Sec. 343. Exit counseling
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Section 485(b) ( 20 U.S.C. 1092(b) ) is amended to read as follows: Each eligible institution shall provide counseling to borrowers of loans made under part D (including any such loans for attendance at another institution from which the student transferred or in which the student had previously enrolled, other than a Federal Direct Consolidation Loan) prior to the completion of the course of study for which the borrower enrolled at the institution or at the time of departure from such institution.
The counseling required by this subsection shall be provided through the use of an interactive program, during an exit counseling session that is in-person or online, or through the use of the online counseling tool described in subsection (n)(1)(A), and shall include— an explanation of the grace period preceding repayment and the expected date that the borrower will enter repayment; an explanation that the borrower has the option to pay any interest that has accrued while the borrower was in school or that may accrue during the grace period preceding repayment or during an authorized period of pause payment; the outstanding balance of principal and interest owed by the borrower at the time of such counseling on loans made, insured, or guaranteed to the borrower under this title; information on the repayment plans available, including a description of the different features of each plan and sample information showing the average anticipated monthly payments, and the difference in interest paid and total payments, under each plan; a description of the borrower’s options for pause payment under section 460B; a description of the Federal tax benefits that may be available for repaying loans made under this title; a description of the terms and conditions under which the student may obtain forgiveness or cancellation of any principal and interest of a loan made under this title; an explanation that the borrower has the option to prepay each loan, pay each loan on a shorter schedule, and change repayment plans; the implications of, and options to get out of, default on a loan; information as to how the student borrower can access their loan records; an explanation that— the borrower may be contacted during the repayment period by a third-party student debt relief company; the borrower should use caution when dealing with such a company; and the services that such a company typically provides are offered to borrowers free of charge through the Department or the borrower’s servicer; and an explanation that the borrower has the right to annually request a copy of the credit report of the borrower from a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act ( 15 U.S.C. 1681j(a) ).
In the case of borrower who leaves an institution without the prior knowledge of the institution, the institution shall attempt to provide the information described in subparagraph
(A)to the borrower in online or in writing, except that in the case of an institution using the online counseling tool described in subsection (n)(1)(A), the Secretary shall attempt to provide such information to the borrower in the manner described in subsection (n)(3)(C). Each eligible institution shall require that the borrower of a loan made under part D submit to the institution, during the exit counseling required by this subsection— the borrower’s expected permanent address after leaving the institution; the borrower’s most recent contact information; and any corrections in the institution’s records relating the borrower’s name, social security number, and driver’s license number, as applicable. Each eligible institution shall, not later than 60 days after the date of collection of the information described in subparagraph (A), forward the information received from the borrower to the Secretary. Nothing in this subsection shall be construed to prohibit an institution of higher education from utilizing electronic means to provide personalized exit counseling. .
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