Let your lender know immediately if you have a change in name, address, telephone number, enrollment status or date you're leaving school. Contact your lender if you are having trouble making payments on time. Your lender may be able to offer some options or special payment arrangement that will help. Never ignore correspondence. If there is a problem, take care of it immediately.
Student loans are a serious commitment.
When you sign your loan promissory note, you are promising to repay the amount you borrow, even if you do not finish school, can not find a job or are dissatisfied with the education you have received. Each day, interest is calculated on the unpaid balance and becomes accrued interest. Gradually reducing the loan amount to zero through regularly scheduled payment of principal and interest spread over a predetermined length of time. An individual who obtains money from a lending institution by the extension of credit for a period of time. The borrower signs a promissory note as evidence of the debt.