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FIRST for Students and Residents

FIRST for Students and Residents


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Exit Counseling - Requirements and Recommendations for FAOs*

Student loan borrowers make a significant financial investment in their future, and because of this, the Department of Education requires that these students receive an “Exit Interview” to receive guidance on how to repay their debt. In addition to this fact sheet, the AAMC has resources to help support you in completing the exit process, including a general presentation on exit topics (with speaker’s notes). All of these resources are available on the Members Only section of the GSA website (login required). Please note that these resources are not meant to fulfill the Exit Interview requirements, but rather to enhance the schools loan counseling resources.

Exit Interview Requirements**:

- explain the purpose of an MPN
- describe NSLDS and how to obtain loan status
- describe consequences of default: adverse credit, garnishment, litigation
- reinforce importance of repayment and that repayment is required whether or not:

- program is completed and/or completed within the specified timeframe;
- borrower obtains employment;
- borrower is satisfied with experience;
- services purchased were received

- provide estimates of monthly payment amounts based on either: a) the student borrower's indebtedness or b) the average indebtedness of borrowers at your school or in the same program of study at your school. (Average calculation of payments must reflect 1) Direct Subsidized and Direct Unsubsidized Loans, or 2) Direct PLUS Loans only, or 3) Direct Subsidized, Direct Unsubsidized, and Direct PLUS Loans.)
- review all repayment plans, the features, estimated payment amounts, and the difference in total interest cost and payments made under each plan
- discuss effects of loan consolidation: total interest and fees to be paid, repayment term, changes in benefits, grace, forgiveness, and deferment opportunities, and the right to prepay the loan and change repayment plans
- provide Department of Education information on federal student assistance programs
- offer information on debt management strategies
- emphasize borrower’s ability to prepay each loan, pay each loan on a shorter schedule, or change repayment plans
- notify of eligibility requirements and application process for obtaining deferment, forbearance, forgiveness, discharge, and cancellation
- explain purpose and availability of Federal Student Aid Ombudsman’s Office
- provide a general description of the types of tax benefits that may be available
- collect and update the borrower’s personal information*** including:

- name
- Social Security number
- current address
- expected permanent address
- driver's license number and state of issuance
- name and address of next of kin
- name and address of expected employer, and
- references

- discuss possible tax benefits during repayment
- explain how to contact loan servicer(s)
- provide Department of Education information on federal student assistance programs

Recommendations from FIRST:
- emphasize communication with servicers
- suggest retention of all servicer(s) correspondence
- encouraging the use of the MedLoans® Organizer and Calculator (to see estimated costs based on career paths)
- explain how to submit complaints to the FSA office
- advise that payments are due on-time (even if you don't receive a statement)

*For details on Exit Counseling for Perkins Loans, see 2016-2017 FSA Handbook, Volume 2, Chapter 6 PDF External Link.
**Based on AAMC’s interpretation of regulations as of 01/2017.
***School must provide updated borrower information to the FFEL guarantor or the Direct Loan servicer within 60 days.

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MedLoans® Organizer and Calculator

Medloans Organizer and Calculator

Organize and track your loans with the MedLoans® Organizer and Calculator for medical students and residents.