Borrowers Rights and Responsibilities
Student loan borrowers have rights to the following:
- Written information on his/her loan obligations.
- A grace period (six months for Stafford loan borrowers).
- A disclosure statement received before he/she begins repayment. This will include information about his/her interest rate, fees, balance owed, amount of payments and the number of payments.
- To be able to select a different type of repayment plan other than standard repayment if he/she qualifies.
- Deferment of repayment for certain defined periods (if requested and if he/she qualifies).
- Forbearance (if requested and if he/she qualifies).
- Prepayment of his/her loan(s) in whole or in part any time without an early-repayment penalty.
- Be able to change to a different repayment plan once monthly payments have begun by contacting the hold of his/her loan(s).
- A copy of his/her master promissory note.
- Documentation that his/her loan(s) is paid in full.
Student loan borrowers have the following responsibilities:
- To complete entrance counseling before receiving his/her first loan disbursement at Baker College.
- To complete exit counseling before leaving school or dropping below half-time enrollment.
Note: Baker College has a policy that states if the student loan borrower does not complete exit counseling, a hold will be placed on the student's official academic transcript and will not be released until the exit is completed.
- To repay the loan(s) even if he/she does not complete his/her academic program, is dissatisfied with the education received or unable to find employment after graduation.
- To notify the school and the lender or servicer of the following:
- name changes
- address changes
- phone number changes
- withdrawal from school or drop below half-time enrollment
- transfer to another school
- failure to enroll in school for the period of which the loan was intended
- updates in expected graduation date
- To make monthly payments on his/her loan(s) after leaving school (except during periods of deferment or forbearance).
- To notify the lender or servicer of anything that may alter his/her eligibility for an existing deferment.
If you have any questions regarding the rights and responsibilities mentioned above, please contact Baker College Financial Aid Office, or e-mail a System Student Loan Representative at firstname.lastname@example.org.