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Rights and
Responsibilities of a Student Borrower
As a borrower, you have the right to:
- Repay the loan at any time without penalty.
- Be notified in writing if your loans are sold or transferred for servicing
.
- A grace period before beginning repayment
.
- Defer repayment for a specific period of time if you qualify
.
- Receive a copy of your disclosure statement and repayment schedule
.
- Have your federal loan obligation forgiven if you die or become permanently disabled.
- Be provided contact information for
FSA's Student Loan Ombudsman's Office
.
Before your repayment begins the lender must tell you:
- About the option to repay your loan at any time without penalty.
- Where to send payments
.
- Where to write if you have questions about your loan
.
- Your interest rate and total debt (principal and interest).
- When your payments are due and how much they will be
.
- About refinancing, consolidation, and repayment options.
As a borrower, you must:
- Repay your loan according to the terms of your loan agreement
.
- Complete an entrance counseling interview for Perkins and Stafford loans before you receive
your first loan and an exit interview before you leave school
.
You must notify your lender(s) if you:
- Graduate, withdraw from school, or drop below half-time status
.
- Transfer to another school
.
- Fail to enroll in the school during the period for which the loan was intended
.
- Change your name, address, social security number, or employer
.
- Have any other status change that would affect your loan (for example, if you had a
deferment because of unemployment and then got a job)
.
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