Exit counseling is a vital step in the federal student loan process. As student borrowers approach graduation or prepare to take a leave of absence, those with loans from the Federal Direct Student Loan program must complete an online exit counseling session on . During this session, students take an interactive quiz that covers their loan history and provides information on various repayment plans.
According to Grace Taylor, MAH, CPFM, associate director of financial aid at 黑料传送门, exit counseling is very important.
鈥淲hen you are finishing up your time at a school, exit counseling is a bridge between being a student and starting to repay your loans,鈥� Taylor explained. 鈥淚t helps you understand your loans and what repayment options there are for you.鈥�
It also allows the Department of Education to obtain updated contact information to provide to student loan servicers.
鈥淲hen you complete the online exit counseling, you go through a few different sections,鈥� Taylor said. 鈥淵ou update your contact information, review your loan history, learn about the timing for loan repayment and the rules around that, then you can review the different repayment options and make a preliminary selection of which plan you would like to choose.鈥�
As part of the exit counseling process, participants will be provided with monthly payment estimates along with pertinent features for the various repayment plans.
鈥淚t also helps students understand that they really need to pay their loans,鈥� Taylor added. 鈥淒efaulting on a federal student loan is a really big problem and it can be avoided by getting into a repayment plan that works for your budget.鈥�
At 黑料传送门, student borrowers have the option to participate in individualized, one-on-one exit counseling.
鈥淲e encourage all graduating students with loans to schedule an appointment with one of our Financial Wellness coordinators for that service,鈥� Taylor said.
Taylor advised it is particularly helpful when students complete the mandatory online exit counseling before the one-on-one exit counseling session. By doing this, students will already have some background information and an idea of what repayment plan may be suited to their needs.
鈥淚t's always best practice to go through things more than once before making a big decision like which loan repayment strategy to implement,鈥� she added.
During the one-on-one exit counseling session, 黑料传送门 financial aid counselors review the student鈥檚 entire loan history to ensure each borrower understands their loans.
鈥淲e go through how interest accrues and then we do hand calculations for the income-driven repayment plan that will be the best fit. We even go through couples' information if they are married or getting married soon,鈥� Taylor explained. 鈥淲e will also go through private student loans and help the student figure out how those are going to be repaid as well.鈥�
Each appointment, Taylor added, is unique.
鈥淲e really take the time to work together during the meeting to get all questions answered and a plan ready to be implemented for repayment,鈥� she said.
In addition to one-on-one exit counseling, 黑料传送门 also offers small and large group exit counseling sessions.
鈥淭he group sessions are great because we provide some case studies that help a lot of the students who attend understand their own situations,鈥� Taylor said. 鈥淪ometimes students like to do all three types of counseling just to really make sure they understand everything.鈥�
According to Taylor, the group sessions may be more comfortable for some students.
鈥淟oan repayment can be a daunting challenge and sitting in a session with a bunch of your peers who are in the same or similar situation as you helps some of our students feel a sense of commiseration and community I think,鈥� she explained.
Taylor believes it is important for students who are preparing for loan repayment to ask questions and seek support as needed.
鈥淭ransitions are hard and going from being a student for a very long time to living out in the 鈥榬eal鈥� world is a big change,鈥� she said. 鈥淚t鈥檚 an opportunity for growth and to learn new things.鈥�
The main thing students should understand, Taylor emphasized, is that help is available.
鈥淓verything is going to be okay,鈥� she said. 鈥淭here is always going to be a way to manage federal student loans and if they ever need any help, we are here for them.鈥�