Educational loans provide a way for students to borrow money to help pay for college. The following loan programs are available:

• Federal Direct Student Loan
  Please be sure that you have received your financial aid award e-mail notice prior to applying for your Federal Direct Student Loan.

• Federal Direct PLUS Loan

• Alternative Loans

Subsidized Limits for New Borrowers
Attention New Student Loan Borrowers: Any new borrower can become ineligible to receive additional Direct Subsidized Loans and could lose their subsidy on previously borrowed Direct Subsidized Loans. This will occur when the period during which the borrower has received subsidized loans exceeds 150 percent of the published length of their educational program. View detailed information.

Federal Direct Student Loan (Detailed information is available in the College Catalog.)

Eligibility for Federal Direct Student Loans is determined for all students who have filed a FAFSA (Free Application for Federal Student Aid). Students view their eligibility and accept loan funds they wish to borrow via WIReD.

Student borrowing requirements:

• Be enrolled in and maintain at least half-time enrollment (six degree-applicable credit hours or more).

• Complete online Entrance Counseling at www.studentloans.gov in order to borrow federal loans.

• Complete an online Master Promissory Note (MPN) at www.studentloans.gov.

• Complete online Exit Counseling at www.studentloans.gov upon graduation or separation from the college.

Resources for Entrance Counseling
Letter from HVCC Financial Aid Office
Entrance Counseling Guide for Direct Loan Borrowers
Entrance Counseling Right and Responsibilities Summary Checklist
Federal Student Aid Ombudsman Information

Resources for Exit Counseling Information
Letter from HVCC Financial Aid Office
Exit Counseling Guide for Federal Student Loan Borrowers
Exit Counseling Rights and Responsibilities Summary Checklist
Federal Student Aid Ombudsman Information
Federal Direct Loan Servicers

Federal Direct PLUS Loan

Parents of dependent undergraduate students are eligible to apply for this federal loan.

Students must be enrolled at least half-time (six degree-applicable credit hours or more) and have a Free Application for Federal Student Aid (FAFSA) on file. Approval of this loan is based on the parent's credit history.

A student should have received their financial aid award e-mail notice prior to submitting a Federal Direct PLUS Loan application.

Please refer to the Federal Direct PLUS Loan Application (available on Forms page) for more information and application procedures. Detailed information regarding these loans can be found at www.studentaid.ed.gov.

Alternative Loans

An alternative loan is a personal loan from a bank that is used for educational expenses. Most alternative loans are deferrable until you graduate; however some may require you to pay interest while you are attending school.

Alternative loans exist as an additional means to pay for your college education. These loans are often used as a supplement to a student’s existing financial aid package. Some alternative loans can be used to pay for prior balances up to one year old. Students who fall into unsatisfactory academic progress may also apply for certain alternative loans to help get back into good academic progress and receive federal financial aid again.

Know the Basics

It’s to your advantage to become well-informed before you take on the responsibilities that come with an educational loan. You should first apply for all other forms of financial aid, including grants, scholarships, employer tuition payments, Direct Stafford Loans, etc. before applying for an alternative loan.

Get All the Facts

Educate yourself before you borrow. Before taking out your alternative loan, have a clear understanding of what type of loan you have AND its characteristics, for example:

• What is the interest rate? Most loans come with a variable rate. Estimate your total indebtedness.
• What fees will be charged? Most (not all) loans have origination fees that are deducted from the principal amount you borrow. In some cases, the origination fee may be added to the principal amount you borrow.
• Will I have to make payments while in school? Repayment may vary with loan type.
• Who is eligible? Each program may have its own criteria for determining loan eligibility. Creditworthiness and a credit worthy cosigner are most often at the top of the list. The number of credits you are taking for the loan period is also considered.
• How much may I borrow? Each lender has different minimum and maximum lending amounts for each loan period and a cumulative borrowing limit.
• What is the cosigner’s responsibility? If the principal borrower does not repay the loan, the cosigner is responsible for full payment.

Check Out Your Repayment Options Before Borrowing

Repayment may seem a long way off, but choosing your alternative loan carefully NOW can mean a less expensive and more manageable loan later. Some lenders have loans that enter repayment immediately after full disbursement. Some lenders offer programs that let you pay electronically and offer rewards, such as lower interest rates, to those who consistently pay on time. Understanding your options will help you decide how much you can borrow.

Before You Sign Anything

Keep in mind that these are loans, NOT grants. When you enter repayment, you will be required make monthly payments. Make sure you do not put yourself in a situation you cannot handle.

Important Application Process Information

According to the Higher Education Opportunity Act of 2008 (HEOA) and the Truth in Lending Act (TILA), all private education lenders must obtain a completed and signed Self-Certification Form from the applicant prior to processing a private education loan.

Students can find the Cost of Attendance information needed to complete Section 2-A in the college catalog.

The Mastrangelo Financial Aid Center will assist students with completion of the form prior to the student submitting it to their lender. Once the form is completed, students should discuss the status of private education loan applications with their lender directly.