Rights and Responsibilities of Federal Student Aid Recipients

Legal Rights of Financial Aid Recipients

Students receiving federal student aid have certain legal rights. These include the right to:

  • Know what financial aid programs are available at SFA.
  • Know the deadlines for submitting applications for each of the financial aid programs available.
  • Know how financial aid will be distributed, how decisions on that distribution are made, and the basis for those decisions.
  • Know how their financial need was determined.
  • Know what resources were considered in the calculation of their financial need.
  • Know how much of their financial need, as determined by the institution, has been met.
  • Request an explanation of the various offers in their student aid package.
  • Know the school's refund policy.
  • Know what portion of the financial aid they receive must be repaid and what portion is grant (free) aid. If the aid is a loan, the student has the right to know:
    • The interest rate
    • The total amount to be repaid
    • Any applicable fees
    • The payback procedures
    • The length of time for repayment
    • When repayment begins
    • Options for loan consolidation
  • Know how SFA determines satisfactory academic progress and the consequences of not meeting those standards.
  • Understand the job description, rate, and conditions of employment for a Federal Work-Study position.
  • Expect that their financial records, their parents’ financial records, and financial aid information will be kept confidential, in accordance with the Federal Education Rights and Privacy Act (FERPA).

Legal Responsibilities of Financial Aid Recipients

Students receiving federal student aid also have certain legal responsibilities. These include the responsibility to:

  • Complete all application forms accurately and submit them on time to the appropriate office.
  • Return all additional documentation, verification, corrections, and/or new information requested by the Office of Financial Aid or the agency to which the application was submitted.
  • Report any additional financial resources received during the aid period to the Office of Financial Aid.
  • Accept responsibility for all agreements they sign.
  • Perform the work agreed upon in accepting Federal Work-Study or student employment positions.
  • Be aware of and comply with all application and reapplication deadlines.
  • Repay any loans received at SFA, along with accrued interest, according to the repayment schedule.
  • Notify their lender of any changes that may affect deferment eligibility.
  • Be aware of the school's refund policy.
  • Read and understand all forms they are asked to sign, and retain copies for their records.
  • Review information provided by the school regarding programs and performance before deciding to attend.
  • Report any changes in personal status, such as name, address, or Social Security number, to the university and loan servicer.
  • Complete entrance counseling before receiving their first loan disbursement if they are a first-time borrower.
  • Attend an exit interview if enrollment drops below six credit hours, or if they graduate or transfer to another institution.
  • Assume responsibility for repaying their loan. If circumstances make this difficult, they must contact their lender as soon as possible.