This guide is designed to help school financial aid administrators provide effective entrance counseling for first-time student borrowers of subsidized Federal Direct Stafford/Ford Loans and Federal Direct Unsubsidized Stafford/Ford Loans. A section on what is required for entrance counseling specifies both regulatory requirements and the Secretary of Education's additional recommendations, as well as the permissible alternative approaches to entrance counseling. The next section addresses administrative considerations such as organizing counseling sessions, notifying borrowers, understanding the Direct Loan Program, necessary equipment and facilities, and documenting student attendance. The recommended presentation is outlined, including using an accompanying video, reviewing the student "Borrowers' Guide" with students, and answering questions. (DB)