FAO Borrower’s Rights and Responsibilities
You are responsible for:
Repaying your loan, including accrued interest and fees, regardless of whether you complete your education, complete your program of study in the normal period allowed for program completion, obtain employment, or are satisfied with your education.
Completing exit counseling before you leave school or drop below half-time enrollment.
Notifying your lender/servicer within 10 days if you change your name, address or phone number; drop below half-time enrollment status; withdraw from school or transfer; or change your graduation date.
Directing all correspondence to your lender/servicer, which could change during the life of the loan.
Making monthly payments on your loan after leaving school, unless you are in your grace period or have been granted a forbearance or deferment.
Informing your lender/servicer of anything that might change your eligibility for an existing deferment.
You have a right to:
Receive a copy of your promissory note before or after the loan is made.
Receive a disclosure statement, including information about interest rates, fees, loan balance, and the size and number of payments, before repayment of your loan begins.
Benefit from a grace period or deferred payment on certain loans after you leave school or drop below halftime enrollment, before your loan payments begin.
Prepay all or part of your loan without a prepayment penalty.
Choose from among several repayment options and periodically change your repayment plan, if necessary to obtain an affordable loan payment.
Receive written notice if your loan is sold to another lender.
Apply for a deferment (if eligible) of your loan payments for certain specified periods.
Request forbearance from your lender/servicer if you’re unable to make payments and don’t qualify for a deferment.
Receive proof when your loan is paid in full.