Rights & Responsibilities

With half of all students taking out educational loans, it's likely that completing an online education will also mean dealing with loan repayment. As you complete your education, make sure you're aware of your loan repayment rights and responsibilities.

Attend Exit Counseling
Understanding the terms of your student loan is crucial to repaying it in a timely fashion and protecting your credit. If you received a Federal student loan, the school or your lender is required to provide you with exit counseling. In most cases, you'll have a grace period of about six months following graduation or leaving school or dropping below half-time enrollment status before you'll need to start making loan payments. The minimum monthly payment will likely be $50, and the standard repayment period is ten years, though you may be able to request a change to the monthly payment as well as the repayment period, if necessary. Attend your loan's exit counseling and make sure you understand the repayment options.

Your Loan: The Details
When you signed for your loan, you received written information with repayment details. When you graduate, leave your educational program, or drop below half-time enrollment you have the right to re-request specific information about your loan rights and responsibilities, which includes:

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

In most cases, you're entitled to 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.

Repayment Rights
If you have difficulty making payments on your loan, you may be able to request a deferment or forbearance. A deferment, or postponement of your payments, is often available to graduates who enter the armed forces, the Peace Corps, or continue their schooling.

A forbearance temporarily reduces your loan payments, sometimes extending your total repayment timeline. Alternative repayment plans, such as graduated or income-sensitive repayment, may also be available. Contact your school's financial aid office or your private lender for more information on these loan repayment rights.

Repayment Responsibilities
Your biggest responsibility is to make regular on-time payments on your loan. These payments are your responsibility even if you weren't satisfied with your degree program, you left your educational program early, you can't find a job, or you don't receive a monthly bill. Failure to make timely loan payments can put your loan in default, which can affect your credit rating and your subsequent purchasing power for years to come.

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