for unsub.Stafford. 6 months for subsidized Stafford. No grace period for unsub. Stafford, but payment can be deferred until sub Stafford payment begins No 10 years

Federal Supplemental Loan (program eliminated as of 7/1/94)

Interest is based on the date the loan is issued.

Variable with a cap of 12% 7/1/87 to 9/30/92.

Variable with a cap of 11% after 10/1/92.

Yes No. Payment can be deferred until Stafford payment begins. No 10 years

Federal

Perkins Loans

5% No 9 months 6 months 10 years

Health Professions Student Loan 5% No 12 months No 10 years

Health Education Assistance Loan (HEAL) Variable, calculated quarterly. Based on 91-Day T-Bill, + max. of 3%. Interest rate reductions possible on Refinanced HEALs. See www.hrsa.dhhs.gov/bhpr/dsa/dsa.htm Yes 9 months 9 months 10 to 25 years

Signature Health Loan Variable, calculated quarterly. Based on 91-Day T-Bill, + 2.5% in-school, and T-Bill + 2.85% during grace, deferment and repayment. Yes 6 months No 25 years

Loan Consolidation

Loan Consolidation can help borrowers manage their monthly repayment by lengthening the time allowed for repayment, allowing a single monthly payment for several loans, and allowing the option of choosing a graduated repayment schedule. There are no origination fees or service charges for consolidation.

To calculate the estimated monthly repayment and total repayment costs for a consolidated loan, check the web sites of USA Group at www.usagroup.com or Sallie Mae at www.salliemae.com.

The loans eligible for consolidation include the Federal Stafford (subsidized and unsubsidized), Supplemental, Perkins, and Health Professions Student Loan. Borrowers can consolidate undergraduate and graduate loans.

Although it is possible to consolidate HEAL loans with other federal loans, it is not recommended; borrowers should instead investigate HEAL Refinancing. Refinanced HEAL loans are available for interest rates as low as T-bill plus 1.8% - considerably less expensive than the interest charged for a HEAL loan which is consolidated.

Loan consolidation is not for everyone, and borrowers should weigh the advantages and disadvantages carefully. Generally speaking the initial monthly payment will probably decline because of the longer repayment period; however, the increase in the length of the repayment period, and the potentially higher interest rate on the consolidation loan, may greatly increase the total amount of interest paid.

Lenders offering Consolidation:

Citibank, 800 934-1900

Crestar, 800 552-3006, or crestar@student-loans.com

USA Group - offers loan consolidation to any borrower who as at least one loan guaranteed by USA Funds (the Scholl College Stafford program uses USA Funds as the guarantee agency) 800 562-6872 or www.usagroup.com/loancons/calc/consolid.previous.htm.

Sallie Mae, 888 272-5543 or www.salliemae.com

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Private Education Loans

Signature Health Loan

The Signature Health Loan is offered through First of America Bank, P.O. Box 749, 301 S.W. Adams Street, Peoria, Illinois 61652-0749, (309) 655-5406, but is serviced through the Student Loan Marketing Association.

For more information contact:

Student Loan Servicing Center

P.O. Box 59030

Panama City, FL 32412-9030

888 272-5543

MedFunds Alternative Loan

MedFunds offers an Alternative Loan for health professions students. The terms of the loan are as follows: For more information on the MedFunds Alternative Loan, contact:

MedFunds

10515 Carnegie Avenue

Cleveland, OH 44106

800 665-1016

Federal Repayment Programs

National Institute of Health

Loan Repayment Programs

The National Institutes of Health offer three loan repayment programs (LRPs). The NIH AIDS Research Loan Repayment Program (AIDS-LRP) is designed to attract highly qualified physicians, nurses and scientists to HIV/AIDS research and research training. The NIH Clinical Research Loan Repayment Program (CR-LRP) is designed to recruit highly qualified physicians from disadvantaged backgrounds to serve as clinical researchers. The NIH General Research Loan Repayment Program (General-LRP) is designed to attract highly qualified physicians and scientists to conduct research at the NIH.

The LRPs pay a maximum of $20,000 per year toward participants' outstanding eligible educational debts. In return, participants must sign a contract agreeing to conduct qualified research activities as NIH employees: AIDS-LRP and CR-LRP for a minimum of 2 years; General-LRP for a minimum of 3 years. Participants may apply for additional, 1-year renewal contracts and continue to receive loan repayment benefits. The LRP will repay lenders directly for the principal, interest and related expenses of qualified federal and private educational loans obtained for undergraduate, graduate and health professions expenses. Loan repayment benefits represent taxable income for participants.

For application forms or other information call 800 528-7689. Or write to NIH Loan Repayment Program, Federal Building, Room 604, 7550 Wisconsin Avenue, Bethesda, MD 20892-9121.

Indian Health Service

Health Professions Educational Loan Repayment Program

The Indian Health Service will repay all or a portion of the applicant's health professions educational loans for tuition expenses and reasonable educational and living expenses in amounts up to $30,000 per year, for each year of contracted service. Applicants sign contractual agreements with IS for two years. Participants will be required to fulfill their contract service agreements through full time clinical practice at an Indian health program site determined by the IHS. For more information contact Charles Yepa, LRP Section Chief, IHS Loan Repayment Program, Twinbrook Metro Plaza, Suite 100, 12300 Twinbrook Parkway, Rockville MD 20852, (301) 443-3396.

Internet Sites

Student Loan Marketing Association (Sallie Mae)

This website contains information on loan terms, important Sallie Mae phone numbers, downloadable deferment forms, sample repayment calculators, and on-line access to borrower accounts.

United Student Aid Group

USA Group is a large guarantee agency for Stafford loans. USA Group offers Loan Consolidation services. On-line access to borrower accounts is available through their web site. An excellent downloadable repayment guide called "In Your Interest: A Common Sense Guide to Repayment Strategies for Federal Education Loans" is available here.

Financial Aid Page

Information on loan terms, and links to the web pages of many financial aid organizations, makes this web site very useful.

Bureau of Health Professions/Department of Health and Human Services

Information on HEAL Refinancing, including a current list of HEAL lenders can be found on this website.

Scholl Financial Aid Office

If you need more information about student loan repayment, or have suggestions on how to improve the posted information about student loan repayment, contact Dian Packard, Assistant Dean for Student Affairs, at dpackard@scholl.edu.