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HIGHER EDUCATION RECONCILIATION ACT 0F 2005
 


IMPORTANT INFORMATION THAT MAY AFFECT THE TERMS AND CONDITIONS OF YOUR STUDENT LOANS

The Higher Education Reconciliation Act of 2005 (HERA) changed some of the terms and conditions of Federal Stafford, Federal PLUS, and Federal Consolidation Loans. As a result, certain terms and conditions differ from the terms in your Stafford Master Promissory Note (MPN), PLUS MPN or Endorser Addendum, or Consolidation Application and Promissory Note. The information below describes those changes made to the loan terms by HERA. Your loan(s) may be subject to those changes.

Loan Discharge: Effective July 1, 2006, a loan is eligible for discharge if it is determined that the borrower's eligibility for the loan was falsely certified as a result of the crime of identity theft.

Spousal Consolidation: Effective for Applications and Promissory Notes received on or after July 1, 2006, a married couple may no longer obtain a Federal Consolidation Loan as joint borrowers.