INTRODUCTION
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Exit Counseling is a requirement for every student borrower of Federal Funds or school loan program. It is designed to prepare students for repaying student loans and help them with personal financial management.
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Throughout this session, students will learn the rules that apply to their student loans, budgeting, consolidation, debt management possibilities and the consequences of defaulting on student loans. Once students have completed this presentation, all required forms included the Exit Counseling Online Session must be COMPLETED, SIGNED AND PRINTED.
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All required forms must include references with completed address and valid telephone numbers and signatures before returning to our office for clearance signature from your financial aid advisor.
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Please call your advisor to make an appointment for exit counseling review and submittal of exit required documentations.
Student will need the following Information:
- Student’s Social Security number
- Student’s driver license number and state of issuance
- Student’s expected permanent address
- Name, address and telephone number of student’s expected employer (if known)
- Name, COMPLETE address and telephone number of student’s next of kin (nearest relative)
- Name, COMPLETE address and telephone numbers of four references that the lender of the student’s loans could contact if contact with student is lost.
- Student’s four digit PIN number received from the Dept of Education.
Student will need the following Documentation for CLEARANCE:
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Florida Memorial University Clearance Form (must be signed by chairperson)
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Complete Exit Counseling Online Session with Direct Loan Servicing at www.dlssonline.com .
- A printed copy of a “passed” Exit Test from the Lender
- A completed, signed and printed Student Rights and Responsibilities Checklist
- A printed Account Summary page from the lender (s)
- A printed copy of the Payment Plan and Payment Due Date
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A completed McKenzie Financial Service Data Entry Form
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A Completed and signed Florida Memorial University Exit Interview Form
** Submit all The Above Forms To The Office of Financial Aid **
BUDGETING
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The best way to manage the repayment of student loans is to develop a realistic budget. Budgeting is a plan of the most effective use of student’s income. It defines student’s expected expenses and the income available for loan repayment. A budget helps plan for a better future.
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Devise a budget for a fixed period of time and review it regularly. A one year budget, broken down month to month, will allow an accurate picture of student’s economic situation. The expenses and incomes being compared should be of the same period.
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It is through smart decision-making about budgeting that a student will be able to plan for durable purchases such as a car, home, furniture, vacations, etc.
SETTING UP MY BUDGET
- How does a student devise an out of school budget?
- Calculate expected income and current savings
- Calculate expected expenses-
- Housing, Utilities, Transportation, Food, Personal Expenses, Direct Loan payments, Credit Cards, Insurance, Health Care, Dependent Car, and Any Miscellaneous expenses. Now, total the monthly and yearly expenses.
- Determine the balance (subtract total income from total expense)
- If the balance is negative, the total expense is greater than the total income. Student needs to find ways of reducing total expense or increase total income.
- If the balance is positive, the total income (resources) is greater than the total expense. Student should select a loan repayment plan with a higher monthly payment to pay off the student loan sooner in order to minimize the amount of interest paid on the loan (s).
** BUDGET SHOULD BE STRICKLY FOLLOWED **
STAY INFORMED ABOUT THE LOANS
- Student should know the amount of the Loan(s) owed, the name of the lender(s) and the date repayment begins.
- Lenders (Service) will provide students with this information. Student is still obligated to repay loan(s) even when this information has not been proved.
- To obtain more information on your student loan(s), the following resources are available:
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If a student is having difficulties making his\her monthly payments, there is help available. Student should contact their lender (service) immediately for assistance. The student loan payment becomes an important part of the student’s credit history. Not making or ignoring the student loan payments as scheduled could jeopardize a student’s financial future.
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If a student fails to make payments as scheduled, the student loan will be considered as delinquent. A loan being delinquent beyond 270 days is considered in DEFAULT . Once a delinquent loan goes into DEFAULT, student will be faced with various negative financial consequences.
- If student anticipates difficulties making student loan payments, the lender (service) should be called immediately. The lender will be able to help the student with the deferment or forbearance process.
- A Deferment is a limited period of time when students are not required to make payments on their student loans.
- A Forbearance occurs when students are not eligible for a deferment. The lender has the option of granting the student forbearance. Forbearance is a temporary postponement or reduction of loan payments for a limited and specific period, or an extension of the time student has to repay the loan(s).
CONSOLIDATION
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Established by Congress as a means of helping student borrowers manage a federal student loan debt. The Federal Consolidation Loan Program will allow students to combine all of their eligible federal student loans into a single new loan, typically resulting in a significantly lower monthly payment. Students should carefully weigh the advantages and disadvantages of loans consolidation. If student feels that he\she could benefit from a lower monthly student loan payment, as he\she tries to establish him\herself after college, a Federal Consolidation Loan could probably be right for the student.
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Consolidation, or the refinancing of student loans, allows students to lower their monthly payments by extending the length of their repayment term. Although this may increase the overall interest costs, students always have the option of prepaying their loan at any time without a penalty or fee.
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Students can increase their payments as their income increases to pay their loan off early and avoid increased interest charges. The loan consolidation program has been designed by the government to help borrowers better manage their loan payments.
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The best time to apply for a loan consolidation is just before the student’s grace period ends because of the added financial benefits.
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If student has multiple lenders; he\she may approach any of the lenders to obtain a Federal Consolidating Loan application. If a student qualifies for an income-sensitive plan and all of his\her eligible federal student loans are with a single lender, student must first approach that lender to consolidate his\her loans. If the lender does not offer Consolidation, student can consider other lenders in obtaining a Federal Consolidation Loan.
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Note:
There is no grace period associated with a Federal Consolidation Loan and repayment begins within 60 days of the funding of student’s new consolidated loan. Therefore, student must remember to ask the consolidating lender to schedule the consolidation of his\her loans to coincide with the end of his\her grace period, in order to get the full benefits of the grace period.
EXIT PROCEDURES
STEP I.
Student must have a U.S. Department of Education PIN. If student does not know or have his\her PIN, a duplicate number can be requested at http://www.pin.ed.gov
****Please Update the information at the website and include an email address for fast delivery of student’s PIN number.****
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STEP III.
Student must complete the McKenzie Financial Data Form |
STEP II.
Student must sign into the Direct Loan Servicing Online at www.dlssonline.com and select the EXIT COUNSELING SESSION.
Student will need to print and return to the Office Of Financial Aid the following:
- The Exit Counseling Test Results
- The Rights and Responsibilities Checklist
- The Account Summary
- The Repayment Plan Estimator
- The Repayment Due Date
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STEP IV.
Student must complete the Florida Memorial Student Exit Interview Form. The Loan Summary will be completed by a Financial Aid Advisor)
*** If student’s loans have already been consolidated, a copy of the statement from the service must also be submitted. ***
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IF STUDENT HAS LOANS WITH OTHER LENDERS, STATEMENTS FROM THOSE ADDITIONAL LENDERS MUST ALSO BE INCLUDED
ALL FORMS AND WEBSITES WILL BE AVAILBLE AT THE END OF THE PAGE
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TOOLS AFTER SCHOOLS
Website Addresses and telephone numbers:
Exit Counseling Forms
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