Direct Loan Terms and Conditions

I have the right to:

• written information on my loan obligations and information on my rights and responsibilities as a borrower;
• a copy of my MPN, either before or at the time my loan is disbursed;
• a grace period and an explanation of what this means;
• notification, if the department transfers my loan to another servicer without my consent;
• a disclosure statement, received before I begin to repay my loan, that includes information about:
  • interest rates, fees, the balance I owe, and a loan repayment schedule;
  • deferment or forbearance of repayment for certain defined periods, if I qualify and if I request it;
• prepay my loan in whole or in part anytime without an early repayment penalty; and
• documentation when my loan is paid in full.

I am responsible for:

• completing exit counseling before I leave school or drop below half-time enrollment;
• repaying my loan according to my repayment schedule, even if I do not complete my academic program, I am dissatisfied with the education I received, or I am unable to find employment after I graduate;
• notifying my lender or loan servicer if I
  • move or change my address,
  • change my telephone number,
  • change my name,
  • change my Social Security number, or
  • change employers or my employer’s address or telephone number changes;
• making monthly payments on my loan after my grace period ends, unless I have a deferment or forbearance; and
• notifying my lender or loan servicer of anything that might alter my eligibility for an existing deferment or forbearance.

Federal Loan Repayment Information
It is important to make all payments on time or submit any deferment or forbearance documents timely to ensure loans remain in good standing. This link includes repayment plans, repayment calculators, as well as the consequences of defaulting on a federal loan.

Entrance Counseling
The U.S. Department of Education requires students who are obtaining student loans to complete entrance counseling to ensure that they understand the responsibilities and obligations they are assuming.

Master Promissory Note
The Master Promissory Note (MPN) is a legal document that explains the terms and conditions of your student loans. This document is also a contract in which you promise to repay your loans and any accrued interest and fees to the U.S. Department of Education.

Exit Counseling
Exit counseling provides the necessary resources/information to prepare students and parents to repay federal student loans.

When federal loans and other aid do not cover the cost of education, private or alternative educational loans are available. Private educational loan programs vary by lender. Colby does not have preferred lender arrangements. Families who choose to borrow may select a loan product from any lender of their choosing and are encouraged to carefully compare loan terms and conditions, including interest rates, origination fees, and repayment terms before consummating a loan. For more information about private or alternative loans, please visit this web page.

All students may seek a campus job. That said, a priority of the Student Financial Services Office is to assist federal work-study students and international work students to obtain the necessary hours to meet their financial aid earnings award.

First-year federal work-study students and international work students who want to work are encouraged to access our website and begin the search and application process with any department for a job that interests them. Once the student has been offered employment, they will be expected to report to their supervisor once they return from their COOT in September. If students choose not to remain in the position in which they were initially offered work, they should notify their supervisor as soon as possible. Returning federal work-study students and international work students receive a reminder in May to remind them to review their employment status or consider seeking another position for the fall.