Big Picture Loans A Guide To Student Loan Entrance And Exit Counselling
Everyone knows about the student loan debt crisis - it recently crossed the $1 trillion mark and shows no signs of abating. Perhaps what most don't realize, though, is that there is a bigger problem simmering just below the surface: financial illiteracy.
A study conducted by NERA Economic Consulting and the Young Invincibles advocacy group revealed that 65% of borrowers had pretty much no idea what they were getting into. Two-thirds admitted that they did not know the difference between private and federal loans - a glaring omission since federal and private loans have significantly different payment terms, interest rates and policies.
What's worse, 20% of the borrowers were shocked by the repayment terms and 15% had no idea that the interest rates were so high. Both of these topics should have already been discussed during student big picture loans direct loans no credit check tribal entrance and exit counseling.
Student Loan Entrance and Exit Counseling
Most people are already familiar with exit counseling. Every graduating student must go through exit counseling to discuss key points in loan repayment, as do students on the verge of dropping out. The point is that these counseling sessions are designed to help students keep track of their repayment details. The focus is on discussing the borrower's rights and responsibilities.
Due to recent developments and the revelation that majority of borrowers lack crucial information and understanding of the loans they have, some colleges have introduced enhanced entrance counseling initiatives. All student borrowers are required to take the big picture loans direct personal loan lender entrance counseling session.
Loan entrance and exit counseling sessions tend to last from 30 to 40 minutes per borrower. Usually, the focus of counseling (especially loan entrance counseling) is on a borrower's rights and responsibilities.
For entrance counseling sessions, borrowers are introduced to the basics of a loan, such as differentiating between private and federal loans; the significance of the interest rate; and other terms and conditions surrounding the loan. Emphasis is placed on the difference between a loan and a grant or a scholarship. However, some colleges may include basic financial literacy tips for money management and budgeting.
During loan entrance counseling, other topics that may be discussed are the repayment options and consequences of defaulting. Samples of monthly payments may be taken up as well. It's a very good opportunity for the borrower to ask questions about the loan.
The exit counseling session is slightly similar, though now with a clearer picture on the amount of monthly payments to be made. Exit counseling includes a discussion of big picture loans 6 month loan direct lender repayment options, monthly payment costs, the possibility of deferment or loan forgiveness, and the consequences of defaulting. Counseling should also cover possible tax benefits, when applicable.
Where to Go?
Many schools use the online counseling provided through the Department of Education, or simply mail a packet of information to the student borrowers to satisfy the requirement. Very few alternative options exist, with the exception of iGrad (a financial literacy education provider), which recently created a video-based entrance and exit counseling which is offered to colleges.
Most entrance and exit counseling sessions can be conducted online. Students are given access to an application that guides and educates them on the pertinent topics. They are then requested to answer a short quiz to complete the session.
Given the importance of educating students on the true responsibilities of carrying student debt, some universities have taken to withholding the transcript until the student completes the exit counseling session.
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