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ECSI Regulation Bulletin

Working with Federal Student Loans also means working within the Federal Regulations that accompany them. As your servicer, ECSI feels that it is our duty to keep track of these regulations for you, making sure to keep your institution in compliance with all mandatory federal regulations.

Regulation Spotlight: Electronic Exit Interviews

Problem:

As any financial aid administrator knows, college students can be hard people to get a hold of, and when you do, it’s even harder to get them to do what you need. Exit Interviews are a prime example. With worries and distractions such as grades, exams, parents, friends, and not to mention graduation itself, something as important as an Exit Interview can easily be overlooked by a borrower, even though you may already have sent them letters, emails, and/or left messages. More so, manual processes such as in-person interviews or physical mailing of the Exit Interviews make the process that much more long and arduous.

Regulation:

Section 34 CFR 674.42 of the Federal Perkins Loan Program states. . .

"(b) Exit interview.

1. An institution must ensure that exit counseling is conducted with each borrower either in person, by audiovisual presentation, or by interactive electronic means. The institution must ensure that exit counseling is conducted shortly before the borrower ceases at least half-time study at the institution...
2. The exit counseling must--
1. Inform the student as to the average anticipated monthly repayment amount based on the student’s indebtedness or on the average indebtedness of students who have obtained Perkins loans for attendance at the institution or in the borrower’s program of study;
2. Review for the borrower available repayment options (e.g. loan consolidation and refinancing, including the consequences of consolidating a Federal Perkins Loan);
3. Suggest to the borrower debt-management strategies that would facilitate repayment;

. . .

10. Inform the borrower of the availability of title IV loan information in the National Student Loan Data System (NSLDS)...
3. If exit counseling is conducted through interactive electronic means, the institution must take reasonable steps to ensure that each student borrower receives the counseling materials, and participates in and completes the exit counseling."

Solution:

ECSI’s On-line Exit Interviews are an economical, practical, and environmentally friendly way for your staff and borrowers to complete this important step in the Due Diligence Process. ECSI’s On-line Exit Interview Solution includes lifetime storage of all completed Exit Interviews and a seamless transfer of data into the SAL System for future collection and auditing purposes. In-person interviews and mailings are now a thing of the past - give your borrowers the ability to be able to complete their Exit Interview anytime, anywhere, be it at their favorite coffee shop or sitting on the campus lawn. http://ecsi.net/prospects2/ad_webexit.pdf.

For more information, on this or any other regulation, please contact us.