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