Statement of Borrower's Rights & Responsibilities
Your education loan is a serious, legally binding contract between you and the holder of your loan. It is important for you to understand your rights and responsibilities, and the consequences if you become delinquent or default on your loan.
My Rights as a Borrower
- My lender must give me written information regarding my loan obligations, and information on borrower’s rights & responsibilities, including my options for loan consolidation and refinancing.
- My lender must give me a copy of my promissory note when my loan is made and provide me with proof of cancellation when my loan is paid in full.
- My lender will provide me with a repayment schedule and detailed information about interest rates, fees, balance owed and repayment options that are available to me before my loan goes into repayment.
- My lender must notify me if the address changes to where I send my payments.
- I have the right to a grace period, deferred payment and forbearance, if I meet the qualifications and lender’s criteria.
- I may repay my loan in whole or in part at any time without penalty.
My Responsibilities as a Borrower
- I must complete the Entrance Counseling process before my student loan can be disbursed.
- I must complete the Exit Counseling process before I leave the Academy.
- I must stay in satisfactory attendance and academic progress.
- I agree to pay my student loan even if I do not complete the program, am unable to find employment after graduation or are dissatisfied with the education I received.
- I must notify my lender within 10 days if I; change my personal information, such as; name, address, phone number, etc. Change my graduation date, withdraw from school, drop below half-time status, transfer to another school or fail to enroll in school for the period for which the loan was intended.
- I must make monthly payments, unless I have a deferment or forbearance.
- I must notify my lender of anything that might alter my eligibility for an existing deferment or forbearance.
- I must notify my lender if there is a change in my employer or my employer’s address.
Consequences of Delinquency & Default
- If I fail to make monthly payments on my loan, my delinquency and/or default will be reported to the credit bureaus. This will seriously affect my credit rating and my ability to borrow from any source in the future.
- The entire unpaid balance, as well as accrued interest, may become immediately due and payable.
- I will be unable to receive any additional federal student aid.
- My federal income tax refunds may be seized.
- My wages could be garnished.
- My account could be turned over to a guarantee agency, which will continue to collect the balance due from me.
- I may be charged attorney’s fees and other costs of collecting me debt.
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