34 CFR 682.604 - Required exit counseling for borrowers.

§ 682.604 Required exit counseling for borrowers.

(a)Exit counseling.

(1) A school must ensure that exit counseling is conducted with each Stafford Loan borrower and graduate or professional student PLUS Loan borrower either in person, by audiovisual presentation, or by interactive electronic means. In each case, the school must ensure that this counseling is conducted shortly before the student borrower ceases at least half-time study at the school, and that an individual with expertise in the title IV programs is reasonably available shortly after the counseling to answer the student borrower's questions. As an alternative, in the case of a student borrower enrolled in a correspondence program or a study-abroad program that the home institution approves for credit, written counseling materials may be provided by mail within 30 days after the student borrower completes the program. If a student borrower withdraws from school without the school's prior knowledge or fails to complete an exit counseling session as required, the school must, within 30 days after learning that the student borrower has withdrawn from school or failed to complete the exit counseling as required, ensure that exit counseling is provided through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower's last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials.

(2) The exit counseling must -

(i) Inform the student borrower of the average anticipated monthly repayment amount based on the student borrower's indebtedness or on the average indebtedness of student borrowers who have obtained Stafford loans, PLUS Loans, or student borrowers who have obtained both Stafford and PLUS loans, depending on the types of loans the student borrower has obtained, for attendance at the same school or in the same program of study at the same school;

(ii) Review for the student borrower available repayment plan options, including standard, graduated, extended, income sensitive and income-based repayment plans, including a description of the different features of each plan and sample information showing the average anticipated monthly payments, and the difference in interest paid and total payments under each plan;

(iii) Explain to the borrower the options to prepay each loan, to pay each loan on a shorter schedule, and to change repayment plans;

(iv) Provide information on the effects of loan consolidation including, at a minimum -

(A) The effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;

(B) The effects of consolidation on a borrower's underlying loan benefits, including grace periods, loan forgiveness, cancellation, and deferment opportunities;

(C) The options of the borrower to prepay the loan and to change repayment plans; and

(D) That borrower benefit programs may vary among different lenders;

(v) Include debt-management strategies that are designed to facilitate repayment;

(vi) Explain to the borrower the use of a Master Promissory Note;

(vii) Emphasize to the student borrower the seriousness and importance of the repayment obligation the borrower has assumed;

(viii) Emphasize to the student borrower that the full amount of the loan (other than a loan made or originated by the school) must be repaid in full even if the student borrower does not complete the program, does not complete the program within the regular time for program completion, is unable to obtain employment upon completion, or is otherwise dissatisfied with or does not receive the educational or other services that the student borrower purchased from the school;

(ix) Describe the likely consequences of default, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation;

(x) Provide -

(A) A general description of the terms and conditions under which a borrower may obtain full or partial forgiveness or discharge of principal and interest, defer repayment of principal or interest, or be granted forbearance on a title IV loan, including forgiveness benefits or discharge benefits available to a FFEL borrower who consolidates his or her loan into the Direct Loan program; and

(B) A copy, either in print or by electronic means, of the information the Secretary makes available pursuant to section 485(d) of the HEA;

(xi) Require the student borrower to provide current information concerning name, address, social security number, references, and driver's license number and State of issuance, as well as the student borrower's expected permanent address, the address of the student borrower's next of kin, and the name and address of the student borrower's expected employer (if known). The school must ensure that this information is provided to the guaranty agency or agencies listed in the student borrower's records within 60 days after the student borrower provides the information;

(xii) Review for the student borrower information on the availability of the Student Loan Ombudsman's office;

(xiii) Inform the student borrower of the availability of title IV loan information in the National Student Loan Data System (NSLDS) and how NSLDS can be used to obtain title IV loan status information; and

(xiv) A general description of the types of tax benefits that may be available to borrowers.

(3) If exit counseling is conducted by electronic interactive means, the school must take reasonable steps to ensure that each student borrower receives the counseling materials, and participates in and completes the counseling.

(4) The school must maintain documentation substantiating the school's compliance with this section for each student borrower.


(i) For students who have received both FFEL Program and Direct Loan Program loans for attendance at a school, the school's compliance with the exit counseling requirements in 34 CFR 685.304(b) satisfies the requirements of this section if the school ensures that the exit counseling also provides the borrower with the information described in paragraphs (a)(2)(i) and (a)(2)(ii) of this section.

(ii) A student's completion of electronic interactive exit counseling offered by the Secretary satisfies the requirements of this section, and for students who have also received Direct Loan Program loans for attendance at the school, the requirements of 34 CFR 685.304(b).

(b) [Reserved]

(Approved by the Office of Management and Budget under control number 1845-0020)
(Authority: 20 U.S.C. 1077, 1078, 1078-1, 1082, 1085, 1092, 1094)
[ 57 FR 60323, Dec. 18, 1992]
Editorial Note:
For Federal Register citations affecting § 682.604, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 20 - EDUCATION

§ 1070 - Statement of purpose; program authorization

§ 1070a - Federal Pell Grants: amount and determinations; applications

20 U.S. Code § 1070a–1 - Omitted

20 U.S. Code §§ 1070a–2 to 1070a–6 - Repealed. Pub. L. 102–325, title IV, § 401(i), July 23, 1992, 106 Stat. 482

§ 1070a-11

§ 1070a-12

§ 1070a-13

§ 1070a-14

§ 1070a-15

§ 1070a-16

§ 1070a-17

§ 1070a-18

§ 1070a-21

§ 1070a-22

§ 1070a-23

§ 1070a-24

§ 1070a-25

§ 1070a-26

§ 1070a-27

§ 1070a-28

§ 1070a-31

§ 1070a-41

§ 1070a-51

§ 1070a-61

§ 1070a-71

§ 1070a-81

§ 1070b - Purpose; appropriations authorized

§ 1070b-1

§ 1070b-2

§ 1070b-3

§ 1070b-4

§ 1070c - Purpose; appropriations authorized

§ 1070c-1

§ 1070c-2

§ 1070c-3

§ 1070c-3a

§ 1070c-4

§ 1070d to 1070d–1d - Repealed. Pub. L. 102–325, title IV, § 402(a)(1), July 23, 1992, 106 Stat. 482

§ 1070d-2

§ 1070d-31

§ 1070d-32

§ 1070d-33

§ 1070d-34

§ 1070d-35

§ 1070d-36

§ 1070d-37

§ 1070d-38

§ 1070d-39

§ 1070d-40

§ 1070d-41

§ 1070e - Child care access means parents in school

§ 1070f to 1070f–6 - Repealed. Pub. L. 110–315, title IV, § 411, Aug. 14, 2008, 122 Stat. 3226

§ 1070g - Definitions

§ 1070g-1

§ 1070g-2

§ 1070g-3

§ 1070g-4

§ 1070h - Scholarships for veteran’s dependents

§ 1071 - Statement of purpose; nondiscrimination; and appropriations authorized

§ 1072 - Advances for reserve funds of State and nonprofit private loan insurance programs

§ 1072a - Federal Student Loan Reserve Fund

§ 1072b - Agency Operating Fund

§ 1073 - Effects of adequate non-Federal programs

§ 1074 - Scope and duration of Federal loan insurance program

§ 1075 - Limitations on individual federally insured loans and on Federal loan insurance

§ 1076 - Sources of funds

§ 1077 - Eligibility of student borrowers and terms of federally insured student loans

§ 1077a - Applicable interest rates

§ 1078 - Federal payments to reduce student interest costs

§ 1078-1

§ 1078-2

§ 1078-3

§ 1078-4

§ 1078-5

§ 1078-6

§ 1078-7

§ 1078-8

§ 1078-9

§ 1078-10

§ 1078-11

§ 1078-12

§ 1079 - Certificate of Federal loan insurance—effective date of insurance

§ 1080 - Default of student under Federal loan insurance program

§ 1080a - Reports to consumer reporting agencies and institutions of higher education

§ 1081 - Insurance fund

§ 1082 - Legal powers and responsibilities

§ 1083 - Student loan information by eligible lenders

§ 1083a - Consumer education information

§ 1084 - Participation by Federal credit unions in Federal, State, and private student loan insurance programs

§ 1085 - Definitions for student loan insurance program

§ 1086 - Delegation of functions

§ 1087 - Repayment by Secretary of loans of bankrupt, deceased, or disabled borrowers; treatment of borrowers attending schools that fail to provide a refund, attending closed schools, or falsely certified as eligible to borrow

20 U.S. Code § 1087–0 - Repealed. Pub. L. 105–244, title IV, § 432, Oct. 7, 1998, 112 Stat. 1710

20 U.S. Code § 1087–1 - Special allowances

§ 1087-2

§ 1088 - Definitions

§ 1088a - Clock and credit hour treatment of diploma nursing schools

§ 1089 - Master calendar

§ 1090 - Forms and regulations

§ 1091 - Student eligibility

§ 1091a - Statute of limitations, and State court judgments

§ 1091b - Institutional refunds

§ 1091c - Readmission requirements for servicemembers

§ 1092 - Institutional and financial assistance information for students

§ 1092a - Combined payment plan

§ 1092b - National Student Loan Data System

§ 1092c - Simplification of lending process for borrowers

§ 1092d - Scholarship fraud assessment and awareness activities

§ 1092e - College access initiative

§ 1092f - Early awareness of financial aid eligibility

§ 1093 - Distance education demonstration programs

§ 1093a - Articulation agreements

§ 1094 - Program participation agreements

§ 1094a - Regulatory relief and improvement

§ 1094b - Assignment of identification numbers

§ 1095 - Transfer of allotments

§ 1095a - Wage garnishment requirement

§ 1096 - Administrative expenses

§ 1096a - Repealed. Pub. L. 102–325, title IV, § 494, July 23, 1992, 106 Stat. 631

§ 1097 - Criminal penalties

§ 1097a - Administrative subpoenas

§ 1098 - Advisory Committee on Student Financial Assistance

§ 1098e - Income-based repayment

§ 1099 - Transferred

§ 1141 - College access challenge grant program

Presidential Documents

Executive Order ... 12549

Executive Order ... 12689

Title 34 published on 04-May-2018 03:40

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 34 CFR Part 682 after this date.

  • 2018-02-14; vol. 83 # 31 - Wednesday, February 14, 2018
    1. 83 FR 6458 - Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, William D. Ford Federal Direct Loan Program, and Teacher Education Assistance for College and Higher Education Grant Program
      GPO FDSys XML | Text
      DEPARTMENT OF EDUCATION, Office of Postsecondary Education
      Final regulations.
      As of February 14, 2018, the effective date for the amendments to or additions of: §§ 668.14(b)(30), (31), and (32); 668.41(h) and (i); 668.71(c); 668.90(a)(3); 668.93(h), (i), (j); 668.171; 668.175 (c) and (d) and (f) and (h); Appendix C to Subpart L of Part 668; 674.33(g)(3) and (g)(8); 682.202(b)(1); 682.211(i)(7); 682.402(d)(3), (d)(6)(ii)(B)( 1 ) and ( 2 ), (d)(6)(ii)(F) introductory text, (d)(6)(ii)(F)( 5 ), (d)(6)(ii)(G), (d)(6)(ii)(H) through (K), (d)(7)(ii) and (iii), (d)(8), and (e)(6)(iii); 682.405(b)(4); 682.410(b)(4) and (b)(6)(viii); 685.200(f)(3)(v) and (f)(4)(iii); 685.205(b)(6); 685.206(c); 685.212(k); 685.214(c)(2), (f)(4) through (7); 685.215(a)(1), (c)(1) through (c)(8), and (d); 685.222; Appendix A to Subpart B of Part 685; and 685.308(a), published November 1, 2016, at 81 FR 75926, and delayed on June 16, 2017 (82 FR 27621) and October 24, 2017 (82 FR 49114), is further delayed until July 1, 2019.
      34 CFR Parts 668, 674, 682, and 685
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