Rights & Responsibilities

With 50% of all students taking out loans to help finance their education, it's likely that completing your online educational program will also mean entering into the world of loan repayment. Make sure you are clear about your loan repayment rights and responsibilities.

Exit Counseling
Understanding the terms of your loan is crucial to repaying it and protecting your credit. If you received your student loan from the Federal government, your lender is required to provide you with exit counseling. Check with your school or with the agency that provided your loan to make sure you've been fully informed about your repayment options. In most cases, you'll have to start making loan payments within six months of graduation or leaving your educational program, and the minimum monthly payment will be $50. The standard repayment period is 10 years.

Information about Your Loan
You received written information when you signed for your loan, and upon graduation or leaving your educational program, you have the right to receive specific information about your loan obligations and repayment options. This includes:

• Disclosure of the full amount of your loan
• Your interest rate
• Any fees that will be charged

You are entitled to an explanation of your repayment options, and in most cases, a statement confirming that you can repay your loan early without penalty. You're also entitled to notification when you've repaid your loan in full.

Repayment Rights: Deferment and Forbearance
Depending on the type of loan, you may have a variety of repayment options. A grace period is the amount of time you have after graduation (or leaving your educational program) until you're required to start making payments.

If you have difficulty making payments, you may be able to request a deferment or forbearance. Deferment or a postponement of your payments is often available to graduates who enter the armed forces, the Peace Corps, or graduate school.

Forbearance is a temporary reduction or cessation of your payments and may include extending your repayment timeline. Alternative repayment plans, such as graduated or income-sensitive repayment, may also be available.

Responsibilities
Your primary responsibility is to make regular payments on your loan's principle and interest. You're responsible for these payments even if you weren't satisfied with your certificate program, you can't find a job, you left your program early, or you don't receive a bill. If you apply for a deferment or forbearance, you must continue making payments until you are notified that your request has been granted. Failure to make timely loan payments can result in default, which can affect your credit for years. By educating yourself about your rights and responsibilities, you can continue to build good credit and work your way toward being debt-free.