Rights & Responsibilities

With approximately 50% of all students taking out loans to help finance their education, it's likely that completing your online certificate will also mean entering into the world of loan repayment. Make sure you know your loan repayment rights and responsibilities.

When You Leave School
Understanding the details of your loan is crucial to repaying it and protecting your credit. If you received your student loan from the Federal government, your lender is required to provide you with exit counseling on interest rates and repayment terms. Check with your lender to make sure you're fully informed about your repayment options. In most cases, you'll have to start making loan payments about 6 months after you graduate or leave school, and your minimum monthly payment will be $50. The standard repayment period is ten to fifteen years, but you may be able to trade a longer term for a higher interest rate.

Your Loan: The Details
You have the right to know details about your loan, so when you graduate or leave school, you're adequately prepared to begin repayment. This includes:

• The full amount of your loan
• Your interest rate
• Any additional lender's fees
• Your repayment options
• Notification of loan repayment

Your lender should be willing to answer questions you have on the status of your loan repayment. The terms and conditions of repayment plans can be confusing, and you have a right to understand where you're sending your money.

Repayment Deferment and Forbearance
Depending on your loan, you may have a variety of repayment options. The grace period that begins after you graduate or leave school can be extended if you meet certain criteria. That extension, called a deferment, is often available to graduates who enter the armed forces, the Peace Corps, or continue their schooling with a new degree program.

Forbearance is a temporary reduction or postponement of your payments, and might include extending the time you spend repaying the loan. Other repayment plans, such as graduated or income-sensitive repayment, may also be available.

Loans: Your Responsibilities
You're responsible for making payments on your loan's principle and interest even if you weren't satisfied with your certificate, you left the program early, you cannot find employment, or you don't receive a bill. If you've applied for a deferment or forbearance on your loan, you must continue making payments until your request is granted. Your main responsibility is to make regular payments on your loans, and failure to do so can affect your credit for years.

By educating yourself about the rights and responsibilities associated with your loans, you can continue to build good credit as you eliminate your debt.