September 14, 2016

Flash Edition

New Loan Counseling Experimental Sites Initiative Announced for Postsecondary Institutions

On Aug. 15, 2016, the Department published Federal Register Vol. 81, No. 157, inviting postsecondary education institutions to participate in experiments under the Experimental Sites Initiative. The new experiment will allow colleges to require, as a condition of receiving Direct Loan funds, loan counseling to students beyond the statutorily required one-time entrance and one-time exit counseling. It also will test whether requiring additional loan counseling is effective in boosting academic outcomes and helping students manage their debt. 

Through this experiment, the Department plans to learn if the loan counseling flexibility

• helps students make more informed decisions about borrowing student loans;
• promotes successful repayment of students loans, including reducing delinquencies and defaults; and
• has a positive impact on students’ academic performance, such as grades and completion rates. 

For application instructions to be considered for participation in this experiment and for more information, please click on the IFAP and  Federal Register notice links. Letters of interest must be received by Sept. 29, 2016.

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