Entrance/Master Promissory Note

If you or your student plan on borrowing student loans to fund their education, you must first complete Entrance Counseling and a Master Promissory Note at the Federal Student Aid Student Loans Website.

Before UPIKE’s Office of Student Financial Services will disburse loans to your account, we must have an electronic notification that you have completed both the Entrance Counseling and MPN.

To complete the Entrance Counseling

In general, a direct student loan may be deferred until the student graduates, leaves school or drops below half-time enrollment. At that time, the student will have a six month grace period before beginning repayment. Under certain circumstances, students may receive deferment or forbearance on student loans. However, these are not automatic.

It is the student’s responsibility to contact the institution that holds the loan and to provide documentation for the request. Students must also continue making scheduled payments until notification is received that deferment or forbearance has been granted. Students are required to complete entrance counseling prior to receiving loan funds and exit counseling prior to leaving UPIKE or graduating. You can access www.studentloans.gov to complete your exit counseling.

To Complete the MPN

Exit Counseling

Any student who borrows a Federal Direct Student Loan must complete exit counseling if withdrawing from UPIKE or upon completion of degree requirements. Exit counseling will walk you through your rights and responsibilities, as well as provide useful information regarding repayment options, debt management strategies, forbearance, deferment, cancellation options and consolidation. Loan exit counseling is mandatory and must be completed prior to graduation or if enrollment falls below half-time status.

To complete exit counseling:

  • Log onto http://www.studentloans.gov
  • Sign in using your FSA ID and password
  • Select exit counseling
  • Read the information carefully, as it contains valuable information on the repayment of your student loans.

Loan Repayment Strategies

Honor Your Commitment
You are accepting a great responsibility as well as investing in your future when you take out an educational loan. Keep in mind that your student loan(s) may provide you with a good credit history.

Maintain Accurate Records
Save all records pertaining to your loan(s) in a convenient, safe place. Even after you have repaid your loans, maintain records to document the repayment of your loan(s). You should print and keep copies of completed entrance counseling, the Master Promissory Note, copies of deferment and forbearance forms and copies of correspondence with the bank or lending institution of your loan(s). You should also keep a record of each telephone conversation, noting the name of the person you talked to, the date of the call and what was discussed. Be proactive with your student loans, not reactive.

Stay Current with Your Payments
Make your monthly payments before the due date to ensure proper credit. Include your account number on the check and enclose any billing statements or coupons that you receive from the holder of your loan. If you are behind on your payments you may still be able to apply for a deferment; contact your holder for more details. If you are not eligible for a deferment, inquire about forbearance options. Your holder may permit you to reduce or stop payments for a short period of time. Keep in mind that during a forbearance period interest continues to accrue and is either paid or added to the principal balance.

Avoid Default
If you do not accept your responsibility and repay your student loan(s), the loan(s) will go into default. Defaulted loans are reported to national credit agencies, affecting your credit rating and your future ability to borrow money. If your loan is turned over to a collection agency and collection efforts fail, the defaulted loan is assigned to the federal government. At this point, one or more of the following actions may occur:

  • Loss of eligibility for all federal student aid programs, including student loans
  • Loss of eligibility for any postponement of payment (deferment or forbearance)
  • Loss of certain professional licenses and driver’s license (in some states)
  • Contacting your references listed on your loan application
  • Reporting of your default status to the Internal Revenue Service (IRS), causing your state and federal tax returns to be withheld and applied to your loan balance
  • Garnishment of your wages
  • An adverse credit rating that may remain on your record for seven years after the final repayment date of your loan(s)
  • Additional fees added to your loan balance as a result of collection efforts on your account.
  • Even though you are in default of your loan, you will still owe the balance
  • Possible loss of your degree, certification and/or accreditation

For additional repayment strategies, including information on repayment plans, visit: Repayment Calculator