what document explains your rights and responsibilities as a federal student loan borrower
What document explains your rights and responsibilities as a federal student loan borrower?
Answer:
The document that outlines your rights and responsibilities as a federal student loan borrower is the “Master Promissory Note (MPN).” This legally binding document is signed by the borrower and includes all the terms and conditions of the loan. It explains important details such as the loan amount, interest rate, repayment terms, deferment options, and consequences of defaulting on the loan. The MPN ensures that both the borrower and the lender understand their roles and obligations throughout the loan term. It is crucial to read and comprehend the MPN before accepting any federal student loan to make informed decisions and avoid any misunderstandings in the future.