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ii. Review for the student borrower available repayment plan options, including the standard repayment, extended repayment, graduated repayment, income contingent repayment plans, and income-based repayment plans, 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;
iii. Explain to the borrower the options to prepay each loan, to pay each loan on a shorter schedule, and to change repayment plans;
iv. Provide information on the effects of loan consolidation including, at a minimum—
(A) The effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;
(B) The effects of consolidation on a borrower’s underlying loan benefits, including grace periods, loan forgiveness, cancellation,
and deferment opportunities;
(C) The options of the borrower to prepay the loan and to change repayment plans; and (D) That borrower benefit programs may vary among different lenders;
v. Include debt management strategies that are designed to facilitate repayment;
vi. Explain to the student borrower how to contact the party servicing the student borrower’s Direct Loans;
vii. Meet the requirements described in paragraphs (a)(6)(i), (a)(6)(ii), and (a)(6)(iv) of this section [see entrance counseling requirements (i),
(ii), and in the first column of the previous page];
viii. Describe the likely consequences of default, including adverse credit reports, delinquent debt collection procedures under federal law,
and litigation;
ix. Provide-
(A) A general description of the terms and conditions under which a borrower may obtain full or partial forgiveness or discharge of principal and interest, defer repayment of principal or interest, or be granted forbearance on a Title IV loan; and
(B) A copy, either in print or by electronic means, of the information the U.S. Department of Education makes available pursuant to section 485(d) of the HEA;*
x. Review for the student borrower information on the availability of the Department’s Student Loan Ombudsman’s office;
xi. Inform the student borrower of the availability of Title IV loan information in the National Student Loan Data System (NSLDS) and how
NSLDS can be used to obtain Title IV loan status information;
xii. Explain to first-time borrowers—
(A) How the borrower’s maximum eligibility period, remaining eligibility period, and subsidized usage period are determined;
(B) The sum of the borrower’s subsidized usage periods at the time of the exit counseling;
(C) The consequences of continued borrowing or enrollment, including--
i. The possible loss of eligibility for additional Direct Subsidized Loans; and
ii. The possibility that the borrower could become responsible for accruing interest on previously received Direct
Subsidized Loans and the portion of a Direct Consolidation Loan that repaid a Direct Subsidized Loan during in--school status, the grace period, authorized periods of deferment, and certain periods under the Income- Based Repayment and Pay As You Earn Repayment plans;
(D) The impact of the borrower becoming responsible for accruing interest on total student debt;
(E) That the U.S. Department of Education will inform the student borrower of whether he or she is responsible for accruing
interest on his or her Direct Subsidized Loans; and
(F) That the borrower can access NSLDS to determine whether he or she is responsible for accruing interest on any Direct
Subsidized Loans;
xiii. A general description of the types of tax benefits that may be available to borrowers; and
xiv. Require the student borrower to provide current information concerning name, address, Social Security number, references, and driver’s
license number and state of issuance, as well as the student borrower’s expected permanent address, the address of the student borrower’s next of kin, and the name and address of the student borrower’s expected employer (if known).
FEDERAL STUDENT AID OMBUDSMAN
The Federal Student Aid Ombudsman Group of the U.S. Department of Education is dedicated to helping resolve disputes related to Direct Loans, Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans. The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about your federal student loans. Borrowers should make every attempt to resolve the loan dispute before contacting the Federal Student Aid Ombudsman Group.
Contact information
Mail:
Telephone: Fax: Online: Email:
U.S. Department of Education FSA Ombudsman Group P.O. Box 1843 Monticello, KY 42633
1-877-557-2575 (Toll Free)
606-396-4821
www.ombudsman.ed.gov fsaombudsmanoffice@ed.gov
VETERANS EDUCATION BENEFITS
Funding is provided by the federal government and is available to Veterans, Service Members, and in certain cases their dependents. Veterans Funding includes the Post 9/11 GI Bill ® (including Yellow Ribbon), Montgomery GI Bill ®, Reserve Educational Assistance Program (REAP), Veterans Educational Assistance Program (VEAP), Survivors and Dependents
Page 39 of 88 Catalog Volume 62 -Version 3 Effective June 5, 2020