Your student loan is real money. You have to pay it back, so borrow wisely.

When you accept a loan, you accept legal and financial responsibilities that last until the loan is repaid. Loans must be repaid with interest, which begins to accrue when you:
-Receive your initial loan disbursement; or
-Complete a grace period following graduation; or
-Cease to be enrolled in school at least half-time.

Establish good credit by repaying your student loan. Paying your student loan on time affords you the chance to build a solid credit history that will help define the course of your life.  On the other hand, defaulting on your loan(s) can have serious long-term consequences.


When you accept a student loan, you agree to:

  • Repay your loan(s), including accrued interest and fees, whether or not you complete your education, complete the program within the regular time frame, obtain employment or are satisfied with your education;
  • Attend exit counseling before you leave school or drop below half-time enrollment;
  • Notify the current holder of your loan within 10 days if you change your name, address or phone number, drop below half-time status, withdraw from school or transfer or change your graduation date;
  • Direct all correspondence to the current holder or servicer of your loan;
  • Make monthly payments on your loan after leaving school, unless you are granted a deferment or forbearance; and
  • Notify the current holder of your loan of anything that might change your eligibility for an existing deferment.

As a student borrower, you have the right to:

  • Receive a copy of your promissory note either before or at the time the loan is made;
  • Receive a disclosure statement before repayment on your loan begins, including information about interest rates, fees, loan balance and the size and number of payments;
  • A grace period after you leave school or drop below half-time enrollment and before your loan payments begins (if applicable);
  • Prepay all or part of your loans without a prepayment penalty;
  • Consolidate your loans, if applicable;
  • Apply for Loan Forgiveness, if eligible;
  • Receive written notice if your loan is sold to a new holder;
  • Apply for deferment of your loan payments for certain specified periods, as long as you're eligible;
  • Request forbearance from the holder of your loan if you are unable to make payments and do not qualify for deferment (you must qualify according to the loan holder's requirements);
  • Loan cancellation under certain circumstances; and
  • Receive proof when your loan is paid in full.

Although every effort is made to provide the most accurate and up-to-date information, this content is subject to change due to alterations in federal, state, university or lender policy or procedure.  The USC Financial Aid Office cannot be held liable for the consequences of such changes in policy or procedure.  The most current information can be found by contacting your lender or servicer.




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