What is student loan exit counseling and how does it work?
What is student loan exit counseling and how does it work?

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If you’re about to graduate, leave school, or go below half-time, you may need student loan exit counseling. (Shutterstock)

The Student Loan Exit Board is a step that federal student loan borrowers are legally required to take once they graduate, leave school, or fall below half-time. It’s similar to the entry tips that borrowers must complete when they first receive direct loans.

Exit advice helps borrowers understand how much debt they owe and the consequences of not repaying that debt, as well as how to repay their federal student loans.

If you’re graduating soon or leaving school, visit Credible for learn more about private student loan refinancing options.

What is Student Loan Exit Advice?

If you have federal student loans, you are legally required to follow exit counseling once you graduate, leave school, or enroll less than halftime. Student loan exit advice helps you understand your repayment obligations and prepares you to manage your student loan debt.

Throughout the process, you will better understand what your student loan repayments will be like, what kind of repayment plan would work best for you, and how to avoid the default.

Even if you are leaving school with the intention of starting another program at a later date, you will still need to follow exit advice.

Typically, only federal student loan borrowers receive exit counseling, as it is a requirement for federal student loans. You will get guidance if you have direct or FFEL subsidized federal loans, direct or unsubsidized FFEL loans, or direct or FFEL PLUS loans. Borrowers with Parent PLUS loans are not required to follow exit advice.

Some private lenders may also require exit counseling, so it’s a good idea to check with your lender if you have private student loans. Your school may also have its own exit counseling requirements, so be sure to check with your financial aid office.

Credible allows you compare student loan refinance rates from private lenders, without affecting your credit score.

How Does Student Loan Exit Advice Work?

Federal student loan exit counseling is a fairly quick process that only takes about 30 minutes. You don’t have to pay anything for federal student loan exit counseling. To begin, you will log into your Federal Student Aid account using your FSA ID username. Note that you must complete the online exit counseling in one session.

During your student loan exit counseling session, you can expect:

Benefits of Student Loan Exit Advice

While the student loan exit tips might seem like just one more thing to add to your to-do list, they are designed to benefit you and help you repay your student loans more easily. Some of the benefits you can expect include:

  • You will know where you are. When you participate in exit counseling, you better understand the terms and conditions that apply to your federal student loans and what your repayment options are. You’ll feel much more ready to tackle your loans after following the student loan exit tips.
  • You will have a plan to avoid student loan default. Falling into default isn’t ideal, and student loan exit tips tell you how to avoid defaulting on your loans.
  • You’ll get a head start on financial planning. Understanding how to manage your personal finances after leaving school comes with a learning curve. Student loan exit tips give you a head start when it comes to learning the basics of financial planning.

Where to find student loan exit advice

Federal student loan borrowers can complete the student loan exit counseling process by going to StudentAid.gov. To get started, you’ll need a verified StudentAid.gov account, provide the name of the school (or schools) you’ve taken out loans for, and share your up-to-date contact information.

If you need help managing private student loans, you can contact your private lender to see if they offer their own version of student loan exit advice.

For additional help on how to manage your student loan debt, you can speak to a NFCC Certified Financial Advisor, who may be able to help you develop a repayment plan for your loans. Before contacting any type of certified financial advisor or student loan counseling firm, it is best to have all of your student loan information and documentation at hand.

Is student loan exit advice for you?

Although student loan exit counseling is required for federal borrowers, any student borrower can benefit from some form of student loan exit counseling that prepares them to repay their student loan.

If you’re looking to repay your loans quickly and efficiently or feel overwhelmed by the process, student loan exit tips can help you regain control and develop a repayment plan you’re comfortable following. . The last thing a borrower wants to do is start the next chapter of their life feeling like they’re drowning because of their student loan debt.

If you want a different loan term to make paying off your student loan more manageable, visit Credible for compare student loan refinance rates from various lenders in minutes.

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