Exit Counseling

If you have borrowed any amount of federal loans to help fund your education, you are required to complete Federal Exit Counseling. Like the Entrance Counseling you completed before you borrowed any federal direct loans, Exit Counseling will provide you with information regarding loan indebtedness, repayment options, deferment, forbearance criteria, and debt management strategies. This requirement is for students who have accepted federal loans that are no longer enrolled, enrolled less than half-time, have begun the process of filing for graduation, or have graduated. Additional information is provided below and from your loan servicer.
 

Alvernia University must provide federal financial aid exit counseling to students at the end of their final academic term unless a student elects not to participate. Federal Student Aid (FSA) Federal Loan Exit Counseling does not supplant this requirement. Counseling may be in-person or online. If you would like to complete Exit Counseling in person or via Zoom with Alvernia University’s Office of Student Financial Services, please email us at sfs@alvernia.edu and provide at least three dates and times you are free to complete a 30-minute Exit Counseling session.

 

 

Getting Started


Before you begin Federal Student Loan Exit Counseling it is helpful to have the following information available:

  • Your driver’s license number
  • The name, complete address/phone number of your future employer (if known)
  • The name, complete address/phone number of two references, one of whom must be a relative
  • Your federal loan history
  • Know what federal loans you borrowed (direct subsidized, direct unsubsidized, direct graduate PLUS or direct parent PLUS)
  • Know who is servicing your loans on behalf of the federal government. This information is found on studentaid.gov after you log in to your portal.

 

Understanding Your Federal Loan History Report


Your Loan History Report will list all federal loans you have borrowed and the servicer who is managing the loans for the Department of Education. To obtain your Federal Loan History you can log in to studentaid.gov using the following:

  • FSA ID/Email/Mobile Phone (same as your FAFSA login)
  • Password

 

Completing Your Online Exit Counseling Federal Requirement
  • Sign in with your FSA ID to the U.S. Department of Education’s website. This is the only official website to complete the federal financial aid exit counseling requirement.
  • Under MyChecklist, select Complete Exit Counseling.
  • Follow the prompts and click on the “Start” button to begin the Exit Counseling session.
  • A confirmation page will be emailed to you when you have completed the counseling session. Please keep this for your records. The Financial Aid office will receive an electronic confirmation as well. If you are unable to log in using this information, use this direct link and log in using your FSA ID.

 

Important Information as you Enter Repayment


Grace Period

Generally, the grace period (after graduating, before you begin repayment) is:

  • 6 months for subsidized and unsubsidized loans
  • 0 months for the Graduate PLUS Loan repayment begins once the loan fully disbursed. However, if you are enrolled at least half-time, you will be place in an in-school deferment, which continues for six months after you graduate or drop below half-time enrollment.
  • 0 months for Consolidated loans
     

Alvernia does not know what grace periods (if any) you may have already used. Questions about your grace period should be directed to your loan servicer(s). Your servicer(s) are listed on your Federal Loan History Report.

 

Repayment Options

There are many repayment options available. For your benefit we have briefly summarized the various types. To simulate your individual loan payments under the various options, use the loan simulator on studentaid.gov.

Repayment Plan Options


Traditional Repayment Options

Standard

  • If you do not choose another repayment option, you will automatically be entered into a standard repayment plan
  • Fixed equal payments each month (includes principal and interest)
  • Payment period cannot exceed 10 years (or up to 30 years for Consolidated Loans)
  • Highest monthly payment, but lowest total interest paid over the life of the loan


Graduated

  • Monthly payments start off low and increase over time
  • Payment period cannot exceed 10 years (or up to 30 years for Consolidated Loans)
  • Generally well suited for those individuals expecting large salary increases at predictable points in time
  • Total interest cost is higher than with the Standard repayment plan


Extended

  • Monthly payments may be fixed or graduated
  • Payment period may not exceed 25 years
  • Makes required monthly payments lower (and you can pay more without penalty)
  • Total interest cost is higher than with the Standard repayment plan
  • To qualify for the plan, you must have more than $30,000 in outstanding Direct Loans or FFEL Program Loans
     

 

Income Driven Repayment Plan Options

Income Contingent (ICR)

  • Monthly payments are adjusted yearly, based on your monthly gross income, family size, and loan debt
  • Payment period may not exceed 25 years
  • Total interest cost is higher than with the Standard repayment plan
  • The lesser of 20% of your discretionary income, or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income


Income Based (IBR)

  • Must have a partial financial hardship
  • Monthly payments may be 10 or 15 percent of discretionary income (income after necessary and basic living expenses have been met) and family size, depending on borrower status
  • Only available as a payment option if the calculated payment is less than the standard repayment amount
  • Payment period may not exceed 25 years depending on borrower status
  • Any remaining balance after 25 years may be forgiven and is taxable


Pay As You Earn (PAYE)

  • PAYE — Direct Loan Program only
  • No delinquent or defaulted Direct or FFEL Loan (requirement details at studentloans.gov)
  • Monthly payments are based on eligible federal student loan balance and are generally 10 percent of discretionary income but no more than what you would pay in the 10-year Standard Repayment Plan
  • Payment period may not exceed 20 years depending on borrower status and level of study completing


The Saving on a Valuable Education (SAVE) Plan

  • Replaced the Revised Pay As You Earn (REPAYE) Plan
  • Payment amounts are calculated based on income and family size and generally 10 % of your discretionary income.
  • Payment period may not exceed 20 or 25 years, depending on borrower’s level of study completing.
  • Any monthly interest not covered by the monthly payment will be covered by the government.

 

Deferments and Forbearance


There may be extenuating circumstances when you have difficulty making your loan payments. We encourage you to contact your loan servicer(s) in this situation. They are best equipped to guide you in this process.

Deferments in general

  • No payments are made on the loans
  • The federal government may pay the interest on Subsidized loans and Perkins loans, but interest accrues on Unsubsidized loans, Parent PLUS loans, and Graduate PLUS loans
  • Involves an application process
  • Has time limits based on the deferment type
  • May apply based on borrower status (e.g., in-school, economic hardship, unemployment, military service and more)


Forbearances in general

  • Temporarily postpones or reduces monthly payments for up to 12 months
  • Interest accrues on all loans
  • Are granted at the loan servicer’s discretion
  • May apply in cases of poor health or financial hardship

 

Consolidation


Consolidation allows you to combine all eligible federal loans into a single new loan with one monthly payment; a new interest rate will be calculated based on the weighted average of your loans. Please note, there is no interest rate cap on the weighted average interest rate for consolidation loans made after July 1, 2013. Please check with your loan servicer for details before applying.

Consolidation Terms to Consider

  • May be advisable if your loans are held by different servicers or you prefer your loans placed into one monthly payment
    Payment period may not exceed 30 years
  • When you consolidate, you lose your “grace period” and your loans go into immediate repayment. Check with your loan servicer prior to consolidating.

 

Loan Forgiveness Programs


There are various loan forgiveness programs that are available for borrowers who meet certain criteria and circumstances.

Federal Loan Servicer Contact Information
Federal Loan ServicerContact InfoWebsite
Edfinancial1-855-337-6884edfinancial.studentaid.gov
MOHELA1-888-866-4352mohela.studentaid.gov/default.aspx
Aidvantage1-800-722-1300aidvantage.studentaid.gov
Nelnet1-888-486-4722nelnet.studentaid.gov/welcome
ECSI1-866-313-3797borrowerefpls.ed.gov
Default Resolution Group1-800-621-3115 (TTY: 1-877-825-9923 for the deaf or hard of hearing)myeddebt.ed.gov
CRI1-833-355-4311cri.studentaid.gov/welcome

 

Private Education Loan Borrowers

If you have borrowed private education loans, you’ll want to contact those specific lenders for their repayment plan information. If you do not know who you have borrowed from, you may contact sfs@alvernia.edu. Please visit consumerfinance.gov for more information on managing your private education loans.

 

Resources
Frequently Asked Questions (FAQs)


Who is my loan servicer?

This information can be accessed on studentaid.gov, in the student's profile, under the “My Loan Servicer” section.
 

Do loan payments pause/defer if I go to grad school?

Yes, students who are enrolled in at least half-time enrollment may continue to have their loans deferred. Schools send students enrollment statuses to the loan servicers so that they may update their payment status.
 

Do federal loans accrue interest while in deferment?

Yes, interest does accrue on Unsubsidized and PLUS loans.
 

How early and how late can I complete loan exit counseling?

You may complete Exit Loan Counseling as soon as your requirement is posted on your PROWL account. We strongly advise that you complete this as soon as possible to prevent any future holds or other issues on your student account.
 

What steps can a student take if they do not have a job secured after college and are concerned that they cannot pay their loans after the grace period has ended?

If you are concerned about making payments after your grace period is over, please contact your loan servicer so that they may provide other options.
 

How early and how late can I complete loan exit counseling?

You may complete exit loan counseling after you attend your Graduation Finale, or when you receive your exit counseling notification via your Alvernia University email address or a letter mailed to the home address you have on file. Please check your myAlvernia profile to confirm your correct address.