Atlanta Metropolitan State College


Student Loans Rights and Responsibilities

Students who are well-informed about the amount of STUDENT LOAN debt they borrow have a greater understanding of their financial commitment to repay their loans. Failure to repay any STUDENT LOAN could result in serious default which has negative consequences. You have the right to borrow loans to pay towards educational expenses, but you also have the responsibility to repay them.

What are my RIGHTS and RESPONSBILITIES as a borrower of student loan debt?


You have the right to prepay your loan in whole or part ANYTIME without penalty. We encourage you to start repaying any student loan debt you borrow while you are still in school, however you are not required to make payments as long as you are enrolled at least half-time (6 credits). You also have the right to receive a copy of your Master Promissory Note (MPN) as well as written information on your obligation to repay your student loan debt. Additionally, you have the right to a grace period after you are no longer enrolled at least half-time as well as deferment or forbearance of your student loans if you qualify. To qualify, you must meet certain criteria. For more information on deferment or forbearance options, click here.


If you choose to borrow student loan debt, you are responsible for:

  • Repaying the student loan debt you borrow after you are no longer enrolled in school at least half-time (6 or more credits) on a monthly basis
  • Completing Exit Loan Counseling before you leave school or drop below half-time enrollment (less than 6 credits)
  • Notifying the Direct Loan Servicing Center and your school if you:

Change your name, move or change your address, transfer to another school, graduate, withdraw from school or drop below half-time enrollment.

  • Requesting a Deferment or Forbearance if you are unable to continue making your student loan payments

Repayment of Student Loans

After you graduate, leave school, or enroll below half-time (less than 6 credits), you have a six month grace period before repayment of your student loans begin. Your student loan lender(s) will send you information about repaying your student loans.

  • If you borrowed student loans prior to June 30, 2010, your lender may be a bank such as Nelnet, EdFinancial, Wachovia or Sallie Mae or a state agency such as Georgia Student Finance Commission. Your lender could also be the U.S. Department of Education. It is your responsibility to understand who you the lender is of each student loan you borrowed; you may have more than one lender. You must repay all student loans borrowed through a bank, state agency, or the U.S. Department of Education.
  • If you borrowed student loans after July 1, 2010, your lender, as mandated by federal legislation, is the U.S. Department of Education. You must repay all student loans borrowed through the federal government.

Regardless who your STUDENT LOAN lender is, you are responsible for repaying all debt borrowed. 

What happens if I do not repay my STUDENT LOANS?

Delinquency - After your grace period is over, payments on your student loans will begin. If you fail to pay, your student loan will be delinquent after one payment is late; most often this is 30 days. Delinquency is failure to commit to repay your student loan within a designated period of time. If your loan is delinquent for more than 270 days, it will enter into default.
Default is the failure to repay your student loans after a 270 day period of delinquency. STUDENT LOAN Default has serious negative consequences including the inability to receive any other federal government financial aid. So, if you ever decide to return to school to advance your education at AMSC or any other college or university, you will be ineligible for any federal student aid including grants, work-study, and loans. Other negative consequences include:

  • Defaulted loans will appear on your credit report as failure to pay
  • You can be sued for the entire amount of the loan you borrowed
  • If you hold a professional license (i.e. nursing) it may be revoked
  • Your income tax returns may be seized
  • A portion of your wages may be garnished
  • You will no longer be eligible for a deferment or forbearance of your STUDENT LOANS

Click here for more information on Default Prevention Services.


Deferment or Forbearance is the temporary suspension of your student loan payments for a specific period of time. You may qualify for a deferment or forbearance if you choose to postpone the repayment of your student loans. For more information, click here.

When I start the REPAYMENT process, what are my options?

There are different repayment plans to fit your needs. Click here for more information on the options you have to repay your student loans.