Rights and Responsibilities of a Student Borrower
As a borrower, you have the right to:
- Repay the loan at any time without penalty.
- Be notified in writing if your loans are sold or transferred for servicing.
- A grace period before beginning repayment.
- Defer repayment for a specific period of time if you qualify.
- Receive a copy of your disclosure statement and repayment schedule.
- Have your federal loan obligation forgiven if you die or become permanently disabled.
- Contact information for FSA's Student Loan Ombudsman's Office at www.studentaid.gov/repay-loans/disputes/prepare/contact-ombudsman.
Before your repayment begins the lender must tell you:
- About the option to repay your loan at any time without penalty.
- Where to send payments.
- Where to write if you have questions about your loan.
- Your interest rate and total debt (principal and interest).
- When your payments are due and how much they will be.
- About refinancing, consolidation, and repayment options.
As a borrower, you are responsible for:
- Accurately completing and submitting the appropriate application forms by the published deadline dates (errors can delay or prevent you receiving federal aid). This includes FAFSA, Federal Direct Loan Entrance Counseling (before you can receive your first loan disbursement), Federal Direct Loan Master Promissory Note and Direct Loan Exit Counseling (when you leave school.)
- Using federal aid for funds for educational purposes only—such as; tuition and fees, books, off-campus housing, etc.)
- Submitting requested materials, corrections, or new information on a timely basis.
- Meeting the regulations and repayment schedules of federal loans.
- Informing the LDCC Office of Financial Aid of any grants, scholarships, or loans received from outside organizations.
- Informing the LDCC Office of Financial Aid of any information that has changed since you applied for federal aid (address, attendance status, etc.)
- Understanding the colleges Satisfactory Academic Progress requirements for maintaining financial aid eligibility.
You must notify your lender(s) if you:
- Graduate, withdraw from school, or drop below half-time status.
- Transfer to another school.
- Fail to enroll in the school during the period for which the loan was intended.
- Change your name, address, social security number, or employer.
- Have any other status change that would affect your loan (for example, if you had a deferment because of unemployment and then got a job).