Financial Aid: What is Student Loan Entrance Counseling?

Once you have applied to schools and submitted your financial aid applications, colleges will begin to send acceptance offers and award letters. Some of the awards presented could be grants, scholarships, or work study. Student loans are also a common award extended to incoming students. Let’s take a look at one component of Federal Direct Student Loans, Entrance Counseling.

Federal Direct Student Loans: Entrance Counseling

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What is Entrance Counseling?

Financial aid entrance counseling is a mandatory counseling session that students must complete before receiving certain types of financial aid, such as Federal Direct Loans, Perkins Loans, and PLUS Loans. The purpose of the counseling is to educate the student on their rights and responsibilities as a borrower, and to help them make informed decisions about their student loan borrowing.

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Learning More About Federal Direct Student Loans

During entrance counseling, students will learn about the terms and conditions of their loans, including the interest rate, repayment schedule, and any fees or charges that may apply. They will also learn about loan repayment options, such as deferment and forbearance, and how to avoid defaulting on their loans.

The counseling can be completed online or in-person, and typically takes around 30 minutes to complete. After completing the counseling, students will be required to take a quiz to demonstrate their understanding of the material. Once they pass the quiz, they will be eligible to receive their financial aid disbursement.

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There is a lot to be gained from our free general financial aid advice, but it’s also a very individual process. If you have remaining financial aid questions, email us to discuss more or book an individual session.