Your Rights and Responsibilities for a Loan

Understand Your Rights & Responsibilities

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

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 you begin repayment, that includes information about interest rates, fees, the balance owed, and the number of payments
deferment of repayment or forbearance for certain defined periods, if you qualify and if you request deferment or forbearance
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
documentation that loan(s) are paid in full

completing Exit Counseling before leaving school or drop 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
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!