Free Student Loan Contract Template
Student Loan Contract
This Student Loan Contract ("Contract") is entered into on [Date] between [Your Name], a financial institution registered under the laws of [Jurisdiction], with its principal place of business located at [Your Company Address] ("Lender"), and [Borrower's Name], a student at [Name of Educational Institution] located at [Borrower's Address] ("Borrower").
1. Loan Details
1.1 Loan Amount: By the terms and conditions put in place, the lending entity confirms and agrees to supply the individual or entity, who is hereinafter referred to as the "Borrower", with a financial loan. The total amount of this loan stands at twenty thousand dollars or $20,000. Further details on how this sum will be disbursed have been provided and properly elucidated in Section 4 of this contract document. The lender is expected to follow the disbursement plan as mentioned in the said section.
1.2 Interest Rate: The loan attached to this contract will carry an interest rate of 5.25% per year. This rate will be applied to the remaining principal balance that is outstanding. Furthermore, the interest will be compounded two times each year, specifically in six-month intervals.
1.3 Repayment Terms: The individual who has taken out the loan, hereby referred to as the borrower, has given their consent and binds themselves to the action of repaying the amount that has been borrowed. This amount due includes the initial loan amount in addition to any interest that has accumulated over time per the terms detailed in the loan contract. This repayment is to be enacted according to the specific schedule that has been delineated and described in detail within Section 5 of the aforementioned loan contract.
1.4 Disbursement Schedule: The loan amount shall be disbursed to the Borrower in three (3) disbursements. The disbursement schedule is as follows:
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Disbursement 1: $5,000 on August 1, 2050.
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Disbursement 2: $5,000 on January 1, 2051.
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Disbursement 3: $5,000 on August 1, 251.
2. Repayment Schedule
2.1 Repayment Terms: The borrower of the loan is expected to start repaying the sum borrowed six months after the completion of their educational program. Alternatively, they may also begin to repay if they decide to withdraw from the program and change their status to part-time. The commencement of the repayment is dependent on whichever scenario of these two occurs first. Furthermore, it should be noted that the duration period for the sum to be fully repaid will span over a decade or ten years.
2.2 Payment Amount: The individual who has borrowed money, henceforth referred to as the borrower, is in mutual agreement that a payment of two hundred and fifty dollars, precisely quantified as $250.00, will be remitted on a monthly schedule. This payment plan will persist until the borrowed sum, augmented by any accrued interest, has been completely satisfied and the balance owed is zero.
2.3Late Payment Penalty: Should a scenario arise in which the borrower fails to make a payment promptly, they will be obligated to pay a late fee for their financial delinquency. This late fee is calculated based on the following determinants: a flat rate of twenty-five dollars, or a percentage fee that stands at 5% of the full amount that is overdue. The borrower will be required to pay whichever of these two amounts is larger.
3. General Provisions
3.1 Use of Funds: The individual who is borrowing the funds makes a contract and promises to use the loaned amount for strictly educational purposes - this includes but is not limited to, paying for tuition fees, purchasing the necessary educational materials such as books, as well as covering any living expenses that may arise while undertaking the educational program.
3.2 Default: The person who is borrowing shall be considered in violation of the terms of this Contract under the following conditions:
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Borrower fails to make timely payments as outlined in Section 6.
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Borrower breaches any other provision of this Contract. In the event of default, Lender may declare the entire outstanding balance, including accrued interest, immediately due and payable.
3.3 Governing Law: This Contract will be regulated, interpreted, and understood following the statutes, laws, and regulations that are in effect and enforced within the specific jurisdiction or region stipulated in the contract.
3.4 Entire Agreement: This Contract embodies the absolute and total understanding between the involved parties on the subject matter at hand. All previous understandings and agreements regarding the same subject matter, irrespective of their form, whether they were written down or verbally agreed upon, are overruled and replaced by the contents of this Contract.
IN WITNESS WHEREOF, the parties hereto have executed this Student Loan Contract as of the date first above written.
[YOUR NAME]
[DATE SIGNED]
[BORROWER'S NAME]
[DATE SIGNED]
