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Borrowers Rights & Responsibilities
As a federal loan borrower you have certain rights, including the right to know all of the particulars about your loan—specifics on when you will start to pay it, who owns your loan(s), options during repayment and much more. Naturally, whenever you borrow money, you are bound by all of the terms and provisions of the loan document. Naturally, by borrowing money
and agreeing to pay it back, you are also bound by many important
responsibilities during the life of the loan.
YOUR RIGHTS AS A STUDENT BORROWER
Before you begin to repay your loan, your lender must provide
a repayment schedule and detailed information about interest
rates, fees, the balance you owe, and your repayment options.
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You have a right to defer payments for certain defined periods or to request forbearance,
if you qualify.
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You may be eligible to repay under a
graduated or income-based schedule.
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For federal and most private loans,
you may prepay in full or in part at any time without penalty.
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You will be notified when your loan
is paid in full.
YOUR RESPONSIBILITIES AS A STUDENT BORROWER
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You must repay your loans (including
interest, insurance, or origination fees) on time even if
you don't finish your education, don't get a job, or don't
feel satisfied with the education you receive.
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If you request deferment or forbearance,
you must continue to make scheduled payments until your
loan is placed in deferment or forbearance.
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You must notify your loan holder or
servicer immediately of any change to your name, address,
telephone number, employer, or Social Security number.
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Attend exit counseling and provide updated
personal information, such as address, telephone number,
and employment.
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