When you get close to graduating, leave school, or drop below half-time enrollment, your school’s financial aid office will notify you to complete Exit Counseling.
Most students complete this requirement online through the U.S. Department of Education’s Federal Student Aid website, StudentAid.gov. The session takes about 20–30 minutes. While some schools may offer in-person sessions, the online format is most common. Upon completion, a confirmation is sent to your school to clear the requirement.
During the counseling, you will review critical information about your loans, including:
- The total amount you’ve borrowed
- Your estimated interest rates
- Contact information for your student loan servicer (the company that manages your billing and payments)
Who Is Required to Complete Exit Counseling?
Exit Counseling is mandatory for recipients of federal student loans. If you have any of the following loans, you must complete it:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Federal Family Education Loan (FFEL) Program loans
- Graduate or professional student Direct PLUS Loans
If you only have private student loans, federal law does not require you to complete Exit Counseling. However, you should still contact your lender to ensure you understand your repayment terms.
Key Topics Covered in Exit Counseling
The primary goal of Exit Counseling is to ensure you understand how to repay your loans. The session explains your options, including several types of repayment plans.
| Repayment Plan | How It Works | Best For… |
|---|---|---|
| Standard Repayment Plan | Fixed monthly payments for up to 10 years. | Borrowers who can afford higher payments and want to pay the least interest. |
| Graduated Repayment Plan | Payments start small and increase every two years, with a 10-year term. | Borrowers who expect their income to rise steadily. |
| Extended Repayment Plan | Payments are extended up to 25 years, lowering the monthly amount. | Borrowers with more than $30,000 in federal student loans. |
| Income-Driven Repayment (IDR) Plans | Your monthly payment is capped at a percentage of your discretionary income. Major plans include SAVE, PAYE, and IBR. | Borrowers who need affordable payments. These plans can lead to forgiveness after 20-25 years of qualifying payments. |
The counseling also covers what to do if you have trouble making payments, explaining options like deferment and forbearance, which allow you to temporarily pause payments.
Tips for a Successful Exit Counseling Session
- Don’t Rush: The information can help you make smart financial decisions that save you money and stress. Pay attention and take notes.
- Update Your Contact Information: Ensure your address, email, and phone number are correct. Your loan servicer will use this information to send you bills and important updates.
- Identify Your Loan Servicer: Note which company is your loan servicer. After the session, visit their website, create an account, and familiarize yourself with the payment portal before your first bill arrives.
Frequently Asked Questions (FAQs)
What happens if I don’t complete Exit Counseling?
Your school may place a hold on your academic records, preventing you from receiving your diploma or transcripts until the requirement is met.
Does Exit Counseling impact my credit score?
No, completing the counseling session itself does not affect your credit score. However, applying the lessons—like making on-time payments—is key to building a positive credit history.
Do I need to complete Exit Counseling if I’m starting graduate school immediately?
Yes. You must complete Exit Counseling for your undergraduate loans. You will be required to complete it again when you graduate from your master’s or professional program.