THE PNC BANK GROVE CITY COLLEGE STUDENT LOAN PROGRAM Application

THE PNC BANK GROVE CITY COLLEGE STUDENT LOAN PROGRAM Application and Master Promissory Note 2007-2008 NOTICE TO STUDENT MAIL ALL COMPLETED APPLICATIONS TO: AES/PHEAA PNC Bank Grove City College Student Loan Program 3rd Floor 1200 North Seventh Street Harrisburg, PA 17102 Education Loan Center For more information or additional applications, call: 1-800-762-1001 THE PNC BANK GROVE CITY COLLEGE STUDENT LOAN PROGRAM APPLICATION INSTRUCTIONS Please complete the enclosed application using a black or blue ballpoint pen or typewriter. Please PRINT legibly and answer each question completely and accurately. If you must make corrections to your application, please draw a single line through your answer and write the correct answer above, initialing all changes. If your loan application is incomplete, the processing of your loan application will be delayed. Below are additional instructions to assist you. Both the Student Borrower and the Co-Signer (if applicable) should read these instructions in their entirety. If you have any questions about completing this form, please call 800-762-1001. SECTION A & SECTION B: STUDENT BORROWER & CO-SIGNER INFORMATION Items 2 & 13: Social Security Number – Enter your nine-digit Social Security Number. An application without a Social Security Number will not be processed. Item 3: Initial Loan Amount Requested – Enter the loan amount (in U.S. dollars) that you are requesting. The school will determine the maximum amount you are eligible for by subtracting the estimated financial aid from your cost of attendance. Your loan will be processed for the lesser of the amount you requested and the school-certified loan amount. Please note: $500 is the minimum loan amount. Item 4: Mailing Address – If you have a P.O. box, or your mailing address is different from your permanent street address, please enter it here. Please note: If you enter a P.O. Box, you must list your permanent street address in Item 5. Items 5 & 15: Permanent Address – Enter your permanent home address (A P.O. Box WILL NOT be accepted) where you can be reached when you are not in school. Please include your cell phone number as well. Items 6 & 14: Date of Birth – Enter the month, day and year of your birth. Use only numbers. Please note: Be careful not to enter the current year. Items 7 & 16: Driver's License Number and State of Issuance – (2-Letter State Abbreviation) If you do not have a driver's license, enter N/A. Item 8: Enrollment Period – Enter the enrollment period for the current academic year. A separate renewal form will be provided for subsequent years in which you borrow. Item 9: E-mail Address – Enter your e-mail address in case PNC Bank would need to contact you for additional information during the processing of your application. Items 10 & 17: Citizenship Status – To be eligible for the PNC Bank Grove City College Student Loan Program, both the Student Borrower and the Co-Signer(s) must be United States (U.S.) Citizens or have permanent resident immigration status. Please indicate your U.S. citizenship status by checking either box "A: U.S. Citizen or National", or "B: Permanent Resident or other eligible alien". Check box "B" if you are a permanent resident with an Alien Registration Receipt Card (Form I-151 or Form I-551). Write in your eight- or nine-digit Alien Registration Number. Please note: Permanent residents must attach a copy (front and back) of their Alien ID card. Items 11 & 19: Personal References – Please list the names, U.S. addresses and phone numbers of two individuals who can act as references for you. These references cannot reside at the same address as the Borrower or CoSigner. These references should know your whereabouts during the next eight (8) years, and cannot be the Co-Signer on this loan. Personal References in Item 19 should be references for the CoSigner. The references cannot be the same for the Borrower or reside at the same address. Item 18: Employer – Enter the address and phone number of your employer. If self-employed or retired, please indicate. If you are not employed, please enter N/A. This information is necessary should you need to be contacted regarding this loan. SECTION C: STUDENT BORROWER & CO-SIGNER SIGNATURES Both the Student Borrower and the CoSigner (if applicable) must sign and date the Application and Master Promissory Note. Please carefully read the attached pages to the Application and Master Promissory Note for additional loan terms and conditions. Upon the completion of sections A, B, & C, retain your copy [Borrower Copy] and the Master Promissory Note and submit the application [Lender copy] to AES/PHEAA at the address below for processing. AES/PHEAA PNC Bank Grove City College Student Loan Program 3rd Floor 1200 N. 7th St. Harrisburg, PA 17102 PLEASE REVIEW THE NOTICES TO BORROWER AND CO-SIGNER ON THE APPLICATION/MASTER PROMISSORY NOTE PACKAGE. IMPORTANT NOTICE: Co-signers from Iowa, New York, South Carolina, Vermont, West Virginia and Wisconsin must sign and return the special NOTICE TO CO-SIGNER along with the Lender copy of the Application and Master Promissory Note. THE PNC BANK GROVE CITY COLLEGE STUDENT LOAN PROGRAM APPLICATION AND MASTER PROMISSORY NOTE A. Student Borrower Section: 1. Name of Borrower (Last,First,MI) 4. Mailing Address City Home Telephone Number ( 6. Date of Birth (MM/DD/YY) ) State Zip Code Please read instructions carefully before completing this section. 1-800-762-1001 To be completed by the student. 2. Social Security Number 3. Loan Amount Requested $ 5. Permanent Street Address (if different from mailing address, a P.O. Box WILL NOT be accepted) City Cell Phone Number ( ) State Zip Code 7. Driver’s License (if applicable, otherwise enter N/A) # State From (MM/DD/YY) to (MM/DD/YY) 8. Enrollment period for this Academic Term (not to exceed 12 months) for the initial loan 9. E-Mail Address 10. Citizenship Status: (see instructions) A. U.S. Citizen or National B. Permanent Resident or other eligible alien Alien I.D.# 11. Personal References: Provide two adult references, who are not the Co-Signer or the Personal References provided by the Co-Signer in section 19. These references cannot reside at the same address as the Borrower, Co-Signer or the Personal References provided by the Co-Signer. The addresses listed must be the residence addresses (no post office boxes or business addresses). Name Name Address Address City State Zip Code Telephone Telephone To be completed by Co-Signer. B. Co-Signer Section: 12. Name of Co-Signer (Last,First,MI) City State Zip Code Please read instructions carefully before completing this section. 13. Social Security Number City State 14. Date of Birth (MM/DD/YY) Zip Code 15. Permanent Street Address (A P.O. Box WILL NOT be accepted) 16. Driver’s License (if applicable, otherwise enter N/A) # State 18. Employer Name/Address (Street, City, State, Zip Code). Telephone Number Permanent Resident or other eligible alien 17. Citizenship Status: A. U.S. Citizen or National B. (see instructions) Alien I.D.# Work Telephone 19. Personal Reference: Provide two adult references who are not the Borrower or the Personal References provided by the Borrower, in section 10. These references cannot reside at the same address as the Borrower, Co-Signer or the Personal References provided by the Borrower. The addresses listed must be the residence addresses (no post office boxes or business addresses). Name Name Address Address City City State State Zip Code Zip Code Telephone Telephone C. Student Borrower and Co-Signer Signature Section: Student Borrower and Co-Signer Statement: “Borrower” means the Student Borrower and, if applicable, the Co-Signer. By signing below, Borrower requests the Lender make a loan inthe lesser of the amount requested by the Borrower or certified by the School, or by electronic transmission or other method acceptable to the lender, on the terms described in the Note. Borrower acknowledges that Borrower has read the information set forth in the Application and Master Promissory Note and that the information provided is true and accurate. Borrower gives Lenderpermission to request information from Borrower and to make whatever inquiries Lender considers necessary and appropriate (including requesting and obtaining a consumer report from consumer reporting agencies) in considering granting such Loan or disbursements under such Loan and for the purpose of any updates, renewals, or extensions of such Loan, reviewingor collectionof Borrower’s Loan, or for any other lawful purpose. Borrower also authorizes the Lender, subsequent holder or their agents to check Borrower’s credit and employmenthistory and toanswer questions about their credit experience with Borrower. Borrower also authorizesthe Lender, subsequent holder, Institution, or their agent(s) to make inquires or to respond to inquiriesfrom Borrower’s (or, if Borrower is not the student, the student's) parents or prior or subsequent lenders or holders with respect to this Note and related documents. Borrower states that Borroweris not in default on any education loan. Borrower authorizes lender to electronically transmit proceeds of the Loan to the School directly, if this is the method preferred by the School. Borrowerunderstands that the Borrower may become legally obligated to the terms of this Note in accordance with the “How Borrower Agrees to the Terms of the Loan,” in the Master Promissory Note. Each Borrower guarantees that the signature of every other Borrower is genuine. IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents. SIGNING BELOW WILL CONSTITUTE THE BORROWER’S CONSENT TO RECEIVE THE LENDER’S PRIVACY POLICIES AFTER DISBURSEMENT SHOULD THAT BE NECESSARY. Co-Signer: Please see Notice to Co-Signer on pages 6 and 7. Any Borrower who is designated as a Co-Signer agrees to be equally responsible with all other Borrowers for the payment of this loan and the performance of all promises in the Note. Borrower(s) state that Borrower(s) have thoroughly read this Application and Promissory Note, including the writing on the attachments. If more than one Borrower and/or Co-Signer signs below, each certifies that he(she) intends to (i) apply for joint credit, and (ii) be jointly liable for this loan. I understand that I may receive one or more loans under this MPN and that I must repay all loans that I receive under this MPN. Student Borrower Date Co-Signer Date PLEASE NOTE: YOUR MASTER STUDENT LOAN PROMISSORY NOTE AND NOTICE TO COSIGNER, IF APPLICABLE, IS ACCOMPANYING THIS APPLICATION. LENDER COPY 1 of 7 THE PNC BANK GROVE CITY COLLEGE STUDENT LOAN PROGRAM APPLICATION AND MASTER PROMISSORY NOTE A. Student Borrower Section: 1. Name of Borrower (Last,First,MI) 4. Mailing Address City Home Telephone Number ( 6. Date of Birth (MM/DD/YY) ) State Zip Code Please read instructions carefully before completing this section. 1-800-762-1001 To be completed by the student. 2. Social Security Number 3. Loan Amount Requested $ 5. Permanent Street Address (if different from mailing address, a P.O. Box WILL NOT be accepted) City Cell Phone Number ( ) State Zip Code 7. Driver’s License (if applicable, otherwise enter N/A) # State From (MM/DD/YY) to (MM/DD/YY) 8. Enrollment period for this Academic Term (not to exceed 12 months) for the initial loan 9. E-Mail Address 10. Citizenship Status: (see instructions) A. U.S. Citizen or National B. Permanent Resident or other eligible alien Alien I.D.# 11. Personal References: Provide two adult references, who are not the Co-Signer or the Personal References provided by the Co-Signer in section 19. These references cannot reside at the same address as the Borrower, Co-Signer or the Personal References provided by the Co-Signer. The addresses listed must be the residence addresses (no post office boxes or business addresses). Name Name Address Address City State Zip Code Telephone Telephone To be completed by Co-Signer. B. Co-Signer Section: 12. Name of Co-Signer (Last,First,MI) City State Zip Code Please read instructions carefully before completing this section. 13. Social Security Number City State 14. Date of Birth (MM/DD/YY) Zip Code 15. Permanent Street Address (A P.O. Box WILL NOT be accepted) 16. Driver’s License (if applicable, otherwise enter N/A) # State 18. Employer Name/Address (Street, City, State, Zip Code). Telephone Number Permanent Resident or other eligible alien 17. Citizenship Status: A. U.S. Citizen or National B. (see instructions) Alien I.D.# Work Telephone 19. Personal Reference: Provide two adult references who are not the Borrower or the Personal References provided by the Borrower, in section 10. These references cannot reside at the same address as the Borrower, Co-Signer or the Personal References provided by the Borrower. The addresses listed must be the residence addresses (no post office boxes or business addresses). Name Name Address Address City City State State Zip Code Zip Code Telephone Telephone C. Student Borrower and Co-Signer Signature Section: Student Borrower and Co-Signer Statement: “Borrower” means the Student Borrower and, if applicable, the Co-Signer. By signing below, Borrower requests the Lender make a loan inthe lesser of the amount requested by the Borrower or certified by the School, or by electronic transmission or other method acceptable to the lender, on the terms described in the Note. Borrower acknowledges that Borrower has read the information set forth in the Application and Master Promissory Note and that the information provided is true and accurate. Borrower gives Lenderpermission to request information from Borrower and to make whatever inquiries Lender considers necessary and appropriate (including requesting and obtaining a consumer report from consumer reporting agencies) in considering granting such Loan or disbursements under such Loan and for the purpose of any updates, renewals, or extensions of such Loan, reviewingor collectionof Borrower’s Loan, or for any other lawful purpose. Borrower also authorizes the Lender, subsequent holder or their agents to check Borrower’s credit and employmenthistory and toanswer questions about their credit experience with Borrower. Borrower also authorizesthe Lender, subsequent holder, Institution, or their agent(s) to make inquires or to respond to inquiriesfrom Borrower’s (or, if Borrower is not the student, the student's) parents or prior or subsequent lenders or holders with respect to this Note and related documents. Borrower states that Borroweris not in default on any education loan. Borrower authorizes lender to electronically transmit proceeds of the Loan to the School directly, if this is the method preferred by the School. Borrowerunderstands that the Borrower may become legally obligated to the terms of this Note in accordance with the “How Borrower Agrees to the Terms of the Loan,” in the Master Promissory Note. Each Borrower guarantees that the signature of every other Borrower is genuine. IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents. SIGNING BELOW WILL CONSTITUTE THE BORROWER’S CONSENT TO RECEIVE THE LENDER’S PRIVACY POLICIES AFTER DISBURSEMENT SHOULD THAT BE NECESSARY. Co-Signer: Please see Notice to Co-Signer on pages 6 and 7. Any Borrower who is designated as a Co-Signer agrees to be equally responsible with all other Borrowers for the payment of this loan and the performance of all promises in the Note. Borrower(s) state that Borrower(s) have thoroughly read this Application and Promissory Note, including the writing on the attachments. If more than one Borrower and/or Co-Signer signs below, each certifies that he(she) intends to (i) apply for joint credit, and (ii) be jointly liable for this loan. I understand that I may receive one or more loans under this MPN and that I must repay all loans that I receive under this MPN. Student Borrower Date Co-Signer Date PLEASE NOTE: YOUR MASTER STUDENT LOAN PROMISSORY NOTE AND NOTICE TO COSIGNER, IF APPLICABLE, IS ACCOMPANYING THIS APPLICATION. BORROWER COPY 2 of 7 PNC BANK GROVE CITY COLLEGE STUDENT LOAN PROGRAM INTRODUCTION: By preparing and signing the Application/Master Promissory Note ("Note") and submitting it to the Lender, School or other person for the purpose of having it sent to Lender, Borrower requests the Lender to make this education assistance loan ("Loan") in the lesser of the amount requested by the Borrower or the amount certified by the school and on the terms described in this Note under the PNC Bank Grove City College Student Loan Program ("Program"). If the Lender approves the Borrower's request for the Loan and disburses the proceeds to or on the behalf of the Borrower, and if the Borrower accepts the Loan proceeds, the terms of the Loan will be those terms set forth in this Note. PARTIES: In this Note the word "Borrower" or “I” means the Student Borrower and, if applicable, the Co-Signer(s). The "Student Borrower" is the Borrower whose education this Loan is being made to finance. All Borrowers who agree to the terms of this Note will be liable, jointly and severally, for the full amount of the Loan. The word "Lender" or “you” means PNC Bank National Association, or any holder or person to whom this Note has been transferred. The word "School" means Grove City College. OTHER DEFINITIONS: “Capitalize” or “Capitalization” means that, at the time specified, accrued and unpaid interest is added to the outstanding principal balance of this Loan, and thereafter interest will accrue on the new principal balance, including the capitalized interest. “Deferred Phase” means the phase of the Loan during which the payment of interest and/or principal is not required. The Deferred Phase will begin on the date that the Loan is disbursed and will terminate six (6) months (the “Grace period”) after the earliest of: (1) seven (7) years from the date of the first disbursement of the first loan to the Student Borrower under the program; (2) the date the Student Borrower graduates; (3) the date when the Student Borrower is no longer attending school (approved by the U.S. Department of Education) at least on a half-time enrollment status. Provided however, that medical students may extend the Deferred Phase for an additional period of time not to exceed three (3) years while participating in an internship or residency which is required by their field of study, if the Student Borrower provides proof of such participation to Lender at such times and in such manner and form reasonably required by Lender. “Repayment Phase” means the phase of the Loan during which repayment is required. The Repayment Phase begins immediately upon the termination of the Deferred Phase. “Truth-in-Lending Disclosure” means the disclosure statement that the Lender will send to the Borrower prior to or with the first disbursement of Loan proceeds, and will describe certain features of this Loan as is required by federal law. HOW BORROWER AGREES TO THE TERMS OF THIS LOAN: By signing this Note, and submitting it to the Lender, Borrower is requesting that Lender make this Loan to Borrower in an amount equal to the lesser of the amount requested by Borrower or the amount certified by the School plus any Loan fees as provided in the Note. If Lender approves this request and agrees to make this Loan, Lender will notify Borrower in writing and provide Borrower with a Disclosure Statement, as required by law, at the time the Loan proceeds are disbursed. The Disclosure Statement is incorporated herein by reference and made a part hereof. The Disclosure Statement will tell Borrower the amount of the Loan which has been approved, the amount of the Loan fee, if any, and other important information. Borrower will let Lender know that Borrower agrees to the terms of the Loan as set forth in this Note and in the Disclosure Statement by doing either of the following: (a) endorsing or depositing the check that disburses the Loan proceeds; or (b) using the Loan proceeds or allowing the Loan proceeds to be used on PNC Bank Rev. 0507 MASTER PROMISSORY NOTE and agrees that Borrower will not receive a new Master Promissory Note for any additional Loan(s) that Borrower may obtain under the Program unless Borrower is required to sign a new Master Promissory Note because of the nature of the modifications of the terms of this Master Promissory Note or any subsequent Master Promissory Note relating to loans obtained under the Program that Borrower has signed. Borrower will receive a new Disclosure Statement with respect to each such new Loan. In addition, Borrower understands and agrees that, at Lender’s option, Lender may consolidate any or all of the following into one Loan subject to the terms of this Note: (i) any loan(s) that Borrower has in effect under the Program before the date of this Note and (ii) any Loan(s) that Borrower may obtain under the Program on or after the date of this Note and before the date of any subsequent Master Promissory Note relating to loans obtained under the Program that Borrower has signed. Borrower also understands and agrees that, at Lender’s option, whether or not Borrower’s Loan(s) subject to the terms of this Note or any loans that Borrower has in effect under the Program before the date of this Note has been consolidated, Lender may aggregate the total outstanding balance of each such Loan and loan prior to repayment solely for purposes of determining Borrower’s monthly payment amount and repayment term. In this event, Lender will determine Borrower’s monthly payment amount and repayment term based on the terms of Borrower’s most recent Loan made under the Loan Program. INTEREST: Borrower agrees to pay interest on the principal amount of the Loan from the time the proceeds are disbursed until the principal balance is paid in full. Interest will be calculated as described in this section. (a)Interest will be calculated on a daily basis, according to the outstanding principal balance each day of the Loan term. The daily interest rate is equal to the annual interest rate in effect on that day, divided by the number of days in that calendar year. Borrower agrees that because interest is calculated on a daily basis, late payments will result in additional interest (and, if applicable, a late charge); early payments will result in less interest being charged. (b) The interest rate for this Loan may change quarterly, on the first day of each January, April, July and October (the "interest rate change date"). The interest rate initially applicable to this Loan will be disclosed to the Borrower in the Interim Truth-in-Lending Disclosure. Changes in the rate will be announced to Borrower as and if required by law. The interest rate will be determined prior to each interest rate change date by adding a margin of 2.50 percentage points (with a co-signer) and 3.50 percentage points (without a co-signer) to the current interest rate index for borrowers during the In-School part and 3.10 percentage points (with a co-signer) and 4.10 (without a co-signer) percentage points during the Repayment Phase. The interest rate index to be used on each interest rate change date is the average of the “91-day T-Bill auction high” determined at the first weekly auction held on the first Monday of each month of the previous calendar quarter. The "T-Bill Rate" is published by the Department of the Treasury, Bureau of Public Debt, in the "Public Debt News, Treasury Security Auction Results" under the designation "13 Week Bills, High Rate." If the index is no longer available, Lender will substitute an index which is comparable, in its sole opinion, and may adjust the margin so that the resulting interest rate is comparable to the rate described in this paragraph. The interest rate will never be higher than the maximum interest rate allowed by the laws of the Commonwealth of Pennsylvania. The interest rate which is initially applicable to this Loan will be calculated the same way as subsequent changes, and will be based on the current interest index as of the interest rate change date immediately preceding the first disbursement. A change in the interest rate may cause the amount of the final payment to change, may cause the amount of the monthly payments to change, or may cause the term of this Loan to change. 3 of 7 Borrower’s behalf without objection. Upon receipt of the Disclosure Statement, borrower will review it and notify lender in writing if Borrower has any questions. If Borrower is not satisfied with the terms of the Loan disclosed in the Disclosure Statement, Borrower may cancel the Loan. To cancel the Loan, Borrower will give Lender a written cancellation notice within ten (10) days after Borrower receives the Disclosure Statement. If Loan proceeds have been disbursed, Borrower agrees to immediately return the Loan proceeds to lender, will not endorse any check which disburses the loan proceeds and will instruct the School to return any Loan proceeds to Lender. If Borrower gives notice of cancellation but does not comply with the requirements of this section, this Note will not be canceled and Borrower will be in default of this Note. (See Default section below DISBURSEMENT AND USE OF LOAN PROCEEDS: The Loan proceeds will be disbursed in one or more installments, as recommended by the School and determined by the Lender. Disbursements may be made by a check jointly to the Student Borrower and the School, by check to the School for and on the behalf of the Student Borrower, or by electronically transmitting the funds to the School for and on the behalf of the Student Borrower. Borrower authorizes the School to return any portion of the proceeds that exceeds the amount necessary to pay the actual costs of attendance (less financial aid), whether by reason of overpayment, withdrawal, early termination of enrollment or otherwise, directly to the Lender, to be treated as a partial prepayment of this Loan. The proceeds of this Loan will be used only for Student Borrower’s educational expenses at the School. Disbursements will be made in U.S. Dollars. BORROWER’S PROMISE TO PAY: Borrower promises to repay this Loan to Lender according to the terms of this Note. Borrower promises to repay the principal amount, which is disbursed to or on the behalf of Borrower, with interest on the unpaid principal balance at the variable interest rate described in this Note. Borrower agrees and understands that all interest, which is unpaid during the Deferred Phase or any forbearance period, will be capitalized; Borrower promises to pay all capitalized interest with interest on the capitalized amount, in accordance with the terms of this Note. Borrower promises to make each payment on or before the date that it is due, and to pay all other amounts which become due under the terms of this Note, including, if applicable, late charges and costs of collection. Borrower promises to make the payments at the place or to mail the payments to the address specified by the Lender from time to time. The failure of a Borrower to receive either a coupon book or a statement shall not excuse the Borrower's obligation to make payments according to this Note. On the date that the last installment of the principal becomes due under the terms of this Note, Borrower promises to also pay any other accrued and unpaid amounts, including interest, late charges and other amounts. If any Borrower fails to agree to the terms of this Note, the Student promises to, and authorizes the school to, immediately return any disbursement proceeds to the Lender. All payments and other amounts due under this Note must be paid in U.S. Dollars. Borrower understands and agrees that Lender may make multiple Loans to Borrower under the Program listed in the Introduction paragraph ("Program") subject to the terms of this Note. Borrower understands and agrees that this Note sets forth the terms and conditions applicable to all Loans made to Borrower under the Program on or after the date of this Note and before the date of any subsequent Master Promissory Note relating to loans obtained under the Program that Borrower has signed. Borrower understands and agrees that, for the first Loan that Borrower obtains subject to the terms of this Master Promissory Note, in addition to this Master Promissory Note, Borrower will receive a Disclosure Statement. Borrower further understands The following limitations apply: (1) the amount of the final payment will never be more than twice the amount of the previous payment amount; (2) the amount of the monthly payment will never be less than Fifty Dollars ($50.00); (3) the amount of the monthly payment will not change, due to an interest rate change, more often than once a year; and (4) the length of the Repayment Phase will be no more than fifteen (15) years, except that the Repayment Phase may be extended, with the approval of the Lender, for not more than two (2) years if an interest rate increase significantly impacts the Borrower's ability to make the monthly payment. CAPITALIZATION OF INTEREST: During the Deferred Phase, the Borrower is not required to make payments. Interest will accrue during this phase and the Lender will capitalize unpaid accrued interest at the beginning of the Repayment Phase. RULES APPLICABLE TO THE REPAYMENT PHASE: The following rules are applicable to the Repayment Phase, whether or not the Borrower has elected to defer principal and/or interest at the beginning of the Repayment Phase. (a) Payments will be due monthly on the same day of each month as determined by the Lender. The first payment in the Repayment Phase will be due approximately thirty (30) days, but not more than sixty (60) days after the start of the Repayment Phase. (b) The Repayment Phase will be no more than fifteen (15) years. (c) At the option of the Lender, all outstanding Loans made under the Program and payable to the Lender, which are then in the Repayment Phase, may be combined and consolidated for the purposes of Repayment, at the start of the Repayment Phase of any Loan made under the Program. (d) The monthly payment due will never be less than the greater of Fifty Dollars ($50.00) or the amount of interest expected to accrue monthly at the time the payment is being calculated. (e) At the beginning of the Repayment Phase, the Lender will calculate the required payment of principal and interest so that equal monthly payments will pay the outstanding balance and all accrued interest by the end of the Repayment Phase. Lender, at its discretion, may grant alternative repayment options (e.g. graduated repayment). (f) Lender will determine annually whether it is necessary to change the amount of the monthly payment, based upon the then outstanding balance, the amount of accrued interest, if any, and any change in the interest rate, subject to the limitations set forth in the section entitled "INTEREST," above. If necessary, the amount of the monthly payment will change based on the Lender's calculation of the amount necessary to pay the outstanding balance at the interest rate which is then in effect, so that equal monthly installments will pay the outstanding principal balance and all accrued interest by the end of the Repayment Phase. The payment at the new amount will be due starting with the first payment due after Lender provides notice to Borrower. (g) Lender may, at its option, grant Borrower a forbearance, which will suspend principal payments in times of hardship. Borrower agrees not to claim such forbearance as a defense to the repayment of this Loan. Interest that accrues should be paid by the Borrower during the forbearance period. Any unpaid interest will be capitalized at the end of the forbearance period. LATE CHARGES: If a payment or any portion of a payment is not paid within fifteen (15) days of its due date, Borrower agrees to pay a late charge. The amount of the late charge will be indicated on the Truth in Lending Disclosure. APPLICATION OF PAYMENTS: Lender will apply payments in the following order of priority: late charges, interest, principal and fees. Unless prohibited by applicable law, this order may be changed at the option of the Lender. PNC Bank Rev. 0507 WAIVER BY LENDER: Lender waives (gives up) any right to claim a security interest in any of the following property or other collateral: Borrower's (or anyone else's) principal dwelling; any "margin stock" as that term is defined by Regulation U, 12 C.F.R. Part 221; and "household goods" as that term is defined in Regulation AA, 12 C.F.R. Part 27. INTEREST AFTER MATURITY AND JUDGMENT: Unless prohibited by applicable law, interest at the rate provided in this Note shall continue to accrue on the unpaid balance until paid in full, even after (whether by acceleration or otherwise) maturity. If at any time the rate of interest as provided for in this paragraph is not permitted by applicable law, interest shall, in that event and at the time, accrue at the highest rate allowed by applicable law. The interest rate which will apply beginning on the date a lawsuit is filed by Lender shall be the interest rate in effect at that date or the interest rate in effect when this Note is executed, whichever is less. DEFAULT: Borrower will be in default: (a) if Borrower does not make any payment before or on the date it is due; or (b) if Borrower defaults on any promise made in this Note or any other note, loan or agreement with Lender; or (c) if Borrower has made any untrue statement or misrepresentation in the credit application or any other certificate or document given or made for this loan; or (d) upon the death of the Borrower, or any one of them, if there is more than one; or (e) if Borrower provides Lender with false information or forged signatures at any time; or (f) upon a judicial determination that Borrower, or any one of them, is incapacitated; or (g) if Lender in good faith believes that the prospect of Borrower's paying this Note is impaired; or (h) if the Student Borrower fails to become enrolled as at least a half-time student at the School; or (i) if the Student Borrower fails to provide, at the Lender's request, adequate verification of enrollment status; or (j) Borrower fails to use the proceeds of this Loan solely for educational expenses of the Student Borrower. If Borrower is in default, the entire outstanding balance on this Note shall be immediately due, at the option of the Lender. This will happen without any prior notice to the Borrower, or right to cure, except as may be required by law. Borrower will also be in default: (k) if Borrower becomes insolvent and/or cannot pay Borrower's debts as they become due; or (l) if any other creditor tries by legal process to take any money or property of Borrower in the Lender's possession; or (m) if Borrower files a bankruptcy petition or if anyone files an involuntary bankruptcy against Borrower; or (n) if Borrower makes an assignment for the benefit of creditors, or any insolvency, reorganization, arrangement, debt adjustment, receivership, trusteeship, liquidation or other legal or equitable proceedings are instituted by or against Borrower; or (o) if any judgment, tax, lien, municipal charge or tax levy is filed or writ of execution is issued against Borrower. If any event described in (k), (l), (m), (n) or (o) happens, the entire outstanding balance on this Note shall be immediately due without any prior notice to Borrower, or right to cure, except as may be required by law. A default by Borrower on this Note is a default on every other note, loan, or agreement of Borrower with Lender. BILLING STATEMENTS: If Lender chooses to send periodic billing statements or other periodic statements on the Loan, Borrower agrees that the information contained on the statement will be considered accepted by the Borrower and true unless the Borrower notifies Lender to the contrary within sixty (60) days after receipt. CREDIT REPORTS: BORROWER AUTHORIZES LENDER TO OBTAIN CREDIT REPORTS ON BORROWER FROM TIME TO TIME AT LENDER'S DISCRETION WHILE BORROWER HAS A LOAN OUTSTANDING WITH LENDER. GENERAL WAIVER PROVISIONS: Borrower waives presentment for payment, demand, protest, notice of protest, dishonor and all other notices or demands in connection with the delivery, acceptance, performance, default or enforcement of this Note. Borrower further waives any right to require due diligence in collection by Lender. DELAY IN ENFORCEMENT: Lender can delay enforcing any rights under this Note without losing any rights. Lender's failure to enforce any right under this Note shall not act as a waiver of that right or preclude the exercise of that right in the event of a future occurrence of the same event. Lender can also extend or defer the time allowed for making payments at the request of any Borrower, whether or not that Borrower is given notice of the extension. RELEASE OF SOME BORROWERS OR SOME SECURITY: If there is more than one Borrower, each agrees to remain bound by this Note, although Lender may release any Borrower or release or substitute any property which is security for the repayment of this Note. PREPAYMENT: Borrower may repay, in full or part, the amount owed on this Note at any time without penalty. If Borrower prepays the loan in part, Borrower agrees to continue to make regularly scheduled payments until all amounts due under this Note are paid. If there is more than one Note of the same Borrowers outstanding under the Program, unless otherwise specified by Borrower, prepayments will be applied to loans in any order determined by Lender. COSTS OF COLLECTION: If Borrower is in default under this Note and Lender files suit, or takes other action to collect this loan or to protect any collateral, Borrower agrees to pay costs of suit and, if permitted by law, reasonable attorneys' fees and expenses. SECURITY INTEREST IN DEPOSITS: The Lender may set-off any amounts due and unpaid under this Note against any of Borrower's money on deposit with Lender. This includes any money which is now or may in the future be deposited with Lender by Borrower or with any codepositor, including Borrower's spouse. This also includes any property, credits, securities or money of the Borrower, which may at any time be delivered to or in the possession of the Lender. This may be done without any prior notice to the Borrower. NOTIFICATION TO LENDER: Borrower agrees to notify the Lender within ten (10) calendar days of any change in the Borrower's name or address or enrollment status or graduation date of the Student Borrower. MODIFICATION OF THIS NOTE: A provision of this Note may only be modified if jointly agreed upon in writing by Borrower and Lender. If there is more than one Borrower, any Borrower may agree on behalf of all Borrowers. Any modification will not affect the validity or enforceability of the remainder of this Note. INFORMATION: (A) Borrower authorizes any school that the Student Borrower attends to release to Lender, and any other persons designated by Lender, any requested information pertinent to this loan (e.g., enrollment status, prior loan history, and current address). (B) Borrower agrees to update the information provided in the Application whenever Lender asks. (C) Borrower authorizes Lender from time to time to request and receive from others credit related information about Borrower (and about Borrower’s spouse if Borrower lives in a community property state). 4 of 7 FAX ORIGINALS: If Borrower faxes page one (1) of this Application and Master Promissory Note to Lender, Borrower agrees that the fax Lender receives will be an original of the first page of this Note for any and all purposes. Borrower agrees that Lender may establish and prove the contents of the pages of this Note, other than page one (1), for any and all purposes, by offering reasonable business records that show what those pages contained when they were provided to Borrower. OBLIGATIONS OF MINORS: Borrower understands that Borrower must repay this Note though Borrower may be under eighteen (18) years of age when this Note is signed. EFFECT OF PARTIAL INVALIDITY: Should any of the provisions of this Note be rendered invalid, in whole or in part, by any change in applicable law or regulations, or be declared invalid by order, decree or judgment of a court or governmental agency of competent jurisdiction, the remaining provisions of this Note shall not be affected thereby, and this Note shall be construed as if such invalid provisions had not been inserted in this Note or as if the new law or regulations were incorporated therein. ASSIGNMENT: Borrower may not assign or otherwise transfer Borrower's rights under this Note to anyone else. Lender may sell, transfer, or assign this Note and Borrower's rights and obligations under this Note will continue unchanged. HEIRS AND PERSONAL REPRESENTATIVES BOUND: The provisions of this Note shall be binding upon the Borrower, and the heirs and personal representatives of the Borrower. GOVERNING LAWS: This Note and its validity, construction and enforcement shall be governed by the laws of the Commonwealth of Pennsylvania and, to the extent applicable, federal law. NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. NOTICES: CALIFORNIA RESIDENTS: I have the right to prohibit the use of information contained in my credit file in connection with transactions not initiated by me. I may exercise this right by notifying the consumer credit reporting agency. A married applicant may apply for a separate account. If you take any adverse action as defined by Section 1785.3 of the California Civil Code and the adverse action is based, in whole or in part, on any information contained in a consumer credit report, I have the right to obtain within 60 days a free copy of my consumer credit report from the consumer reporting agency who furnished you my consumer credit report and from any other consumer credit reporting agency which compiles and maintains files on consumers on a nationwide basis. I have the right as described by Section 1785.16 of the California Civil Code to dispute the accuracy or completeness of any information in a consumer credit report furnished by the consumer credit reporting agency. CALIFORNIA AND UTAH RESIDENTS: As required by California and Utah law, I am hereby notified that a negative credit report reflecting on my credit record may be submitted to a credit reporting agency if I fail to fulfill the terms of my credit obligations. IOWA, KANSAS AND NEBRASKA RESIDENTS (For purposes of the following notice, the word "you" refers to the Borrower and the Cosigner, not the Lender): NOTICE TO CONSUMER. This is a consumer credit transaction. 1. DO NOT SIGN THIS CREDIT AGREEMENT BEFORE YOU READ THIS CREDIT AGREEMENT. 2. YOU ARE ENTITLED TO A COPY OF PNC Bank Rev. 0507 THIS CREDIT AGREEMENT. 3. YOU MAY PREPAY THE UNPAID BALANCE AT ANY TIME WITHOUT PENALTY AND MAY BE ENTITLED TO A REFUND OF UNEARNED CHARGES IN ACCORDANCE WITH LAW. MARYLAND RESIDENTS: In “Governing Laws,” above, Lender and I agree that this Credit Agreement is governed by federal law and the laws of Pennsylvania, without regard to conflict of laws rules; if any court should nevertheless determine that this Credit Agreement is subject to Maryland laws concerning credit, then only to the extent that Maryland law applies, Lender and I agree and elect that this loan is made under and governed by Title 12, Subtitle 10, of the Commercial Law Article of the Annotated Code of Maryland, except as preempted by federal law. MISSOURI RESIDENTS: Oral agreements or commitments to loan money, extend credit or to forbear from enforcing repayment of a debt including promises to extend or renew such debt are not enforceable. To protect me (borrower(s)) and you (creditor) from misunderstanding or disappointment, any agreements we reach covering such matters are contained in this writing, which is the complete and exclusive statement of the agreement between us, except as we may later agree in writing to modify it. NEVADA RESIDENTS: This is a loan for study. NEW JERSEY RESIDENTS: The section headings of this Credit Agreement are a table of contents and not contract terms. Portions of this Credit Agreement with references to actions taken to the extent of applicable law apply to acts or practices that New Jersey law permits or requires. In this Credit Agreement, acts or practices (i) by you which are or may be permitted by "applicable law" are permitted by New Jersey law, and (ii) that may or will be taken by you unless prohibited by "applicable law" are permitted by New Jersey law. NEW YORK, RHODE ISLAND AND VERMONT RESIDENTS: A consumer report (credit report) may be obtained from a consumerreporting agency (credit bureau) in connection with this loan. If I request (1) I will be informed whether or not consumer reports were obtained, and (2) if reports were obtained, I will be informed of the names and addresses of the credit bureaus that furnished the reports. If you agree to make this loan to me, a consumer credit report may be requested or used in connection with renewals or extensions of any credit for which I have applied, reviewing my loan, taking collection action on my loan, or legitimate purposes associated with my loan. OHIO RESIDENTS: The Ohio laws against discrimination require that all creditors make credit equally available to all credit worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with this law. WISCONSIN RESIDENTS: For married Wisconsin residents, my signature on this Credit Agreement confirms that this loan obligation is being incurred in the interest of my marriage or family. No provision of any marital property agreement (pre marital agreement), unilateral statement under Section 766.59 or court decree under Section 766.70 adversely affects the interest of the Lender unless the Lender, prior to the time that the loan is approved, is furnished with a copy of the agreement, statement, or decree or has actual knowledge of the adverse provision when the obligation to the Lender is incurred. If the loan for which I am applying is granted, my spouse will also receive notification that credit has been extended to me. 5 of 7 NOTICE TO COSIGNER SUPPLEMENT TO APPLICATION/MASTER PROMISSORY NOTE: NOTE: For the purposes of these notices, “you” and “your” refer to the cosigner, not the Lender. For IOWA, NEW YORK, AND SOUTH CAROLINA RESIDENTS You agree to pay the debt identified below although you may not personally receive the education or money. You may be sued for payment although the person who receives the education or money is able to pay. You should know that the Total of Payments listed below does not include finance charges resulting from delinquency, late charges, repossession or foreclosure costs, court costs or attorney's fees, or other charges that may be stated in the Credit Agreement or contract. You will also have to pay some or all of these costs and charges if the Credit Agreement or contract, the payment of which you are guaranteeing requires the borrower to pay such costs and charges. This notice is not the note that obligates you to pay the debt. Read the Credit Agreement for the exact terms of your obligation. For VERMONT RESIDENTS Your signature on this note means that you are equally liable for repayment of this loan. If the Borrower does not pay, the Lender has a legal right to collect from you. For WEST VIRGINIA RESIDENTS You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be sure you can afford to pay it if you have to, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount. The creditor can collect this debt from you without first trying to collect from the borrower. The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record. This notice is not the contract that makes you liable for the debt. For WISCONSIN RESIDENTS You have agreed to pay the total of payments under a consumer credit transaction between the Student Borrower and the Lender named below. You will be liable and fully responsible for payment of the loan even though you will not receive the education or loan funds. You may be sued in court for the payment of the amount due under this consumer credit transaction even though the Student Borrower may be working or have funds to pay the amount due. This Explanation is not the agreement under which you are obligated, and the Application/Master Promissory Note you have executed must be consulted for the exact terms of your obligations. IDENTIFICATION OF DEBT YOU MAY HAVE TO PAY (Name of Student Borrower) PNC Bank (Name of Lender) (Social Security Number of Student Borrower) If the loan is disbursed by check, the date of the check. If the loan is disbursed electronically, the date the creditor transmits the funds to the School. (Date ) PNC Bank Grove City College Student Loan (Kind of Debt) $ Will be disclosed to you (Total of Payments) I have kept a complete copy of this notice and the Credit Agreement that obligates me and the Student Borrower on this debt. (Date) (Signature of Non-Student Cosigner) Cosigner: If you are a resident of Iowa, New York, South Carolina, Vermont, West Virginia or Wisconsin please SIGN, DATE, and RETURN an original of this notice with the Signature Page of the Application/Master Promissory Note and other documents as may be requested. PNC Bank Rev. 0507 6 of 7 FEDERAL AND CALIFORNIA COSIGNER NOTICES For the purposes of these Notices, the words "you" and "your" refer to the Cosigner, not the Lender. NOTICE TO COSIGNER (Traduccion en Ingles Se Requiere Por La Ley): You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount. The holder of the loan can collect this debt from you without first trying to collect from the borrower. The holder of the loan can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become part of your credit record. This notice is not the contract that makes you liable for the debt. AVISO PARA EL FIADOR (Spanish Translation Required by Law): Se le está pidiendo que garantice esta deuda. Piénselo con cuidado antes de ponerse de acuerdo. Si la persona que ha pedido este préstamo no paga la deuda, usted tendrá que pagarla. Esté seguro de que usted podrá pagar si sea obligado a pagarla y de que usted desea aceptar la responsabilidad. Si la persona que ha pedido el préstamo no paga la deuda, es posible que usted tenga que pagar la suma total de la deuda, mas los cargos por tardarse en el pago o el costo de cobranza, lo cual aumenta el total de esta suma. El acreedor (financiero) puede cobrarle a usted sin, primeramente, tratar de cobrarle al deudor. Los mismos metodos de cobranza que pueden usarse contra el deudor, podran usarse contra usted, tales como presentar una demanda en corte, quitar parte de su sueldo, etc. Si alguna vez no se cumpla con la obligación de pagar esta deuda, se puede incluir esa información en la historia de credito de usted. Este aviso no es el contrato mismo en que se le echa a usted la responsibilidad de la deuda. PNC Bank Rev. 0507 7 of 7