Rights and responsibilities

When you borrow from the Stafford and Grad Plus Loan program you have certain rights and responsibilities associated with loans.  Your MPN contains a rights and responsibilities statement.  It includes the following:

Rights

• To written information on your loan obligation and information on your rights and responsibilities.
• To a grace period
• To information, before you enter repayment on interest rate, fees, balance owed and the amount and number of monthly payments.
• To a deferment, if you qualify and request it.
• To forbearance, if you qualify and request it.
• To prepay your loan in whole or part without penalty.
• A copy of your MPN and return of your prom note when your loan is paid in full.
• Documentation that my loan(s) is paid in full.

Responsibilities

• Attend an Exit Interview when you leave school.
• To repay my loans(s) even if I do not complete my academic program, I am dissatisfied with the education I received, or am unable to find employment after graduation.
• Make payments according to your repayment schedule.
• Notify your lender/holder of the following and anything that might affect your eligibility for deferment, ability to pay, or if you qualify for cancellation.
  • Move/Change address or telephone.
  • Change name or social security number.
  • Withdraw, transfer or drop below ½ time enrollment.
  • Fail to enroll for a period covered by the loan.
  • Change your graduation date or graduate.

1. I have a right to the grace period on my Stafford loans
   • True
   • False

   You do have a right to a grace period on your Stafford loans

2. I may not prepay my loan
   • True
   • False

   You may prepay your loan

3. It is my responsibility to notify my servicer of any name, address, or status change
   • True
   • False

   It is your responsibility to notify bank of any name, address, or status change

4. Once I leave school, I cannot have any additional deferments
   • True
   • False

   Once you leave school, you can have additional deferments