Rights and Responsibilities
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.