Borrower Responsibilities

When a student borrows money under the Federal Direct Loan Program, they become a partner with the federal government. The government makes money available to pay for education, and the student agrees to pay back the loan amount with interest and on time. The student’s responsibilities include:

  • Completing all application forms truthfully and accurately.
  • Reading, understanding and keeping copies of all forms.
  • Providing additional documentation or information as requested.
  • Notifying the loan company or school of anything that affects ability to repay the loan.
  • Informing the loan company of a change in name, address or social security number.
  • Informing the loan company of graduation, dropping out of school, transferring to a different school, or dropping below a half-time enrollment status as defined by the school.
  • Knowing who holds the loan. The U.S. Department of Education hires a loan company to handle the account.  It is critical that students know who services their loan.