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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;
- 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.