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Exit Counseling Reminder: Borrower Repayment Plan Preference is Now Provided to Loan Servicers

April 15, 2014

Since many financial aid administrators are counseling borrowers who recently completed their programs of study, we want to remind you of an important Exit Counseling change, effective January 2014. Borrowers who use Exit Counseling on StudentLoans.gov can now select their preferred loan repayment plan.

During borrowers’ Exit Counseling sessions, the Department provides preliminary repayment plan eligibility and estimated repayment amounts based on each borrower’s NSLDS loan information. Once the borrower chooses a plan, the Department shares the borrower’s preference with  the federal loan servicing team, FFELP lenders, servicers, and guaranty agencies. For Department of Education-held loans, this includes processing the selected plan within normal servicing guidelines.

Borrowers who choose income-driven plans will receive servicer follow-up, since application and additional documentation is required.  For those who choose standard, graduated, or extended repayment, the servicer creates a repayment schedule tailored to the borrower’s balance.  If borrowers want to change their plan after the initial selection, they can contact their servicers to discuss options.

For more information, please see this link to the most recent Electronic Announcement on this topic: http://www.ifap.ed.gov/eannouncements/102813LSIRepayPlanInfoLoanSevicersBeginJan2014.html.

 

Anne Del Plato, Eastern Reginal Director, Nelnet Partner Solutions

Anne Del Plato, Eastern Regional Director, Nelnet Partner Solutions

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