Your KU Endowment Loan must be repaid.

Loan Interest Rate & Fees

The annual interest rate on student loans is a fixed rate of 5 percent from the date of issue to maturity. Interest will begin to accrue on your loan as of the date of disbursement. You are not required to make interest payments while enrolled in school. The interest rate will remain fixed throughout the life of the loan unless you default on your loan payments. Defaulted loans are subject to a 14 percent annual interest rate.

The interest rate during the life of your loan will be fixed; however, if you default on repayment of your scheduled payments and your loan becomes six months delinquent, the entire principal and interest balance and any late fees will be considered in default, and will become immediately due and payable, and the interest rate will increase to 14 percent. Defaulted loans may be forwarded to a collection agency. The collection agency will report the defaulted loan to credit bureau organizations which will negatively affect your credit rating. You will also be responsible for paying all collection costs that are permitted by State and Federal Law. Failure to make payments when due will be reason for the Endowment Association to request the University of Kansas to place a hold on transcripts and future enrollment.

The sum of all KU Endowment loans advanced to the borrower plus the accrued interest will be consolidated for repayment purposes, and may be repaid in equal installments of no less than $50 per month for a maximum of ten years. The loan term will vary based on the total loan amount at the time your loan enters repayment. To give you an idea on the length of the loan term, a $2,000 loan balance at a fixed rate of 5% with a monthly payment of $50.00 will have a loan term of 44 months. At the same interest rate and a monthly payment of $50.00, a $4,000 loan will have a loan term of 98 months. In this same scenario, an $8,000 loan balance will have a loan term of 120 months and a monthly payment of approximately $85.00.

If you are applying for a short-term emergency loan, your loan is payable in full within 12 months of the disbursement date or earlier depending on your graduation date. Short-term loans must be repaid prior to the last semester that you are attending the University of Kansas.

Educational loans are not dischargeable under Bankruptcy Code §523(a)(2) unless the borrower is able to prove undue hardship.

Loan Cost Examples

The total amount you will pay for this loan will vary depending upon when you enter repayment. This example provides estimates based upon the number of repayment options available to you while enrolled in school.

Repayment Option (while enrolled)	Amount Provided (amount provided)	Interest Rate (highest rate)	Loan Term	Total paid over term of loan
1. Defer Payments (interest accrues) Make no payments while enrolled at the University of Kansas. Interest will be charged and added to your account.	$5,000.00	5%	The sum of all KU Endowment loans advanced to the borrower plus the accrued interest will be consolidated for repayment purposes, and may be repaid in equal installments of no less than $50 per month for a maximum of ten years.	Example: loan disbursed: 8/15/2009 Graduation Date: 5/15/2014 First payment Due: 10/01/2014 $8,007.60
2. Pay Only the Interest Pay accrued interest but defer payments on principal amount while enrolled at the University of Kansas	$5,000.00	5%	The sum of all KU Endowment loans advanced to the borrower plus the accrued interest will be consolidated for repayment purposes, and may be repaid in equal installments of no less than $50 per month for a maximum of ten years.	Example: loan disbursed: 8/15/2009 Graduation Date: 5/15/2014 First payment Due: 10/01/2014 $7,655.27
3. Make Full Payments Pay both the principal and interest amounts while enrolled at the University of Kansas	$5,000.00	5%	The sum of all KU Endowment loans advanced to the borrower plus the accrued interest will be consolidated for repayment purposes, and may be repaid in equal installments of no less than $50 per month for a maximum of ten years.	Example: loan disbursed: 8/15/2009 Graduation Date: 5/15/2014 First payment Due: 10/01/2014 $6,360.60

Federal Loan Alternatives

You may qualify for Federal Loans including any loans available under Title IV of the Higher Education Act of 1965, in addition to or in lieu of private education loans. The terms of federal loans may be more favorable than the terms of private education loans. For more information on federal loans please contact the Office of Financial Aid or visit: www.federalstudentaid.ed.gov.

Loan Program	Current Interest Rates by Program Type	You may qualify for Federal Loans. For additional information, contact your school’s financial aid office at: (785) 864-4700
Perkins for Students	5% fixed
Stafford for Students	Please see the following website for the current interest rates: http://www.finaid.org
Plus for Parents and Graduate / Professional Students	Please see the following website for the current interest rates: http://www.finaid.org

Next Steps

1. Find Out About Other Loan Options
   a.Some schools have school-specific loan benefits and terms not detailed on this form. Contact your school’s finanical aid office or visit the Department of Education’s website at: www.federalstudentaid.ed.gov for more information about other loans.
2. To apply for this loan, complete the application or promissory note
   b. The self certificiation form is part of the application. If you are approved for this loan, the loan terms will be available for 30 days (terms will not change during this period, except as permitted by law and the variable interest rate may change based upon the market if applicable).

Reference Notes

Eligibility Criteria: Continuing and returning students must have an overall grade point average of at least 2.0. Transfer students who have never attended the University of Kansas must have a 2.5 GPA. Loans are not available to first semester freshmen. Loans may not exceed the student’s cost of attendance as determined by the Office of Student Financial Aid. Each loan must be co-signed by the student’s parent or another responsible adult. Co-signers must be at least 25 years of age, cannot be KU students, and must earn at least $25,000 a year. In unusual circumstances, the co-signer requirement may be waived by KU Endowment after special consultation with the student. The interest rate does not differentiate between a long-term and a short-term loan.

Deferment Options: KU Endowment offers two deferment options after your account enters repayment, the first is a Hardship Forbearance offered in intervals of no more than six months for a maximum period of 12 months. During the forbearance period you are not responsible for making payments; however, interest will continue to accrue on your account. A Residency/Fellowship Deferment is available to medical students participating in a residency program or fellowship. During the residency/fellowship deferment you are not responsible for making payments; however, interest will continue to accrue on your account. For both types of deferments the accrued interest will not be added to your principal balance. Forms for the Hardship Forbearance and Residency/Fellowship Deferment can be located on our website at: www.kuendowment.org/students/loans/.

Federal law requires that borrowers may have at least 30 days to accept the terms of a loan. However, we allow borrowers more than 30 days, up until the end of the semester, to accept the terms of your loan. Therefore the final date you may accept the loan is May 15 for a loan for the spring term, July 31 for a loan for the summer term, and December 20 for a loan for the fall term. The terms of your loan will not change except as permitted by law and the variable interest rate may change based upon the market if applicable (the KU Endowment loan program interest rate is currently set at a fixed rate of 5 percent).