Rights and Responsibilities of Aid Recipients

Legal rights of financial aid recipients

Students receiving federal student aid have certain legal rights. Students’ rights include the following:

• The student has the right to know what financial aid programs are available at UMHB.
• The student has the right to receive a listing from the Financial Aid Office of the agency in each state that may be contacted regarding grants available to residents of that state.
• The student has the right to know the deadlines for submitting applications for each of the financial aid programs available.
• The student has the right to know how financial aid will be distributed, how decisions on that distribution are made and the basis for these decisions.
• The student has the right to know how his/her financial need was determined.
• The student has the right to know what resources (such as parental contribution, other financial aid, assets, etc.) were considered in the calculation of his/her financial need.
• The student has the right to know how much of his/her financial need, as determined by the institution, has been met.
• The student has the right to request an explanation of the various awards in his/her student aid package.
• The student has the right to know the school's refund policy.
• The student has the right to know what portion of the financial aid he/she receives must be repaid and what portion is grant (free) aid. If the aid is a loan, the student has the right to know what the interest rate is, the total amount that must be repaid, fees during repayment, the payback procedures, the length of time he/she has to repay the loan, when repayment is to begin and available options for consolidation.
• The student has the right to know how UMHB determines whether he/she is making satisfactory academic progress and the results of not meeting these standards.
• If the student is offered a Federal Work-Study job, he/she has the right to know the required work hours, the job duties, the rate of pay, and how and when paychecks are received.
• If the student believes a mistake has been made in determining his/her financial aid eligibility, he/she has the right to ask that his/her financial aid application be reconsidered.
• If the student has a loan and the lender transfers (i.e. sells) the loan and the right to receive payments, the student must be sent a notification telling him/her to whom he/she must now make payments.
• Lenders must provide borrowers with a copy of the complete promissory note.
• The student has the right to prepay a loan without penalty. This means that he/she may at any time pay in full the loan balance and any interest due without being charged a penalty by the lender for early payment.
• If the student cannot meet a loan repayment schedule, he/she may request forbearance from the lender under which the payments may be reduced for a specific period of time.
• In borrowing money, the student assumes the responsibility for repaying the loan. If circumstances arise that make it difficult to meet this responsibility, he/she should contact the lender.
• If a parent or student receives a Title IV, HEA Loan, the loan information will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders and schools determined to be authorized users of the data system.

Legal responsibilities of financial aid recipients

Students receiving federal student aid have certain legal responsibilities. Student responsibilities include the following:

• The student must complete all application forms accurately and submit them on time to the appropriate location.
• The student must provide correct information. The intentional misreporting of information on financial aid application forms is a violation of the law and is considered a criminal offense that could result in indictment under the U.S. Criminal Code.
• The student must return all additional documentation, verification, corrections and/or new information requested by either the Financial Aid Office or the agency to which an application was submitted.
• The student must report to the Financial Aid Office any additional financial resources received by him/her during the period of his/her financial aid award.
• The student is responsible for reading and understanding all forms that he/she is asked to sign and for keeping copies of the forms.
• The student must accept responsibility for all agreements that he/she signs.
• The student must perform the work that he/she has agreed upon in accepting Federal Work-Study or regular student employment.
• The student must be aware of and comply with the deadlines for application or reapplication for aid.
• The student should be aware of the school's refund policy.
• All schools must provide information to prospective students about the school's programs and performance. The student should consider this information carefully before deciding to attend school.
• If the students receives a loan, he/she must notify the lender if any of the following occurs before the loan is repaid:
  • Graduation
  • Withdrawal from school or less than half-time enrollment
  • Change of address
  • Name change
  • Transfer to other school(s)
• If the student has received a Federal Perkins Loan or Federal Stafford Loan prior to receiving their first disbursement of loan funds at UMHB. NOTE: Federal Perkins Loan recipients must complete entrance loan counseling each year.
• The student must also attend an exit interview if enrollment drops below 6 credit hours or if he/she graduates, transfers to another school or fails to enroll for any long semester.
• The student must repay any loan received at UMHB, plus accrued interest, in accordance with the repayment schedule.
• In borrowing money, the student assumes the responsibility for repaying the loan. If circumstances arise that make it difficult to meet this responsibility, he/she should contact the lender.
• The student must notify the lender of any occurrence that may affect eligibility for a deferment of repayment.