Borrower Rights and Responsibilities

Your rights as a borrower

  • You may accept all, some, or none of the student loan funds offered.
  • You are entitled to a copy of your promissory note, which outlines the terms and conditions of your student loan, and will receive it before or after the loan is made.
  • Before you begin to repay, your loan holder is required to give you a payment schedule and detailed information about interest rates, fees, the balance you owe, and your repayment options.
  • You have a right to defer payments for certain defined periods or to request forbearance, if you qualify.
  • You may be eligible to repay under a graduated or income-based repayment plan.
  • For federal student loans and most private student loans, you may prepay in whole or in part at any time without penalty.

Your responsibilities as a borrower

  • You must notify your school if you want to borrow less than the amount that has been awarded.
  • You must repay your student loans on time and in full even if you do not finish your education, get a job, or feel satisfied with the education you received.
  • You must notify your loan holder or servicer immediately of any change to your name, address, telephone number, or Social Security number.
  • You must make scheduled monthly payments even if you do not receive a bill or coupon booklet.
  • First-time Stafford and Perkins borrowers must receive entrance counseling before funds can be disbursed.

Source: NASFAA