1974-1975 Academic Catalog

Admission and Finances 33 Eligibility. In general, the same conditions of eligibility that govern the regular student aid program at Cedarville College apply to the National Direct Student Loan Fund. The most essential condition of an applicant's eligibility for a National Direct Student Loan is that he be in need of the required loan in order to pursue his cou,rse of study during the period for which the application is made. Terms. The National Defense Education Act provides that the borrow– er must sign a promissory note for his loan. The repayment period and the interest do not begin until nine months after the student ends his studies. Loans bear interest at the rate of three per cent per year and repayment of the principal may be extended over a period of ten years, except that a minimum monthly payment of $30 is required. Repayment may be deferred up to a total of three years while a bor– rower is serving in the Armed Forces, with the Peace Corps, or as a Volunteer in Service to America (VISTA). Repayment is deferred for as long as a borrower is enrolled at an institution of higher education and is carrying at least a half-time academic work load. Partial Cancellation. If a borrower becomes a fulltime teacher in a public or nonprofit elementary or secondary school, or in a public or nonprofit institution of higher education, and would be involved in teaching economically, mentally, emotionally, and physically handi– capped children, as much as 65 per cent of the loan over a period of five years, plus interest thereon, may be cancelled at the rate of 15 per cent for years 1 and 2, 20 per cent, years 3 and 4 and 30 per cent, year 5. Borrowers who teach fulltime in schools where the program "Headstart" is in operation and who participate in the program may, under certain conditions, qualify for cancellation of their entire obligation at the rate of 15 per cent for each year of teaching service. Borrowers who enter the Armed Forces of the United States after June 30, 1970 and whose loan was made after April 13, 1970 may qualify for as much as one-half the loan, plus interest thereon, to be cancelled at the rate of 12 1/2 per cent for each year of consecutive service (not to exceed 50 per cent of the total loan). This plan enables students and parents to pay education expenses in monthly installments. Low cost deferred payment programs are available through nationwide organizations specializing in education financing. All plans include insurance on the life of the parent, plus trust adminis– tration in event of the parents' death or disability. Agreements may be written to cover all costs payable to the school over a four-year period in amounts up to $14,000.