Exit	Counseling
A	Direct	Subsidized	Loan,	Direct	Unsubsidized	Loan,	or	student	Direct	PLUS	Loan	borrower	who	is	graduating,	leaving
school,	or	dropping	below	half-time	enrollment	is	required	to	complete	exit	counseling.	If	the	student	withdraws	without
notifying	your	school,	you	must	confirm	that	they	have	completed	online	counseling	or	mail	exit	counseling	material	to
the	student	at	their	last	known	address.	You	may	also	email	the	information	to	the	student9s	home	(not	school)	email
address	if	you	have	it.	The	PDF	version	of	the	
Direct	Loan	Exit	Counseling	Guide	satisfies	this	requirement.	You	may	also
send	the	student	a	direct	link	to	the	exit	counseling	materials	online.	Whatever	method	you	choose	must	be	used	within
30	days	of	learning	that	the	borrower	has	withdrawn	or	failed	to	participate	in	an	exit	counseling	session.
When	mailing	exit	materials	to	a	student	who	has	left	school,	you9re	not	required	to	use	certified	mail	with	a	return	receipt
requested,	but	you	must	document	in	their	file	that	the	materials	were	sent.	If	they	don9t	provide	updated	contact
information,	you	don9t	need	to	take	further	action.
The	required	content	of	exit	counseling	is	summarized	in	the	section	that	follows.	For	more	detailed	information,	refer	to
the	regulations	cited	at	the	end	of	the	section.
Required	Exit	Counseling	Content
Exit	counseling	must:
Inform	the	student	borrower	of	the	average	anticipated	monthly	repayment	amount	based	on	the	student	borrower9s
indebtedness	or	on	the	average	indebtedness	of	student	borrowers	who	have	received	Direct	Loans	for	attendance
at	the	same	school	or	in	the	same	program	of	study	at	the	same	school;
Review	all	available	Direct	Loan	repayment	plan	options,	including	a	description	of	the	different	features	of	each	plan
and	sample	information	showing	the	average	anticipated	monthly	payments,	and	the	difference	in	interest	paid	and
total	payments	under	each	plan;
Explain	the	options	to	prepay	each	loan,	to	pay	each	loan	on	a	shorter	schedule,	and	to	change	repayment	plans;
Provide	information	on	the	effects	of	loan	consolidation;
Include	debt	management	strategies	that	are	designed	to	facilitate	repayment;
Explain	to	the	borrower	how	to	contact	their	loan	servicer;
Explain	the	use	of	an	MPN;
Emphasize	the	importance	of	the	loan	repayment	obligation;
Emphasize	that	the	borrower	must	repay	the	full	amount	of	the	loan	even	if	the	borrower	does	not	complete	the
program,	does	not	complete	the	program	within	the	regular	time	for	program	completion,	is	unable	to	obtain
employment	upon	completion,	or	is	otherwise	dissatisfied	with	or	does	not	receive	the	educational	or	other	services
that	the	student	paid	for	with	the	loan;
Describe	the	likely	consequences	of	default;
Provide	a	general	description	of	the	terms	and	conditions	under	which	a	borrower	may	obtain	full	or	partial
forgiveness	or	discharge	of	a	loan,	defer	repayment	of	a	loan,	or	be	granted	forbearance	on	a	loan;
Provide	a	copy,	either	in	print	or	by	electronic	means,	of	the	information	the	Department	makes	available	in
accordance	with	section	485(d)	of	the	HEA	(see	below);
Review	information	on	the	availability	of	the	Department9s	Student	Loan	Ombudsman9s	office;
Inform	the	borrower	of	the	availability	of	Title	IV	loan	information	in	NSLDS	and	how	NSLDS	can	be	used	to	obtain
Title	IV	loan	status	information;
Inform	the	borrower	that	(1)	they	may	be	contacted	during	the	repayment	period	by	third-party	student	debt	relief
companies;	(2)	the	borrower	should	use	caution	when	dealing	with	those	companies;	and	(3)	the	services	typically
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