Loan Exit Counseling for Federal Direct Loan Programs
The federal government is your loan lender and you have been assigned a loan servicer. You can find your loan servicer information on the Dashboard of studentaid.gov. You are required to complete Exit Counseling when you are done with school or taking a break from 6+ credits of enrollment for more than 3 months. RCC recommends you: open and read all mail (hard-copy and email) from your loan servicer, keep them updated with your accurate contact information, and monitor your loan status at studentaid.gov. Here are a few tips to help you effectively manage your repayment:
1. Communicate
Stay informed about the status of your loan and keep the holder of your loan informed about you. If you ever find you are having difficulty making a payment, contact your loan servicer immediately to work out a payment arrangement that meets your needs. There are likely multiple options for you to make your payments more affordable.
2. Keep Good Records
In the case your loan servicer changes, you will receive a notice with their updated contact information. Keep your loan paperwork in one place. Anytime you call and get information over the phone, take down the date and time you called and the name of who you spoke with. If you obtain information over the internet, use print screens to record any transaction.
3. Keep Your Loan in “Good Standing” During Repayment
Remember, you maintain your rights under the Federal Direct Loan program as long as you are in good standing. Making on-time payments is your responsibility. We strongly recommend setting up auto-payment so you don’t miss payments and become delinquent. Auto-pay often comes with a small decrease to your interest rate, as well. Because of the generous repayment options available to you, there should never be a reason for you to have to suffer the consequences of default. See #1 above.
4. Ask for Advice
One of your rights is to ask your loan servicer to give you advice on which repayment option best meets your needs. They also can advise you on the way to save as much money during repayment as possible. As a current or former RCC student, if you want to talk to someone about your loan or get someone to advocate for you, contact
ECMC Solutions Loan Support.
5. Utilize available Deferment, Forbearance and Varied Repayment Options
In general, any time you enroll in at least 6 credits at an eligible college/university you can request your loan be put into “in-school deferment” status. This will enable you to make interest-only payment on any Unsubsidized portion, if you choose. At RCC, we report your enrollment status automatically after the add/drop deadline (and a few times during term) and that information should be sent to your loan servicer who should automatically activate the deferment period. It may be necessary for you to submit an “in-school deferment” form to your loan servicer. Such a form is usually found on your servicer’s web site.
Other deferment or forbearance options may be requested by you to your loan servicer if you have short term circumstances impacting your ability to make your loan payments. If approved you would see a temporary reduction or cancellation of your payment obligation.
The Standard repayment option will be assigned to you if you don’t ask for another option. Other options include extended loan repayment, graduated repayment, and even income-based repayment. Repayment options outside of the Standard will cost you more over the life of your loan so we recommended to use them on a temporary basis in order to afford your monthly obligation. You can change between most repayment options as often as you need.
- Loan Consolidation – Research Before You Decide
When you have completed your education, we encourage you to research loan consolidation to see if it’s right for you. There are pros and cons to consolidating. Read this information on studentaid.gov for helpful facts and contact information if you need help determining if it’s right for you.
- When Should You Complete Loan Exit Counseling?
Complete Exit Counseling if you stop attending college classes (at least 6 credits a term) for more than 3 months.
