Pilot Program For Student Loan Counseling Being Tested At University Of Delaware
The United States Department of Education has chosen fifty-one American universities and colleges to participate in a pilot program to test student loan counseling. The program has been developed as an experiment to help students learn more about how to navigate the confusing and costly student loan systems.
What The Program Entails
The program is intended to help inform students about the ins and outs of the student loan system in America. Certain students who are loan borrowers at some of the participating universities will also be required to take part in extra counseling sessions before they will be adding more debt to their total debt during their sophomore, junior and senior years of college or university education.
This program was specifically designed to test how much of an impact the counseling sessions will have on students with debt. Typically, the counselling sessions would have been reserved for the time before a freshman begins school or after they graduate. Now, the selected students to participate will have more sessions throughout their college and university educations for more help and to monitor how they are doing with regards to their student loan debts.
Where The Loans Come From
The students who are borrowing loans for educational purposes through the program ran by the Federal Direct Loan Program are going to be put into one of two types of groups. The first group will take on students that have to go through the mandatory loan counseling sessions. These sessions will be brief, online courses which the student must attend each time they are about to borrow more money for their schooling needs. The students which are going to be placed in the second group won’t be required to go through any extra counseling sessions for the student loans they take out.
Earlier, the counseling sessions for the students in the groups that took the tests during freshman year typically lasted no more than half an hour. These tests could be completed online. The exit sessions for counseling were also able to be completed online and took place once graduation was over. They took around half an hour to complete as well. The exit sessions which are completed after graduation were to inform the students about when their student loans were to be paid off and helped them to calculate what their monthly payments were going to be.
Statement From Director Of Student Financial Services
The Director of Student Financial Services made a statement to the News Journal. Her name is Melissa Stone and she works at the University of Delaware. She was stating that when a freshman starts school, there are so many changes that they are having to go through. She also feels that when the students go through the initial debt counseling sessions online, they may not fully understand what they mean. She also believes that after four years at school, a student will be fully reminded of where they are at with regards to the loans and how much it costs to get a good education.
Theses counseling sessions are used in hopes to bringing some knowledge to the students at the University of Delaware and other participating universities and colleges to be more informed about the importance of their student loan debts while they are going to school. The students are going to be receiving ongoing and proactive counseling to gain the knowledge and tools necessary to better manage and understand their personal finances and debts.
Future Of Debt Counseling Program
The future looks good for the student debt loan counseling program. It should be continued for the next few years at the very least, according to a statement from the Department of Education. These counseling sessions are a great addition to the other various initiatives and programs that have been enacted in the past decade to help improve the student loan debt crisis in America. It is offered in hopes of making college more affordable and worthwhile.
According to information from LendEDU, there are more than forty-three million student loan borrowers in the United States. All together, they collectively owe more than $1.41 trillion dollars to their student loan debts. Additionally, about sixty percent of college and university graduates left school with some amount of student loan debt. The average student loan borrower owes around twenty-eight thousand dollars towards their debts.