Borrower Rights and Responsibilities

It is important that you are aware of your rights and responsibilities regarding your student loans. You may wish to print and refer to the listing below throughout your years at Baylor University.

Your rights as a borrower 

• You may accept all, some, or none of the student loan funds offered.
• Receive written information on my loan obligations and information on my rights and responsibilities as a borrower (provided in Entrance Counseling, Promissory Note, and a portion is listed in this documentation). 
• You are entitled to a copy of your promissory note, which outlines the terms and conditions, plus an explanation of eligible grace periods, of your student loan, and will receive it before or after the loan is made. 
• Before you begin to repay, your loan servicer is required to give you a payment schedule and detailed information about interest rates, fees, the balance you owe, and your repayment options. 
• Notification from the Department of Education if your loan is transferred to another servicer without my consent.
• You have a right to defer payments for certain defined periods or to request forbearance, if you qualify and request it. 
• For federal student loans and most private student loans, you may prepay in whole or in part at any time without penalty. 
• Receive documentation when your loan is paid in full.

Your responsibilities as a borrower

• You must notify Baylor University’s Student Financial Aid Office if you want to borrow less than the amount that has been awarded. 
• You must repay your student loans on time and in full even if you do not finish your education, get a job, or feel satisfied with the education you received. 
• You must notify your loan servicer immediately of any change to your name, address, telephone number, Social Security number, or change employers (or if your employer’s address or telephone number changes). 
• You must make scheduled monthly payments even if you do not receive a bill or coupon booklet. 
• First-time Direct Subsidized/Unsubsidized Loan borrowers must receive entrance counseling before funds can be disbursed.
• First-time Direct Grad PLUS Loan borrowers must receive entrance counseling before funds can be disbursed. 
• You are required to complete exit counseling before I graduate, leave school, or drop below half-time enrollment.
• Notify my loan servicer of anything that may alter my eligibility for an existing deferment or forbearance.