Regardless	of	the	counseling	methods	your	school	uses,	it	must	document	that	the	student	received	entrance	and	exit
counseling,	and	it	must	ensure	that	an	individual	with	expertise	in	the	Title	IV	programs	is	reasonably	available	shortly
after	the	counseling	to	answer	the	student9s	questions.
Counseling	for	Correspondence	and	Study	Abroad	Students
If	a	first-time	student	borrower	has	enrolled	in	a	study-abroad	program	(approved	by	a	U.S.	school	for	credit)	or	a
correspondence	or	distance	learning	program,	the	school	must	document	that	the	student	has	completed	online	entrance
counseling	that	meets	the	regulatory	Direct	Loan	entrance	counseling	requirements	or	provide	written	entrance
counseling	information	by	mail	or	email	before	making	the	first	disbursement	of	a	Direct	Loan	to	the	student.
In	the	case	of	exit	counseling	for	correspondence	programs	or	study	abroad	programs,	the	school	may	mail	or	email	the
borrower	written	counseling	materials	within	30	days	after	the	borrower	completes	the	program,	with	a	request	that	they
provide	the	contact	and	personal	information	that	would	ordinarily	have	been	collected	through	the	counseling	process.
Providing	Additional	Information
Your	school	can	take	additional	steps	to	counsel	students,	such	as	assisting	them	with	developing	a	budget,	estimating
need	for	loans,	and	planning	for	repayment.	You	can	also	reinforce	messages	to	borrowers.	For	example,	with	each
disbursement	you	can	remind	students	about	the	importance	of	maintaining	satisfactory	academic	progress	(SAP;	see
Volume	1,	Chapter	1	for	details	on	SAP	requirements),	planning	for	future	employment,	and	staying	in	touch	with	the	loan
servicer.	Sample	measures	for	loan	counseling	are	given	in	the	<Sample	Default	Prevention	Plan=	that	can	be	found	in	the
regulations	cited	below.
PLUS	Loan	Credit	Counseling
Special	loan	counseling	is	required	for	any	student	or	parent	Direct	PLUS	Loan	applicant	who	has	been	determined	to
have	an	adverse	credit	history,	but	who	qualifies	for	a	Direct	PLUS	Loan	either	by	getting	a	loan	endorser	or	by
documenting	to	the	satisfaction	of	the	Department	that	there	are	extenuating	circumstances	related	to	the	adverse
credit.	While	the	special	PLUS	Loan	Credit	Counseling	is	mandatory	only	for	these	borrowers,	any	PLUS	borrower	can
voluntarily	complete	this	counseling.	See	Chapter	1	of	this	volume	for	more	information	about	adverse	credit.
Note	that	the	special	counseling	described	above	is	separate	from	the	entrance	counseling	that	all	first-time	graduate	and
professional	student	Direct	PLUS	Loan	borrowers	must	complete,	as	described	earlier	in	this	chapter.
Annual	Student	Loan	Acknowledgement
The	Department	offers	a	tool	on	the	StudentAid.gov	website	called	the	Annual	Student	Loan	Acknowledgement.	The
Alternative	Approach	for	Entrance	Counseling
34	CFR	685.304(a)(8)
Sample	Default	Prevention	Plan
https://www.ecfr.gov/current/title-34/subtitle-B/chapter-VI/part-668/subpart-N/appendix-Appendix	A	to	Subpart	N
of	Part	668">34	CFR	668	Subpart	N,	Appendix	A
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