Borrower Rights and Borrower Responsibilies

Borrower Rights and Borrower Responsibilies

When a student takes on a student loan he/she has certain rights and responsibilities

The borrower has the right to receive the following information before the first loan disbursement:

  • The full amount of the loan;
  • The interest rate;
  • When the student must start repaying the loan;
  • The effect borrowing will have on the student's eligibility for other types of financial aid;
  • A complete list of any charges the student must pay (loan fees) and information on how those charges are collected;
  • The yearly and total amounts the student can borrow;
  • The maximum repayment periods and the minimum repayment amount;
  • An explanation of default and its consequences;
  • An explanation of available options for consolidating or refinancing the student loan;
  • A statement that the student can prepay the loan at any time without penalty.

The borrower has the right to receive the following information before leaving school:

  • The amount of the student's total debt (principal and estimated interest), what the student's interest rate is, and the total interest charges on the loan(s);
  • A loan repayment schedule that lets the student know when his/her first payment is due, the number and frequency of payments, and the amount of each payment;
  • If the student has student loans, the name of the lender or agency that holds the student's loan(s), where to send the student's payments, and where to write or call if the student has questions;
  • The fees the student should expect during the repayment period, such as late charges and collection or litigation costs if delinquent or in default;
  • An explanation of available options for consolidating or refinancing the student's loan;
  • A statement that the student can repay his/her loan without penalty at any time.

The borrower has a responsibility to:

  • Understand that by signing the promissory note, the student is agreeing to repay the loan according to the terms of the note;
  • Make payments on the student loan even if the student does not receive a bill or repayment notice;
  • Make payments on the student loan even after applying for a deferment or forbearance, until notification that the request has been granted;
  • Notify the appropriate representative (institution, agency, or lender) that manages the student's loan when the student graduates, withdraws from school, or drops below half-time status; changes his/her name, address, or Social Security Number, or transfers to another institution.
  • Receive entrance counseling before being given the first loan disbursement, and receive exit counseling before leaving school.

Entrance and Exit Interview/Loan Counseling

The Department of Education requires that any students receiving Federal Direct loans be notified concerning their loans. The University counsels each student regarding loan indebtedness and gives each student an entrance test and mails an exit interview regarding the loan to make sure the student understands the amount borrowed and the student's rights and responsibilities regarding repayment. The student must report to the Student Accounts Office prior to withdrawal or graduation for loan counseling. The purpose of this session is to inform the student of their tentative total loans received while in attendance at the University, refunds that may be made, and to provide the student with an estimated payment schedule. If the student is unable to meet with the Student Finance Office, an exit interview will be mailed. Students are also informed of the option to conduct entrance and exit interviews online at NSLDS Student portal. Student must login using their personal identifiable information and FASFA PIN. Click here for access to the NSLDS Student portal.

In order to qualify for any form of financial aid, the student must be enrolled in a program which is approved for financial aid by the US Dept. of Education. Contact Stratford University's Student Accounts Office for more specific information. See the student accounts office, the student loan default specialist, or the Debt Management Guide located in the Student Accounts Office to find out more information regarding deferments and forbearances.

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We’ve teamed up with Solutions at ECMC to answer all of your student loan repayment questions. Solutions is a service of the non-profit organization ECMC and is dedicated to helping students manage educational loans. Their resources are available to you free of charge. To contact a Solutions Student Loan Repayment Advisor, email or web chat, or call them at 1-877-331-3262.