Responsibilities of Repayment
Borrowing requires a great deal of responsibility. When you sign a promissory note, you're agreeing to repay the loan according to the terms of the note. The promissory note is a binding legal document and states that, except in cases of discharge, you must repay the loan even if you:
- Don't complete your education.
- Aren't able to get a job after you complete your program of study.
- Are dissatisfied with or don't receive the education you paid for.
You're also required by your promissory note to let your loan servicer know if you:
- Change your address or telephone number. (Filing an address change with the post office is not enough.)
- Change your name.
- Transfer to another school.
- Drop below half-time enrollment, withdraw or graduate.
- Change your anticipated graduation date.
Providing this information can prevent your loan from going into default. If your loan servicer thinks you should be in repayment and doesn't know how to contact you, your loan will default and prevent you from getting more student aid, as well as other consequences.
Remember, you must make payments on your loan even if you don't receive a bill or repayment notice. Billing statements or coupon books are sent to you as a convenience, but you're obligated to make payments even if you don't receive any notice.
If you apply for a deferment or forbearance, you must continue to make payments until you're notified that the request has been granted. Deferment forms are available for your convenience. You should keep a copy of any request form you submit, and you should document all contacts you have with the holder of your loan.
Possibly the most important thing you can do is to make sure you understand and take advantage of your repayment, deferment, forbearance and consolidation options.