Your student loan might be your first borrowing experience. Learn what you can now so you can be a responsible borrower.

Borrow only what you absolutely need to cover your education costs

• If you must borrow, accept only what's necessary to cover your college costs (tuition and fees, housing, meals, books, personal expenses, and transportation). Remember, when it's time to repay, you'll have other financial obligations as well—like rent, a car loan, and living expenses.
• Financial professionals recommend that monthly student loan payments be no more than 10% of your monthly income (before taxes). The more you will earn, then, the more you can borrow.
• That’s why it’s important to calculate how much you'll be expected to repay on student loans each month and compare that amount to what you think you'll earn after graduation.

It’s important that you know your rights and responsibilities regarding your loans.

Your rights as a borrower

• You may accept all, some, or none of the loan funds offered.
• You are entitled to a copy of your promissory note, which outlines the terms and conditions of your loan, and will receive it before or after the loan is made.
• Before you begin to repay, your loan holder is required to give you a repayment schedule and detailed information about interest rates, fees, the balance you owe, and your repayment options.
• You have a right to defer payments for certain defined periods or to request forbearance, if you qualify.
• You may be eligible to repay under a graduated or income-based repayment plan.
• For federal and most private loans, you may prepay in whole or in part at any time without penalty.

Your responsibilities as a borrower

• You must notify your school if you want to borrow less than the amount that has been awarded.
• You must repay your loans on time and in full even if you do not finish your education, get a job, or feel satisfied with the education you received.
• You must notify your loan holder or servicer immediately of any change to your name, address, telephone number, or Social Security number.
• You must make scheduled monthly payments even if you do not receive a bill or coupon booklet.
• First-time Stafford and Perkins borrowers must receive entrance counseling before funds can be disbursed.

There are many college financing options and many lenders vying for your attention. As you select the loan or loans that best meet your needs, be a "savvy shopper."