Student Loan Exit Counseling: Before You Transfer or You’ll Lose!
by We all read about the required Exit Counseling information in the fine print of our Federal Stafford Loan Application. But as the school year comes to an end and students are transferring to a different college, many students forget about the REQUIRED Exit Counseling for their student loans and it costs them big!
The Federal Stafford Loan is the typical student loan that independent and dependent students take out as educational loans to pay for college. This is a government-funded loan which is not the same as a student loan from your bank.
The Parents PLUS Stafford loan is a bit different and complicated so we will not be addressing that loan here. If you have a PLUS loan, you know it. Most of us have the Un-Subsidized Stafford Loan.
You are required to complete your Exit Counseling PRIOR to falling below half-time (typically 6 credit hours), tranferring to a new school or upon leaving school. If you fail to complete your Exit Counseling at these times you will be required to pay back the loan after a 6-month grace period. This means that while you are still in school, say you transferred from a community college to a four-year but did not complete your Exit Counseling, you WILL be REQUIRED to pay your previous loan back while you are still in school. I have a friend who has to leave school and forgo her four-year degree because she cannot make enough money to pay back her loan simply because she did not complete Exit Counseling.
The Exit Counseling is a series of a few readings and then the student is tested on the readings. The readings consist of what to do if you are unable to pay back your loans on-time and valid reasons for delaying your re-payments on your loan.
The Exit Counseling takes about 20 minutes.
Complete your exit counseling now:
Federal Stafford Student Loan Exit Counseling
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