Student Loan Rights

While there are many responsibilities that come with your student loans, there are certain rights you have as a student loan borrower as well.

Before your Creditor Makes its First Disbursement

You should receive the following information about your loan:

  • Full (principal) amount of the loan
  • Interest rate
  • Date you must start repaying the loan*
  • All charges (fees) you must pay
  • Annual and total amounts you are eligible to borrow
  • Maximum repayment period
  • Minimum repayment amount
  • Definition of default
  • List of available options for consolidating and/or refinancing your loan; and
  • Promise that you can prepay your loan at any time without penalty.

* This is normally based on the expected graduation date.

When Each Disbursement is Received by Your School

student loan rights

The picture is fake but the concept of student loan rights is very real.

No earlier than 30 days before and no later than 30 days after the school receives a payment from your student loan, it must notify you when it credits your account for the disbursement. You may cancel all of the disbursement, or even just a portion of the student loan disbursement by informing the school of your refusal to accept this payment from your loan creditor within the later of 14 days after the date your school sends this notice, or the first day of the payment period. If you receive the loan funds directly by check, you have the right to refuse the funds and return the check.

When You Graduate

Before you graduate, you should receive the following information about your loan from your school, lender, and/or student loan servicer:

  • Amount of your total debt (principal and interest)
  • Amount of your interest rate
  • Contact information for the lender and/or servicer
  • Explanation of the fees you might be charged during the repayment period
  • Explanation of available options for consolidating or refinancing your loan
  • Statement that you can prepay your loan at any time without penalty

Depending on which type of loan you secure, your school may provide you with some or all of this information.

More student loan information:

Student Loan Responsibilities

Student Loan Deferment