Borrower rights and responsibilities
As a Direct Loan borrower, you have a right to:
-
written information on your loan obligations and information on your
rights and responsibilities as a borrower.
-
a grace period
and an explanation of what this means.
-
a disclosure
statement, received before you begin to repay your loan, that includes
information about interest rates, fees, the balance you owe, 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 your loan in whole or in part any time without an early repayment
penalty.
-
a copy of
your promissory note before or at the time your loan is disbursed.
-
documentation
that your loan(s) are paid in full.
As a Direct Loan borrower, you are
responsible for:
- attending exit counseling before you leave school or enroll less
than half time
-
repaying your
loan even if you do not complete your academic program, you are dissatisfied
with the education you received, or you are unable to find employment
after you graduate.
-
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 re-enroll for the period in which the loan was intended;
-
change
your expected date of graduation;
-
graduate.
-
making monthly payments on your loan(s) after you leave school, unless
you have a deferment or a forbearance.
-
notifying
ED’s Direct Loan Servicing Center of anything that might alter
your eligibility for an existing deferment.
