Entrance/Exit Counseling Requirement for Federal Direct Subsidized/Unsubsidized Loans
The Higher Education Amendments of 1986 stipulate that institutions must conduct entrance and exit counseling for all students borrowing under the Federal Direct Subsidized/Unsubsidized Loan program.
Direct Lending Subsidized/Unsubsidized Entrance Counseling needs to be completed prior to the crediting of the student's first disbursement. This counseling is intended to give student loan borrowers pertinent information about the terms and conditions of the loan, the borrower's responsibilities, and the importance of meeting repayment obligations. During counseling, students will also receive sample repayment tables that can be used to estimate monthly payments and information on when loan repayment begins.
Prior to graduation or upon withdrawal from the University, student borrowers will be provided with Direct Lending Subsidized/Unsubsidized Exit Counseling information. The counseling is provided to prepare the student loan borrower for repayment. Information provided will include repayment options, deferment options, loan consolidation, consequences of default, and communication with the lender and/or loan services.