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For
purposes of these Terms and Conditions ("Terms and Conditions"),
the following definitions apply: "Goal Financial", "we",
"us", or "our" means Goal Financial, LLC, 1229 King
Street 3rd Floor, Alexandria, VA 22314. "You" or "your"
or "borrower" means student loan borrowers of Goal Financial whose
loans meet the eligibility requirements.
"Program" means the "Goal Financial Debt
Reduction Benefit Program."
Due to the College Cost Reduction and Access Act of
2007, Goal Financial, LLC has decided that it can no longer offer these
borrower benefits; therefore, eligible loans must be first disbursed before
10/1/2007 to remain eligible for this offer
1. Eligibility is restricted to
borrowers that have a Federal Consolidation loan with Goal Financial that had
an Original Principal Balance (OPB) that exceeds $20,000 AND:
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Have selected the
Goal Financial Debt Reduction Benefit Program during the application process,
either on a Goal Financial Benefit Selection Form that has been completed,
signed and returned to Goal Financial or via online application;
-
Whose eligible loan
is in repayment status at the time of calculation of any reduction;
-
Have made their
first regularly scheduled monthly payment on-time; and
-
Whose eligible loan
was first disbursed on or after 07/19/2007 and before 10/1/2007.
2. We accept no responsibility for late,
lost, damaged or misdirected mail.
3. We base any Principal Reduction on
the Outstanding Principal Balance as of the first day of the calendar month
that follows the month during which you make your first regularly scheduled
monthly payment on-time.
4. We calculate the amount of the
Principal Reduction as follows: after making the first regularly scheduled
payment on-time, you qualify for a 5% Principal Reduction.
5.
A
payment is considered "on-time" if it is received in full and no
more than 14 days after the due date. If we receive a returned check for your
qualifying payment, the amount of the returned check will be added to your
loan balance, and the payment will be considered late. Periods of authorized
deferment and forbearance are disregarded in determining which payment is the
"first" payment.
6.
Payments
made on any other student loan(s) will not qualify you for the benefits
contained in this Program.
7. To avoid forfeiting this
Principal Reduction, you must continue to make on-time monthly payments. After a Principal Reduction is
applied, the amount of the reduction may be reapplied to principal if any
subsequent, regularly scheduled monthly payment is not made on-time. Any reapplication to principal of a
previously earned Principal Reduction due to a payment not made on-time is
considered a "lost benefit."
8.
After a
Principal Reduction is applied, the amount of the reduction may be reapplied
to principal if you prepay or attempt to prepay your loan, including without
limitation, through a Federal Consolidation Loan. Receipt of a Loan Verification Certificate request by Goal
Financial, its agents (including but not limited to any third party servicer
that manages student loans and collects payments on behalf of Goal
Financial), successors and/or assigns shall be considered an attempt to
prepay your loan through a Federal Consolidation Loan.
9.
A
"lost benefit" cannot be earned back; however, if you incur a
"lost benefit" you will be eligible for a "second chance"
benefit.
10. A "second
chance" benefit is applied as follows: after making thirty-six (36)
consecutive payments on-time beginning with the first regularly scheduled
monthly payment after a "lost payment" is incurred, you qualify for
a 1.00% Interest Rate Reduction.
11. We base any Interest Rate
Reduction on the initial rate of your Federal Consolidation loan at the time
of funding, as indicated on your initial Disclosure Statement.
12. We calculate the amount
of the Interest Rate Reduction on the first day of the calendar month
following the date you qualify for the Interest Rate Reduction.
13. For the "second
chance" benefit, a payment is considered "on-time" if it is
received no more than 14 days after the due date. If we receive a returned
check for your qualifying payment, the amount of the returned check will be
added to your loan balance, and the payment will be considered late. Periods
of authorized deferment and forbearance are disregarded in determining which
payment is the "first" payment and in determining whether payments
are considered to be "consecutive"
14. A "second
chance" benefit is only available to borrowers that incur a "lost
benefit."
15. A "second
chance" benefit may be applied only one (1) time during the repayment
period of the loan.
16. To avoid forfeiting the
"second chance" benefit, you must continue to make on-time
payments.
17. Borrowers enrolled in the
Goal Financial Debt Reduction Benefit Program are not eligible for any other
Goal Financial Federal Consolidation Loan borrower benefit or loan loyalty or
reward programs.
18. We will notify you by
mail of your Principal Reduction and/or Interest Rate Reduction. All
Principal Reductions will be effective as of the first day of the month
following the month that contains the posting date of the on-time payment of
your first regularly scheduled monthly payment. All Interest Rate Reductions will be effective as of the first
day of the month following the month that contains the posting date of the
thirty-sixth (36th) consecutive on-time payment after incurring a
"lost benefit."
19. Goal Financial reserves
the right to adjust Principal Reduction and/or Interest Rate Reduction to
correct calculation errors. For example, if you receive a Principal Reduction
in excess of the amount you should have received, we will adjust your loan
balance for the erroneous Principal Reduction.
20. You should allow 90 days
from the time you sent your qualifying payment for the notification of your
Principal Reduction and/or your Interest Rate Reduction.
21. You may not transfer or
assign your Principal Reduction or your Interest Rate Reduction.
22. Liability for any tax on
any benefits provided to you pursuant to this program shall be solely your
responsibility. We recommend that you contact your own accountant or tax
advisor in this regard.
23. As a condition of
participating in this Program, you agree that (1) all disputes that cannot be
resolved between us, and causes of action arising out of or connected with
this Program, shall be resolved individually, without resort to any form of
class action, and exclusively by final and binding arbitration under the
rules of the American Arbitration Association and held at the AAA regional
office nearest Alexandria, Virginia; (2) the Federal Arbitration Act will
govern the interpretation, enforcement and all proceedings at such
arbitration; and (3) judgment upon such arbitration award may be entered in
any court having jurisdiction. Under no circumstances will you be permitted
to obtain awards for, and you hereby waive all rights to claim punitive,
incidental or consequential damages, or any other damages, including but not
limited to attorneys fees, other than your actual out-of-pocket expenses
(i.e., costs associated with participating in this Program). You further
waive all rights to have damages multiplied or increased.
24. In the event that you
claim that you are eligible for the Principal Reduction or Interest Rate
Reduction but have not received it, then you must provide verification to our
satisfaction as to your claim of an entitlement. All reduction claims are
subject to our verification checks and procedures, as determined by us in our
discretion. We must receive all inquiries regarding claims within 180 days of the date that you claim you became fully eligible for the Principal Reduction or Interest Rate Reduction
25. These Terms and
Conditions of this program are subject to change without notice. However, no changes will be made to this Program which
would affect any benefits under this Program as offered to you when your loan
was originally disbursed
26. The program is void where
prohibited by law.
27. If a court of competent
jurisdiction finds any provision of these Terms and Conditions to be void,
then the court shall strike the offending provision while giving the
remaining provisions full force and effect.
28. Goal
Financial, LLC may suspend or terminate this Program at any time with or
without notice and without liability to you or any other person. However, we
will not suspend or terminate the Program for any borrowers who were eligible
to participate in this Program at the time his or her loan was originally
disbursed.
29. The laws of the state of
California shall govern and be used to construe these Terms and Conditions.
You should direct any questions regarding this program to Goal
Financial Customer Service at 866-290-4222.
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