Exit Counseling
What is Exit Counseling?
Exit Counseling is a Federal requirement for all student loan borrowers who are about to graduate, leave school, or drop below part-time enrollment. Ross Education is sending you this information so that you can understand your loans, create a play to repay, find options that help you avoid default and find a repayment option that works for you and even create a monthly budget. You are strongly encouraged to take this process seriously and utilize the information that we are sending you.
The exit counseling requirement can be completed online at www.studentaid.gov by logging in using the FSA ID from your FAFSA application. If you have trouble logging in see if this troubleshooting video helps!
Terms to know as you go into it:
Grace Periodperiod of time (Direct = 6 months; Perkins = 9 months) after you graduate, leave school, or drop below half-time enrollment during which you are not required to make payments.
DefermentPostponement of loan payment allowed under certain conditions such as in-school, economic hardship.
ForbearanceTemporary postponement of repayment. Interest accrues on all loans.
Loan Defaultpayment not received for at least 270 days. Negative consequences.
ServicerFederal loan servicers are private companies contracted by the Department of Education to handle billing, enrollment in repayment plans, and more on federally held student loans. Put simply, your loan servicer is the company that you make loan payments to whereas the Department of Education is the entity that issued or guaranteed your loan.
Steps required in exit counseling, shouldn’t take longer than 30 minutes:
The entire Exit Counseling process can be completed online in about 20-30 minutes.
Items needed to complete:
- Login Exit Counseling | Federal Student Aid - this is where you will need your FSA ID
- You will be logging in as a undergraduate student
- Update your personal information and add two references, someone who you know that has a different address, that you also know their phone number + address
- Review your loans
- What do you owe
- Get to know loan terminology
- When do you pay
- What is interest accrual
- And how does interest capitalize
- Prepare for repayment
- What your rights + what are your responsibilities
- Who is your lender
- What are you obligations
- What happens if you default
- Review all the different types of repayment - there is truly an option for everyone
- What is your salary looking like?
- What are your other obligations financially?
- What’s your goal? Ie. minimum monthly payment or pay off as quickly as possible
- Determine your repayment strategy and then decide on a plan that works for you.
- Consolidation - you will want to weigh your options to consider consolidation if you have multiple loans through multiple lenders.
- Consolidate Your Federal Student Loans | Federal Student Aid
- Beware: There are pros and cons for consolidating your Federal Student Loans. This process can simplify your payments each month, it can lower your monthly payments or even give you access to more repayment options. However, you also may lose certain borrower benefits, interest may accrue on a higher balance as well as extend the amount of time it takes to repay the loan. It's important to review these options carefully, speak with your lender and make an informed decision after weighing the pros and cons. Student Loan Consolidation | Federal Student Aid
- Definitely do your research and decide what is best for you based on your current situation and your student loan obligation. Your servicer is a good resource if you have questions even after exit counseling.
- Speaking of which…Who can help? Your Financial Aid Office at previously attended institutions. Your lender - you can find this out through NSLDS or login to your dashboard.Or if you have discrepancies with your aid office or lender, the government offers an office that can help too. Getting Prepared Before Seeking Help | Federal Student Aid
- A list of all the servicers are here
- The Department of Education and its Loan Servicers are here to help you find a manageable repayment plan that fits your debt and current life experience. All of the repayment options offer different borrower benefits and may vary by servicer. In order to find who your servicer is you can log into the National Student Loan Database System or NSLDS National Students Loan Data System (NSLDS) (ed.gov). You will find a link and phone number of who to contact directly. You will not need to contact the Department of Education, they cannot access your loan once you've been assigned a servicer.
- Your servicer will be able to help you determine which of the below repayment options will be best for you. It is your responsibility to decide how the repayment extends the length of the payback period, as well as additional interest or loss of other borrower based benefits.
- As with any outstanding loan debt, if you default on these loans or miss payments it will affect your credit, future borrowing of student loans and even employment. We assure you that we are here to help and so is your servicer. If you can't afford payments currently, don't ignore them, get help. There is a resolution for every situation, you simply have to ask.
- Note: It's important to keep your records updated as you move, change phone numbers etc. Be sure to review that information and make necessary changes as needed.
You can also review this document and complete old school, if that’s easier for you.
