Become well informed before you take on education loans. It’s important that you are aware of your rights and responsibilities regarding your loans.

Your rights as a borrower:

• You may accept all, some, or none of the loan funds offered.
• You are entitled to a copy of your promissory note, which outlines the terms and conditions of your loan, and will receive it before or after the loan is made.
• Before you begin to repay, your loan holder is required to give you a repayment schedule and detailed information about interest rates, fees, the balance you owe, and your repayment options.
• You have a right to defer payments for certain defined periods or to request forbearance, if you qualify.
• You may be eligible to repay under a graduated or income-based repayment plan.
• For federal and most private loans, you may prepay in whole or in part at any time without penalty.

Your responsibilities as a borrower:

• You must notify your school if you want to borrow less than the amount that has been awarded.
• You must repay your loans on time and in full even if you do not finish your education, get a job, or feel satisfied with the education you received.
• You must notify your loan holder or servicer immediately of any change to your name, address, telephone number, or Social Security Number.
• You must make scheduled monthly payments even if you do not receive a bill or coupon booklet.
• First-time Stafford and Perkins borrowers must receive entrance counseling before funds can be disbursed.

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