STATEMENT OF BORROWER'S RIGHTS AND RESPONSIBILITIES

Borrower's Rights

1. STAFFORD checks MAY be co-payable to me and the school. Unless I authorize EFT, the check must require my endorsement. All checks/EFT's must be sent to the school.
2. The lender must provide me with a copy of the completed promissory note when the loan is made. The lender must return the note to me when the note is paid in full.
3. If the lender assigns (e.g. sells) the loan and the right to receive payments, I must be sent a notification which specifically states my obligation to the new holder.
4. If I meet all the eligibility criteria, I may have the right to a grace period before repayment begins. Grace period is defined differently per loan program. (Check with your FINANCIAL AID OFFICER regarding your eligibility.)
5. I have the right to prepay the whole or any portion of the loan at any time without a penalty.
6. I have the right to request written information on loan obligations including loan consolidation and refinancing.
7. I have the right to a deferment of principal and/or interest repayments if certain conditions exist. Under deferment, I am not required to make payments on the loan principal and/or interest for a period of time.
8. The lender will provide me with a repayment schedule before the repayment period begins.
9. My obligation will be canceled in the event of my death or permanent disability in accordance with applicable Federal regulations.
10. I have the right to request forbearance. (Check with your LENDER for eligibility requirements.)

 Borrower's Responsibilities

1. I understand that I must repay all principal and interest, regardless of my satisfaction with the education I received, or my failure to complete my program of study, or my failure to obtain employment. If I do not make payments on time or if I default, the total amount to be repaid may be increased by additional interest costs, late charges, attorney's fees, court costs and other collection costs.
2. I understand that the lender may charge me an insurance premium and that I will not be entitled to any refund of this premium.
3. I must immediately notify my lender if any of the following occurs before the loan is repaid

• change of address
• name change (marriage, divorce, etc.)
• failure to enroll in an eligible institution for the period for which the loan is intended
• transfer to another school
• withdrawal from school or change in enrollment status
• graduation
• cessation of participation in an internship/residency program or other eligible deferment status

4. I must repay the loan in accordance with a repayment schedule. Repayment terms are listed under REPAYMENT in the promissory note.
5. I must notify the lender of any occurrence which may affect my eligibility to receive or to continue to receive a deferment of principal and/or interest payments.
6. I understand that this loan must be repaid. If I do not make payments when due, the lender may declare my loan in default. If I default, I may forfeit tax refunds that may be due me, my wages may be garnished and liens may be placed against my property.
7. I understand that I am required to participate in an entrance/exit interview process.