Entrance and Exit Loan Counseling for Federal Loans

Entrance Counseling for Federal Loans

Students taking out Federal Direct Unsubsidized Loans are required to complete online entrance loan counseling. One time entrance counseling must be completed before the Department of Education will release your first loan disbursement.

Grad PLUS borrowers with adverse credit may be required to complete credit counseling for each loan borrowed.  Students will complete this counseling online.

Entrance loan counseling:

  • explains the use of the Master Promissory Note (MPN);
  • educates students on managing their education expenses;
  • informs first time borrowers on the terms and conditions of the loan and responsibilities in borrowing;
  • instills the importance of the students’ repayment obligation.

Entrance Counseling Guide for Direct Loan Borrowers

Loan Summary Information

The National Student Loan Data System (NSLDS) is the U.S. Department’s central database that stores information on all loans and grants made through the federal student aid programs. You can login (https://nslds.ed.gov/npas/index.htm/) using your FSA ID and access your federal loan awards from MTSA, but you will need to contact your loan servicer for repayment information and any other loan detail NSLDS does not display. MTSA is required to report your enrollment status to the NSLDS.  Both loan and enrollment information is accessible by lenders, agencies and institutions determined to be authorized users of the data system.


Exit Loan Counseling for Federal Loans

Recipients of Federal Direct Loans will complete required exit counseling upon exiting MTSA. Students who will be exiting MTSA, will be emailed “exit counseling” information and a reminder to perform the online exit counseling for the loans that they borrowed. Online exit counseling needs to be performed at the U.S. Department of Education’s website.

During exit counseling, borrowers are informed of debt-management strategies, repayment options, conditions for a deferment and forbearance, consolidation and consequences of defaulting. Borrowers should allow 30 minutes to complete the online counseling session, for it must be completed in a single session. Stay in touch with your servicer should you have a name, address or phone number change, or any issues in repaying.

If you have any issues with the www.studentloans.gov website you may contact the MTSA Financial Aid Office by calling 888-353-6872, or contact the Federal Student Aid Information Center, 1-800-433-3243.

Exit Counseling Guide for Federal Student Loan Borrowers


The FSA Ombudsman can be contacted if loan borrowers have exhausted all efforts to resolve issues with their federal student loan(s):

U.S. Department of Education
FSA Ombudsman Group
P.O. Box 1843
Monticello, KY  42633
Fax:  606-396-4821

Borrowers are encouraged to make every effort to resolve their student loan problems on their own, however, when a solution cannot be reached, the Ombudsman has a process and resources to assist borrowers.