What is exit counseling?

Exit counseling is a mandatory requirement for students who have borrowed federal student loans and are preparing to leave school, graduate, or drop below half-time enrollment. The purpose of exit counseling is to ensure that borrowers understand their rights and responsibilities regarding their student loans and to provide important information about loan repayment options, loan forgiveness programs, and loan consolidation.

During exit counseling, borrowers are typically informed about their total loan balance, interest rates, repayment options, grace periods, deferment and forbearance options, loan consolidation, and the consequences of defaulting on their loans. They may also receive guidance on creating a budget, managing their finances, and exploring career options to help them plan for successful repayment of their student loans.

Exit counseling can be completed online, in-person, or through interactive sessions, and borrowers are required to complete the counseling before they are allowed to graduate or leave school. Failure to complete exit counseling can result in a hold being placed on the borrower's academic records, which could prevent them from receiving their diploma or official transcripts.