"Student loan counseling is mandated by law for those who borrow federal loans to pay for college or graduate school. Yet each year, students graduate or leave school unaware of how much money they borrowed, or worse, that they have debt at all," according to U.S. News & World Report. 

"To more effectively educate students and temper overborrowing, legislators are considering additional student loan counseling requirements – a piece of the puzzle in addressing the nation's overwhelming student loan debt.

This could be in the form of annual mandatory loan counseling, or more targeted counseling for students hitting certain financial milestones or who are exhibiting signs they may be at risk of making a financial misstep.

...

The future of federally mandated student loan counseling is unclear, but according to Megan Coval, vice president of policy and federal relations at the National Association of Student Financial Aid Administrators, students and families will likely see some type of a revamp.

The process may take years, but given the strong bipartisan support in Congress, she says, 'I do think loan counseling and financial literacy broadly will be addressed.'

Experts say the overarching purpose of additional loan counseling is to better provide students with financial knowledge while not adding an unnecessary burden. At first, students may view additional counseling as just that."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 7/30/2019