Rights & Responsibilities

With about 50% of all students taking out educational loans, it's likely that completing your online educational program will also mean entering into the world of student loan repayment. Know your loan repayment rights and responsibilities, and you'll have the power to make informed decisions about your financial future. 

After Leaving School
Understanding the details of your loan is crucial to protecting your credit. If you have a Federal student loan, your lender is required to provide you with exit counseling on your repayment terms and interest rates. During the first months of your repayment, contact your lender to make sure you're fully informed about your repayment options including payment plans and the benefits of online payments. In most cases, you'll have to start making loan payments six to nine months after you graduate or leave school for any reason, and your payments will a minimum of $50 a month. The standard repayment period is ten to fifteen years, but you may be able to trade a longer term for a higher interest rate. 

Know Your Loan's Details
Take advantage of mandatory Federal loan counseling; your loan counseling session deal with all aspects of your Federal loan, including:  

• Your loan's full amount
• Your interest rate
• Loan repayment options
• How to communicate with the lender
• Any additional lender's fees

Your loan repayment's terms and conditions can be confusing, and you have a right to know where you're sending your money. Your lender should be willing and able to answer any questions you have on the status of your loan repayment.

Your Loan: Repayment, Deferment, and Forbearance
The details of your loan provide a variety of repayment options. Your repayment grace period can be extended if you meet certain criteria. That extension, called a deferment, may be available if you enter the Armed Forces, join the Peace Corps, or continue your schooling with a new degree program. 

Loan Forbearance refers to a temporary postponement or reduction of your payments, and might extend the time you spend repaying the loan. Income-sensitive or graduated repayment plans may also be available to ease the pain of payment or save you money in the long run. 

Your Loan Responsibilities
You'll need to repay your loan even if you weren't satisfied with your education, you cannot find stable employment, you left your educational program early, or you don't receive a financial statement. You must make regular payments on your loan. Failure to do so could affect your credit for years, and you should contact your lender immediately if you're worried about making payments on time. If you've applied for a loan forbearance or deferment, you must continue to make payments on the loan until your request is granted.

It's a right and a responsibility to build good credit as you eliminate your educational debt.