Direct Loans are given directly from the U.S. Department of Education, without going through a bank or other lender. The Department of Education will assign your loan to a servicer once it is disbursed. More information about the Federal Direct Loan program is available through Federal Student Aid. You can view and manage your loans at www.studentaid.gov.
Federal Loan Exit Counseling
Exit counseling is required when you graduate, leave school, or drop below half-time enrollment. Exit counseling provides important information that you need to prepare to repay your federal student loan(s).
What you need:
- A computer and internet access to studentaid.gov
- Your FSA ID username and password
- Complete information for three references who will know your whereabouts for the next few years
- Why is reference information needed?
Federal Student Aid requests reference information strictly to help contact student borrowers when they cannot contact students at the address or phone number on file. Neither Federal Student Aid nor any other agency will discuss your loan information, personal information, or any other details with anyone other than you, the borrower.
- Why is reference information needed?
Steps to complete Exit Counseling:
- Watch the "How to Complete Exit Counseling Tutorial"
- Complete the federally required online Exit Counseling
- Your Zagweb requirement will typically be updated within 72 hours upon your completing Exit Counseling online.
Additional Resources
- Direct Loan Exit Counseling Guide
- Repayment: What to Expect
- How to Manage Your Student Loans
- Student Loan Repayment Options
- Coronavirus: Federal Student Loan Relief Information
- Direct Loan Repayment Plans
- Federal Student Aid Informational Videos
Repayment
Loan repayment on Federal Direct Loans typically begins 6 months after a student has graduated or dropped below half-time attendance. It is important you understand your responsibilities as a borrower and repayment options for your student loans to build a solid financial foundation.
Many different repayment options are available for your loans, with pros and cons for each type. These plans were designed to help make loan payments for students more manageable. You will need to work with your loan servicer to help determine which plan will benefit you the most in repaying your loans.
Cancellation
In certain circumstances, your loan may be canceled, forgiven, or discharged.
Some circumstances that may be eligible for loan cancellation:
Deferment/Forbearance Options
Deferment and forbearance options are available if you are having difficulty making your loan payments. Choosing one of these options will help you avoid defaulting on your loans while alleviating the financial strain you may be experiencing during a time of hardship. Be sure to continue making payments while your deferment or forbearance request is being processed and be sure stay in contact with your servicer during this time.
Default
Once your loan goes into repayment, if you do not make your scheduled loan payments, you run the risk of your loan going into default. If your loan has defaulted, a hold will be placed on your Gonzaga transcripts and diploma until the default has been cleared. You are also ineligible to receive any federal financial aid while you have a loan in a defaulted status.
Consolidation
Consolidation is a process where you take out a new loan to pay off some or all of your existing federal student loans. There are many pros and cons to consolidation and you should do your research before pursing consolidation to see if it is the right choice for you. Beware of companies offering to lower your interest rate or get your loan canceled; these companies usually charge for loan consolidation, which you can do for free on your own.
If you choose to consolidate, you can complete the processes at Consolidate Your Federal Student Loans.