Student Loan Counseling: What It Is and How To Get Help

More than half of student loan borrowers say they've had trouble making payments, according to a survey by the Consumer Financial Protection Bureau. Student loan counseling can walk you through your repayment options, help you build a budget, and create a strategy to manage your debt. But not all counseling is the same. 

This guide explains the different types of student loan counseling, when you may need it, and how to find a trustworthy counselor.

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What is student loan counseling?

Student loan counseling helps you understand how your loans work and what you need to do to manage them successfully. It may be required when borrowing federal student loans or if you choose to get extra help with budgeting or repayment options. 

Federal student loan counseling focuses on your responsibilities before and after borrowing, while independent counseling can offer more personalized help with repayment strategies, budgeting, and your broader financial goals.

“Like financial literacy training, student loan counseling is designed to help educate borrowers on the benefits and rules of accepting a student loan and the obligation of making on-time payments,” explains Tom O’Hare, a college adviser at Get College Going.

Federal student loan counseling

Federal student loan counseling is mandatory for federal student loan borrowers. Depending on your loan type and where you are in the borrowing process, you may be required to complete entrance counseling, exit counseling, or PLUS credit counseling.

Entrance counseling

If you’re a first-time federal student loan borrower, you must complete entrance counseling before your school can disburse your loan. This requirement applies to Direct Subsidized and Unsubsidized Loans.

The self-paced online session takes about 30 minutes and helps you understand how much you’re borrowing, how interest adds to your costs, what you’ll be responsible for during repayment, and how to avoid delinquency and default.

Exit counseling

You must complete exit counseling when you graduate, leave school, or drop below half-time enrollment. The roughly 30-minute online session helps you prepare for repayment by reviewing your loan balance, repayment options, borrower rights and responsibilities, and how different repayment plans can affect your monthly payment and total loan costs.

PLUS credit counseling

You may need to complete PLUS credit counseling if your PLUS loan application is denied because of adverse credit, but you still want to qualify for the loan.

You can become eligible by adding an endorser who agrees to repay the loan if you don’t, or by documenting extenuating circumstances related to your credit history. In either case, you must also complete PLUS credit counseling before receiving the loan.

Independent student debt counseling 

Credit counseling from nonprofits

Nonprofit credit counseling agencies can help you create a plan to pay off your student loans. These counselors look at your full financial picture, including your income, expenses, and other debts, to help you find a repayment strategy that fits your budget.

Unlike federal entrance or exit counseling, which focuses only on your student loans, nonprofit credit counseling takes a more holistic approach. The goal is to make sure your loan payments align with your broader financial goals, like building savings or paying down credit card debt.

School-based loan education

Many colleges and universities offer free student loan counseling through their financial aid offices. Advisers can answer questions about your federal and private student loans, financial aid, and general money management.

Some schools also require or recommend additional counseling before you can take out private student loans, similar to the federal entrance counseling process. Check with your financial aid office to see what resources or requirements apply at your school.

Private financial coaching or loan consultants

Private financial coaches and student loan consultants can also offer one-on-one guidance, similar to what you'd get from a nonprofit credit counselor. These services may include help choosing a repayment plan, budgeting, or creating a long-term debt strategy.

However, student loan counseling isn’t a regulated field, which means anyone can offer services, even without proper training. Before signing up with a private coach or consultant, look for professionals certified or accredited by organizations such as:

• National Financial Educators Council (NFEC)
• National Association of Certified Credit Counselors (NACCC)
• Financial Counseling Association of America (FCAA)
• Certified Student Loan Professionals (CSLP)

How can student loan counseling help you?

Student loan counseling can give you a clearer understanding of your debt, your responsibilities as a borrower, and the strategies available to manage repayment.

“The more you know, the less you will procrastinate and stress,” says O’Hare.

Private counseling through a credit counselor or financial coach goes beyond just repayment advice. It helps you view your student loans within the broader context of your finances. You can learn how to build a realistic budget that includes loan payments alongside your other financial goals, while also protecting your credit. 

“Counseling will also outline whom one can contact when there is a concern or program, and what to do if a borrower needs help,” adds O’Hare. “If the counseling session is organized and conducted to educate the borrower, it can be invaluable to help a borrower be a good steward of their loan obligations.”

Where can you find trustworthy student loan counseling?

Entrance and exit counseling for federal loans is available online through the U.S. Department of Education. But if you need more personalized help, you can work with a nonprofit credit counselor or a certified private professional.

A nonprofit credit counselor is a good place to start. Organizations like the National Foundation for Credit Counseling, the National Financial Educators Council, or the National Association of Certified Credit Counselors can connect you with trained professionals who understand student loan repayment and budgeting.

You can also search for someone with student loan-specific credentials, such as a Certified Student Loan Professional (CSLP). These counselors are specially trained to help borrowers navigate complex loan decisions.

How much does student loan counseling cost?

Many student loan counseling services are free. That includes the required entrance and exit counseling for federal loans, as well as sessions offered through universities, local credit unions, or nonprofit organizations. For example, the National Foundation for Credit Counseling (NFCC) says most of its member agencies provide free credit counseling, though some may charge a fee depending on the service.

If you prefer to work with a private company or can’t access free services, you may need to pay out of pocket. Basic loan counseling often starts around $50, while more comprehensive services can cost several hundred dollars.