Student Loan

How to Complete Student Loan Exit Counseling | Ultimate Guide

Published on November 14, 2022

All federal student loan borrowers are required to complete online exit counseling when they graduate from school, graduate, or fall short of mid-term enrollment.

All federal student loan borrowers are required to complete student loan termination counseling if they are eligible to graduate from school, graduate, or enter midterm.

It is conducted online and takes about 30 minutes, according to the U.S. Department of Education.

To get started, you need three things:

A verified StudentAid.gov account (logged in with your FSA ID).
The name of the school you attended.
Current contact details. Here are the basics of withdrawal counseling.

Graduation is just around the corner, and most students are busy looking for a job or looking for a job.

For students graduating with student loans, graduation is also a gateway to repayment.

If you are a government student loan owner, you may not remember your freshman admissions counseling session and all the helpful advice it contained. must go through full consultation before it expires.

What is Student Loan Exit Counseling?

Student Loan Exit Counseling is an online course offered by the U.S. Department of Education through StudentLoans.gov to guide students about federal loans taken to pay for their education.

The purpose of credit counseling is to prepare student borrowers for repayment.

Required for students with subsidized, non-subsidized, or PLUS loans under the Federal Direct Loan Program.

Private student borrowers are not required to complete eviction counseling.

When Do I Need to Go Through Student Loan Exit Counseling?

Each time you enter midterm, graduate, or drop out of school and begin your repayment period, you must complete dropout counseling.

Some schools have alternative or additional dropout counseling requirements for students. So be sure to contact your school’s financial aid center to make sure you’ve ticked all the boxes.

Where Do I Go for Student Loan Exit Counseling?

Students who are ready to complete eviction counseling enroll at StudentLoans.gov to complete an online course. You should have the following on hand:

Verified FSA ID
Income information
Grant information
The expected cost of living and current cost of living
Contact details of yourself, your next of kin, two letters of recommendation, and your future employer (if you already have a job prospect)

If you have completed the withdrawal counseling and still have questions about student loans, please contact the BAföG office.

That’s why they are here! You can also search for answers specific to federal loans on the Federal Student Aid website.

Why is Student Loan Exit Counseling Important?

According to the Federal Student Aid website, online withdrawal counseling takes about 20 to 30 minutes, and students shouldn’t rush the process.

The Exit Advisory contains a lot of useful information and is a great resource for borrowers to start repaying.

Knowing What you Owe

You might have done a lot of research when deciding to take out your student loan(s), but since that time you might have forgotten what terms you selected.

This is a great time to review the terms of your existing federal loan(s) and, most importantly, when you will need to start making payments on the loan balance.

The bare minimum you need to know about student loans is how much you borrow and how much you pay each month.

If you don’t know how much you owe or the interest rate, you can find out by logging into your eviction counselor’s, loan servicer’s website, or the National Student Loan Data System.

From there, figure out some basic student loan terms.

Principal Balance: Amount of money borrowed that has not yet been repaid.
Payment terms: A time when you don’t have to pay. It usually lasts six months and begins after you leave school.
Accrued interest: Amount added to the principal balance during periods when payments are not required to be made.
It also happens daily during loan repayment as long as there is an outstanding balance.
uppercase letter: when accrued interest is added to the principal balance;
Service provider: company to pay to.

Check this out: Georgia Student Access Loan (SAL) | Georgia Student Finance Commission

Planning for Repayment

This section describes all repayment schedules available for specific federal loans when making payments. These include:

normal refund
staggered repayment
Extended repayment
pay every time you get a refund
Revised Pay As You Earn Refund
Repayment according to income
Repayment according to income
Repayment according to income

Not all of these options are available to all loan types or borrowers.

Therefore, carefully consider each loan repayment option before making a decision with a credit service provider.

Another option for repayment is refinancing with a private company. Refinancing is the process of replacing an existing loan with a new loan.

Instead of making multiple payments to different service providers, the borrower refinances the loan to get a lower interest rate, sometimes making one monthly payment.

If you refinance, you may lose the benefits of the federal repayment plan, but it’s important to note that you may pay less interest over time.

All federal student loan borrowers are automatically placed on the standard 10-year repayment schedule unless they choose a different option during exit counseling.

However, if you are having trouble paying, there are other options, such as the income-based repayment plan.

These plans limit payments to a portion of your income, and after 20 or 25 years, the rest is waived.

You must reapply each year to stay. You can apply for an IDR plan online, but be sure to contact your student loan administrator to discuss all your options first.

If you have a Perkins loan, you must integrate it directly into your loan to qualify for the IDR plan.

However, if you do so, you will lose the forgiveness benefit of that loan.

Please contact your school’s tax office for more information on Perkins loans.

You can see your monthly payment by logging into the Federal Student Aid Repayment Calculator.

If you would like to reduce your monthly payment, talk to your service provider about your options and see if you qualify for another plan.

Also Read: Student Loan Doctor Review: Reduce Student Loans

Learning how to Avoid Default

Two important terms you don’t want to see on your credit account:

crime: Loans default when loan payments are not made on time.

Default: State student loans default when you are days overdue and then fail to make the regular payments agreed to on the loan.

For more information, visit the Federal Students Union website.

Neither is good for the borrower or their creditworthiness, but loan defaults are clearly worse. In our exit counseling course.

We will discuss how to avoid both of these events and what to do if the default is not avoidable

If you do not make a payment for 270 days, the loan will default. In that case, your loan may be collected, your wages may be garnished, and your credit score may be affected.

When it comes to federal loans, you have several options for avoiding default if you’re struggling to make the minimum payments. You can do it:

Change your repayment schedule. IDR plans start at $0 per month.

Get deferred. Payments are waived during this period and can take up to three years in the event of financial hardship.

Be careful. This allows you to stop payments for up to 12 months at a time.

Interest accrues both during and during deferment — except for subsidized and Perkins loans, which do not accrue interest during deferment — and when you resume regular monthly payments.

We recommend using procrastination only as a last resort, as this will cost you more in the long run.

Check this out: What to Know About Student Loan Origination Fees

Prioritizing your financing

Similar to entry advice, the final section of exit advice addresses broader personal financial issues a borrower may have. Topics include:

The Importance of Emergency Funds
How to make a monthly budget
Full payment of the balance
What is a credit score and how can it be built or beaten

As you graduate from college and enter the workforce, these issues are more important than ever, and retirement counseling can provide powerful tips for getting your borrower off to the right start.

Experiment with your budget to keep your payments on track and avoid late payments.

Here are some general guidelines to keep your bank account from going haywire.

Set up an emergency fund to cover essential expenses like rent, utilities, and groceries for 3-6 months.

Avoid revolving payments, such as maintaining credit card balances, to avoid paying more interest. The longer it takes to pay off, the more it will cost you on top of your original debt.

Also Read: RISLA Refinancing and Private Student Loans: Our Review

FAQs

What does full exit counseling entail?

All students with loans who are enrolled less than half-time, leaving a school, or transferring to another college are required by federal law to complete departure counseling. On the website studentloans.gov, these students must complete departure counseling.

An exit interview for student loans is what?

You are informed of your loan repayment requirements, due dates, and rights to deferral and/or cancellation during an exit interview, which is a loan counseling session. The federal government mandates that your institution conduct this departure interview each time you drop below a half-time enrollment level.

Conclusion

Seeing all the student loan debt you’ve accumulated throughout your academic career can be a little intimidating, especially if you haven’t started your first job after graduation.

Easily start paying off your loans with budgeting and loan calculators.

This online session only lasts about 30 minutes, so take your time browsing StudentLoans.gov and learning as much as you can about paying off your loan.

Also, consider making an appointment with your school’s financial aid office for additional guidance.

You can change your chosen repayment plan later, but preparing now may ease the repayment process for years to come.