Students receiving federal financial aid have varying rights and responsibilities. In accordance with the Borrower’s Rights and Responsibilities Statement attached to the Master Promissory Note (MPN) for their federal loan(s), the student has the right to the following:
- Written information on loan obligations and information on rights and responsibilities as a borrower.
- A copy of the MPN, either before or at the time loan is disbursed.
- A grace period and an explanation of what this means.
- Notification, if in grace period or repayment, no later than 45 days after a lender assigns, sells or transfers the loan to another lender.
- A disclosure statement received before repayment begins that includes information about interest rates, fees, balance owed and a loan repayment schedule.
- Deferment or forbearance of repayment for certain defined periods, if qualified and requested.
- Prepayment of loan in whole or in part anytime without an early-repayment penalty .
- Documentation the loan is paid in full.
In accordance with the Borrower’s Rights and Responsibilities Statement attached to the Master Promissory Note (MPN), the student is responsible for the following:
- Completing exit counseling before leaving school or dropping below half-time enrollment.
- Repaying loan according to repayment schedule even if the student has not completed academic program, is dissatisfied with the education received or is unable to find employment after graduation .
- Notifying the lender or loan servicer if the student:
- moves or changes address
- changes telephone number
- changes name
- changes Social Security Number
- changes employers, or employer’s address or telephone number changes
- Making monthly payments on loan after grace period ends, unless a deferment or forbearance is in effect.
- Notifying the lender or loan servicer of anything that might later change eligibility for an existing deferment or forbearance.