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Student loan exit counseling is a required informational session that all federal student loan borrowers must complete before leaving school. You’re required to go through exit counseling when you:
The purpose of exit counseling is to ensure you understand your options before repayments begin. It guides you through the different types of federal loans and repayment plans, gives tips for avoiding default and provides general advice for financial planning as a college graduate.
Typically, it takes around 20 to 30 minutes from start to finish.
You can complete exit counseling online through the Federal Student Aid (FSA) website by logging in to your FSA account. However, some schools also offer in-person exit counseling. Check with your school’s financial aid office to find out which options are available to you.
The FSA doesn’t have any specific deadlines for exit counseling, but your school’s financial aid office might. If you plan on graduating, dropping out of school or falling below half-time enrollment, reach out to your financial aid office for instructions.
To get started, either visit the FSA website or follow the link on your school’s financial aid website. Make sure to log in to your account before you start — otherwise, it might not be counted and you’ll have to do it over again.
You’ll get a refresher on how student loans work in the first step of the student loan exit counseling process. In this section, the FSA will cover:
This step is more interactive than Step 1. In this section, you’ll:
This third step is aimed to help you avoid defaulting on your federal student loans by taking you through other options that can help you stay current. During this section, you’ll:
This step is meant to give you the information you need to be an informed consumer and handle your personal finances after leaving school. In this step, you’ll:
Now that you understand how repayments work, this step requires you to choose a repayment plan for your student loans. This is the plan you’ll use to start paying off your loans — though you can apply to change your plan at any time by contacting your servicer. During this step, you’ll:
The FSA asks you to include two references so it has someone to contact if you default on your loan. These references aren’t the same as a cosigner — they won’t be responsible for paying off your loan. But they could receive phone calls or letters if the FSA isn’t able to get in touch with you after you fall behind on repayments.
After exit counseling, you generally have a six-month grace period before repayments start. Typically, your student loan servicer — the company that handles repayments — contacts you during this time to review how your repayment plan works and give you instructions on how to get started.
Exit counseling is required by federal law. What happens if you don’t complete it depends on your school. Typically, the Bursar’s office will put your transcripts and diploma on hold until you finish exit counseling. Generally, you’ll still be able to graduate.
If you’re repaying your student loans and don’t qualify for forgiveness or a better repayment plan, refinancing to a lower rate could be an option.
Exit counseling is a requirement for all federal student loan borrowers. It breaks down what you can expect when it comes to student loan repayments. And beyond that, it sets you up to handle your money wisely as you transition into the work force.
Find out more about how it all works by checking out our guide to student loans.
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