Facts about Federal Student Loans
Borrower’s Rights and Responsibilities
When you accept a loan, you accept legal responsibilities that last until the loan is repaid.
You agree to:
- Repay your loan(s), including accrued interest and fees, whether or not you complete your education, complete the program within the regular time frame, obtain employment or are satisfied with your education;
- Attend exit counseling before you leave school or drop below half-time enrollment;
- Notify the current holder of your loan within 10 days if you change your name, address or phone number, drop below half-time status, withdraw from school or transfer or change your graduation date;
- Direct all correspondence to the current holder or servicer of your loan;
- Make monthly payments on your loan after leaving school, unless you re granted a deferment or forbearance; and
- Notify the current holder of your loan of anything that might change your eligibility for an existing deferment.
As a student borrower, you have the right to:
- Receive a copy of your promissory note either before or at the time the loan is made;
- Receive a disclosure statement before repayment on your loan begins, including information about interest rates, fees, loan balance and the size and number of payments;
- A grace period after you leave school or drop below half-time enrollment and before your loan payments begin (if applicable);
- Prepay all or part of your loans without a repayment penalty;
- Receive written notice if your loan is sold to a new holder;
- Apply for deferment for your loan payments for certain specified periods, as long as you are eligible;
- Request forbearance from the holder of your loan if unable to make payments and don t qualify for deferment (you must qualify according to the loan holder s requirements); and
- Receive proof when your loan is paid in full.
- Submit a Free Application for Federal Student Aid (FAFSA)
- Be determined eligible for financial aid by your college
- Have a high school diploma or its equivalent. (GED), or