Financial Collections

Ordean Foundation Loans

Interest Rate | Repayment of Loan | Late Charges | Deferment | Loan Cancellation | Collection Agents, Litigation, and Witholding of Services | Death or Disability | Additional Information

 

Interest Rate
This loan is non-interest bearing.

Repayment of Loan
Repayment shall be made in equal or graduated periodic installments over a five-year repayment period, if all consolidated loans made under this loan program equal five thousand dollars ($5,000.00). Repayment shall be made in equal or graduated periodic installments over a repayment period of one year for each one-thousand dollars ($1,000.00) loan advance. The repayment period begins two years after the borrower completes his/her residency and/or fellowship, or ceases to be a full-time health profession student working toward the Doctor of Medicine Degree, whichever occurs first. Periods of authorized deferment are not included as part of the repayment period.

The terms and conditions of repayment shall be set forth in a separate repayment schedule which is approved by the institution and agreed to by the borrower. Payments under the repayment schedule shall be made no less often than monthly, except that if the borrower is more than 180 days past due, the remaining balance of the loan shall be considered as in default, and be repaid within fifteen (15) days of notification.

Late Charges
Late penalties shall be assessed for failure of the borrower to pay all or any part of an installment, or for failure to file satisfactory evidence of entitlement to deferment, if so entitled, at a rate not to exceed an amount equal to 6 percent of the amount of such installment, on loans more than 60 days past due.

Deferment
Once the repayment period begins, you may be eligible for periods of deferment during which principal payments will not be required while the borrower:

1. Pursues advanced professional training including internships and residencies.
2. Participates in a fellowship training program or a full-time educational activity which is directly related to the health profession for which the borrower prepared. This participation may be for a maximum period of two years and must commence within 12 months after completed advanced professional training (described in 1. above).
3. Is temporarily totally disabled as established by an affidavit of a qualified physician, or unable to secure employment because of providing care required by a dependent who is so disabled.
4. Upon written request, the institution may defer scheduled repayment if it determines that the deferment is necessary to avoid a financial hardship to the borrower.

Click here to request and printout a Certification of Deferment Status Form.

Cancellation
The borrower is entitled to have up to 100 percent of the amount of this loan cancelled if he/she undertakes service as a full-time physician in the Duluth, Minnesota area which includes all surrounding townships. If the borrower subsequently leaves the defined Duluth area, payments will begin for that portion of the loan not already forgiven. If the borrower relocated to the defined Duluth area after beginning his/her/ loan repayment status, future indebtedness would be forgiven at the annual authorized rate for each complete year that he/she resides and practices medicine in the defined Duluth area. Cancellation for fractions of a year will not be granted.

This loan will be cancelled at the rate of up to a maximum amount of one thousand dollars ($1,000.00) per year for each complete year of service as a Physician in the defined Duluth area.

Collection Agents, Litigation, and Withholding of Services
If the borrower fails to make a scheduled repayment, or fails to comply with any other terms of this promissory note, the institution shall:

• Refer the borrower's loan to a collection agent for further collection efforts.
• Initiate legal proceedings against the borrower.
• Withhold institutional services from the borrower, such as transcripts and letters of recommendation.

Death or Disability
Death: Should you die, the unpaid balance of your loan is cancelled. To claim cancellation, the executor of your estate must submit a death certificate to the Financial Collections Office at UMD.

Permanent and Total Disability: Should you become unable to engage in any substantial gainful activity because of a medically determinable impairment, the unpaid balance remaining on the loan may be cancelled. To claim this entitlement, you must submit a formal request for loan cancellation and a physician's statement which certifies the date of onset, nature, and extent of your disability along with copies of all medical records pertinent to the disability.

Additional Information
Any questions regarding repayment of your Ordean Foundation Loan(s) not answered on this site should be directed to: University of Minnesota Duluth, Financial Collections, 129 DAdB, 1049 University Drive, Duluth, MN 55812-3011. Telephone: 218-726-8103. Email: fincoll@d.umn.edu.