Financial Aid: What is Student Loan Exit 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, Exit Counseling.

Federal Direct Student Loans: Exit Counseling

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What is Exit Counseling?

Financial aid exit counseling is a mandatory counseling session that students who have received certain types of financial aid, such as Federal Direct Loans, Perkins Loans, and PLUS Loans, must complete when they are about to graduate, withdraw from school, or drop below half-time enrollment.

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Student Rights & Responsibilities

The purpose of exit counseling is to educate the student on their rights and responsibilities as a borrower, and to provide them with important information about loan repayment, loan forgiveness, and loan consolidation options.

During exit counseling, students will learn about the repayment options available to them, including standard, graduated, and income-driven repayment plans. They will also learn about loan forgiveness programs, such as Public Service Loan Forgiveness, 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. It is important to note that students who do not complete exit counseling may face consequences, such as a hold on their transcripts or the inability to receive future financial aid.

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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.