Perhaps you are a rising senior who is graduating during this academic year. Or maybe you are currently enrolled student who needs to drop down to one class for the semester due to a hectic life. Or maybe you are withdrawing from your educational studies because it wasn’t meant to be. No matter the situation, there comes a time when a federal student loan borrower must complete exit counseling on www.studentaid.gov.
You must complete exit counseling when you leave school or drop below half-time enrollment. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment. You’ll learn about what your federal student loan payments will look like after school. Further, the exit counseling session will recommend a repayment strategy that best suits your future and goals.
You can conveniently complete the exit counseling requirement on www.studentaid.gov. The Financial Aid Office is notified electronically within 24 hours after you complete this requirement. In the interim, an exit counseling hold will be placed on your account. This hold may prevent the Registrar’s Office from releasing important college records like your academic transcript. In addition, exit counseling is required to be completed prior to receiving your diploma or graduation regalia.
Have questions or concerns about the material presented to you in your exit counseling session? Do not hesitate to reach out to the Financial Aid Office for clarification! We are available to answer any of your questions or concerns.
After completing exit counseling, making your first federal student loan repayment may seem daunting. Fortunately, there are ways you can mitigate the risks of delinquency and default. One of those ways is developing a robust budget process that accounts for all your expenses and cash flows during various periods of the year.
Think about all the various expenses you incur throughout a typical day. You may purchase gasoline for your automobile at the start of the day before you arrive at work. While at work, your tummy aches for a snack at the vending machine. As you devour your scrumptious candy bar, you realize you still need to buy groceries for tonight’s dinner. You must also stop by the local discount store for a birthday card for your colleague’s birthday celebration on Friday.
As you can see, expenses can multiply; if you are not careful, they can grow out of control. Creating a budget is a time-trusted method for managing cash flows and costs throughout the calendar year. An adequate budget enables individuals to become more confident in their expenditure patterns while carefully managing their bi-weekly paycheck. A weak budget (or none at all!) can create chaos in a person’s financial life as expenses become unmanageable, leading to poor credit card decisions.
When you begin to make repayment on your federal student loan obligations, it is essential to review all of your core expenditures. What do you need to pay monthly to live? Necessities are things you need to survive daily. For example, some items that are necessary to pay for in your monthly budget include:
Discretionary items are non-essential goods or services that are desirable to a consumer. For example, concert tickets to see your favorite artist, Taylor Swift, are discretionary and are not non-essential (ok, that’s not true for a Swiftie, but hopefully you get my point). Managing the costs of the necessities in your budget enables you to afford more discretionary goods and services while also putting money away in savings for future goals.
You must incorporate your federal student loan repayments in your monthly budget calculations. Failure to make satisfactory payments on your federal student loans can adversely affect your credit score and your ability to receive credit from other lenders in the future. It can hamper your ability to repay your federal student loans promptly and thoroughly. For some individuals, it may make sense to contact a financial advisor to review your financial situation if it’s complex or if you need additional assistance in creating a viable budget that allows you to live life to the fullest.
You can use various apps and websites to document your expenses while projecting future cash flows when developing a robust budget. A quick Google search will yield a variety of resources at your disposal for the budgeting process. Below is an informative video from Federal Student Aid on budgeting with helpful tips on creating an adequate budget. You can also learn more about budgeting through free financial literacy websites.
One of the trickier aspects of the financial aid process is understanding the mythical term known as cost of attendance. Many students confuse themselves over this term because it’s not always straightforward–many variables determine your actual cost of attendance figure.
The cost of the attendance budget is the financial aid process’s foundational block. Each school participating in the federal student aid programs must publish a cost of attendance budget. This budget aims to provide prospective students with an estimated breakdown of direct and indirect costs a student may experience while enrolled at the institution. Direct costs include tuition and fees, residential hall and board plan charges, and required course materials to succeed in the classroom. Indirect costs include personal expenses (i.e., laundry detergent, dish soap, etc.), transportation expenses, and variable costs for each student (e.g., course materials). The purpose of a cost of attendance budget is to inform you, the consumer, of the anticipated expenses you may experience during your enrollment period.
The cost of attendance budget determines how much financial aid you can receive throughout the semester and, consequentially, the academic year. Your financial aid package cannot exceed the College’s established cost of attendance budget. Some students may need loans to cover personal expenditures if they are not working during enrollment. The Education Department permits students to receive loan proceeds as a refund check during their enrollment to meet expenses outlined in the cost of attendance budget. However, each school has a limit to the amount a student can receive in additional aid outside of their direct costs. While this can be frustrating to hear, the purpose of this regulation is to prevent you from over-borrowing and creating an unmanageable debt load.
If you need to receive additional loans to cover expenses during your enrollment, you must understand the College’s cost of attendance budget. More importantly, it’s equally crucial to understand your living expenses. Although you can borrow up to the maximum amount allotted by the College’s cost of attendance budget, limiting your borrowing to only what you need is far wiser. Reducing your core expenditures to the bare minimum helps you live below your means while lowering your overall indebtedness.
After completing your educational studies, you must repay your educational loan obligations. By borrowing only for what you need, you can maintain a manageable debt level that will not hinder your finances. The Financial Aid Office encourages all students to chat with a financial aid counselor about their need for additional assistance for living expenses before taking out a large loan. Avoiding this mistake now can prevent deleterious impacts on your future finances.
To learn more about cost of attendance budgets used by the Financial Aid Office, please watch this informative video below.
As an adult, you face many choices you did not even contemplate as a child. One of those most difficult decisions is deciding on the right financial institution (i.e., bank or credit union) to fit your banking needs. Choosing a bank is akin to dating; you want to ensure you are comfortable and happy with the financial institution you select to handle most of your financial matters. A poor banking experience can harm your financial welfare and reduce your ability to make sound decisions.
There are a variety of banking options for you to consider. One of them is deciding on the type of financial institution to handle your banking needs: bank or credit union. A bank is a qualified financial institution licensed to accept customers’ funds for safekeeping while making loans to clients. Most banks participate in fractional-reserve banking: they will lend a portion of their balance sheet to clients to generate revenue from interest payments on loans. The bank may offer to pay customers interest on deposits to incentivize keeping the funding at that financial institution. The difference between the interest income received from the loans and interest paid on customer deposits is known as net interest marginal.
A credit union is akin to a bank but has a few differences. A credit union is a member-owned financial cooperative that provides traditional banking services. Credit unions are generally only available to select members of an entity (e.g., corporation, organization, government agency, etc.). A credit union may occasionally allow a member’s spouse or child to create an account. A key difference between banks and credit unions is that credit unions are not-for-profit enterprises. While credit unions feature worthwhile perks such as lower interest rates on financial products or access to loan funding that other financial institutions may eschew, there are several downsides, such as more limited operating hours, reduced number of brick-and-mortar locations, and fewer financial products.
When selecting a financial institution, you should do thorough research to maintain comfort with the entity. Like the earlier analogy of dating, when selecting a financial institution, you should ask yourself the following questions before signing up for an account:
Selecting a financial institution to fit your banking needs is one of the more consequential decisions you’ll make as an adult. Please review your options, research bank, and credit union reviews online, and ask a trusted peer about their experience at local financial institutions. Watch the following video to learn more about selecting a financial institution that fits your banking needs.
During your adult life, you will encounter scenarios where you may need to use a loan to finance your purchase. Consumers’ most common loan examples include mortgages, educational loans, and car loans. One of the factors used to determine your ability to receive a loan at an affordable interest rate is your credit score. A credit score is a three-digit number that rates your creditworthiness. Borrowers with a higher credit score will often see lower interest rates on financial products and have more access to credit than their lower-score counterparts.
There are a few ways to build your credit if you are a novice to the credit space or want to build upon your existing score. First, pay monthly bills on time. One method to utilize in this endeavor is signing up for auto-billing. Auto-billing reduces the headache of remembering to make bill payments before the due date. Some merchants offer a discount if you sign up for auto-billing. Always take advantage of that perk as it reduces an expense in your budget. Second, maintain a solid working knowledge of your bank account. Avoid over-drafting your account or writing a bad check when making a significant purchase. Avoiding these pitfalls can alleviate the pain of having a hit on your credit score. Third, make payments on your federal student loans. Some students mistakenly believe they can neglect their federal student loan payments. The consequences of delinquency and default are significant and can negatively affect your credit score.
You may immediately overlook the impact when you fail to pay federal student loans. Over time, you may experience a weaker credit score and an inability to access credit for major purchases. When that happens, you may feel it’s in your best interest to walk away from your federal student loan obligations completely. That’s a false assumption to make. If you are in a difficult bind and have issues making repayments on your federal student loans, contacting your loan servicer first is essential. Alternative payment plan options may be available given your income situation or forbearance to pause monthly payments temporarily. If you refuse to contact your loan servicer, you may cause unnecessary harm that’s difficult to recover.
The Financial Aid Office at Goldey-Beacom College remains a valuable resource after you graduate. Whether you have questions regarding your total level of indebtedness or who your loan servicer is, a financial aid counselor can guide you through the thorny repayment process. In addition, if you decide to re-enroll for another degree program, you may be eligible to defer your loan repayment until the completion of your next credential. The Financial Aid Office coordinates federal student loan borrower information with the Registrar’s Office, ensuring your enrollment status is correct in the National Student Loan and Database System (NSLDS). Ultimately, it’s the responsibility of the student to understand the terms and conditions of their federal student loans and the importance of maintaining a healthy credit score.
Watch the following video to learn more about building and maintaining a healthy credit score.
Nothing is worse than the disarray of financial records. Whether it’s records of your taxes paid from previous years, federal student loan paid in full notices, or copies of your mortgage statements, you must maintain a filing system for financial records. We live in an increasingly digitized world, and more records than ever are digital. Financial documents can appear across a variety of platforms. And there are those few occasions where you’ll receive a copy of your statement through snail mail. As you can see (or may have already experienced), maintaining a tidy record-keeping system can be a nightmare in 2025.
First, Let’s start with why maintaining a record-keeping system of critical financial documents is necessary for your sanity. A well-managed record-keeping system can prevent financial discrepancies with entities you interact with. For example, suppose you agree to replace your HVAC system. In that case, keeping records of that financial transaction is essential if the company disputes the amount you owe. The same is true with your loan servicer. If you notice a discrepancy between the amount you have paid on your federal student loans, it’s essential to address that with your loan servicer on time. The records you keep will serve as evidence in your dispute. A tidy record-keeping system can also alleviate the pressure of developing a fine-tuned budget process.
Deciding where to store your financial records is a decision that rests solely with yourself. If you prefer to digitize documents, remember to store them on a cloud-based platform that backs up regularly. Storing directly on your computer’s hard drive increases the odds you lose those critical records if the device reaches the end of its life and is no longer accessible. Try to avoid storing vital records on flash drives. Flash drives are risks for many reasons. Flash drives are at risk of being stolen, and the contents of that hard drive, if not password protected, can go into a fraudster’s hands. If you want to store documents physically, you’ll want to use a safe or filing cabinet that is fire and waterproof. Natural disasters can quickly destroy financial records. In addition, always use a safe or filing cabinet with a secure locking mechanism. Locking your records deters unauthorized access to those records.
You should now recognize the importance of keeping financial records, such as federal student loans, in a well-managed record-keeping system. How you build that record-keeping system is highly dependent on your preferences. The most important takeaway is deciding whether to store financial records digitally or physically and how you’ll keep those records accessible and secure from unauthorized actors. Taking time to develop a comprehensive filing system will prevent uncomfortable financial headaches.
Earning a higher education credential, whether a certificate or degree, is one of the most worthwhile investments an individual can make in their lifetimes. Many academic studies reaffirm the positive impacts of a higher education degree. Unfortunately, attaining a postsecondary education credential often requires using federal student loans to finance the costs.
Nearly 1 in four adults in the United States have used a student loan to finance their education. It’s not uncommon for a young student to receive an educational loan. Some students may turn to private student loans to finance their education. Taking out a student loan is one of an adult’s most complex decisions. Students must understand the fundamentals of student loans before accruing additional debt.
Before you receive a student loan, talk to your financial aid counselor about additional grants or scholarships you may qualify for. Please note that some schools may require an application for additional gift aid. Next, review your work-study options. Work-study is a federal student aid program where students can earn wages to supplement their financial aid package. The number of wages a student can earn through this program differs for each person, so it’s essential to chat with a financial aid counselor before committing to a work-study assignment.
If your financial aid package remains insufficient to cover your educational expenses, consider student loans to cover your remaining costs. First, always take advantage of federal student loans before using private loans. Federal student loans offer benefits that many private loans do not feature. Second, there are different types of federal student loans to consider. For example, undergraduate students with financial need may receive subsidized and unsubsidized loans. Graduate students may only qualify for an unsubsidized loan. Graduate students who have hit their lifetime aggregate limit or need additional funds outside an unsubsidized loan may consider a PLUS Loan to cover their expenses. Unlike subsidized and unsubsidized loans, PLUS Loans have credit requirements that applications must meet before receiving the PLUS Loan.
Private student loans are an option for students who need additional resources to finance their education. Private student loans are non-federal loans controlled by a non-federal lender, such as a bank or a financial institution specializing in student lending. Private student loans do not feature the same benefits as federal student loans, so you must research the loan’s terms and conditions. Interest rates may also be higher for private loans. Further, the repayment options may be more limited than federal student loans. The Financial Aid Office encourages students to chat with a financial aid counselor before pursuing a private student loan.
When deciding on a student loan option, you must understand the type of loans you are receiving. Federal student loans are much different than private student loans. Private student loans make sense, given your financial situation. Always conduct additional research before committing to a loan option. Goldey-Beacom College offers interest-free payment plans where you can pay off your account balance during the academic year. If you have money available in savings, liquidating savings may make more sense before tapping into federal student loans. The Financial Aid Office encourages you to speak to a financial advisor when deciding on the best route to pursue when financing a higher education degree.
No matter what loan you decide to use to finance your educational endeavors, you must understand the details of your loan obligations. Asking yourself the following questions will prevent unnecessary borrowing and help you make a more informed decision.
Some questions to ponder include:
These questions should serve as a launching pad in your research of student loan options. You may generate additional questions during your research. You can always contact the Financial Aid Office for clarity on any questions or concerns lingering in the back of your head.
Entering repayment of your federal student loan obligations can feel daunting. Unlike other loan products, federal student loan repayment options are myriad and can feel confusing. To better educate you on repayment options, please watch this informative video from Federal Student Aid that answers many of your questions or concerns. As always, you can chat with the Financial Aid Office to discuss any problems regarding your total indebtedness or repayment options.
The Public Service Loan Forgiveness (PSLF) Program is intended to encourage individuals to enter and continue to work full-time in public service jobs. PSLF allows certain borrowers who work in public service to qualify for forgiveness of the remaining balance of their Direct Loans after they have made 120 qualifying payments on those loans while employed full-time by certain public service employers. Details on qualifying loans and employment sectors can be found at Public Service Loan Forgiveness | Federal Student Aid.
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