Rights and Responsibilities
The following is a summary of a loan recipients rights and responsibilities.
Loan Recipients Have the Right To The Following:
- Written information on their loan obligations and information on their rights and responsibilities as a borrower.
- A grace period and an explanation of what this means.
- A disclosure statement, received before they begin to repay their loan(s), that includes information about intereste rates, fees, the balance owed and the number of payments.
- Deferment of repayment for certain defined periods, if they qualify and request it.
- Forbearance, if they qualify and request it.
- Prepayment of their loan(s) in whole or in part any time without an early-repayment penalty.
- A copy of their promissary note either before or at the time the loan is disbursed
- Documentation that their loan(s) are paid in full.
Loan Recipients Are Responsible For The Following:
- Attend exit counseling before they leave school or drop below half-time enrollment.
- Repay the loan(s) even if they do not complete the academic program (under certain circumstances), are dissatisfied with the education received, or are unable to find employment after graduation.
- Notify the school and the Direct Loan Servicing Center if they:
- Move/Change their address
- Change their name
- Withdraw from school or drop below half-time enrollment
- Transfer to another school
- Fail to enroll or re-enroll in school for the period for which the loan was intended
- Change their expected date of graduation
- Make monthly payments of their loan(s) after they leave school, unless they have a deferment or a forbearance.
- Notify the U.S. Department of Education, Direct Loan Servicing Center or anything that might alter their eligibility for an existing deferment.