If you are a student and have borrowed funds from the federal government, such as a Perkins loan, a Health Professions loan, or a Federal Direct loan, you may have heard about exit counseling. Exit counseling is essentially a reminder of what you, as a student borrower, are responsible for.
Here is more information on exit counseling for student loans.
When Do I Have to Complete Exit Counseling for Student Loans?
You will have to complete exit counseling for student loans borrowed from the federal government in the following scenarios:
- If You Drop Below Half-Time Enrollment—Generally in most schools, anything less than 6 to 8 credit hours is considered below half time enrollment.
- If You Graduate School—Once you are finally done with school and get your degree, you will have to complete exit counseling. This will come in handy because about six months after graduating (unless you continue your education), you will most likely have to start paying back the student loan.
- If You Leave School Before Graduating—If you must leave school for any reason, you will have to complete exist counseling.
What is Discussed in Student Loan Exit Counseling?
Exit counseling will cover your specific student loan. The process will provide some general information about the student loan process. Here are a few things to expect from student loan exit counseling:
- When you start exit counseling for student loans, you will be shown exactly how much you owe on your federal student loans.
- The next section will guide you and help you create a repayment plan for whatever amount of debt that you owe. Exit counseling will give you estimates for various payment plans, help you establish a budget through examples, and explain how long the repayment process could take. It will also show you the amount of interest that is added to your student loans every month.
- Exit counseling will provide financial tips and advice throughout the process.
- Student loan forgiveness will be covered, as well as debt consolidation and whether it makes sense for your specific situation. A few important terms to know will also be discussed, for example delinquency and
- At the end of the exit counseling process, you will get a chance to confirm important details an go over important information.
What Do I Need to Complete Student Loan Exit Counseling?
In order to complete your student loan exit counseling, you will need the following information:
- A Verified FSA ID
- Your Social Security Number
- Your driver’s license number
- Details on your income, financial aid, and your living expenses
- Contact information for two references in the U.S.
- Contact information of your employer
- Contact information of a living relative
Should I Complete Exit Counseling If I Get a Student Loan From a Private Lender?
If you do decide to go use a private lender for a student loan, exit counseling is not required—but it is highly recommended. At the very least, it is a good idea to do some research on your own about repaying student loans and general lending.
Where Can I Get a Student Loan from a Private Lender
There are generally two places that a borrower can look for a student loan:
- Direct Lenders—These lenders give out loans themselves. A lot of these operate as a brick and mortar setting and are usually larger financial institutions. The lending process with them could take a couple of days up to about 2 weeks.
- Financial Referral Service—These lenders do not give out loans themselves, but instead work with their network of direct lenders. They generally operate online, and the lending process can take as little as one business day.
At MaxCash, we are a financial referral service that works with all kinds of loans including student loans. We know the ins-and-outs of student loans and have tons of experience in the lending industry. To get started, reach out to us via phone by calling 1-833-207-9052 or sending an email to firstname.lastname@example.org.
What to Look Out for with Private Lender for Student Loans
When looking for a private lender, pay attention to:
- The reputability of the lender
- The value of the loan
- The interest rate of the loan
Exit counselling is an important part of student loans. When borrowing from the federal government, this process is necessary. When borrowing from a private lender, the process is highly recommended. There are many benefits to exit counselling and it can be very helpful when it is time to pay back those student loans.