Entrance Counseling

Prior to the first disbursement, SAGU must provide to a first-time borrower of a FFELP or a Federal Direct Loan (other than consolidated or Parent PLUS loans) comprehensive information on the terms and conditions of the loan and of the borrower's responsibilities. SAGU meets this standard by requiring all federal student loan borrowers to complete loan entrance counseling at www.studentloans.gov prior to the disbursement of any federal student loan. The online entrance counseling will include information on:

• the effect of the loan on the eligibility of the borrower for other forms of aid;
• an explanation of the use of the Master Promissory Note;
• the seriousness and importance of the students' repayment obligation;
• information on the accrual and capitalization of interest;
• borrowers of unsubsidized loans have the option of paying interest while in school;
• definition of half-time enrollment and the consequences of not maintaining half-time enrollment;
• importance of contacting appropriate offices if student withdraws prior to completion of program of study; sample monthly repayment amounts;
• the obligation of the borrower to repay the full amount of the loan regardless of whether the borrower completes program or completes within regular time for completion, is unable to obtain employment upon completion, or is otherwise dissatisfied with or does not receive the educational or other services the borrower purchased from the school;
• consequences of default;
• information about the NSLDS and how the borrower can access the borrower's records; and name and contact information for individual the borrower may contact with questions about the borrower's rights and responsibilities or the terms and conditions of the loan.