Student/Borrower Rights and Responsibilities

Under the US Department of Education William D. Ford Direct Loan program, each student/borrower has certain rights and responsibilities.

Your responsibilities include:
    1. Complete Entrance Counselling. Before you are permitted the complete your electronic MPN, you will be counselled on your obligations, rights and options under the terms of your loan.
    2. Repay your loan. Your obligation to repay became legally binding when you signed the MPN and authorised the electronic transfer of funds to your account. You are required to repay the loan, even if you:
      a. Do not complete your degree
      b. Were not satisfied with the education or other services you received from your school
      c. Cannot find employment
    3. Pay on Time. You are expected to make payments on time and as a result you may be offered a repayment incentive which may reduce your interest. Please contact the Direct Loan Servicing Centre for further information.
    4. Make a minimum payment. The minimum monthly repayment will vary depending on the amount you borrow and your repayment plan.
    5. Notify Avondale College and your Loan Servicer if there are any changes to your:
      a.Current address/phone numbers/name
      b.Social Security Number
      c.Enrolment status
      d.Do not enrol at Avondale
      e.Anticipated graduation date
      f.Driver's license number
      g.References
      h.Permanent Address
      i.Expected employer
    6.Complete Exit Counselling. Before you leave Avondale or graduate you be counselled on your obligations, rights and options under the terms of your loan. Repayments options, deferments and other important information you may need during your repayment term will be reviewed.

You rights include:
    1.Master Promissory Note. The MPN details the terms and conditions of your loan.
    2.Notice of Guarantee and Disclosure Statement. Your Loan Servicer will provide you with a disclosure statement before or at the time your loan is disbursed. This document states the amount of your loan (principal) and any fees deducted from the principal. It also discloses the interest rate, the annual percentage rate, and an estimate of the total amount you will have to repay. Be sure you receive this from your lender and keep it in your files.
    3.Repayment Schedule. During your grace period, your Loan Servicer will send you a detailed Repayment Schedule. This document states the number and amount of monthly repayments and the date the first payment is due. At the same time, you will receive information about other repayment options, such as the Graduated, Extended, Income Contingent and Income-Based Repayment Plans.
    4.Notification of Loan Transfer. If your Loan Servicer sells or transfers your loan to another Servicer and it changes where your loan payments are sent, you will receive a Notification of Loan Transfer. This document contains addresses, phone numbers and other information needed to make payments and keep in touch with the new Servicer of the loan. The terms of your loan will not change if your loan is sold or transferred.

    You should receive the Borrower's Rights and Responsibilities Statement with your MPN which details the terms and conditions of your loan. It is important that you read and understand this document. If you do not have a copy of this statement, you can get a copy from the Financial Aid Officer or Student Finance Office.