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Direct Loans on the Web: www.direct.ed.gov i

Contents

Intro 1

Exit Counseling

Federal Student Loan Programs

Getting Started 1

Types of Federal Student Loans

Loan Terminology

Repaying Your Loan 3

Loan Summary Information (NSLDSSM)

Interest Rates and Payment of Interest

Entering Repayment

Repayment Incentives

Repayment Plans

Making Payments

Having Trouble Making Payments? 11

Deferments

Deferment Conditions

Forbearance

Applying for Deferment or Forbearance

Delinquency and Default

Loan Consolidation

Discharge and Forgiveness 14

Loan Discharge

Loan Forgiveness Programs

Resources 15

Financial Literacy

Budget Calculator

Additional Information

Borrowers Rights & Responsibilities 19

Student Contact Information 21

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Exit Counseling Guideii

U.S. Department of Education

Federal Student Aid

Business Operations

Operations ServicesProgram Communications Division

Publications

Online Access

This publication is also available at

www.direct.ed.gov.Contact Information

Comments and inquiries about the design and

content of this publication may be sent to:

[email protected]

December 2010

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Direct Loans on the Web: www.direct.ed.gov 1

Intro

Student loans, unlike grants and work-study, are borrowed money thatmust be repaid, with interest, just like car loans and home mortgages. Youcannot have these loans canceled because you didnt like the education youreceived, didnt get a job in your field o study or because youre havingfinancial difficulty. Loans are legal obligations that youll have to repay.

Exit Counseling:

uIs required beore you withdraw, graduate, or drop below hal-timeattendance (even i you plan to transer to another school)

uHelps you understand your rights and responsibilities as a studentloan borrower

uProvides useul tips and inormation to help you manage your loans

Federal Student Loan Programs:

William D. Ford Direct Loan (Direct Loan) Program Loans

uDirect Subsidized Loans

uDirect Unsubsidized Loans

uDirect PLUS Loans (or graduate/proessional students)

Federal Family Education Loan ProgramSM(FFELSM) Loans

uSubsidized Federal Stafford Loans

uUnsubsidized Federal Stafford Loans

uFederal PLUS Loans (or graduate/proessional students)

Your school may instruct you to complete online exit counselingor choose to provide exit counseling in person.

Getting StartedTe U.S. Department of Educations (the Departments) two majorfederal student loan programs are the William D. Ford FederalDirect Loan Program (Direct Loan ProgramSM) and the FederalFamily Education Loan Program (FFEL Program).

Loans made through the Direct Loan Programare reerred to asDirect LoansSM. You borrow directly rom the Department. DirectLoans include Direct Subsidized Loans and Direct UnsubsidizedLoans, Direct PLUS Loans, and Direct Consolidation Loans.

You repay these loans directly to the federal government.

Loans made through the FFEL Programare reerred to as FFELLoans. You borrow rom a bank or other private lender, and the

loans are backed by the ederal government. FFEL Loans includesubsidized and unsubsidized Federal Stafford Loans, FederalPLUS Loans and Federal Consolidation Loans.

You repay a FFEL Loan to the bank or other private lender thatmade the loan.

1

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Exit Counseling Guide2

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you received. It is important to read and save this documentbecause youll need to reer to it later when you begin repayingyour loan.

uLender is the organization that made the loan initially; the lender

could be a bank, credit union, or other lending institution (or FFELLoans); or the Department (or Direct Loans).

uLoan Holderis an entity that holds your loan promissory noteand has the right to collect rom you. Many banks sell loans, sothe initial lender and the current holder could be different.

uLoan Serviceris an organization that handles billing and perorms

other loan servicing unctions on behal o the lender.

uNational Student Loan Data SystemSM(NSLDSSM)is theDepartments central database or student aid. NSLDS containsinormation about all o the student loans and other financialaid you have received through the Departments ederal studentaid programs. You can access this inormation online using yourDepartment o Education PIN.

Repaying your Loan

Loan Summary Information (NSLDSSM)

Te National Student Loan Data System (NSLDS) is the Departmentscentral database that stores inormation on all loans and grants

made through the Departments ederal student aid programs. Teinormation displayed in the table below includes all your ederalstudent loans as reported to NSLDS. You must contact your specificloan servicer or more detailed inormation on your loan(s).

Sample Loans Summary

Type of Loan LoanDate

DisbursedAmount

OutstandingPrincipal

OutstandingInterest

STAFFORDSUBSIDIZED

01/01/2009 $5,400 $1,800 $25

Total STAFFORDSUBSIDIZED

$1,800 $25

Total All Loans $1,800 $25

Information contained on these pages reflects the most current data in the NSLDS database. The datacontained on NSLDS is for general information purposes and should not be used to determine eligibility,loan payoffs, overpayment status, or tax reporting. Please consult the financial aid officer at your schoolor the specific holder of your debts for further information.

Interest Rates and Payment of Interest

Interest is a charge or using borrowed money. Every borrower has

to pay interest no matter what type o loan he or she has; educationloans are no different.

uSubsidized loans: Te ederal government pays the interest onsubsidized loans while you are enrolled in school on at least a hal-time basis, during your grace period, and certain other periods.

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uUnsubsidized loans and PLUS loans:I you borrowed anunsubsidized loan or a PLUS loan, you are responsible or payingthe interest during all periods, starting rom the date o the firstloan disbursement. You can chose to either pay it as it accrues

(or example, while you are in school or during your graceperiod), or let it accrue and be added to the principal balanceo your loan. Tis is called capitalization.

Capitalization increases your loan principal balance and you willthen have to pay interest on the increased loan principal amount.I you allow interest to be capitalized, the total amount you repayover the lie o your loan will be greater than i you paid the

interest as it accrued.

Te following chart is an example of capitalization. It shows the differencein the total amount you would repay on a $15,000 Direct UnsubsidizedLoan if you pay the interest as it is charged during a 12-month defermentor forbearance period, compared to the amount you would repay if you donot pay the interest and it is capitalized.

Capitalization of Interest Example

If you pay theinterest as itis charged

If you do not paythe interest as it

is charged

Loan Amount $15,000 $15,000

Capitalized Interest for12 months (at themaximum rate of 7.9%)

$0 $1,185

Principal to be Repaid $15,000 $16,185

Monthly Payment (StandardRepayment Plan)

$181 $196

Number of Payments 120 120

Total Amount Repaid $21,744 $23,462

Fixed and Variable Interest Rates

All Direct Loan and FFEL Program loans with a first disbursement datethat is on or afer July 1, 2006, have fixed interest rates that will remainthe same throughout the lie o the loan.

Loans that were first disbursed beore July 1, 2006, have variableinterest rates that are adjusted each year on July 1. For subsidizedand unsubsidized loans first disbursed beore July 1, 2006, thevariable interest rate will never be more than 8.25%. For PLUSloans first disbursed beore July 1, 2006, the variable interest ratewill never be more than 9.00%.

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Entering Repayment:

When you graduate, withdraw rom school, or drop below hal-timeenrollment status you will have six months beore your first payment isdue on your subsidized and unsubsidized loans. Tis is called a grace

period. (PLUS Loans dont have a grace period). Tis time can allow youto get financially settled, select your repayment plan and determine theamount o income you need to put toward your student loan each month.

I you have subsidized loans, you will not be charged interest duringyour grace period. I you have unsubsidized loans, you will beresponsible or the interest that accrues during the grace period. Youmay pay this interest as it accrues during the grace period, or you mayallow it to accrue and be capitalized (added to the principal balance oyour loan) when your loan enters repayment.

Your repayment period begins the day afer your grace period ends.Your first payment will be due within 45 days afer your repaymentperiod begins.

As explained above, PLUS loans do not have a grace period. Terepayment period or a PLUS loan begins on the day afer the finalloan disbursement is made. However, you may deer repayment oa PLUS loan while you are enrolled in school on at least at hal-time basis and, or PLUS loans with a first disbursement date on orafer July 1, 2008, or an additional six months afer you graduate,withdraw, or drop below hal-time enrollment status. Your firstpayment will be due within 45 days afer your deerment ends.

I you received some PLUS loans that were first disbursed beoreJuly 1, 2008, and others that were first disbursed on or afer that date,the additional six-month deerment period afer you leave schoolor drop below hal-time status is available only or your PLUS loansthat were first disbursed on or afer July 1, 2008. I you are unable tobegin making payments on your PLUS loans that do not qualiy orthe additional six-month deerment period afer you leave school ordrop below hal-time status, contact your loan holder or loan servicerto discuss options or postponing repayment on these loans until thesix-month additional deerment period ends on your PLUS loans thatwere first disbursed on or afer July 1, 2008.

Prepayment

uYou may prepay all or part o your loan(s) at any time withouta penalty. You also have the option o requesting a shorterrepayment schedule.

uAfer you have begun repaying your loans, any extra amount youpay in addition to your regular required monthly payment willreduce your outstanding principal balance, as long as accruedinterest and any outstanding late charges are paid.

ALERTAlthough your credit history was not taken into account whenyou received federal student loans, your credit history will beaffected if you do not repay your federal student loans underthe repayment plan you agree to when you enter repayment.

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Repayment IncentivesA repayment incentive is a benefit that is offered to encourage you torepay your loans on time. Under a repayment incentive program, theinterest rate charged on your loans may be reduced. Some repayment

incentive programs require that you make a certain number o paymentson time to keep the benefits o the repayment incentive.

uTe Direct Loan Programcurrently offers two repaymentincentive programs

Interest Rate Reduction or Automatic Withdrawal Payments

Under the Automatic Withdrawal payment option, your bankautomatically deducts your monthly loan payment rom yourchecking or savings account and sends the payment to the loanholder or loan servicer. In addition to helping to ensure that yourpayments are made on time, you receive a 0.25% interest ratereduction when you have payments made through this option.

Up-ront Interest Rebate on Direct Subsidized Loans, Direct

Unsubsidized Loans, and Direct PLUS LoansYou may receive an up-ront interest rebate on a Direct SubsidizedLoan, Direct Unsubsidized Loan or Direct PLUS Loan. Te rebate isequal to a percentage o the loan amount that you borrow. Tis is thesame amount that would result i the interest rate on your loan werelowered by a specific percentagebut you receive the rebate up ront.Te correspondence that you receive about your loan will indicate i

you received an up-ront interest rebate.

o keep an up-ront interest rebate that you receive on your loan, youmust make all o your first 12 required monthly payments on time(the loan servicer must receive each payment no later than six daysafer the due date) when your loan enters repayment.

You will lose the rebate i you do not make all o your first 12

required monthly payments on time. I you lose the rebate, theloan servicer will add the rebate amount back to the principalbalance on your loan account. Tis will increase the amount thatyou have to repay.

uA lender in the FFEL Programmight offer incentives or eithermaking on time payments or having payments automaticallydeducted rom your savings or checking account. Contact your lender

to find out i any incentives are offered.

Repayment Plans

When it comes time to start repaying your student loan(s), youcan select a repayment plan thats right or your financial situation.Generally, youll have rom 10 to 25 years to repay your loan,depending on which repayment plan you choose. Te repaymentplan options are generally the same in the Direct Loan and FFELprograms, except that the Income-contingent Repayment plan isavailable only in the Direct Loan Program, and the Income-sensitiveRepayment plan is available only in the FFEL Program.

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Estimated Monthly Payments forDirect Loan Program and FFEL Program Loans

Non-Consolidation Borrowers1

Debt WhenLoan EntersRepayment

StandardExtended

FixedExtended

GraduatedGraduated

PerMonth

TotalPer

MonthTotal

PerMonth

TotalPer

MonthTotal

$5,000 $58 $6,904 N/A N/A N/A N/A $40 $7,275

10,000 115 13,809 N/A N/A N/A N/A 79 14,550

25,000 288 34,524 N/A N/A N/A N/A 198 36,375

50,000 575 69,048 347 104,109 284 112,678 396 72,749100,000 1,151 138,096 694 208,217 568 225,344 792 145,498


Income Contingent2

Income = $25,000Income-Based2

Income = $25,000

Single Married/HOH3 Single Married/HOH3

PerMonth

TotalPer

MonthTotal

PerMonth

TotalPer

MonthTotal

$5,000 $37 $8,347 $36 $11,088 N/A N/A $39 $8,005

10,000 75 16,699 71 22,158 110 13,672 39 16,081

25,000 186 41,748 178 55,440 110 45,014 39 60,754

50,000 247 93,322 189 122,083 110 109,623 39 92,704

100,000 247 187,553 189 170,153 110 118,058 39 97,020

Consolidation Borrowers4


StandardExtended

FixedExtended

GraduatedGraduated

PerMonth

TotalPer

MonthTotal

PerMonth

TotalPer

MonthTotal

$5,000 $61 $7,359 N/A N/A N/A N/A $38 $7,978

10,000 97 17,461 N/A N/A N/A N/A 69 19,165

25,000 213 51,123 N/A N/A N/A N/A 172 55,491

50,000 394 118,264 394 118,264 344 126,834 344 126,834100,000 751 270,452 788 236,528 688 253,660 688 286,305


Income Contingent2

Income = $25,000Income-Based2

Income = $25,000

Single Married/HOH3 Single Married/HOH3

PerMonth

TotalPer

MonthTotal

PerMonth

TotalPer

MonthTotal

$5,000 $40 $9,414 $38 $12,294 N/A N/A $39 $7,818

10,000 80 18,828 77 24,587 110 17,638 39 22,414

25,000 201 47,069 189 61,588 110 59,451 39 52,725

50,000 247 106,630 189 137,766 110 91,388 39 78,816

100,000 247 187,553 189 170,153 110 117,343 39 97,020

1Payments were calculated using a fixed interest rate of 6.8% for Direct Subsidizedand Unsubsidized Loans disbursed on or after July 1, 2006.

2Assumes a 5% annual income growth (Census Bureau).3HOH is Head of Household. Assumes a family size of two.4Payments are calculated using the maximum interest rate for consolidation loans, 8.25%.

Information contained on this page reflects the most current data in the NSLDS database. The datacontained on this site is for general information purposes and should not be used to determine eligibility,loan payoffs, overpayment status, or tax reporting. Please consult the financial aid officer at your schoolor the specific holder of your debts for further information.

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Remember: You must make payments on your loan even if you dont

receive a bill or repayment notice.

Billing statements (or coupon books) are sent to you as aconvenience. Youre obligated to make payments even ifyou dont receive any reminders. Contact your lender orloan servicer to discuss setting up automatic payments.

You must also make monthly payments for the full amountrequired by your repayment plan. Partial payments do notfulfill your obligation to repay your student loan on time.

If you are making late or partial payments, contact yourloan holder or loan servicer immediately for help. If you are having trouble making your scheduled monthly

payment, there are options to help. You may be able tolower your monthly payment by changing to a differentrepayment plan or you may be able to temporarily postponeyour payments through deferment or forbearance.

If you apply for a deferment or forbearance, you mustcontinue to make payments until you have been notifiedthat your request has been approved.

Having Trouble Making Payments?

Under certain circumstances you can receive a deerment ororbearance that allows you to temporarily postpone making loanrepayments. Except or periods o economic hardship deermentunder the Income-Based Repayment Plan, periods o deerment ororbearance do not count toward the maximum length o time youhave to repay your loans.

DefermentsA deerment is a period in which repayment o the principal balanceis temporarily postponed i you meet certain requirements. During adeerment, the government pays the interest on subsidized loans.

For all unsubsidized loans and PLUS loans, you are responsible orpaying the interest that accrues during the deerment period. You may

pay the interest as it accrues during the deerment period, or allow itto be capitalized (added to the principal balance).

Deferment Conditions

uEnrolled at least hal-time at an eligible postsecondary school(an eligible school is one that is approved to participate in theDepartments ederal student aid programs)

uStudy in an approved graduate ellowship program or in anapproved rehabilitation training program or the disabled

uUnable to find ull-time employment (or up to three years)

uEconomic hardship (includes Peace Corps Service) (or up tothree years)

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uA member o the National Guard or other reserve component o theU.S. Armed Forces (current or retired) who is called or ordered toactive duty while enrolled at least hal-time at an eligible school, orwithin six months o having been enrolled at least hal-time. (eligible

or a deerment during the 13 months ollowing the conclusion o theactive duty service, or until the borrower returns to enrolled studentstatus on at least a hal-time basis, whichever is earlier)

uWhile borrower is on active duty during a war or other militaryoperation or national emergency and i the borrower was servingon or afer Oct. 1, 2007 (eligible or a deerment or an additional180-day period ollowing the demobilization date or the

qualiying service)

I you received a FFEL Program loan beore July 1, 1993, additionaldeerment options may be available. Contact your loan holder orloan servicer or more inormation.

I you do not meet the requirements or a deerment, you may stillbe eligible or a orbearance.

Remember:You MUST continue making payments on your student loanuntil you have been notified that your request for deferment orforbearance has been granted. If you dont, and it is not approved,you will become delinquent and may default on your loan.

Forbearance

I you do not meet the requirements or a deerment, a orbearanceallows you to postpone or reduce your monthly payment amount ora limited and specific period i you are temporarily unable to makeyour scheduled loan payments or reasons including, but not limited

to, financial hardship or illness.

You are responsible or paying the interest that accrues during theorbearance on all loan types, including subsidized loans. When youresume making payments at the end o the orbearance period, anyunpaid interest will be capitalized (added to the principal balance).

Applying for Deferment or Forbearance

Receiving deerment or orbearance is not automatic. You mustcontact your loan holder or loan servicer.

Delinquency and Default

It is very important that you make your loan payments on time. I you arehaving trouble making your monthly payment, you should immediatelycontact your loan holder or loan servicer.

Youve made a commitment to yoursel and your uture. Be a responsibleborroweryou dont want to deault on your student loan. Deault is theailure to repay your loan according to the terms o the promissory note,provided that the ailure persists or at least 270 days.

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Loan deault has serious consequences:

uYour entire loan balance (principal and interest) will bedue in ull immediately.

uYour college records may be placed on hold.uYoull lose eligibility or loan deerment.

uYou wont be eligible or additional ederal student aid.

uYour account may be turned over to a collection agency andyoull have to pay additional charges, late ees and collectioncosts, all o which become part o your debt.

uYour credit rating will be damaged or several years becausedeaulted loans are reported to national credit bureaus.

uYoull have difficulty qualiying or credit cards, a car loan,a mortgage, or renting an apartment (credit checks are requiredto rent an apartment).

u

Your ederal and state income tax reunds can be withheldand applied to student loan debt. Tis is called a tax offset.

uYou may have a portion o your wages garnished (withheld).

uYou may not be able to obtain a proessional license or gethired by an employer that perorms credit checks.

Remember... Dont Default!

Remember: Make a budget and stick with it.

If you dont understand something, call your loanholder or loan servicer or your financial aid office.

Keep all student loan documents in a le.

Open all your mail and read everything pertainingto your student loans.

Keep in contact with your loan holder or loan servicer.

Make all regularly scheduled payments.

Ask your loan holder or loan servicer for help if you have

difficulty making payments. There are options for you. Borrowing is an investment in your future.

Loan Consolidation

A consolidation loan may help make payments more manageableby combining several ederal student loans into one loan with one

monthly payment. You need to apply or loan consolidation andchoose a standard, an extended, a graduated, an income-contingent(or Direct Consolidation Loans), an income-sensitive (or FFELConsolidation Loans), or an income-based repayment plan.Depending on the amount o your debt, standard and graduatedrepayment plans have 10- to 30-year repayment periods.

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Te interest rate or both Direct and FFEL Consolidation Loansis a fixed rate or the lie o the loan. Te fixed rate is based onthe weighted average o the interest rates on all o the loans youconsolidate, rounded up to the nearest one-eighth o 1%. However,

the interest rate will never exceed 8.25%.

How can consolidation help me manage my debt?

Loan consolidation can offer you benefits to help manage youreducation debt. You can:

uMake lower monthly payments by increasing the repaymentperiod. (However, this will increase the total amount you repay

over the lie o your loan.)

uMake a single monthly loan payment on one bill to one lender.

As with other loan types, you may prepay a consolidation loanwithout penalty and may change repayment plans i you findthat your current plan no longer meets your needs.

Is there a downside to consolidation?Although consolidation can help many students manage theirmonthly payments, there are some cases when consolidationmay not be right or you.

uYou may lose certain benefits (such as cancellation benefits,interest subsidies, etc.) that were offered on the loans beingconsolidated. Borrower benefit programs may vary amongdifferent consolidation lenders.

u I you are close to paying off your student loans, it may not make senseto consolidate. By extending the years o repayment or your loans, youmay be increasing the total amount you have to pay in interest.

uDiscuss your options with the financial aid office at your school.

Discharge and Forgiveness

Loan Discharge

You are generally obligated to repay your student loan(s), even iyou do not complete your program o study, do not complete theprogram within the normal timerame or completing it, are unable

to obtain employment afer you complete your program, or areotherwise dissatisfied with or do not receive the educational or otherservices that you purchased rom the school. However, there are a ewsituations in which your loan may be discharged and your repaymentobligation cancelled or orgiven:

uYou die.

uYou become totally and permanently disabled and meet certainadditional requirements.

uYour loan is discharged in bankruptcy. (Federal student loans arenot automatically discharged in bankruptcy. You must prove to thebankruptcy court that repaying the loan would cause undue hardship.)

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uYou are unable to complete your program o study dueto the closing o your school.

uYour school alsely certified your loan eligibility.

uA loan in your name was alsely certified as a resulto a crime o identity thef.

uYour school ailed to reund required loan unds to yourlender on your behal.

Loan Forgiveness Programs

A portion o any student loan(s) you received under the Direct Loanor FFEL program afer Oct. 1, 1998, may be orgiven under theeacher Loan Forgiveness Program. o qualiy, you must teach ulltime or five consecutive years in certain low-income elementary orsecondary schools or low-income educational service agency andmeet certain other qualifications. In addition, you must not have hadan outstanding balance on a Direct Loan or FFEL Program loan as oOct. 1, 1998, or as o the date you obtain a loan afer Oct. 1, 1998.

A Public Service Loan Forgiveness Program is also available and willorgive or cancel the remaining balance due on your eligible DirectLoan Program loans afer you have made 120 payments on thoseloans (afer Oct. 1, 2007) under certain repayment plans while youare employed in certain public service jobs. You may consolidateyour FFEL Program loans into the Direct Loan Program to take

advantage o the Public Service Loan Forgiveness Program.

Resources

Financial Literacy

Money Management Tips:

Money management is just as important afer you leave schoolas when you were attending. But your income will now come romwork earnings rather than rom student aid and youll probably havesome different expenses when you start your new job. Te ollowingtips will help you manage your money so that you can meet yourhousehold expenses and keep making on-time loan payments. In theprocess, you will be establishing a good credit rating, which is a key

to your financial independence.uDevelop a budget that includes items like rent, car payments,

utility bills, food, clothing, insurance, and entertainment, so youhave an accurate picture of your monthly expenses (in additionto your loan payments). You may use the budget outline onpage 17 as an example. Its easy to underestimate or overlooksome o these expenses, so you may want to round each o your

estimated costs up. I your income is less than your expenses, youllneed to find ways to cut your expenses. I you find you just cantmake the loan payments, contact your loan holder or loan servicerto discuss options that may help, such as changing repayment plans,or deerment or orbearance.

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Subsidized/Unsubsidized and PLUS Loan Dischargeand Cancellation Summary Chart

Discharge/ForgivenessCondition

Amount Discharged/Forgiven

Notes

Borrowers totaland permanentdisability or death.

100%For a PLUS Loan, includes the death,but not disability, of the student forwhom the parents borrowed.

Full-time teacher for fiveconsecutive years in alow-income elementaryor secondary school orlow-income educationalservice agency. Mustmeet additionaleligibility requirements.

Up to $5,000 (up to$17,500 for teachers incertain specialties) ofthe total loan amountoutstanding aftercompletion of the fifthyear of teaching.

Under the Direct andFFEL Consolidation Loanprograms, only the portionof the consolidation loanused to repay eligibleDirect Loans or FFELLoans qualifies forloan forgiveness.

For Direct and FFEL Subsidized/Unsubsidized Loan borrowers withno outstanding balance on a Director FFEL Loan on Oct. 1, 1998, or onthe date they received a loan on,or after that date. PLUS Loans arenot eligible.

To find out whether your schoolor educational agency isconsidered low-income, go towww.FederalStudentAid.ed.gov .Click on Students, Parentsand Counselors. Or call1-800-4-FED-AID(1-800-433-3243).

Bankruptcy(in rare cases)

100%Cancellation is possible only if thebankruptcy court rules that repaymentwould cause undue hardship.

Closed school (beforestudent could completeprogram of study) or false

loan certification.

100%For loans received on or afterJan. 1, 1986.

For Direct LoanProgram BorrowersOnlyFull-time employeeof a qualifying publicservice organization. Mustmeet additional eligibilityrequirements. FFELProgram borrowersmay qualify byconsolidating into theDirect Loan Program.

The remaining balance onan eligible Direct Loan willbe forgiven for a borrowerwho makes 120 monthlypayments on the loan,under certain repaymentplans, after Oct.1, 2007.Each of the required 120payments must be madewhile the borrower isemployed full-time bya qualifying publicservice organization.

For additional information, go to:www.studentaid.ed.gov

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enrollment status. Your grace period is an excellent time to get yourfinances in order. I you are working, you can use the grace period toget a head start on repaying your loans. By making some paymentsduring the grace period, you can reduce the interest costs or your

loan. Tese payments dont have to be set monthly amountsyou canchoose to prepay some o your loan or just to pay the interest that ischarged on any o your loans that are unsubsidized.

Budget CalculatoruYou should develop a budget that includes items like rent, car

payments, utility bills, ood, clothing, insurance, and entertainment,so you have an accurate picture o your monthly expenses (in

addition to your loan payments).

uYou may use the budget outline below as an example.

Monthly Budget

Estimated Monthly Salary $

Estimated monthly student loan payment $

Rent or mortgage $

Utilities (gas, electric, phone) $

Transportation (car payments, gas) $

Groceries $

Entertaining/dining out $

Average allowance for non-monthly expenses $

Total Expenses $

Additional Information

Help with Resolving a Problem or Dispute

It is important to keep all o your student loan papers and correspondence

or your records. I you have a problem with a ederal student loan, youshould contact your loan holder or loan servicer to try and resolve theproblem. I you are unable to resolve the problem on your own, you maycontact the Federal Student Aid (FSA) Ombudsman or assistance. TeFSA Ombudsman works with ederal student loan borrowers to resolveloan disputes or problems rom an impartial, independent viewpoint. Youcan reach FSA Ombudsman at:

Office of the Ombudsman

U.S. Department o Education830 First Street NE4th Floor UCP-3/MS 5144Washington, DC 20202-5144

oll-ree phone: (877) 557-2575

Internet: fsahelp.ed.govor ombudsman.ed.gov

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Borrowers Rights and

ResponsibilitiesYour school may ask you to sign this checklist to document that you

completed exit counseling.I understand I have the right to:

uWritten inormation on my loan obligations and inormationon my rights and responsibilities as a borrower

uA copy o my MPN either beore or at the time my loan is disbursed

uA grace period and an explanation o what this means

uNotification, i I am in my grace period or repayment, no later than 45days afer a lender assigns, sells or transers my loan to another lender

uA disclosure statement, received beore I begin to repay my loan, thatincludes inormation about interest rates, ees, the balance I owe, and aloan repayment schedule

uDeerment or orbearance o repayment or certain defined periods, iI qualiy and i I request it

uPrepayment o my loan in whole or in part anytime without an early-repayment penalty

uDocumentation that my loan is paid in ull

I understand I am responsible or:

uCompleting exit counseling beore I leave school or drop below hal-

time enrollmentuRepaying my loan according to my repayment schedule even i I do not

complete my academic program, I am dissatisfied with the education Ireceived, or I am unable to find employment afer I graduate

uNotiying my lender or loan servicer i I:

Move or change my address

Change my telephone number

Change my name

Change my social security number

Change employers or my employers addressor telephone number changes

uMaking monthly payments on my loan afer my grace period ends,unless I have a deerment or orbearance

uNotiying my lender or loan servicer o anything that might alter myeligibility or an existing deerment or orbearance

I have received exit counseling materials for Direct Loan borrowers.I have read and I understand my rights and responsibilities as a borrower.I understand that I have a loan from the federal government that must berepaid.

Students Signature Date

Students Name (Please Print)

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Student Contact InformationYou may use this sheet to update the contact information kept by yourloan servicer. Your school must update this information with the servicerafter youve completed exit counseling. You are also required to notify

your loan servicer of any changes to this information after you leaveschool. You must complete all items except those marked as optional.

Personal (Please print clearly)

Last Name, First Name (Middle Name is Optional)

Street Address

City, State, Zip Code/Postal Code, Country

Area Code/Telephone Number Email Address (Optional)

Drivers License or State ID number (Optional) Issuing State (Optional)

Employer (optional if not known)

Expected employer (after leaving school)

Street Address

City, State, Zip Code/Postal Code, Country

Important: you must provide contactinformation for next of kin and tworeferences on the back of this page.

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Student Contact InformationPage 2

Enter next of kin with a U.S. address different from

yours, who will know your whereabouts for at least 3 years

Last Name, First Name

Street Address

City, State, Zip Code

Area Code/Telephone Number

References: You must list 2 persons with different U.S. addresses,

who will know your whereabouts for at least 3 years

1Last Name, First Name

Street Address


Area Code/Telephone Number

2

Last Name, First Name

Street Address


Area Code/Telephone Number Enter next of kin with a U.S. address different

from

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