Your Relationship with Your Lender

Your lender expects you to:

Repay your loan. Your obligation to repay becomes legally binding when you sign the Master Promissory Note and authorize the electronic transfer of funds to your student account.

Your requirement to repay does not go away because you:

  • Don't complete your educational program
  • Cannot find employment
  • Were not satisfied with the education or other services your received from the school
  • Were notified that your loan was sold to another party by your lender

Pay on Time. You must make your payment s on time unless you have made special arrangements with the lender or servicer. Many lenders offer repayment incentives to reward you for paying on time. See the “Borrower Benefits” links on the lenders selection page of this Web site.

Make a Minimum Payment. A minimum monthly loan payment is required. This minimum amount varies depending on the amount you borrow and your repayment plan.

Notify ERAU and the lender about changes in your status. You must notify ERAU and your lender if you:

-- Change your current address
-- Change phone numbers
-- Change your name
-- Change your Social Security Number
-- Withdraw from school or drop below half-time status
-- Re-enroll in school or transfer to another school
-- Change your anticipated graduation date
-- Change your driver's license number
-- Change your references
-- Change your permanent address
-- Change your expected employer

Complete an entrance interview Before being permitted to complete your electronic MPN, you will be counseled on your obligations, rights and options under the terms of your loan.

Complete an exit interview before you leave school or graduate. You will be counseled on your obligations, rights and options under the terms of your loan. Theis session will cover repayment options, deferments and other important information you may need during your repayment term. During theis session you will need to provide the following information:
-- Name and address of closest living relative
-- Two references (not the same as closest living relative) and with different addresses

What You Should Expect From Your Lender

Master Promissory Note -- When you decide to enter into an agreement with a particular lender for your student loan, you sign an electronic Master Promissory Note (MPN). This document explains the terms and conditions of your loan in full detail. It also serves as the legal document requiring you to repay the loan with interest. Read through the entire promissory note before you sign it and make sure you understand your rights and responsibilities. The electronic MPN is valid for a maximum of ten years.

Notice of Guarantee and Disclosure Statement -- Your lender provides you with a disclosure statement before or at the time your loan is disbursed. This document states the amount of your loan (principal), and any fees deducted from the principal. It also discloses the interest rate, the annual percentage rate, and an estimate of the total amount you will have to repay (including the total amount of interest based on a Standard Repayment plan). Be sure you receive this from your lender and keep it in your files.

Repayment Schedule -- During your grace period, your lender or servicer will send you a detailed Repayment Schedule. This document states the number and amount of monthly payments and the date when the first payment is due.

At the same time, you will receive information about other repayment options, such as the Graduated and Income-Sensitive plans, (link to Leaving School repayment plans) extended and consolidation plans.

Notification of Loan Transfer -- If your lender sells or transfers your loan to another lender or servicer and it changes where your loan payments are sent, you will receive a Notification of Loan Transfer. This document contains addresses, phone numbers, and other information needed to make payments and keep in touch with the new lender or servicer of the loan. The terms of your loan will not change if your loan is sold or transferred.