Applying for your Federal Stafford Loan
Applying for your Federal loans is quick and easy. Students have a two step process in order for the Financial Aid Office to certify and process any federal loans:
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You must complete online Entrance Counseling, demonstrating your understanding of the federal loan process, including repayment terms. This process will take 20-30 minutes to complete. The link to begin Entrance Counseling is at the bottom of this page.
Note: If you do not use the Full Name, Social Security Number and Date of Birth that are on file with HPU (such as through your Admissions Records, or FAFSA), your Entrance Counseling information may be delayed or not updated. Please use your full, legal name if that is what you have already provided the University.
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After you successfully complete online Entrance Counseling, you will select the lender who will fund your loans. Once you select a lender, you will be linked to complete a Master Promissory Note (MPN); this is your agreement with the lender and allows the University to process your loans.
NOTE FOR CONTINUING STUDENTS: If you have already completed an MPN at HPU you do not need to complete a new MPN each year. Students who do not have a loan within the last 12 months may need to complete Entrance Counseling and complete a new MPN. Contact the Financial Aid Office if this status applies to you.
The HPU Financial Aid Office uses a loan management service known as ELM Resources. ELM is not a lender or a loan guarantor. Do not contact ELM regarding loan issues; only your lender or the Financial Aid Office will have this information. After Entrance Counseling you will be directed to a portal known as ELMSelect. This is a list of preferred lenders whom HPU offers you based on their service and benefits to students over the life of their loans, and into repayment. ELMSelect allows you to compare borrower benefits between lenders before you make a lender choice.
However, HPU will certify loans you are ELIGIBLE for with any lender of your choosing; you are able to search for other lenders with ELMSelect if you choose.
NEW HPU STUDENTS: Here is some general information on federal Stafford Loans that you should be familiar with prior to starting Entrance Counseling and completing your Master Promissory Note (MPN).
Parents: You may be eligible to borrow a Parent PLUS loan for your dependent son or daughter to help cover additional educational expenses. The online process should take about 30 minutes. Your lender will send your information to us to certify your loan. For more information on the PLUS loan program at HPU please visit www.hpu.edu/plusloan
Stafford Loans
There are two types of Stafford Loans: Subsidized and Unsubsidized
Subsidized: If you receive a subsidized Stafford loan, the federal government will pay the interest on your loan while you attend school at least a half-time (6 credits), during your six-month post-school grace period, or when you qualify for an authorized deferment.
Unsubsidized: If you receive an unsubsidized Stafford loan, you are responsible for paying the interest while you are in school. As the borrower you can elect to make quarterly interest payments while you are in school, or have the interest added onto the principal balance of the loan; this is known as capitalization. You will pay more over the life of your loan if you capitalize your interest.
Federal Stafford Loan Limits (effective July 1, 2008)*
Annual Loan Limits (July 1 - June 30 each award year)
Freshman $5,500 - with no more than $3,500 as a subsidized loan
Sophomore $6,500 - with no more than $4,500 as a subsidized loan
Junior/Senior $7,500 - with no more than $5,500 as a subsidized loan
Independent Students (subsidized amounts are maximums; totals vary by individual student).
Subsidized Unsubsidized Total
Freshman $3,500 $6,000 $9,500
Sophomore $4,500 $6,000 $10,500
Junior/Senior $5,500 $7,000 $12,500
For more information on the Stafford Loan Program please read the Federal Student Aid Student Guide, visit www.finaid.org or www.studentaid.ed.gov
Interest Rates
Interest rates for Federal Stafford and Federal PLUS loans are currently FIXED based on Congressional legislation. The interest rate for the 2009-2010 school year is 6.80% for Stafford loans and 8.50% for Parent PLUS loans. Current legislation caps rates for new subsidized and unsubsidized Stafford loans at 8.25%. Rates for the Federal Parent PLUS loans are capped at 9%.
Federal Parent PLUS Loan Program
If you are dependent on your parents, they may qualify for a Federal PLUS loan. You and your parents who will be borrowing the money must be U.S. citizens or eligible non-citizens.
The PLUS loan is available without regard to financial need. However, the lender is required to determine whether the parent borrower has a good credit history. Your parent may borrow up to the full cost of attendance less all other aid awarded. Your parent is responsible for repaying the loan; repayment begins 60 days after the loan is first disbursed. To be eligible for a PLUS loan, the borrower must be your natural or adoptive parent or step-parent.
Preferred Lender List
Once you complete loan Entrance Counseling you will be directed to ELMSelect where you can revew HPU's preferred lender list. As always, HPU will certify loans you are ELIGIBLE for with any lender of your choosing. Based on individual lender processing requirements, you may experience delays with certain lenders.
NOTE: A STUDENT LENDER MAY CHANGE THEIR TERMS OR PARTICIPATION IN THE FEDERAL STUDENT AID PROGRAMS AT ANY TIME. CONTACT THE FINANCIAL AID OFFICE SHOULD YOU HAVE ANY QUESTIONS, OR YOUR SPECIFIC LENDER.
Important Information About Loan Disbursement:
· Financial Aid Funds – Financial aid funds are not disbursed until after the start of the semester. Early applicants (those who apply by March 1) should have their accounts paid and remaining funds disbursed to them by the end of the first week of school. Late applicants will be processed as completed and may not have their accounts paid and funds disburse until several weeks into the semester. You must come prepared to meet your financial obligations (to pay account balances and to cover your book and other living expenses) during the first several weeks of school, as all funds may not be ready for disbursement at the start of the semester.
· Financial Aid Award/Refunds – Your financial aid award will be used first to pay your tuition and residence hall charges (if you are living on campus). After these payments are made, any funds remaining will be refunded directly to you by check for use in paying your off-campus housing (if you are living off campus) and other living expenses. Financial aid refunds are not disbursed until after the start of school. For those who complete all of their aid requirements early, refunds are usually made in the first two weeks of the semester. If you are late completing your financial aid award requirements, payment of your tuition will be held in abeyance pending completion of your award. If you plan to live off campus, you should have funds sufficient to pay for your housing deposit, first month’s rent, and enough living expense funds to sustain you until your financial aid refund is paid.
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