Lender Obligations Lenders have certain obligations to fulfill including informing their Stafford and PLUS Loan borrowers of the following:

• Cumulative and yearly borrowing limits.
• Principal and interest rates on all loans.
• Minimum monthly payments - usually $50 or the interest due on the loan.
• Minimum/maximum repayment terms - usually 5 to 10 years.
• The amount of fees applied to the loan.
• The length of the grace period (usually 6 months after borrowers leave school or graduate).
• Total loan payments on principal and interest, and when they begin.
• The number, dollar amount and frequency of the payments.
• The sale or transfer of the loans to another agency for servicing. In addition to receiving notification from the lender, the new owner of the loan must also notify borrowers with the payment address and a number to call for questions.

Borrower Obligations As a Stafford or PLUS Loan borrower, you have certain obligations to fulfill. The most important obligation is to repay your student loans according to the repayment schedule, unless you have obtained a deferment, forbearance or forgiveness.

Borrowers need to keep their lenders up-to-date on the following information:

• Changes to name, address, phone number or Social Security number.
• When status of enrollment in school falls below half-time attendance.
• When leaving school or graduating.
• Inability to make payments on time.

If you are having difficulty making your monthly payments, contact your lender as soon as possible. Your lender may be able to help you before you fall behind in repaying your loans, particularly if you make the effort to communicate early.