What Is Student Loan Counseling?

Student loan counseling is required for every borrower. Financial aid is often required for students to be able to attend college. Many parents and students are finding that with rising tuition costs, it is difficult to pay for college upfront.

Student loan entrance counseling is required for all new borrowers. The student loan entrance counseling process is only required for new borrowers who are obtaining Federal financial aid. Borrowers obtaining private student loans are not required to undergo a counseling session. This process is required for new borrowers to explain the requirements that borrowers must fulfill because of their student loan obligation. New borrowers are given information about different repayment options as well as how their interest will be calculated.

Entrance counseling typically requires borrowers to complete a short multiple choice or true and false quiz following several pages of information. A student must complete this quiz with a satisfactory score in order to complete their entrance counseling. Many students try to speed through the information as quickly as possible. Students who do not have time to review the information at the time they complete their counseling should print the information for reference at a later time.

Entrance counseling is only required once during a four year degree program. There are some exceptions to this rule including if there are no disbursements in a twelve month period or a student opt-outs of the master promissory note. Otherwise, students have ten years from the date of their MPN in order to request a disbursement of the loan. The college financial aid office will certify the amount of Federal student loans that a pupil qualifies for. Federal student loans can cause other financial aid to be negatively impacted. Students should consult with their financial aid office for more information about whether this could effect their specific situation.

Once a student is in the last year of their degree, they will receive a notice from their financial aid office. Exit counseling is required for all borrowers. The process is very similar to entrance counseling. Students will typically complete the process online or attend a large meeting with other graduating students. The meeting typically lasts 30 minutes or less and reviews much of the information that is provided during the previous counseling session. Students will also learn when they must begin to repay their student loans and what payment options are available. Questions will also be answered on topics such as repayment periods and repayment options.

Financial aid can be a confusing subject. Many students are unsure of where to turn for advice or help. College Source provides answers for many common financial aid questions facing students and parents today.

Article Source: http://EzineArticles.com/?expert=Marc_Corbin

You can leave a response, or trackback from your own site.

Leave a Reply

Powered by WordPress