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The Players in the Student Loan Process

YOU - You are responsible for repaying your loan according to the terms of the promissory note you signed when you took out the loan. The promissory note is a binding, legal document.

YOUR COLLEGE/UNIVERSITY - The post-secondary institution you plan to attend develops your financial aid package, including Federal Direct Loans, based on the information you provided on your Free Application for Federal Student Aid (FAFSA). In addition, your college or university also certifies your student loan applications and monitors your enrollment status. The financial aid office at your college or university is an excellent source of advice and information about your loan.

U.S. DEPARTMENT OF EDUCATION (USDE) - The USDE is the federal agency that administers the William D. Ford Federal Direct Student Loan (Direct Loan) program. The USDE sets the loan program regulations, requirements and defines eligibility criteria.

PRIVATE LENDERS - While federal loans are usually less expensive, have more deferment and forbearance options available to postpone payments and have loan forgiveness opportunities not available through private loan programs, in some cases private loans may be used as a last resort to help finance any gap that is remaining after family resources, scholarships, grants, institutional aid, student employment and federal loans have been exhausted.