|
|
Borrower's Rights and Responsibilities
When you take out a student loan, you have certain rights and responsibilities.
Rights
Your rights include:
- A copy of your Repayment Schedule and Disclosure Statement.
- Notification in writing if your loans are sold or transferred for servicing.
- A repayment period of at least five years.
- The option to prepay any part of your loan at any time without penalty.
- The option to defer your loan payments, if you qualify.
- The right to have any questions about your student loan answered by your lender, guarantor, or the U.S. Department of Education.
- The right to have your loan canceled as a result of death or total and permanent disability.
- The right to a graduated or income-sensitive repayment schedule.
- That if you first borrowed on or after 10/7/98 and have a debt of at least $30,000, you are entitled to an extended repayment schedule.
- The option to receive the original Master Promissory Note when your loan is paid in full.
Responsibilities
Your responsibilities include:
- Notifying your lender or servicer if you change your name, address or enrollment status (i.e., you withdraw, graduate, drop to less than half-time enrollment or change your school of attendance).
- Knowing the terms of your student loans. You should keep copies of all student loan documents in a safe place.
- Repaying your loan whether or not you complete your studies, are satisfied with the education you received, or are able to find employment.
- Making your loan payments on time.
- Making payments at the end of your grace period whether you have received a repayment schedule or not. If your first payment due date is nearing and you have not received a payment schedule, you must immediately contact your lender or servicer.
- Contacting your servicer or lender as soon as possible if you are unable to meet a scheduled payment. The lender or servicer may be able to help if you seek assistance before you are late making a payment.
- Providing your school with your expected permanent address, the name and address of your expected employer and the address of your closest relative when you graduate, withdraw or drop to less than half-time enrollment. Your school will forward this information to your guarantor, lender or loan servicer.
|
Print-friendly format
E-mail this page
