During this stage, students should receive an appropriate orientation to the student-loan process and entrance counseling. Financial-aid administrators may provide this initial orientation during one or a series of meetings with the student.

Initial counseling and new student orientation

The financial-aid administrator should provide the student with an overview of the financial-aid process, begin the application process, and counsel students about their loan responsibilities. You may share this information with your students by telephone or in person, in an individual meeting or in a group session. If your school conducts a new-students' orientation session, this group setting provides another opportunity for financial-aid administrators to discuss financial-aid issues. Information not covered during the initial counseling session with students could be included as part of this orientation. Loan counseling is an ongoing activity and should be undertaken whenever you are in contact with students.

• Conducting an initial loan-counseling session.
• Entrance-interview components.
• Supplemental data sheet.
• Rights and responsibilities summary checklist.
• Federal Stafford-loan test.
• How much can you afford to pay?

New students' entrance interviews and counseling

The U.S. Department of Education requires entrance interviews for all federal loans. Entrance interviews should take place prior to the start of the first quarter or semester in which a student is borrowing (usually the first quarter or the first semester of attendance). This interview allows schools to continue the efforts begun in the initial counseling session to educate students about their rights and responsibilities.

• How to conduct an entrance interview.
• Interview components.
• Student-loan entrance-interview form.

Send letters or postcards to all references that students provided on their loan applications. The purpose of these letters or postcards is to verify that the references are good and that the addresses are correct. Make sure that the student includes contact information for references on the Supplemental Data Sheet.

• Supplemental data sheet.

Potential-default identification

During the loan-application and origination stage, schools should identify students who have the greatest potential to default on their student loans and provide loan counseling or loan alternatives for them.

• Loan alternatives.

If you have any feedback or would like to add your best practices to this manual, please contact the Debt-Management Team consultant for your state.