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Usage of FFELP loans at La Trobe provides substantial borrower benefits at the same time as streamlining delivery of funds to you in a timely and efficient manner.

La Trobe University does work with guarantee agencies and lenders that are recognized for their excellent service levels to students attending foreign universities and who have streamlined the delivery of funds to the student borrower.

Guarantors

American Student Assistance (ASA) is one of the oldest not-for profit loan guarantors in the US with offices located throughout the US. It has the largest dedicated team to assist foreign universities, students and their parents attending university outside the US. Students can apply online for FFELP Loans through the ASA web site.

There are state based guarantee agencies available in almost all states of the US along with a number of other not-for-profit guarantors who operate across state boundaries. If you have a previous relationship with a different guarantor and you wish to remain with them, then La Trobe University will work with your nominated guarantor.

Please be aware that there is a discretionary charge of up to 1% of your awarded aid, which some guarantee agencies charge students. ASA does not apply this charge. Your choice of guarantor will determine whether this amount is deducted from your funding or not.

Lenders

Lenders within the FFELP loan program are able to charge a fee up to 3% of the total of the loan for issuing Stafford and PLUS loan funds to students and/or their parents. That fee is charged against the gross loan funds after certification by La Trobe. This results in students receiving less money than detailed in their award letter.

La Trobe has identified three lenders that have an established history working with FFELP loans in a foreign environment. These lenders and their respective lender codes are:

• Bank of America (824421) - Borrowers should apply via Bank of America directly
  
• Educaid / Wachovia (830005) - Stafford loan borrowers may apply via ASA and PLUS loan borrowers need to apply via Wachovia directly
  
• Chase (803000-55) - All borrowers may apply via the ASA website.
  

Please note that lenders are allowed to charge administration fees. You will need to list a lender and their code on your Master Promissory Note (MPN). If you have a previous student loan(s) with a different lender from those listed above, you may use your previous lender by entering their lender code on your MPN or choose a new lender. Some lenders have their preferred guarantors, so when you choose a particular lender, check the Financial Aid Administrator which guarantor they work with before sending your MPN.

Borrowers may receive a variety of benefits from their chosen lender, including but not limited to:

• Interest credit at time of repayment
• Interest rate reduction for utilizing direct debit facilities (not available for foreign bank accounts)
• Principle reductions for on-time payments

Lenders websites will detail what benefits or offers they offer to students who choose to partner with them.

Whether you're starting university or starting your career, it's your responsibility to know the facts about not only the degree that you are undertaking, but the funding methods and when you are going to be required to pay the money back. You are making a big decision and a big commitment to paying the loan funds back. It is important to know exactly what that commitment is all about.

What your lender expects from you

Repay your loan

Your obligation to repay becomes legally binding when you sign the Master Promissory Note (MPN) and authorize the electronic transfer of funds to your student account.

Your requirement to repay does not get abolished away because you:

• Don't complete your educational program
• Cannot find employment
• Were not satisfied with the education or other services your received from the university
• Were notified that your loan was sold to another party by your lender.

Pay on time

You must make your payments on time unless you have made special arrangements with the lender or servicer. Many lenders offer repayment incentives to reward you for paying on time.

Make a minimum payment

A minimum monthly loan payment is required. This minimum amount varies depending on the amount you borrow and your repayment plan.

Notify La Trobe University and the lender about any of the following:

• Change of your current address / phone numbers / name
• Change of your Social Security number
• Withdrawal from university
• Dropping below full-time study load (for off-shore students only)
• Change of your anticipated graduation date
• Change in your driver's license number
• Change in your references
• Change of your permanent address
• Change of your expected employer

What you should expect from your lender

Master Promissory Note (MPN)

When you decide to enter into an agreement with a particular lender for your student loan, you sign a Master Promissory Note (MPN). This document explains the terms and conditions of your loan in full detail. It also serves as the legal document requiring you to repay the loan with interest. Read through the entire promissory note before you sign it and make sure you understand your rights and responsibilities. You can e-sign your MPN on the ASA website. The MPN (either paper or electronic) is only valid for a maximum of one year if you are attending a university outside the United States.

Notice of guarantee and disclosure statement

Your lender provides you with a disclosure statement before or at the time your loan is disbursed. This document states the amount of your loan (principal), and any fees deducted from the principal. It also discloses the interest rate, the annual percentage rate, and an estimate of the total amount you will have to repay (including the total amount of interest based on a Standard Repayment plan). Be sure you receive this from your lender and keep it in your files.

Repayment schedule

During your grace period, your lender or servicer will send you a detailed Repayment Schedule. This document states the number and amount of monthly payments and the date when the first payment is due.

At the same time, you will receive information about other repayment options, such as the Graduated, Extended, Income-Sensitive or Income-Based Repayment Plans plans, as well as on the consolidation option.

Notification of loan transfer

If your lender sells or transfers your loan to another lender, servicer or US Department of Education and it changes where your loan payments are sent, you will receive a Notification of Loan Transfer. This document contains addresses, phone numbers, and other information needed to make payments and keep in touch with the new lender or servicer of the loan. The terms of your loan will not change if your loan is sold or transferred.