Erie Community College, State University of New York

Rights  & Responsibilities for Borrowers
Promissory Note

• You must sign a Master promissory note before you can receive any guaranteed education loan funds. This is your promise to repay the loan. You do not have to sign a promissory note for subsequent loans with the same lender.
• You must comply with the provisions of any promissory note or other agreements you sign.
• Read and keep the Rights and Responsibilities portion of your loan application and a copy of the completed and signed promissory note.
• The lending institution must return the original promissory note to you when you pay the loan in full.

Changing Conditions

• Notify the bank or the Higher Education Services Corporation immediately if you do any of the following: fail to enroll for the period for which the loan was intended, leave school for any reason, attend less than half-time, transfer from one school to another, graduate, or change name and address.
• You must notify your school and your bank of any change in name or address.
• If the bank sells your loans to another bank, you must be notified in writing.

Repayment Terms

• When you get a loan, the terms of repayment are explained. It is your responsibility to understand these terms and follow them.
• You are responsible for repayment of all loans, including interest and any fees, even if you do not finish school.
• An exit interview with the school Financial Aid Officer (or at www.mapping-your-future.org) is required when you leave school. The aid officer will explain loan repayment terms to you.
• You should contact your bank to discuss a repayment schedule with them.
• You have a right to repay part or all of the loan ahead of schedule without penalty.
• Under certain conditions, you may be able to defer repayment of your loan. When you apply for a loan, ask the lending institution to explain what these conditions are. If you receive a deferment, you must notify the bank when the deferment condition no longer exists.
• If you are financially unable to make payments, you have a right to ask the bank to allow any of the following: a short period during which you make no payments of principal, an extension of time to make payments, or an opportunity to make smaller payments than originally scheduled. However, the bank is not required to approve your request.

Failure to Repay Your Loan

• If you fail to meet your loan repayment terms, you are delinquent. If you continue to be delinquent, you are in default and the entire balance becomes due.
• The bank will give you written notice of your failure to repay before declaring your loan in default. The notice will be sent to the address which you have provided.
• You should keep in close contact with your bank if you are having financial problems. They will work with you in maintaining your credit standing.