Your Responsibilities

Your major responsibility is the obvious one: you have to repay the loan. Even if you do not finish your school program or you do not get the job or salary you planned on, you have to repay what you borrow plus any accrued interest and fees. Some conditions and occupations will qualify you for loan forgiveness or discharge, but they are very few. And keep in mind that only in certain extreme and rare situations will federal student loans be discharged through bankruptcy.

You must also know your repayment status: Keep track of how much you owe, and when repayment is expected of you.

In addition, you must notify your lender and school if you:

• – Change your address, telephone number, or e-mail address
• – Change your name (e.g., maiden name to married name)
• – Withdraw from school or begin attending less than half-time
• – Transfer from one school to another
• – Change your employer, or if your employer’s address or telephone number changes
• – Have any other change in status that would affect your loan (e.g., if you find a job and thus become ineligible for an unemployment deferment)

You must notify your school’s financial-aid office if:

• – You reduce your enrollment in school to less than half-time
• – You withdraw from school, stop attending classes, or fail to re-enroll for any term
• – There is a change in your expected graduation date
• – You change your name, local address, permanent address, or e-mail address

You are expected to make payments even if you do not receive a bill or repayment notice, so make sure you update your lender with your current address every time you move.