Along with helping borrowers to be better informed about their loans, the counseling assists in keeping default rates low. Schools may deliver loan counseling through in-person group sessions, online services, audiovisual presentations, print materials, or an alternate method.

To help schools in evaluating the entrance counseling that they offer their students, USA Funds offers the following checklists of requirements and suggestions:

Checklist of Entrance-Counseling Requirements

• Do we reinforce the importance of repayment?
• Do we describe the consequences of default?
• Do we explain the use of the MPN?
• Do we tell students that repayment is required regardless of their educational outcome?
• Are students given sample monthly payments?

Checklist of Entrance-Counseling Suggestions

• Do we review the terms and conditions of the loan?
• Do we review repayment options?
• Do we discuss the importance of budgeting while in school?
• Are students told they need to communicate with the lender?
• Do we explain the options of deferment, forbearance and cancellation?
• Do we review borrowers’ rights and responsibilities?
• Do we review refund and withdrawal policies?
• Do we emphasize the importance of record keeping?
• Do students understand their exit-counseling requirements?
• Do we review the availability of state-grant aid?
• Do we administer a test or quiz?

The USA Funds University online course "Federal Family Education Loan Program Counseling" provides these checklists as well as additional information about entrance and exit counseling. The course is one of more than 60 courses in an online curriculum aimed at helping financial-aid and education-lending professionals enhance their skills.