Exit Loan Counseling

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• I. PURPOSE
• II. REFERENCES
• III. DEFINITIONS
• IV. POLICY
• V. PROCEDURES
• Policy Maintenance Information

I. PURPOSE

This policy provides students with Exit Loan Counseling process guidelines, and their rights and responsibilities as borrowers of Direct Subsidized, Direct Unsubsidized, or Graduate or professional Direct PLUS (Parent Loan for Undergraduate Students) loans.

Scope: This policy applies to undergraduate and graduate students who have graduated, dropped below half time enrollment, or have withdrawn.

II. REFERENCES

1. Financial Aid Loan Deferments
2. Financial Aid Overview
3. Financial Aid: Your Rights and Responsibilities
4. Return of Title IV Financial Aid

III. DEFINITIONS

1. Exit Loan Counseling: Counseling that provides essential information to prepare students for repayment of Direct Subsidized, Direct Unsubsidized, or Graduate or professional Direct PLUS loans and the borrower’s rights and responsibilities. It includes information on the average anticipated monthly repayment amount, available repayment plan options, consequences of default, availability of the information in the National Student Loan Data System (NSLDS), and other information to successfully repay the federal student loans.
   
   
2. Master Promissory Note (MPN): Is a legal document in which student promises to repay their U.S Department of Education issued loans and any accrued interest and fees to the U.S. Department of Education.

IV. POLICY

1. Western Governors University (WGU) requires students to complete Exit Loan Counseling upon graduation, when the student’s enrollment drops below half-time enrollment, or the student withdraws.
2. In accordance with federal laws, borrowers have the following rights regarding repayment of Direct Subsidized, Direct Unsubsidized, or Graduate or professional Direct PLUS loans:
   
   
   1. Access to written information on loan obligations and information on rights and responsibilities as a borrower;
   2. A copy of the MPN either before or at the time the loan is disbursed;
   3. A grace period and an explanation of grace periods;
   4. A notification if the U.S. Department of Education transfers the loan to another servicer without the borrower’s consent;
   5. A disclosure statement, received before beginning to repay the loan, that includes information about interest rates, fees, the balance owed, and a loan repayment schedule;
   6. Deferment or forbearance of repayment for certain defined periods if a borrower qualifies and if requested;
   7. Ability to prepay the loan in whole or in part anytime without an early-repayment penalty; and
   8. Documentation when the loan is paid in full.
      
      
3. In accordance with federal laws, borrowers have the following responsibilities regarding the repayment of Direct Subsidized, Direct Unsubsidized, or Graduate or professional Direct PLUS loans:
   
   
   1. To complete exit counseling before leaving school or dropping below half-time enrollment;
   2. To repay the loan according to the repayment schedule even if the borrower does not complete the academic program, is dissatisfied with the education they received, or is unable to find employment after graduation;
   3. To notify the lender or loan servicer if the borrower changes address, telephone number, name, social security number, or employer or employer’s address or telephone number;
   4. To make monthly payments on the loan after the grace period ends, unless the borrower has a deferment or forbearance; and
   5. To notify the lender or loan servicer of anything that might alter the borrower’s eligibility for an
      existing deferment or forbearance.

V. PROCEDURES

1. Federal Student Aid recipients will receive an electronic notification, via the My WGU Student Portal, on the requirement to complete Exit Loan Counseling at StudentAid.gov. If the student did not complete the online exit counseling, WGU will send a link to the Direct Loan Exit Counseling Guide (PDF) via email to the student borrower, at their personal/home email address, within thirty (30) days after WGU learns that the student borrower failed to complete the exit counseling as required.
   
   
2. Each Direct Subsidized or Unsubsidized loan borrower and graduate student Direct PLUS loan borrower who is in the final term of the program of study will receive an electronic notification to complete Exit Loan Counseling.
   
   
3. For administrative withdrawals, WGU ensures that Exit Loan Counseling is conducted within thirty (30) days of the date WGU determined the student has withdrawn.
   
   
4. Borrowers may use the Federal Student Aid office Loan Simulator to see the estimated monthly and total payments including the repayment plan options for which they may be eligible.

Policy Maintenance Information

• Policy: Exit Loan Counseling
• Responsible Department: Financial Aid
• Effective Date: 9/18/2018
• Approved Date: 9/18/2018
• Viewability: Student facing, WGU-community

Policy Action	Date	Authorization
Reviewed	4/15/2022	Annie Reyes
Non-Substantive Revision	7/21/2023	Patti Kohler, Pilar Hays