Rights & Responsibilities

If you've taken out educational loans to complete your online educational program, you're not alone--half of all students take out loans over the course of their educational career. Like many, completing your online bachelor's degree program will also mean dealing with loan repayment. As you complete your education, make sure you're aware of your loan repayment rights and responsibilities. 

Your Personalized Exit Counseling
For the sake of your credit and your stress level, it's important to understand the terms of your student loan repayment plan. If you received a Federal student loan, either the school or your lender is required to provide you with exit counseling. Be sure to attend this free counseling session, which may come in the form of group or one-on-one sessions. Your repayment questions will be answered, along with ideas on how to quickly and efficiently repay your loan.

Your loan package should come with a clear set of repayment instructions. In most cases, you'll have a grace period of about six months following graduation or leaving school before you'll need to begin repaying your loan. At that time, your monthly payment will likely be set at a minimum of $50 with a standard repayment period of ten years. You may be able to request changes to both your repayment period and your monthly payments, if necessary. You should attend the free exit counseling sessions to make sure you understand all of your repayment options.

Your Loan's Personalized Details
Your loan came with written information with loan repayment details, but you shouldn't worry if you lose this important information. When you graduate or leave your educational program for any reason, you have the right to re-request specific information about your loan rights and responsibilities, including: 

• Your interest rate and details
• Disclosure of the full amount of your loan
• Any additional penalties and fees

You are typically entitled to sign a statement confirming that you can repay your loan early without penalty. Once you've paid your loan in full, you're also entitled to notification of that fact. This notification will also appear on your credit, which can help you apply for large purchases or rental property in the future.

Your Repayment Rights
If a change in income or other financial changes make it difficult to make timely payments on your loan, you may be able to request a forbearance or deferment through your lender. A forbearance temporarily reduces your loan payments, sometimes extending your total repayment timeline. A deferment, on the other hand, postpones your loan payments and is often available to graduates who enter the Peace Corps, the armed forces, or those who choose to continue their schooling. If you want to go on to a master's degree program or you want a training certificate or additional bachelor's degree, your loan payments could also be postponed.

If you're having trouble making timely payments with the typical payment plan, alternative repayment plans, such as graduated or income-sensitive repayment, may also be available. Contact your private lender or your school's financial aid department for more information on your loan repayment options and rights.

Your Repayment Responsibilities
Your biggest responsibility is to make timely payments on your loan, even during times of financial strain. Loan payments are your responsibility if you left your educational program early, if you weren't satisfied with your degree program, you can't find a job, or even if you don't receive a monthly bill. Your loan could go into default if you fail to make timely loan payments; a default on your loan can affect your credit rating along with your purchasing power for years to come.

Educate yourself about the rights and responsibilities of your student loans, and you can build good credit as you work your way toward becoming debt-free.