Direct Loan Borrower Rights and Responsibilities

What are my rights as a Direct Loan Borrower?

You have a right to:

  • written information about your loan obligation, information on loan consolidation and refinancing, and a list of your rights and responsibilities as a borrower.
  • a copy of your promissory note, and return of the note when your loan is paid in full.
  • information, before you begin repayment, on interest rates, fees you might be charged and how they are collected, and the total balance owed on your loans.
  • a loan repayment schedule that lets you know, before you begin repayment, when your first payment is due, the number and frequency of payments, and the amount of each payment.
  • an explanation of default and its consequences.
  • an explanation of the grace period, and of federal interest benefits, if you qualify for those benefits.
  • pre-pay your loan at any time without penalty.
  • a description of applicable deferment, forbearance and discharge provisions.


What are my responsibilities as a Direct Loan Borrower?

You have a responsibility to:

  • repay the loan according to the repayment schedule even if you don’t receive a bill or repayment notice.
  • notify your Direct Loan Servicer in advance if you will be late in making a payment or if you are unable to make payments.
  • notify your Direct Loan Servicer of anything that affects your ability to repay, or your eligibility for a deferment, forbearance or cancellation.
  • notify the college, if you are still enrolled, or your Direct Loan Servicer of any change in your name, address, Social Security Number or any change in your employer’s name or address.
  • notify your Direct Loan Servicer if you fail to enroll for the period covered by the loan, or if you graduate, withdraw from school, begin attending less than half-time, or transfer to another school.
  • receive online or in-person entrance counseling before you are given your first loan disbursement and exit counseling before you leave school.