Entrance and Exit Counseling Interview
Studies have shown that the amount of student loan and student credit card debt is growing among college students. To address this issue, schools partnered with lenders to develop a battery of debt management and counseling processes to help students better understand their credit situation.
Federal loan regulations now require borrowers to complete student loan counseling via an entrance counseling interview, once the student begins school, and an exit counseling interview after the borrower graduates, withdraws, or "exits" from the school.
Stafford Loan Entrance Counseling
To provide schools with electronic options for the Stafford Loan entrance counseling interview, several lenders have created Internet-based applications. These applications guide students through a series of informational pages, provide worksheets and other interactive tools, and sometimes have a question & answer component. When the student completes the application, record of the student's participation in the loan counseling session is forwarded to the school. Prior to your counseling appointment you will also sign your Master Promissory Note (MPN) online.
Stafford Loan Exit Counseling
Stafford Loan exit counseling allows a borrower to plan for the imminent student loan repayment using online worksheets and calculators. Because exit counseling requires schools to collect borrower address and reference information, borrowers must be prepared with this information and must provide it during the closing student loan counseling interview session.
Credit and Debt Management Tools
Establishing and maintaining good credit is an important part of a student's financial education. Many banks make it easy for students to obtain credit or debit cards with little or no credit history. This can be a great way for students to begin to build their credit history - good or bad. Unfortunately not all cards are the same and it's important for students to understand the differences. It's also important to understand how to use credit cards responsibly to ensure the credit history you build is a good one.