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EFT Electronic Funds Transfer Agreement
Records Code: MDDAP - XDDA Form Code: FDEFT1 Version Date: 05/01/11
Direct Debit makes it possible for you to have the same amount of money deducted electronically from your checking or savings account on the same date each month. Using the Direct Debit service may qualify you for an interest rate reduction. In order to qualify for Direct Debit, your loans must be in good standing. Please type the information requested below and return to: FedLoan Servicing, P.O. Box 3661, Harrisburg, PA 17105-3661
Borrower Name Last First
Student Loan Account Number
Please continue to remit your monthly installments until you receive a monthly billing statement indicating that your account has been set up on Direct Debit. Please allow one or two billing cycles for Direct Debit to be set up.
Bank or Financial Institution Name
Checking/Savings Account Number
Amount to be withdrawn:
Monthly Installment Amount (based on your current repayment schedule) OR Monthly Installment Amount Plus the following ADDITIONAL amount: $
*Only indicate the amount that is above and beyond your current installment amount. Do NOT write the total amount to be withdrawn.
Student Loan Recurring Direct Debit/Electronic Funds Transfer Authorization
I authorize the Pennsylvania Higher Education Assistance Agency, doing business as FedLoan Servicing to initiate preauthorized Electronic Funds Transfers (“Transfers”) to the student loan accounts indicated above and from my designated account(s) with the bank or financial institution named above pursuant to the terms and conditions of this Agreement, as may be modified from time to time. I have read, understand and agree to be bound by all of the terms and conditions of the Agreement. I further agree that if I default on or consolidate any designated student loan(s), I will forfeit any interest rate reduction that may have been offered by my lender and the interest rates in accordance with my promissory note(s) shall apply. I understand if my student loan(s) are consolidated, I will need to submit a new Agreement for the consolidation loan. I intend and agree to repay my loan(s) according to the terms and conditions of my promissory note. If my account is past due, I hereby request a forbearance to cover all payments due before the initial Transfer. Any unpaid interest will be capitalized (added to the principal balance) when the forbearance ends. My authorization for the Transfers to my designated student loan(s) shall continue in effect until my designated student loans are paid in full or until this Agreement is terminated by me or by FedLoan Servicing in accordance with the terms of this Agreement. I understand that my authorization may only be revoked in the manner set forth in the Agreement.
Borrower Signature ________________________________________________________________
E. you can lose no more than $50. provide the date of the alleged error and a complete bank statement or letter from your financial institution as evidence of the alleged error.O. or 4. You are responsible for all monthly payments on your student loan(s) for which you have canceled Transfers. 3. you may stop a Transfer by providing timely notice to FedLoan Servicing using the telephone number. contact FedLoan Servicing immediately. you will not receive a monthly account statement. The Type and Nature of Transfer Each Transfer will be made monthly on the due date of the student loan payment(s) in question in an amount equal to your monthly student loan installment plus any additional amount you request by way of this Agreement. such as a credit bureau or merchant. Confidentiality/Privacy FedLoan Servicing may disclose information to third parties regarding your bank account. Provide your name. you must verify your request to cancel a single Transfer in writing to FedLoan Servicing within fourteen (14) days after the date of your call. It is your responsibility to ensure that you have sufficient funds to cover each Transfer. You are required to promptly submit a new Agreement to FedLoan Servicing if you make changes to your bank information including. A phone request to stop a Transfer will only stop a single Transfer. However. FedLoan Servicing's business days are Monday through Friday. If you contact FedLoan Servicing by phone. FedLoan Servicing will determine whether an error occurred within ten (10) business days following receipt of your notice regarding the alleged error or question and will correct any error promptly.00 if an unauthorized Transfer has occurred. If you wish to stop all Transfers.org. if your bank statement shows a Transfer to FedLoan Servicing that you believe you did not make. A prompt phone call is the best way to minimize your potential loss. or as otherwise required by applicable law.org. Box 3661. excluding holidays. When communicating with FedLoan Servicing regarding an alleged error. and checking or savings account number. Transfers will not be canceled and will resume with the first payment due following the deferment. rules and regulations governing debits to accounts and all other agreements and disclosures for checking. You have the right to receive documentation concerning all Transfers. Circumstances beyond our control. Provide the dollar amount of the alleged error. FedLoan Servicing reserves the right to collect from you any additional fees. to terminate this Agreement either in its entirety or with respect to individual student loans if there are any instances of insufficient funds preventing the payment of your student loan(s). This will not negate your responsibility to make payments on your student loan(s) as required by your promissory note(s) during the investigation. FedLoan Servicing must receive your call. unless its failure to stop the Transfer was due to circumstances beyond FedLoan Servicing's control. G. contact FedLoan Servicing immediately using the telephone number. D. 2009. If a Transfer will vary in amount from the previous Transfer.00. FedLoan Servicing will inform you of the new Transfer amount at least 10 days in advance. C. Transfers will resume the following month. or 5. Changes. If you give FedLoan Servicing written permission to do so. Periodic Account Statements You will receive a monthly account statement from FedLoan Servicing if your loan entered repayment on or after July 1. your student loan account(s). If you do not contact FedLoan Servicing within sixty (60) days after the bank statement was mailed to you. If you contact FedLoan Servicing by phone. In order to comply with government agency requests. FedLoan Servicing may at its discretion not credit the disputed amount to your bank account. or 6. or by e-mail at DirectDebit@myfedloan. If you believe there is an error with a Transfer or if you have questions about a Transfer. unless you notify FedLoan Servicing in writing as instructed below. If FedLoan Servicing requests that you submit the alleged error or question in writing and it does not receive your alleged error or question in writing within ten (10) business days of the phone conversation. 3. and/or Transfers under the following circumstances: 1. and overdraft line of credit accounts. 2009. and are subject to any future charges. J. or orders. e-mail or written request three (3) business days or more before a Transfer is scheduled to be made in order for the Transfer to be stopped. Your Liability for Unauthorized Transfers Arising From This Agreement If you suspect a Transfer has been or may be made without your permission. If you contact FedLoan Servicing within two (2) business days after the unauthorized Transfer. FedLoan Servicing shall not be liable. If your loan entered repayment before July 1. 3. you could lose up to $500. FedLoan Servicing may at its sole discretion extend the time periods mentioned above if a good reason kept you from informing FedLoan Servicing of the unauthorized Transfer. your ABA/Routing Number or your checking/savings account number. You must select another payment option made available by FedLoan Servicing in place of the canceled Transfer. address. forbearance or grace period. How to Stop a Transfer After you have authorized FedLoan Servicing to make Transfers pursuant to this Agreement. Preauthorized Recurring Debit Payments The Pennsylvania Higher Education Assistance Agency. If FedLoan Servicing Fails to Make a Transfer If FedLoan Servicing does not complete a Transfer from your bank account on time or in the correct amount according to this Agreement. as permitted by law and/or your promissory note(s). resulting from insufficient funds. You are also required to submit a new Agreement in order to preauthorize Transfers for any additional student loans or any student loans previously excluded from this Agreement. FedLoan Servicing may terminate this service without cause at any time. but not limited to. When necessary to complete a Transfer. you must at a minimum: 1. you may sign up for paperless billing at www. court orders. you may be required to submit your complaint or question in writing at the address above within ten (10) business days. In Case of Errors or Questions about Your Electronic Funds Transfer In case of errors or questions about Transfers made under this Agreement. address. FedLoan Servicing may be liable for your losses or damages. for instance. 2. lawful discovery under federal or state rules of civil and criminal procedure. Assignment. flood. If your monthly student loan installment amount changes. and/or in accordance with your student loan holder's policies. If FedLoan Servicing needs more time it may take up to forty-five (45) days to investigate the alleged error or question. you must notify FedLoan Servicing in writing either at the address or e-mail address provided above. You could lose all the money in your account (plus your maximum overdraft line of credit). it will credit your checking or savings account within ten (10) business days for the amount you allege is in error. it will provide a written explanation. DD-OCR-W-V. any additional amount you have requested to be transferred will continue to be transferred. PA 17105-3661. contact FedLoan Servicing in writing at FedLoan Servicing. so that you will have use of the money pending completion of its investigation. Business Days For purposes of this Agreement. In addition. power or computer failure. by phone at 1-800-699-2908. 2. F. 4. or e-mail address listed above. Any other circumstances not listed above result in the failure of a Transfer. subpoenas. If FedLoan Servicing determines that there was no error. FedLoan Servicing also has the option in its sole discretion. however. K. I. The Transfer would result in you exceeding the credit line on your overdraft line of credit. If you preauthorize Transfers and are subsequently granted a forbearance or deferment. Describe the alleged error and explain why you believe there is an error or need more information.Electronic Funds Transfer Agreement and Disclosure Statement for Recurring Direct Debit Payments A. H. student loan account number(s). or e-mail address set forth above. Insufficient Funds FedLoan Servicing reserves the right to make changes to this Agreement or assign the obligation to process Transfers to a third party at any time.To verify the existence and condition of your account for a third party. doing business as FedLoan Servicing will electronically transfer funds from your designated checking/savings account(s) to student loan account(s) of your designation (“Transfer(s)”).MyFedLoan. prevent the Transfer despite reasonable precautions taken by FedLoan Servicing.0511 . Termination. FedLoan Servicing will notify you of the results of its investigation within three (3) business days after completing its investigation. Other Agreements and Regulations Transfers are subject to all charges. We must hear from you no later than 60 days after we sent the FIRST statement or notice on which the alleged error occurred. and you may permanently terminate this Agreement at any time by giving sufficient written notice as indicated above. 2. Enrolling in or Resuming Direct Debit After Forbearance or Grace Period. Harrisburg. You do not have enough money in your bank account to make the Transfer. The money in your bank account is subject to legal process or other encumbrance restricting such Transfer. you must contact FedLoan Servicing as soon as possible. FedLoan Servicing may be liable for your damages. To the extent possible. if (through no fault of FedLoan Servicing): 1. P. The information for Transfers is not received as scheduled. 4. If FedLoan Servicing requires more than ten (10) business days to investigate. You may request copies of the documents that FedLoan Servicing used in its investigation. B. unless you notify FedLoan Servicing of your desire to cancel future Transfers as set forth above. you may not recover any money you lost after the sixty (60) days if FedLoan Servicing proves that it could have prevented the unauthorized Transfer had you contacted FedLoan Servicing sooner. L. If you do not contact FedLoan Servicing within two (2) business days and FedLoan Servicing can prove that it could have stopped the unauthorized Transfer had you notified FedLoan Servicing sooner. savings. such as fire. If FedLoan Servicing receives your request to stop a Transfer three (3) business days or more before the Transfer was scheduled to be made and FedLoan Servicing fails to stop the Transfer.
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