Understand your rights & responsibilities

Below is a summary of your rights and responsibilities as a borrower of a 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 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

Understanding my responsibility for:

  • 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!


Questions regarding your rights and responsibilities for your student loans can be directed to the following resources.