Your Rights as a Borrower
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
- Date 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 FFEL Program 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.
- Continue to make payments 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 to receive exit counseling before leaving school.
- Continue to meet basic eligibility requirements, maintain satisfactory academic progress (SAP), and complete your FAFSA annually, once you qualify for FSA.
If you want additional information about your rights and responsibilities, the terms of loan repayment (including loan repayment schedules), the necessity of loan repayment and required loan exit counseling can use the link for the Department of Education.
American Public University System has partnered with ECMC Solutions, a professional student loan counseling company.
- The ECMC Solutions will assist students with questions and repayment options available in the student loan program.
- This is a free service for all students and alumni in federal loan repayment or who are in need of deferment/forbearance assistance.
- If you have questions, comments, or concerns about repaying your student loan, ECMC Solutions has expert student loan advisors that are ready and willing to provide assistance.
- Unlike private student loans, the Federal Student Loan Program provides various repayment options and alternative ways to postpone payment.
- We encourage you to utilize this service and call ECMC Solutions for more information.
- ECMC Solutions can be reached at 877-331-3262.