Summary of Borrower Rights & Responsibilities
The borrower has the right to receive the following information:
- The amount of the student’s total debt including principal and estimated interest, interest rate, and the total interest charges on the loan(s)
- Disclosure statement sent by the Department of Education notifying the student of the interest rate for each loan received
- The address and telephone number of the student’s loan servicer along with a loan repayment schedule that lets the student know when his/her first payment is due, the number and frequency of payments, and the amount of each payment
- An explanation of the repayment options available to the student
- The fees the student should expect during the repayment period, such as late charges and collection or litigation costs if delinquent or in default
- A statement that the student can repay his/her loan without penalty at any time
The borrower has a responsibility to do the following:
- Understand that by signing the Master Promissory Note (MPN), the student is agreeing to repay the loan according to the terms of the note
- Understand that the student may only use the loan to pay for authorized educational expenses for the school that determined you were eligible to receive the loan
- Make payments on the student loan even if the student does not receive a bill or repayment notice
- If the student applies for a deferment or forbearance, he/she must still continue to make payments until notification that the request has been granted
- Notify the appropriate representative (loan servicer or school staff member) that manages the student’s loan when the student graduates, withdraws from school, or drops below half-time status; changes his/her name, address, telephone number, Social Security Number, or transfers to another institution
- Receive entrance counseling before being given the first loan disbursement, and to receive exit counseling before leaving school or drops below half-time status
You may read the Borrower’s Rights and Responsibilities Statement published by the Department of Education for both the Direct Subsidized/Unsubsidized Loan Program and Direct PLUS Loan Program in their entirety at Direct Sub/Unsub and Direct PLUS.