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Borrower Rights & 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.