Student borrowers in federal loan programs are required to complete online Entrance Counseling before receiving loan funds, and online Exit Counseling when they graduate, leave school, or drop below half-time enrollment.

Entrance Counseling is required to help borrowers understand their responsibilities in taking out a loan. It offers information about the loan process, managing education expenses, suggests other resources, and shares rights and responsibilities. Exit Counseling assists borrowers as they prepare to begin repayment of their loans and offers money management tips.

Online Entrance Counseling

If you are a first-time Federal Direct Loan student borrower at U-M, you must complete Direct Loan Entrance Counseling on the U.S. Department of Education's Federal Student Aid website under the "Complete Entrance Counseling" link. This includes Direct Subsidized and Unsubsidized Loans and PLUS loans.

This interactive counseling session and quiz helps students develop budgets for managing educational expenses and also understand their loan responsibilities. Allow approximately 30 minutes to complete the counseling.

You must complete the counseling before your loan funds can be disbursed to you. U-M will be notified by Federal Student Aid when you have completed it.

Note: This is not the same as the federal Financial Awareness Counseling Tool, which can be found on the same site. Taking a demo counseling session will not fulfill your requirement.

Special Note to Parent PLUS Loan Borrowers

Federal PLUS Loans are supplemental loans which require separate application. Entrance counseling is not required for most PLUS Loan borrowers. However, it is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have either obtained an endorser or documented any extenuating circumstances with the Department of Education. For more information, visit the Federal Student Aid website.