Student Aid Reference Desk | Loan Counseling

Loan Counseling

As a consequence of participating in the Title IV loan programs, institutions must provide counseling and other disclosures to their students who borrow. The content, format, and timing of counseling are described in law and regulation.

Related topics in this Index: Perkins Loan Program; Direct Loan Program

Statutory Authority

U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part D—William D. Ford Federal Direct Loan Program §§ 1087a et seq Program authority [HEA §§ 451 et seq]

U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part E—Federal Perkins Loans § 1087cc–1 Student loan information by eligible institutions [HEA § 463A]

U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part G—General § 1092 Institutional and financial assistance information for students [HEA § 485]

Regulation

ED References

See also Subtopics for more specific references.

2020-21 FSA Handbook, Vol. 2

2020-21 FSA Handbook, Vol. 6

Publications, Articles & Other Resources

A Time To Every Purpose: Understanding and Improving the Borrower Experience with Online Student Loan Entrance Counseling

Above and Beyond: What Eight Colleges Are Doing to Improve Student Loan Counseling

Crushing Debt or Savvy Strategy? Financial Literacy and Student Perceptions of their Student Loan Debt (Journal of Student Financial Aid)

Effective Counseling, Empowered Borrowers: An Evidence-Based Policy Agenda for Informed Student Loan Borrowing and Repayment

Engaging Student Borrowers: Results of a Survey of Financial Aid Professionals

From Passive To Proactive: Understanding and Improving the Borrower Experience with Online Student Loan Exit Counseling

Informed or Overwhelmed? A Legislative History of Student Loan Counseling with a Literature Review on the Efficacy of Loan Counseling

Investing in Education: Impact of Student Financial Stress on Self-Reported Health (Journal of Student Financial Aid)

Leveraging Guided Pathways to Improve Financial Aid Design and Delivery (Journal of Student Financial Aid)

Subtopics

Additional information schools may provide

2020-21 FSA Handbook, Vol. 2, Ch. 6

FSA’s Default Prevention Resource Information Page

Direct Loan entrance (initial) counseling

Borrowers subject to entrance counseling

Direct Subsidized or Unsubsidized Loan

2020-21 FSA Handbook, Vol. 2, Ch. 6

Grad PLUS Loan

2020-21 FSA Handbook, Vol. 2, Ch. 6

Content of counseling

Direct Subsidized or Unsubsidized Loan

2020-21 FSA Handbook, Vol. 2, Ch. 6

Grad PLUS Loan

2020-21 FSA Handbook, Vol. 2, Ch. 6

Documentation

668.24(c)(1)(v)

2020-21 FSA Handbook, Vol. 2, Ch. 6

Format of counseling

685.304(a)(3), (4)

2020-21 FSA Handbook, Vol. 2, Ch. 6

Quality assurance plan alternative

2020-21 FSA Handbook, Vol. 2, Ch. 6

Reasonable availability of individual with Title IV expertise

Repayment option counseling in default prevention plans

668.217(a)(1)(iii)

Part 668, Subpart N, Appendix A

Direct Loan and Stafford Loan exit counseling

Content of counseling

2020-21 FSA Handbook, Vol. 2, Ch. 6

Description of student rights and responsibilities regarding exit counseling

Documentation

668.24(c)(1)(v)

Format of counseling

685.304(b)(2), (3)

2020-21 FSA Handbook, Vol. 2, Ch. 6

Provision to ED of skip-tracing-related information gathered in exit counseling from borrower

668.24(c)(1)(v)

Student fails to complete

2020-21 FSA Handbook, Vol. 2, Ch. 6

Student Loan Ombudsman

685.304(b)(4)(vii)

2020-21 FSA Handbook, Vol. 2, Ch. 6

Timing

Perkins Loan exit counseling, repayment information, and subsequent disclosures

Content

2020-21 FSA Handbook, Vol. 6, Ch. 3

2020-21 FSA Handbook, Vol. 6, Ch. 5

Disclosure of repayment information

2020-21 FSA Handbook, Vol. 6, Ch. 3

Disclosures during grace periods

2020-21 FSA Handbook, Vol. 6, Ch. 5

Documentation

668.24(c)(1)(v)

2020-21 FSA Handbook, Vol. 6, Ch. 3

Format of counseling and general requirement

2020-21 FSA Handbook, Vol. 6, Ch. 3

Provision to ED of skip-tracing-related information gathered in exit counseling from borrower

668.24(c)(1)(v)

2020-21 FSA Handbook, Vol. 6, Ch. 5

Student Loan Ombudsman

674.42(b)(2)(xi)

2020-21 FSA Handbook, Vol. 6, Ch. 5

Timing

2020-21 FSA Handbook, Vol. 6, Ch. 3

Student access to loan and other aid history

Electronic Announcement, 5/6/14

TEACH Grant counseling

See top list entry for TEACH Grant