Loan Counseling and Repayment

Federal student loans are a long-term financial obligation. Federal loan counseling helps you understand your rights and responsibilities, including your borrowing options, loan terms, and repayment obligations. First-time federal student borrowers must complete entrance counseling before receiving Direct Loan funds, and all federal student Direct Loan borrowers must complete exit counseling when they graduate, withdraw, or enroll on less than a half-time basis.  

Contact the Financial Aid Office before you withdraw, take a leave, or reduce your enrollment below half-time status. A change in enrollment status may affect your current financial aid, eligibility for future borrowing, grace periods, and the date repayment begins.

Entrance Counseling

First-time federal student Direct Loan borrowers must complete entrance counseling prior to receiving their first loan disbursement. To complete entrance counseling, visit StudentAid.gov/entrance-counseling.

Student loan entrance counseling addresses topics including:

  • Federal loan types, interest, and fees; 
  • The use of a Master Promissory Note (“MPN”);
  • The importance of repaying federal student loans; 
  • How accepting a federal student loan may affect your eligibility for other financial aid; 
  • Enrollment requirements, including the consequences of dropping below half-time enrollment; 
  • Repayment plans and estimated monthly payments at different levels of borrowing; 
  • Your continuing obligation to repay your loans even if you do not complete your program or obtain employment;
  • Consequences of delinquency and default; 
  • How to access and track your federal student loans; and 
  • The importance of contacting the Financial Aid Office before withdrawing, taking a leave, or reducing your enrollment below half-time.

Southwestern includes Federal Student Aid information during orientation for new and returning students. Southwestern also offers voluntary financial aid workshops and one-on-one counseling to assist students with developing a budget, estimating loan amounts needed to cover their education costs, and planning for loan repayment. You are encouraged to meet with the Financial Aid Office whenever you have questions about borrowing or your law school budget.

Exit Counseling

Federal student loan borrowers must complete exit counseling when they graduate, withdraw from school, or reduce their enrollment to less than half-time status. To complete exit counseling, visit StudentAid.gov/exit-counseling.

Student loan exit counseling addresses topics including:

  • The importance of repaying federal student loans;
  • The use of a Master Promissory Note (“MPN”);
  • Your continuing obligation to repay your loans even if you do not complete your program or obtain employment;
  • The average anticipated monthly repayment amount based on your total federal student loan indebtedness or on the average indebtedness of student borrowers who have received Direct Loans at Southwestern;
  • Available repayment plan options and how each affects your average anticipated monthly payments, total interest, and the length of repayment;
  • Options to prepay each loan, to pay each loan on a shorter schedule, and to change repayment plans;
  • Your federal loan servicer and how to contact them to manage your loans during repayment;
  • The availability of federal loan information in the National Student Loan Data System (“NSLDS”) and how NSLDS can be used to obtain federal loan status information;
  • The types of tax benefits that may be available to borrowers;
  • Options that may be available if you have difficulty making payments, including deferment and forbearance;
  • Loan forgiveness and discharge programs and their eligibility requirements;
  • Consequences of defaulting on federal student loans, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation;
  • Loan consolidation, including how it may affect repayment terms, borrower benefits, and repayment options; and
  • Debt-management strategies to facilitate repayment; and
  • Resources for understanding and obtaining assistance with federal student loans, such as the Department of Education's Student Loan Ombudsman's office and the Direct Loan Exit Counseling Guide.

In addition, when completing exit counseling, you will be required to provide current information such as your name, address, social security number, references, and driver's license number and State of issuance, as well as your expected permanent address, the address of your next of kin, and the name and address of your expected employer (if known).

Southwestern graduating students receive individualized exit counseling from the Financial Aid Office and are encouraged to schedule a repayment planning appointment after the bar examination.

Repayment

It is important to be aware of your student loan repayment obligations and available repayment plan options. The sample repayment schedule below illustrates estimated monthly loan payments under different repayment plans based on the assumptions provided. Your actual monthly payment will depend on several factors, including the amount you borrow, your projected income, and the repayment plan you select. Use the federal Repayment Calculator to obtain a more personalized estimate of your monthly payments and see the repayment plans that are available to you.

Below is a sample repayment schedule for a student with a loan balance of $160,000 at a weighted-average interest rate of 8.5%. In this example, the single May graduate (no dependents) has an annual adjusted gross income of $100,000 starting after the bar examination, with full salary once the bar examination is passed, and a 5% annual income increase. First-year payment calculations use the last full year of school income of $15,000, and second-year payments use (half-year) employment income (for the year after graduation) of $40,000. 

Scroll horizontally to view the complete repayment comparison.

Comparison of standard repayment, income-based repayment, and the Repayment Assistance Plan, including payment amounts, repayment duration, total paid, and additional information.
Repayment Type Payment Amount Duration Total Paid Additional Information
Standard (fixed for 25 years) $1,274 300 months $398,500
Income Based Repayment (2014 “New IBR”) $0 - $1,798 Up to 240 months $309,500 (paid plus tax - $355,490 forgiven with approximately $249,500 paid and $60,000 tax) Available ONLY to those with loans disbursed after July 1, 2014, but before July 1, 2026.
Repayment Assistance Plan (“RAP” – up to 30 years) $10 - $2045 Up to 360 months Depends on income, but in this situation, the loan would be paid in full by 24 years, 2 months (291 payments), with a total paid of $391,402 Loans forgiven at 30 years would be subject to tax.

Before your loans enter repayment:

1. Log in to StudentAid.gov and review every federal student loan you received.

2. Confirm the company servicing each federal loan and keep your contact information current.

3. Use the federal Repayment Calculator to determine your estimated monthly student loan payments and compare repayment plans to understand how they affect monthly payments, total interest costs, and eligibility for loan forgiveness. 

4. If you expect to work in public service, review the Public Service Loan Forgiveness Help Tool early and keep records of qualifying employment. 

5. Remember, if you cannot make a payment, contact your loan servicer before you miss a payment. Options may be available.

Southwestern Financial Aid Counseling

The Financial Aid Office offers one-on-one counseling to help students and alumni understand their federal student loans, compare repayment options, develop repayment strategies, and identify available resources. Students and alumni are encouraged to contact the Financial Aid Office for individualized assistance with loan repayment planning. Southwestern does not service federal student loans and cannot guarantee that a borrower will qualify for a particular repayment or forgiveness program.

Avoid Student Loan Scams

You may be contacted by third-party student debt relief companies when you enter repayment on your loans. Use caution; you do not need to pay a company to access federal repayment plans or federal forgiveness programs. The services typically provided by those companies are already offered free of charge through the Department of Education or your loan servicer. Visit StudentAid.gov and your federal loan servicer for more information.

 

Last reviewed: October 2026.