Returning reward

The returning reward program is a scholarship/loan program provided by Saint Martin's University. This reward is awarded to incoming freshman based on their financial aid packet. It is provided only during a borrower's freshman and sophomore years. Once their junior year is completed 50 percent of the reward is cancelled; upon completing their senior year 100 percent is cancelled.

Terms and conditions
Terms: I understand that upon completion of my third year of full-time enrollment at Saint Martin's University, 50 percent of the outstanding balance of this loan will be cancelled. When I graduate from Saint Martin's University within five years of my first date of enrollment the remaining 50 percent of the loan balance will be canceled. If I withdraw, drop out or transfer before fulfilling the criteria for forgiveness as described in this Note, the balance of funds that were advanced to me go into repayment. If I return to Saint Martin's University before the expiration of the fifth year from my initial enrollment date, my loan payments will be deferred until such time as I graduate, up to five years from the date I re-enter (in which case the remaining loan balance is forgiven) or until I discontinue enrollment at Saint Martin's University for a second time. If I discontinue enrollment for a second time my loan enters repayment the first day of the month which follows the end of the semester for which I was last enrolled.

Repayment: I am obligated to repay the principal and interest that accrues to Saint Martin's University beginning nine months after I cease to be a student at Saint Martin's University unless I request in writing to begin repayment sooner. I understand the University may report the amount of my loan and installment payments to a national credit bureau. Interest on this loan will accrue from the beginning of the repayment period. I will make installment payments in equal monthly amounts as determined by the school. My minimum monthly payment will be $50.00 per month including interest which will accrue at 5 percent per month on the descending balance.

Late charges: the University will impose late charges if I do not make a scheduled payment by the day it is due, or if I fail to submit a properly documented request for a deferment for which I qualify before the date my payment is due. I understand a late charge will equal 20 percent of my regular installment payment. The school may add the late charge to principal the day after the payment is due. I will be notified if such charges are added to my account before the next regular payment is due.

Requests for deferment: I understand that to receive any deferment benefit I must make a written request and properly submit all requested documentation which the school requires to prove my eligibility. I am responsible for submitting these requests on time and I may lose my eligibility for these benefits if I fail to do so.

Default: if I fail to make three consecutive scheduled payments when due my loan will be declared in default, and the University may at its option choose to accelerate my loan. If my loan is accelerated all principal, interest, and late charges are immediately due and payable. If my loan is accelerated, the University will demand immediate payment of the entire unpaid balance of my loan. If I fail to comply with requests for payment, the school may at its option turn my account over to a collection agency. I will be liable for all costs of collection including collection fees, attorney fees, and court costs. Collection fees will be added to my account at the rate of 30 percent for first placement and 40 percent for second placement. I understand these fees are in addition to my unpaid principal, interest and late fee balance.

Change of status: I will inform the University including the campus based loans manager's office of any change in my name, address, telephone number or social security number.

Grace periods: In the case that I do not fulfill the terms for forgiveness, my grace period before beginning repayment is 9 months from the date I last attended Saint Martin's University. My payments will resume after a post-deferment grace period of six months for any deferments that apply to the returning rewards loan.

Deferments: Upon making and completing a properly documented written request to the school, I may be defer scheduled installment payments and any interest which would otherwise accrue during my approved term of deferment. I may defer making installment payments and and will not be liable for interest : 1) during any period that I am attending a rehabilitation training program for disabled individuals. 2) For a period to be granted no more than 12 months per deferment totaling no more than 36 months when I am experiencing a period of economic hardship as verified by the University. 3) For a period of not more than 36 months of active duty military service.

Cancellation: As stated in the terms for receiving this benefit: I will be eligible to have 50 percent of the money loaned to me canceled after three years of full-time attendance at Saint Martin's University. The remaining 50 percent will be canceled when I graduate within 5 years of my initial date of entry to the University.

Death and disability cancellation: In the event of my death the school will cancel the total amount owed on this loan. If I become permanently and totally disabled after I receive this loan, the school will cancel the full amount of this loan upon receipt of verification of my disability.

Prepayment: I may pay any or all of my unpaid loan balance plus any accrued interest at any time during my term of repayment without penalty.

Promise to pay: I promise to pay the University or subsequent holder of this promissory note the sum of amounts 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. This loan has been made to me without security or endorsement. My signature certifies that I have read, understand and agree to the terms and conditions of this promissory note.