Loan Counseling Forms
Final Rules issued by the Department of Education on November 1, 2002, with an effective date of July 1, 2003, affect several of the student loan entrance and exit counseling requirements. The following information summarizes several pertinent changes or additions.
Entrance Counseling
To assist schools that do not utilize Internet-based loan counseling programs, or other similar formats, the Utah Higher Education Assistance Authority (UHEAA) will provide two forms to supplement a school's entrance and exit counseling efforts. Attached are copies of the "Federal Stafford Loan Entrance Counseling Checklist" and "Federal Stafford Loan Exit Counseling Borrower Information" forms. These forms may be used to summarize the information schools are required to provide to student borrowers of Federal Stafford Loans and, in the case of exit counseling requirements, collect the student's updated address, reference information and other required data. Schools may obtain supplies of these forms by contacting their school representative at UHEAA.Exit Counseling
- The consequences of default no longer must be explained in "forceful terms."
- "Federal offset" is included as one of the consequences of default.
- The borrower must be provided sample monthly repayment amounts based on (1) a range of indebtedness, (2) the average indebtedness of Stafford borrowers at that school, or (3) the average indebtedness of borrowers in that program of study at that school.
- Explanation of standard, graduated, extended and income-sensitive repayment plans, as well as loan consolidation.
- Conditions under which a student may receive forbearance.
- Availability of Title IV loan information on NSLDS.
- The borrower must provide, not just correct, current information regarding name, address, SSN, references, driver's license number and state of issuance, expected permanent address, address of next of kin and the name and address of the expected employer (if known).
Any questions related to this Bulletin should be directed to the UHEAA Policy and Training Department at 801.321.7166 or by e-mail at mjohnson@utahsbr.edu.