BIGELOW & CARRIE WELCH LOAN PROGRAMS

With Gonzaga's Institutional Loan Programs--Bigelow & Carrie Welch--the borrower is entitled to a six month grace period following graduation, withdrawal or less than half time student status before the repayment period begins. Payments will be at least $50.00 per month unless otherwise agreed upon by borrower and Gonzaga per a repayment schedule issued prior to the repayment period. Payments are due on the same day of each month.

The annual percentage rate of six percent is charged on a declining basis to the unpaid principal balance. No interest is charged to the borrower during initial student status grace periods of authorized deferments. There is no prepayment penalty.

Deferment Provisions

The borrower must be at least a half time student at an institution of higher education to qualify for student deferment -- Deferment Form.

Forbearance

Forbearance is available for a borrower who is financially unable to make the required payment on this loan. Forbearance is the temporary cessation of payments, allowing an extension of time for making payments, or accepting smaller payments than were previously scheduled. When Gonzaga receives the borrower's written request and supporting documentation we may grant a period forbearance for up to six months at a time. The forbearance may be renewed for up to two years -- Forbearance Form.

Cancellation Provisions

This loan may be canceled only upon:

• Death of borrower, or
• Permanent total disability of borrower

Borrower Responsibilities

The borrower must report any of the following changes to the Student Loan Office at Gonzaga:

The borrower must promptly answer any correspondence from Gonzaga. The borrower must make timely payments on the loan under the terms of the promissory note and repayment schedule. If the borrower is unable to make a payment when due, he/she must contact the Student Loan Office to make suitable arrangements.

Default

Loans which become 120 days delinquent may be declared in default and turned over to a collection agency. Collection costs or legal fees incurred will be the responsibility of the borrower.

ALL INQUIRIES AND CORRESPONDENCE MUST BE DIRECTED TO: