Rights and Responsibilities
Student Loan Debt
A loan is a serious financial obligation entailing legalities stipulated within the Promissory Note. The Promissory Note is a legally binding contract and evidence a borrower has received a loan. Borrowers are responsible to keep records regarding their loans until the debt has been paid in full.
Borrowers are entitled to know the full amount of their loan, interest rate, and repayment schedule. Borrowers may be entitled to deferment, postponement, or cancellation of their loans if specified in their promissory note(s). This information, and much more, is provided during the exit interview process.
Exit Interview
Federal regulations require borrowers to complete an exit interview if they drop below half-time student status, graduate from the University of Michigan, or leave U-M to attend school elsewhere.
You will receive notification from ECSI when your exit interview is available to complete electronically. The first time you access ECSI, you will need to register by selecting the button at the top right of the screen. After registering and connecting to the University of Michigan, go to the Student Loans and Receivables link and select the Document tab for your exit interview. Click the Review and Sign button to complete the exit interview.
If you have questions about the exit interview, contact the Student Loan Collections Office.
Prepayment of Loans
A borrower may prepay all or any portion of the principal plus accrued interest at any time without penalty. Payments are applied first to outstanding collection costs, late fees, and interest charges before being applied to principal. The balance of the loan is not reduced by the total payment amount; it is reduced only by the amount applied to principal. If no other charges are due, the entire payment is applied to principal.
Amounts paid during the academic year in which the loan was made will be used to reduce the amount of the loan and are not considered prepayments. All other payments made in excess of the amount due will be used to reduce principal, unless the borrower clearly designates in writing that the excess amount should be applied toward future installments. These payments should be sent directly to the Student Loan Collections Office.
Past Due Student Accounts Receivable Debt
Past due student accounts receivable debt is a financial obligation owed to the University of Michigan for unpaid tuition and related charges. Students are responsible for reviewing their account and understanding the balance due, keeping their contact information current, and paying all charges by the applicable due dates.
Students are entitled to information about their balance, individual charges, financial holds, payment options, and applicable University billing and collection procedures. They should retain account and payment records until their past-due balance is paid in full.
Information for All Debt Types
Updating Student/Borrower Information
You must contact Student Loan Collections if you:
- withdraw, drop, transfer to another school, or leave the University of Michigan;
- drop academic credits below half-time enrollment status;
- change your address, telephone number(s), or email address(es);
- change your name or Social Security number;
- become eligible for a deferment or cancellation as described in the borrower’s Promissory Note;
- become ineligible for a deferment or cancellation that has been granted; or
- are unable to make a scheduled payment.
Students and borrowers may update their contact information through the ECSI website. You will need your key and the University of Michigan school code, S5.
Repayment
Students and borrowers are responsible for repaying their debt according to schedule. They remain responsible for repaying their debt even if they do not complete a degree or are dissatisfied with their academic experience.
Statements are provided by the University of Michigan’s billing service, ECSI, approximately 10–15 days prior to the due date. Failure to receive a statement does not exempt a student or borrower from payment.
If a student or borrower does not receive a statement, payment may be made directly to the University of Michigan. Payments should be made payable to the University of Michigan and include the student’s or borrower’s full name and either the last four digits of their Social Security number or their University of Michigan identification number (UMID).
FERPA Authorization
The Family Educational Rights and Privacy Act (FERPA) Authorization Form may be used to authorize another person to access a student’s or borrower’s account with Student Loan Collections. To grant authorization, please complete the form and return it to [email protected].
Find additional information about Student Rights and Records.