Student Loan Borrower Rights and Responsibilities
When you sign the Master Promissory Note (MPN) for your federal student loan, you're certifying that you've read and agree to the terms of the MPN including the borrower's rights and responsibilities statement. Below is a brief list of information included on the MPN statement. Save this document! You'll need to refer to it later when you begin repaying your loan.
Download the complete Borrower's Rights and Responsibilities Statement - (Document requires free Adobe Reader)
Borrower Rights
- You may prepay your loan in whole or in part at any time without penalty.
- You also have the right to request a forbearance or deferment during your repayment period. Forbearance is granted at the lender's discretion. However, lenders are required to grant deferments to eligible borrowers.
Borrower Responsibilities
- You must make on-time, monthly loan payments. The repayment period for each loan begins the day after your six-month grace period ends. There are five repayment options to choose from.
- You're obligated to make payments on your loan(s) even if you don't receive a billing statement or a repayment notice.
- You must repay the total amount of your loan, in addition to accrued interest, even if you don’t complete your education, don't complete your training within the regular time frame, don’t find a job in your field or you’re dissatisfied with your education.
- You must notify your school's financial aid office immediately if you change your enrollment status to less than half-time, withdraw or fail to re-enroll at the end of a term. You must also let them know if you change your local or permanent address during enrollment.
- Federal law also requires you to notify your lender if any of the following events occur before your loan is repaid:
- Change in your address, telephone number or e-mail address
- Change in your name or Social Security number
- Change your employer
- Drop to below half-time enrollment, withdraw from school or stop attending class
- Fail to enroll or re-enroll in school for the period for which the loan was intended
- Transfer to another school
- Graduate or change your expected graduation date
- Any other change in status that would affect your loan ( for example, loss of eligibility for an unemployment deferment by obtaining a job)
