Questa Scholars Program

Terms and Conditions

Lending programs sponsored by Questa Education Foundation (Questa) are at the discretion of the Board of
Directors and can be modified or suspended at any time. The Board of Directors of the Foundation reserves the
right to discontinue the Questa Scholars Program at its discretion at any time. The Board of Directors evaluates
the terms and conditions annually. Any board-approved changes become effective June 30. Written notice of
any changes to the terms and conditions of the Questa Scholars Program will be immediately provided to loan
recipients. Participants may be required to sign updated terms and conditions prior to the start of the new
academic year as deemed appropriate by the Board of Directors.
Terms and Conditions for Receiving Loan Funds
Questa Scholars Program loans are available as the scholar provides proof of the following:
Fulltime status enrolled for 12 credit hours or more per semester; or academic documentation of
progress satisfying an approved education plan;
Cumulative minimum GPA of 2.75; and
Proof of college expense
Questa Scholars Program loans are distributed typically at the beginning of the fall and spring semesters.
Special funding arrangements will be given to scholars who are enrolled in non-traditional degree programs.
The Questa Scholars Program is approved for a certificate, associate or bachelors degree program. The Questa
Scholars Program is not intended to go beyond four (4) years or eight (8) semesters of study. However, a
request for extension can be made for extenuating circumstance and upon approval this becomes the agreement.
If a student does not borrow funds during a semester or year, the funds are not automatically available for future
use without approval from Questa.
Program Extension /Loan Deferment
Students enrolled fulltime in undergraduate degree programs that require more than four (4) years of study will
need to request program extension and provide an education plan that defines the strategy and timeframe for
graduation. Any extension requested will be evaluated and can be approved on an annual basis. Scholar will
still comply with all program requirements during the extension period. If the student requires additional time
for undergraduate completion after five (5) years, they are invited to apply for deferment of loan repayment.
Scholars enrolled fulltime in graduate degree programs may request deferment of loan repayment up to the
maximum of two (2) years following undergraduate completion.
Extension or Deferment is neither automatic nor guaranteed and is determined on a case-by-case basis. Students
should expect to begin repayment, either after four (4) years, or at completion of undergraduate degree unless
program extension or deferment has been granted. Exceptions to these policies must be reviewed and approved
by Questas Board of Directors.
What a Questa Scholar Loan Covers
Questa Scholars Program loans cover Cost of Attendance expenses defined by Questa specifically as:

Tuition
Mandatory fees (must be reflected on a students university billing statement)
Reasonable room and board expenses (as determined by Questa)
Books

Questa Scholars Program Terms and Conditions

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Reasonable transportation costs (for commuter students only)

Reasons for Termination of Eligibility

Change in Residency
Students who claim residency in a state other than Indiana are no longer eligible for participation in the Questa
Scholars Program.
Enrollment at an Out of State Institution
If a Questa Scholar transfers to an out of state institution for an undergraduate degree, he/she is no longer
eligible to participate in the Questa Scholars Program and surrenders the benefit of debt forgiveness. The
student may apply for deferment of loan repayment while he/she finishes the eight-semester eligibility period
for degree completion.
Academic Performance
Questa Scholars are expected to maintain a minimum 2.75 cumulative GPA at all times. This is the minimum
requirement for debt forgiveness. If a Questa Scholars cumulative GPA falls below 2.75 but is at least a 2.5,
the student is placed on academic probation by Questa for one semester. The Questa Scholar has one semester
to bring his/her semester GPA back up to 2.75 (without rounding). Once a students cumulative GPA is below
2.75, the student must achieve a 2.75 GPA each semester in order to remain eligible to borrow from Questa
Foundation. This policy intends to help the student return to eligibility for debt forgiveness by encouraging
attainment of the required 2.75 cumulative GPA at the time of graduation.
If a Questa Scholars semester GPA remains below 2.5 and has received one (1) semester of academic
probation, he/she is no longer eligible for participation in the Questa Scholars Program or any debt forgiveness.
Expectations for Executing Notes
Questa Scholars are expected to annually sign their promissory notes, along with a parent or guardian who must
serve as a co-signer. First-year program participants are required to be present to sign their promissory notes in
order to learn the expectations of Questa and the terms and conditions of the Questa Scholars Program.
Questa will not execute promissory notes for students who have not submitted the required compliance
documents before the start of each semester. Approved documentation must be on file before Questa staff will
prepare promissory notes.
Students who choose to study abroad are responsible for submitting their required documentation and executing
their loan notes prior to departure. Students must communicate with Questa on any delays in obtaining required
documentation.
Compliance Documentation Due Dates
Required compliance documents will include: transcripts/final grade, full-time (12+credit hour) class schedule
and billing statements are due as soon as they become available. Questa Scholars will be required to submit the
required compliance documentation by the due dates requested by Questa. Failure to comply with these
deadlines will result in the student becoming noncompliant and ineligible to borrow and may result in
suspension of participation in the program and its benefits of debt forgiveness.
Code of Conduct Expectations
Questa Scholars Program Terms and Conditions
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Questa makes a commitment to each scholar to ensure that they are treated fairly and respectfully throughout
Questas relationship with the Questa Scholar. Questa Scholars are expected to conduct their interactions with
Questa with honesty, integrity, and respect. Deviations from the code of conduct expectations may result in
disqualification from the Questa Scholars Program.
Criteria for Debt Forgiveness
Questa Scholars must meet two requirements to qualify for debt forgiveness of up to 50% of the principal
balance:
1. The Questa Scholar must graduate with a certificate, associates or bachelors degree with a 2.75 or
higher cumulative GPA.
2. After college graduation, the Questa Scholar must reside and become employed in one of the eleven
counties of northeast Indiana (defined as Adams, Allen, DeKalb, Huntington, Kosciusko, LaGrange,
Noble, Steuben, Wabash, Wells, and Whitley). If the scholar meets qualification requirements,
Questa will forgive 50% of the graduates principal balance on a graduated scale over five (5) years
as long as proof of residency and employment are provided annually by June 30 each year.
Additionally, Questa Scholars who attend and graduate from one of Questas partner schools (Grace College,
Huntington University, Indiana Tech, IPFW, Ivy Tech, Manchester University, Trine University, or University
of Saint Francis), will receive upon graduation 25% loan reduction on their outstanding Questa principal
balance.
Debt Forgiveness Graduated Scale
Questas graduated debt forgiveness scale over five years is reflected below:
Year 1 = 15% forgiveness
Year 2 = 10% forgiveness
Year 3 = 10% forgiveness
Year 4 = 10% forgiveness
Year 5 = 5% forgiveness
The ascribed percentage of debt forgiveness each year will be calculated based upon the original principal
balance. Questa Scholars who receive deferment of loan repayment will receive their debt forgiveness at the end
of their deferment period. Debt forgiveness is taxable and will be reported to the IRS. Scholars will receive
annually an IRS Form 1009-C for any debt forgiveness received over $600.00.
Loan Repayment
Questa expects all Questa Scholar loans to be repaid in full (except for that portion of the loan that may be
eligible for debt forgiveness after graduation). Failure to graduate, secure employment, or qualify for debt
forgiveness does not remove a borrowers obligation to repay the debt. If a borrower becomes disabled or
deceased while in college, during any pre-approved deferment, or during repayment, loan repayment in full is
expected from the borrowers estate or co-signer.
Time Frame of Repayment
Students who borrow funds from Questa are responsible to begin repayment of their loans ninety (90) days after
graduation.
Students who leave college prior to graduation or change to part-time status are required to repay their loan(s)
immediately. The borrowers full payment is due 30 days from the date the student withdraws from school or
ceases to be enrolled full-time.
Questa Scholars Program Terms and Conditions
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Installment Loan Notes

Borrowers do have the option to replace their single payment note(s) used for funding their degree with an
installment note. An installment note allows for repayment of up to six (6) years, with a monthly payment due
on a given date each month.
Students who graduate have 90 days (from date of graduation) to execute an installment note to replace their
single payment note(s) with Questa.
Students who withdraw from college prior to graduation, move to part-time status, or take time off from college
have fifteen (15) business days to execute an installment note with Questa. Otherwise, the balance of the
promissory note is due 30 days after the borrower ceases to be a student or moves to part-time status.
Interest Rate
The interest rate for Questa Scholars Program loans is Wall Street Journal prime rate. Questa will set the prime
rate prior to acceptance of the terms and conditions of the program. This prime rate will be fixed for the
duration of the repayment portion of the students installment note. The prime rate set for students accepted
into the Questa Scholars Program in 2016 is 3.5%.
Acceptance of Terms and Conditions

We have read, understand, and accept the Terms and Conditions of the Questa
Scholars Program. We understand that participation in the Questa Scholars
Program requires full compliance with these terms and conditions.

Printed Name of Questa Scholar Applicant: ______________________________________________

Signature of Questa Scholar Applicant: __________________________________________________
Date: _____________________________________________________________________________
Printed Name of Co-signer (Parent or Guardian): ___________________________________________
Signature of Co-signer (Parent or Guardian): ______________________________________________
Date: _____________________________________________________________________________

Questa Scholars Program Terms and Conditions

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Single Payment Note

Date:
Amount: $5000.00
Name:
The undersigned (jointly and severally if more than one) promises to pay to the order of Questa Education Foundation the above sum
with no interest accruing prior to the date my payment is due pursuant to the terms set out herein.
The words I, Me, and My refer to each person who signs this note, in whatever capacity.
Promise to Pay:

I promise to pay all loan amounts disbursed under the terms of this note, plus interest and other
charges and fees that may become due as provided in this note. I understand that more than one
loan may be made to me under this note. I understand that by accepting any disbursement issued
at any time under this note, I agree to repay the loan associated with that disbursement.

Right to Prepay

I have the right to pay all or any part of this note before it is due without penalty.

Interest Rate
After Due:

If I do not pay this note in full on time or enter into a new note to replace this
note, interest at ten (10) percentage points per annum above the prime rate as published in the Wall
Street Journal (under Money Rates) on the first day of the quarter in which the note is due (but
not to exceed the maximum interest rate provided by law) will be earned on the unpaid principal
part of this note for as long as it is past due; and I will pay the additional interest with the past due
payment.

Default:

I will be in default if:

I do not pay this note in full when due; or
I discontinue classes aimed at completing the course of study for which this loan is designed
or another course of study other than that listed below which is approved by Questa Education
Foundation; or
I break any other promise or am in default under any other agreement I have given Questa
Education Foundation.

Questa Foundation for

Educations Rights
Upon My Default:

If I am in default, the entire unpaid amount of this note becomes due at once, at
Questa Education Foundations option, without notice of non-payment,
including all attorneys fees and costs incurred in the collection of the balance due. Payments
shall be applied first to costs of collection, then to interest, then to principal.

Questa Foundation for

Educations Other
Rights:

Without notice to me, without my consent and without losing any of its rights
against me Questa Education Foundation may:

accept late payments and partial payments, even if marked as payment in full; and
extend the terms of payment one or more times; and
release security or other signers liable on this note; and
delay enforcing any of its rights under this note.

Presentment, notice of dishonor, and protest are waived by the all makers and guarantors. This
note shall be governed by Indiana law. All amounts owing on this loan are payable without relief
from valuation or appraisement laws.
My Right to Enter into
New Note:

Rev. 7/15

Upon maturity of this note, whether by lapse of time or by default, I may enter
into a new note in payment of the unpaid balance of this note. This new note will be an installment
note payable with interest and according to the terms then established by Questa Education
Foundation for like borrowers provided, however, the interest rate under the new note will not
exceed ten (10) percentage points over the prime rate as published in the Wall Street Journal
(under Money Rates) on the first day of the quarter in which the execution of the new note takes
place or the maximum interest rate provided by law.

Federal Truth In Lending Disclosures

Annual Percentage Rate

Finance Charge

Amount Financed

The cost of your credit as

a yearly rate.

The dollar amount the

credit will cost you.

The amount of credit

provided to you or on your behalf.

0%

$0

My Payment Schedule will be:

Number of Payments
1

Payment Amount

$5000.00
When Payment is Due

$5000.00

Prepayment: If I pay off early, I will not have to pay a penalty.

Security Interest: Unsecured
See your contract documents for any additional information about nonpayment, default, any required repayment in full before
the scheduled date, and prepayment refunds and penalties.
Section A: Completed by Student and Cosigner
Itemization of Amount Financed
Amount Paid to Others on Borrowers Behalf:

Students Printed Name:____________________________________

Fall Semester Disbursement:

Current Street address and apt#_______________________________

To:

$2500.00

Spring Semester Disbursement:

To:

City/State/Zip_____________________________________________
Phone______________________________________________

$2500.00

Social Security Number:____________________________________

Cosigners Printed Name:___________________________________

Total Amount Given on

Borrowers Behalf:

Current street address and apt#_______________________________

$5000.00
City/State/Zip____________________________________________
Phone_____________________________________________
Social Security Number:____________________________________

Section B: Completed by Student and Cosigner:

Students Signature __________________________________________________ Date __________________________________
Cosigners Signature _________________________________________________ Date __________________________________
Notice to Cosigner
You are being asked to guarantee the debt. Think carefully before you do. If the borrower does not pay the debt, you will have to. Be
sure you can afford to pay if you have to and that you want to accept this responsibility.
You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection
costs which increase this amount.
Questa Education Foundation can collect this debt from you without first trying to collect from the borrower. Questa Foundation
for Education can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing
your wages, etc. If this debt is ever in default, that may become a part of your credit record.
This notice is not the contract that makes you liable for the debt.

Rev. 7/15