Federal student loan entrance counseling is a mandatory requirement for first-time borrowers of Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans (for graduate students). The purpose is to ensure borrowers understand their rights and responsibilities, loan terms, repayment options, and the consequences of default before receiving loan funds.
10 steps across 1 sections
1. Steps Process
- Determine if you need entrance counseling. Entrance counseling is required if:
- You are a first-time borrower of a Direct Subsidized or Unsubsidized Loan
- You are a graduate/professional student borrowing a Direct PLUS Loan for the first time who has not previously received a Direct Unsubsidized Loan
- You have not completed entrance counseling at your current school (some schools require it even for transfer students with prior loans)
- Log in to studentaid.gov. Go to studentaid.gov/entrance-counseling and log in with your FSA ID (the same credentials used for the FAFSA).
- Select your school. Choose your college or university from the list so that completion is reported to the correct institution.
- Complete the counseling module. The module covers:
- Types of federal student loans and their terms
- Interest rates and how interest accrues
- Loan fees and origination charges
Common Mistakes
- Rushing through the module
- Not completing it before the disbursement deadline
- Using the wrong school name
- Confusing entrance counseling with exit counseling
- Not saving the completion confirmation
Pro Tips
- Complete it immediately after accepting your loans
- Pay attention to the repayment plan information
- Note your loan servicer
- Use the budgeting tools
- Review the Master Promissory Note (MPN) after counseling