Your Rights and Responsibilities as a Student Loan Borrower

Rights and Responsibilities as a Borrower

I have the right to

  • Written information on my loan obligations and information on my rights and responsibilities as a borrower;
  • A copy of my MPN either before or at the time my loan is disbursed;
  • A grace period and an explanation of what this means;
  • Notification, if the Department transfers your loan to another servicer without your consent;
  • A disclosure statement, received before I begin to repay my loan, that includes information about interest rates, fees, the balance I owe, and a loan repayment schedule;
  • Deferment or forbearance of repayment for certain defined periods, if I qualify and if I request it;
  • Prepay my loan in whole or in part anytime without an early-repayment penalty; and
  • Documentation when my loan is paid in full.

I am responsible for

  • Completing exit counseling before I leave school or drop below half-time enrollment;
  • Repaying my loan according to my repayment schedule even if I do not complete my academic program, I am dissatisfied with the education I received, or I am unable to find employment after I graduate;
    • notifying my lender or loan servicer if I move or change my address,
    • change my telephone number,
    • change my name,
    • change my Social Security number, or
    • change employers or my employer’s address or telephone number changes;
  • Making monthly payments on my loan after my grace period ends, unless I have a deferment or forbearance; and
  • Notifying my lender or loan servicer of anything that might alter my eligibility for an existing deferment or forbearance.

Other Considerations

  • Students must be enrolled at least half-time to be eligible for federal loan programs.
  • Borrow loan funds wisely. There is no penalty for repaying your loans early. If you have borrowed more money than you need for a semester, you can work with the Office of Student Financial Aid to return the funds.
  • Be aware of the allotted grace period for each of your loans. If you enroll less than half-time, you will enter your grace period. If you do not re-enroll at least half-time before your grace period ends, you will be in repayment.
  • Pay any accrued interest while you are still in school to avoid interest capitalization at repayment. To pay your accrued interest, you will need to create an account with your federal loan servicer. Borrowers can find their federal loan servicer by logging into your dashboard at If you have never borrowed or have just recently borrowed your first federal loan, your loan servicer may not have been assigned yet.
  • Avoid defaulting on your student loans. If you are having difficulty making monthly payments, contact your loan servicer for help and information.