Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement
Important Notice: This Borrower’s Rights and
Responsibilities Statement provides additional information about the terms and conditions of the loans you receive under the accompanying Master Promissory Note (MPN) for Federal Direct Stafford/Ford Loans (Direct Subsidized
Loans) and Federal Direct Unsubsidized Stafford/Ford
Loans (Direct Unsubsidized Loans). Please keep this
Borrower’s Rights and Responsibilities Statement for your records. You may request another copy of this
Borrower's Rights and Responsibilities Statement at any time by contacting your servicer.
Throughout this Borrower’s Rights and Responsibilities
Statement, the words “we,” “us,” and “our” refer to the U.S.
Department of Education. The word “loan” refers to one or more loans made under the accompanying MPN.
1. The William D. Ford Federal Direct Loan Program.
The William D. Ford Federal Direct Loan (Direct Loan)
Program includes the following types of loans, known collectively as “Direct Loans”:
Federal Direct Stafford/Ford Loans (Direct
Federal Direct Unsubsidized Stafford/Ford Loans
(Direct Unsubsidized Loans)
Federal Direct PLUS Loans (Direct PLUS Loans)
Federal Direct Consolidation Loans (Direct
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (HEA),
20 U.S.C. 1070 et seq.
You must complete a Free Application for Federal Student
Aid (FAFSA) before you receive a Direct Subsidized Loan or Direct Unsubsidized Loan.
Direct Loans are made by the U.S. Department of
Education. We contract with servicers to process Direct
Loan payments, deferment and forbearance requests, and other transactions, and to answer questions about Direct
Loans. We will provide you with the address and telephone number of your servicer after the school notifies us that the first disbursement of your loan has been made.
2. Laws that apply to this MPN. The terms and conditions of loans made under this MPN are determined by the HEA and other applicable federal laws and regulations. These laws and regulations are referred to as
“the Act” throughout this Borrower’s Rights and
Responsibilities Statement. State law, unless it is preempted by federal law, may provide you with certain rights, remedies, and defenses in addition to those stated in the MPN and this Borrower’s Rights and
4. About the MPN. You may receive more than one loan under this MPN over a period of up to 10 years to pay for your educational costs, as long as the school you are attending is authorized to use the multi-year feature of the
MPN and chooses to do so.
If your school is not authorized to use the multi-year feature of the MPN or chooses not to do so, or if you do not want to receive more than one loan under this MPN, you must sign a new MPN for each loan that you receive.
If you do not want to receive more than one loan under this MPN, you must notify your school or your servicer in writing. 5. Use of your loan money. You may use the loan money you receive only to pay for your authorized educational expenses for attendance at the school that determined you were eligible to receive the loan.
Authorized expenses include the following:
6. Information you must report to us after you receive your loan. You must notify your servicer and/or the financial aid office at your school about certain changes.
The length of the program or the remaining portion of the program in which you are enrolled, if it is less than a full academic year;
Your cost of attendance;
Your Expected Family Contribution;
Other financial aid you receive; and
Your remaining eligibility under the annual or aggregate loan limits.
The actual amount you receive for an academic year may be less than the maximum annual amounts shown in the