This states that you will repay the loan and legally binds you to its terms and conditions. The period during which interest accrues on the borrower's loan and principal and interest payments are required. A document you will receive shortly after you leave school that states how much you owe, what your monthly payment is and when your first payment is due. Each school has established a standard for evaluating a student's efforts to achieve an educational goal within a given period of time. If you are concerned whether your academic progress would be considered satisfactory, call the Financial Aid Office at your school.
Lenders often sell loans to secondary markets so they can continually replenish their lending funds.
If your loan is sold and the payment address changes, you will be notified by mail and given a new address for future loan correspondence. This can include borrower address updates, refunds, deferments, forbearances and payments. Many holders contract with an outside company, or servicer, to carry out these functions. A repayment schedule under which the borrower pays the same amount for each installment payment throughout the entire repayment period or pays an amount that is adjusted to reflect annual changes in the loan's variable interest rate. The Standard Repayment Schedule cannot exceed 10 years, excluding in-school, grace, deferment, or forbearance periods.