FDSL – Lending Statement

Lending Statement

Beulah Heights University only uses Direct Federal Loan. Students may have the option borrow from any other lender depending on their credit history. BHU encourages students to borrow only what is absolutely needed to prevent future debt.


The following information and statements apply to your application for a Federal Direct Student Loan (FDSL). It is necessary under federal regulatory guidelines for you to state your understanding of the responsibilities you assume when you receive a FDSL. The terms of the loans requested on the Student Loan Entrance Counseling Interview are as follows:

  1. I acknowledge that I am completing this online Student Loan Entrance Counseling Interview.
  2. I may only use my Student Loan for educational and education-related expenses.
  3. I understand that the loan(s) I am being offered will be taken into consideration when determining other types of student assistance I may receive. The total amount of my financial aid may not exceed the cost of attendance (COA) less my expected family contribution (EFC). Questions regarding the amounts and types of student assistance may be directed to the financial aid representative serving your school.
  4. I understand that it is a Federal regulation that I be enrolled at least half time as defined by my institution in order to receive Federal student loans. Questions regarding the definition of half time enrollment may be directed to the financial aid office.
  5. I must repay this loan with all accrued interest and capitalized interest and deducted fees. I understand that I have the option of paying the interest on my unsubsidized loans while I am in school. If I don’t pay the interest while I am in school the lender will add it to the unpaid principal amount of my loan. This is called “capitalization.” For more information, I need to contact my lender.
  6. For FDSL, I have a maximum of 10 years to repay this loan unless my loans are consolidated. For FDSL, I may extend the repayment plan to a term not to exceed 25 years.
  7. I may repay all or part of this loan early without penalty.
  8. The minimum monthly payment is $50, but can be more depending on the total amount borrowed. Repayment will begin following a 6-month grace period. This grace period begins the day after I graduate, withdraw from school, or drop below half-time status.
  9. The interest rate for my loan(s) is specified in my master promissory note. I understand that the interest rate may vary according to the financial marketplace, but will not exceed 8.5%. In addition, I understand that if I receive an Unsubsidized Loan, interest will accrue from the day the loan is disbursed until it is repaid in full. I also understand that I may pay the interest while enrolled in school or request to have my lender capitalize the interest (add the interest to the principal) while I am enrolled in school.
  10. I understand that if I have a change of name, address, telephone number, graduation date, enroll less than half-time, withdraw from school, or transfer to another school, I am required to notify my lender.
  11. I will be notified in writing if my loan is transferred to a new lender. If that event should occur, I must direct all future correspondence to that new lender.
  12. If I qualify, I may apply for a postponement of my loan payments. This is known as a deferment. If I do not qualify for a deferment and am unable to make payment on my loan, I may request forbearance from my lender.
  13. I understand that I must repay the loan even if I do not complete my education, if I am not satisfied with my education, or if I cannot find employment. Examples of monthly repayment plans are available in the borrower’s rights and responsibilities section of my Master Promissory Note (MPN). I understand I may contact my lender for additional information.
  14. I understand it is my responsibility to notify the financial aid office should it become necessary for me to withdraw prior to completing my program of study. I further understand that I must complete an exit interview which includes information regarding my repayment options and the use of the loan consolidation process.
  15. If I fail to repay my student loan or if my loan becomes 270 days delinquent, I will be considered in default and the following may result:
    a. A national Credit Bureau will be notified and it will have a negative effect on my credit rating for at least seven years
    b. My wages may be garnished
    c. My federal and state income tax refunds may be withheld
    d. Legal action may be taken against me
    e. Collection charges (including attorney fees) being assessed against me
    f. Loss of deferment eligibility
    g. Loss of my professional license
    h. Loss of eligibility to obtain any additional federal or state financial aid funding
    i. My loans may be referred to a collection agency
  16. I understand that I must complete a Master Promissory Note (MPN). An MPN is used to make multiple loans over several years of borrowing and will be valid for the life of my enrollment at this institution unless one of the following events occurs:
    a. I notify the lender in writing to cancel my MPN
    b. No disbursements are made under the MPN within one year of the date I sign the MPN
    c. Ten years elapse from the date I sign the MPN. Based on the loan amount I indicate on the financial plan the VFAO will certify my loan eligibility each loan period
  17. I understand that it is my responsibility to report to the institution any other aid that I receive, including education related loans from banks or other lenders.
  18. I understand that federal regulation requires that this aid must be used in calculating my need for additional assistance.
  19. I understand that I can check the status of my loans by using the National Student Loan Data System (NSLDS). The NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data. Details are available at http://www.nslds.ed.gov/nslds_SA/
  20. If I have a dispute regarding my loan, I must contact my lender and school to resolve the issue. If I feel that the issue has not been resolved to my satisfaction, I may contact the U.S. Department of Education Office of the Ombudsman. An ombudsman will work as a liaison between my lender and me, and will launch an investigation as an unbiased third party. For more information, go to www.ombudsman.ed.gov or call toll-free (877) 557-2575.