Federal Loan Rights & Responsibilities

Below is a summary of your rights and responsibilities as a borrower of a Federal Direct Loan.


Understand your rights to the following information:

  • Written information on loan obligations and information on rights and responsibilities as a borrower
  • A grace period and an explanation of what this means
  • A disclosure statement, received before beginning repayment, that includes information about interest rates, fees, the balance owed, and the number of payments
  • Deferment of repayment for certain defined periods if you qualify and if you request it
  • Forbearance, if you qualify and if you request it
  • Prepayment of the loan in whole or in part any time without an early-repayment penalty
  • A copy of the promissory note either before or at the time the loan is disbursed
  • A documentation that loan(s) are paid in full

Understanding your responsibility for:

  • Completing exit counseling before leaving school or dropping below half-time enrollment
  • Repaying the loan even if you do not complete your academic program (under certain circumstances), or are dissatisfied with the education received, or are unable to find employment after graduation
  • Notifying your school and the Direct Loan Servicing Center if you: move/change your address, change your name, withdraw from school or drop below half-time enrollment, transfer to another school, fail to enroll or reenroll in school for the period for which the loan was intended, change your expected date of graduation
  • Making monthly payments on your loan(s) after leaving school, unless you have a deferment or a forbearance set up
  • Notifying the U.S. Department of Education's Direct Loan Servicing Center of anything that might alter your eligibility for an existing deferment
  • Attending classes and making satisfactory academic progress as defined by your school
  • You must understand that you are receiving a loan from the federal government that must be paid


Page last modified July 3, 2014