This section contains important information concerning Federal Direct Subsidized and Unsubsidized Loan exit counseling, repayment, consolidation and forgiveness. If you borrowed these funds during your studies, please read this section carefully so you understand the requirements and the options available to you.
Exit Counseling is an online educational course for borrowers of Federal Stafford Loan and/or Federal Grad PLUS loan funding. The counseling is required for all borrowers who are no longer attending,or are currently registered for less than six credits at Delaware Valley University. Exit Counseling needs to be completed even if you are planning to continue your education at another institution.
Exit Counseling will explain your rights and responsibilities as a federal loan borrower. It also provides information and terms to help you make the right choices about repayment. During the counseling, you will review your total federal student loan debt. As you complete the Exit Counseling, pay special attention to:
- Loan consolidation
- Loan deferment
- Payment options (standard repayment, extended repayment, graduated repayment, and income contingent repayment)
- Loan forbearance
Exit Counseling will take 20-30 minutes to complete. You will need your FSA ID and Delaware Valley University’s Federal School Code: 00325200.
You DO NOT need to notify us once you have completed the Exit Counseling. The Office of Financial Aid will receive electronic confirmation once you complete your Exit Counseling.
Direct Loan Exit Counseling is separate from the Perkins Exit Counseling. You will also need to complete the Direct Loan and/or Grad PLUS Loan Exit Counseling.
If you are graduating, you should complete the Exit Counseling within thirty (30) days prior to your graduation date. If you are no longer attending or have dropped below half-time attendance, you should complete the Exit Counseling within thirty (30) days from the last date of at least half-time attendance.
Yes, you should complete Exit Counseling even if you are planning to continue your education. The Exit Counseling will assist you in knowing your rights and regulations about the grace period for your current loan(s) and repayment period.
If you have multiple student loans you may be able to combine them into one loan with a fixed interest rate based on the average of the interest rates on the loans being consolidated. Once the consolidation is complete, you will have a single monthly payment on the new Direct Consolidation Loan instead of multiple monthly payments on the federal loans you consolidated.
Refinancing can simplify your debt by combining multiple loans into one, but it’s different from federal student loan consolidation. You refinance student loans with a private lender.but you consolidate federal loans by taking out a direct consolidation loan from the federal government.
Federal consolidation combines federal student loans into one new loan, and it lets you choose new repayment terms. Because it doesn’t lower your interest rate, you won’t save money on interest.
Refinancing is done through a private lender and can lower your interest rate if you qualify.
Refinancing federal student loans means you convert them into private loans. As a result, you will lose access to federal programs, such as income-driven repayment and Public Service Loan Forgiveness. If you run into financial hardship, the help available varies by lender. If you’re relying on federal protections, then you should not refinance your federal student loans. If you’re comfortable without these programs, refinancing could be a smart strategy for paying off your loans.
In certain situations, you can have your federal student loans forgiven, canceled, or discharged. The terms forgiveness, cancellation, and discharge mean nearly the same thing, but they’re used in different ways. If you’re no longer required to make payments on your loans due to your job, this is generally called forgiveness or cancellation. If you’re no longer required to make payments on your loans due to other circumstances, such as a total and permanent disability or the closure of the school where you received your loans, this is generally called discharge.
It’s important to remember that outside of the circumstances that may qualify you to have your loans forgiven, canceled, or discharged, you remain responsible for repaying your loan—whether or not you complete your education, find a job related to your program of study, or are happy with the education you paid for with your loan. Even if you were a minor (under the age of 18) when you signed your promissory note or received the loan, you are still responsible for repaying your loan.
For the most up to date information about federal loan forgiveness, cancellation, or discharge click here.
If you borrowed Federal Direct Loans and are currently undergoing active treatment for cancer, you may request to defer repayment of your Federal Direct student loans for the duration of the cancer treatment and for the six months following the treatment. During an active cancer treatment deferment, interest will not accrue on direct subsidized or unsubsidized student loans. Please contact your loan servicer if you need to request an Active Cancer Treatment Deferment as an application is not yet available.
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program.
PSLF forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
*Federal Family Education Loan (FFEL) Program loans and Perkins Loans may become eligible for Public Service Loan Forgiveness if they are consolidated into the Direct Loan Program.
Learn more about the PSLF Program to see whether you might qualify.
If you teach full-time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency, you may be eligible for forgiveness of up to $17,500 on your Direct Loan or FFEL Program loans.
Learn more about the Teacher Loan Forgiveness Program, eligibility requirements, and how to apply.
Note: You may not receive a benefit for the same qualifying payments or period of service for Teacher Loan Forgiveness and Public Service Loan Forgiveness.