Student Rights and Responsibilities

WHAT YOU NEED TO KNOW

As a borrower of at least one Federal Direct Loan, subsidized and/or unsubsidized, we would like to provide you with your rights and responsibilities. Borrowing funds is an important decision and, while we understand it is a tool to help you finance your education, we want you to be aware of the various details to consider when borrowing student loans.

Loan Eligibility

In order to maintain eligibility for your Federal Direct Loans, you must:
- Complete a FAFSA each year
- Be a US Citizen or eligible non-citizen
- Be enrolled at least half time in a degree-seeking program
- Not have borrowed more than the aggregate loan limit ($31,000 for dependent undergraduates, $57,500 for independent undergraduates and $138,500 for graduate students)
- Not currently be in default on any other federal student loans
- Be maintaining Satisfactory Academic Progress

Steps Needed for Your Loan to be Processed

If you have never borrowed a federal student loan before, there are two required steps that must be completed before the loan(s) can be fully processed. The Master Promissory Note is the legal agreement with the U.S. Department of Education that you intend to repay the loan according to the terms provided and the Entrance Counseling is an extensive lesson intended to educate you on all of the loan details. These steps must only be completed one time while you are at Capital and we encourage you to take your time and read all of the information provided. Be sure to login to the site using the credentials used to access your FAFSA electronically. Once we receive confirmation from the U.S. Department of Education that you have completed both steps, we will be able to disburse your loan.

Terms of your Loan

Please see our Student Loan Fact Sheet for a basic overview of the terms of your loan. This site is updated annually as the interest rate on new loans changes on July 1 of each year. You may also visit www.studentloans.gov for more thorough information. Be aware that when you completed a Master Promissory Note, you gave your permission for federal loans to be processed on your behalf each year for up to 10 years (length of time the MPN is valid). You will be provided the annual loan amount awarded each year at Capital through WebAdvisor and it is always your right to reduce or cancel any portion of your loan. As stated in your Loan Disbursement Notice, you have 14 days after each disbursement to cancel any portion of the loan disbursed, during which time all fees and interest will be removed on the cancelled/returned portion of the loan.

Release of Information

All Federal Direct Loan information will be submitted to the National Student Loan Data System (NSLDS), a secure, comprehensive federal student aid database maintained by the Department of Education. This site will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of this system. We encourage you to log into NSLDS regularly to check that the information reported to this database is correct.

Loan Disbursements

Your Federal Direct Loans will be disbursed in equal payments, one for each term that you are enrolled and for which you are borrowing the loan(s). Disbursements are generally made within the five days before the start of each semester. If you complete the required loan processes after the semester has begun, the loan will be disbursed as soon as all requirements are complete.

Repayment

The loans borrowed for your education must be repaid in accordance with the terms in your Master Promissory Note. You will have a number of repayment options available to you but you may, at any time, visit https://studentaid.ed.gov/repay-loans/understand/plans/ to review this information. This site includes loan repayment calculators to help you estimate your monthly payment amount. We urge to you make your student loan payments on time and in their entirety as this will ensure the best possible outcome for you. Delinquency and default are very serious and there are long-lasting implications of non-payment of your loans. If you have trouble making your student loan payment, we strongly encourage you to stay in close contact with your loan servicer as they can help provide alternative payment arrangements so that your payment amount is more manageable.