Understanding Your Loan
When you take a Federal Direct Loan you'll receive a Plain Language Disclosure along with your Master Promissory Note (MPN), a Borrower's Rights and Responsibilities Statement, plus specific information about the terms and conditions of your loan.
This information covers repayment obligations, what you can do if you are having trouble making your payments, and what the consequences of defaulting are.
You should read all of the documents carefully, since they explain both your responsibilities and your rights as a borrower.
To see a copy of this form, go to http://www.direct.ed.gov/pubs/dlmpn.pdf.
To learn more about the MPN, go to http://studentaid.ed.gov/fafsa/next-steps/accept-aid/mpn.
Schools will provide similar information about the loans that they make to you.
Private and institutional lenders should provide their own disclosures and a copy of the Truth in Lending disclosure, which details the terms of your loan and the total amount you will be responsible for paying if you make your payments on time and in full. It will also explain the fees and other consequences of paying late or defaulting.