Rights and Responsibilties

  • The borrower has the right to:

    • Written information on loan obligations, including loan consolidation and refinancing
    • A copy of the promissory note, and return of the note when the loan is paid in full
    • Information on interest rates, fees, the balance owed on loans, and a loan repayment schedule
    • Notification if the loan is sold or transferred to a loan servicer
    • Federal interest benefits, if qualified
    • A grace period, if applicable, and an explanation for what that means
    • Prepayment of the loan without penalty
    • Deferment, if the borrower qualifies
    • Request forbearance

     The borrower has the responsibility to:

    • Perform an entrance counseling session before beginning the loan process
    • Repay the loan according to the terms of the promissory notes
    • Notify both school and lender in writing about any changes that would affect the ability to repay, or eligibility for deferment or cancellation
    • Notify the lender if he or she graduates, withdraws from school, drops below halftime status, transfers to another school, or changes name, address, or social security number
    • Notify the lender if he or she fails to enroll for the period covered by the loan
    • Attend an exit counseling session before leaving school.