Entrance Counseling is designed to assist you understand the offer of financial assistance that has been extended to you as a student at Boston University’s Medical Campus (BUMC). As a student loan borrower, you should be fully aware of your rights and responsibilities for all loan programs, including those through the William D. Ford Federal Direct Loan Program (click here for Direct Loan Interest Rates) and/or BUMC. It is worth your time to familiarize yourself with the terms of your loans and grants.
It is a federal requirement that students have an Entrance Counseling session before their Federal Direct Loan proceeds can be credited to their student account. You can complete this requirement at the Direct Loan Servicing website or during an in-person session with any staff member in the Office of Student Financial Services (OSFS). If you are receiving institutional loans from BUMC for the first time, you will be required to meet with an OSFS staff member where you will be given the opportunity to discuss the terms of your loans and sign your promissory notes.
The information you receive at your Entrance Counseling Session published by OSFS, will be helpful as you budget for your educational costs and as you plan for the repayment of your loans. This will be an ideal opportunity for you to begin maintaining a record of both the federal and institutional loans you borrow each year.
It is also a federal requirement that you attend an Exit Counseling Session when you take a leave-of-absence, transfer, drop out, or graduate from a program at BUMC. At that time, you will be advised again of all the provisions regarding repayment.
Many students at BUMC graduate with debt packages over $150,000; the Entrance Counseling session can assist you with long-range financial planning related to your student loan obligations. However, the message here is plain: you must defer personal gratification during school and post-graduate training.
Please read and complete the “Rights and Responsibilities Checklist” in the Entrance Counseling Guide for Borrowers available at OSFS. It is important that you also understand:
- The consequences of delinquency and default on your student loans.
- That you are NOT eligible for most loans including the Direct Loan if you take fewer than six credits.
- The importance of reading all mail from the University, lenders, and servicers.
- The importance of maintaining good records and keeping all loan documents in a safe place.
- That deferring or forbearing on your loans will usually increase the cost of your borrowing.
- That you must attend an Exit Counseling Session any time you drop to less than half time (six credits) or leave school, whether officially or unofficially.
Remember - borrow only as much as you need to pay for your education, since every dollar you borrow must be repaid, usually with interest. The future of the Federal Direct Loan program and other loan programs is dependent upon borrowers, such as you, repaying the loans as scheduled and required. High default rates will make loan programs too expensive for Congress and other lenders to fund. Furthermore, since the University has contingent liability for many of the loans you will assume while you are a student, BUMC will be held responsible for repayment should you default. You must realize that institutional funds used to repay some of your loans would then come from financial assistance funds meant to be used by students in school at that time.
Careful planning now can help you avoid serious difficulties later.
