Aside from student loan counseling which is prerequisite to obtaining student loans, another term that one should be knowledgeable about is federal student loan exit counseling.
Today, everybody is very aware of what happening when it comes to financing your studies especially going through college and that’s the load debt crisis. The recent studies show that the student loan crisis has now reached more than $1 trillion dollars and it’s not even show any signs of doing downhill. That very reason why this has happened is all because of financial illiteracy.
Many students along with their parents have little or no knowledge at all when it comes to availing student loans. That is why, when somebody would like to go through college and needed some financial assistance especially from Federal loan assistance, he or she must go through what they call as counseling for student loans application.
In other words, before somebody will apply for students loans, they will go through the process of counseling and, then, must also go through examinations or test in different forms from multiple choices, essays to true-or-false tests so that they will have the knowledge about their financial obligations and will be very aware of the interest incurred based on their principal loans.
Federal student loan exit counseling, on the other hand, is a kind of counseling that every graduating student must go through to discuss some important pointers with regards to loan repayment. It is also a requirement in case there will be students who are planning of dropping out of school for reasons that they know.
Furthermore, these sessions will help them keep track of the details of their repayment. Lack of knowledge of the essence of student loans is one of the very reasons why some of the borrowers can’t cope up with their financial obligations and not because of lack of finances. Most of the focus of counseling like these is on a borrower’s rights and responsibilities.
Federal student loan exit counseling is as important as student loan counseling because it gives them the idea of their responsibilities. Once these students and their parents have this knowledge, they can focus more on other important things and for the student to focus more on their studies and never have to worry about anything else.