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:
- Pursues advanced professional training including internships and
residencies.
- 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).
- 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.
- 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.
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.
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Financial
Collections
University of Minnesota Campuses