Why do exit counseling

You have to complete the course in one sitting. At the end, you can choose your repayment plan after calculating payment options during the course. Those options range from the standard year repayment plan to income-driven repayment plans that offer potential loan forgiveness and factor in your discretionary income when determining monthly payments. Exit counseling covers much more than student loan basics.

Federal student loan exit counseling details how much you owe in federal student loans. Beyond tallying your student loan debt, there are reminders to borrow minimally in the future. You might borrow again, for example, if you finish your degree after a break or go on to graduate school. To help you understand the federal student loans you have, the counseling session offers explanations about the types of student loans and their interest rates.

Among the repayment tips is a helpful calculator for paying off your loans faster by making extra payments , receiving a 0. You may be unnecessarily costing yourself money. Each loan has a separate payment record and could impact your credit report, although some of the credit consequences can be reversed through loan rehabilitation.

The counseling session offers several tips for avoiding default, including finishing your degree, paying on -time when possible, calling your servicer about deferment options and paying attention to any communication loan servicers send you. The counseling session offers tips regarding short-term and long-term budget and goal setting, avoiding using credit cards for basic expenses and boosting your credit score.

Be sure to complete this section slowly. Your answer will be evaluated by your loan servicer for approval. The mandatory federal student loan exit counseling makes the introduction to loan repayment easier with a full range of budgeting and loan calculators. Since this online session only lasts about 30 minutes, take some time separately to browse StudentLoans.

Also, consider booking an appointment with your school financial aid office to get additional guidance. You can change your repayment plan you select at a later time, but preparation now could make your repayment process easier for years to come. Reyna Gobel, M. Her CliffsNotes books on repaying student loans and paying for college were picked as book of the month by Michelle Singletary in The Washington Post three times.

She co-created the 30 Day Immune System Challenge at 30ichallenge. The Federal Student Aid Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about federal student aid. Department of Education Ombudsman Office The Ombudsman Office is a final resource after the individuals look for help through other customer service avenues. Department of Education: Bursar: Still have a question? View our FAQs. If you borrowed money from the federal government to pay for your education, you will.

Exit counseling is similar to the entrance counseling you received when you first completed your master promissory note. This learning opportunity provides information about your rights and responsibilities as a borrower, including information about various repayment plans and deferment or forbearance options that may be available to you if you are unable to make a payment.

The federal government requires schools to conduct exit interviews with all students who receive specific types of federal student loans. If you have loans that require exit counseling, the timing of your participation depends on your enrollment status. Prepare to go through exit counseling when or if you:.

Before you start exit counseling, you'll need to gather a few key pieces of information.