Loans

A loan is financial assistance that enables students and/or parents to borrow money from the federal government or a private lender. These loans must be repaid.  Borrowers are responsible for signing a Master Promissory Note for each loan program.  When signed, the Master Promissory Note is a binding, legal document through which the borrower agrees to repay the loan. The promissory note should be read carefully and a copy retained for the borrower’s records. Please note students who are non-degree seeking or do not qualify for federal assistance are only eligible for private loans in most cases.

Students must be enrolled at least half-time each term to qualify for federal loans.  If you request a loan, we will always recommend the best loan program for which you are eligible.  Not all students are eligible to borrow from all loan programs.

Institutional Code of Conduct for Education Loans – PDF Download

Federal Direct Subsidized Stafford Loan

A Federal Direct Subsidized Stafford Loan is awarded to undergraduate students on the basis of financial need.  Students will not be charged any interest prior to repayment or during any authorized periods of deferment. During deferment, the federal government pays the interest on the loan until the time of repayment. Payment is automatically deferred until the borrower is no longer enrolled on at least half-time basis. At the time the borrower is no longer enrolled half-time, a six month grace period begins prior to entering repayment.

You may check current interest rates and loan fees for Direct Loans here.

Eligibility

• You must complete the FAFSA.
• You must have financial need as determined by the results of the FAFSA.
• You must be enrolled at least half-time at Huntingdon College.
• You must meet and maintain Satisfactory Academic Progress.
• You must meet all other financial aid eligibility requirements.
• You may not exceed annual or lifetime aggregate loan limits.  Annual and aggregate loan limits available here.
• You may not have received Federal Direct Subsidized Loans for more than 150% of the length of your academic program. (Applicable to borrowers receiving first loan on or after July 1, 2013).

Federal Direct Unsubsidized Stafford Loan

A Federal Direct Unsubsidized Stafford Loan may be awarded to undergraduate and/or graduate students.  The loan is not awarded on the basis of financial need.  Students are responsible for any accruing interest during in-school and deferment periods.  Interest accruing during those periods may be paid or capitalized as agreed by the borrower and lender.  You may check current Interest rates and loan fees for Direct Loans here.

Payment is automatically deferred until the borrower is no longer enrolled at least half-time.  At the time the borrower is no longer enrolled half-time, a six month grace period begins prior to entering repayment.  Interest on Federal Direct Unsubsidized Loans continues to accrue during the grace period.

Eligibility

• You must complete the FAFSA.
• You must be enrolled at least half-time at Huntingdon College.
• You must meet and maintain Satisfactory Academic Progress.
• You must meet all other financial aid eligibility requirements.
• You may not exceed annual or lifetime aggregate loan limits. Annual and aggregate loan limits available here.

Federal Direct PLUS Loans

The Federal Direct PLUS program is a popular financing option for parents of undergraduate students.  You may borrow up to the Cost of Attendance (excluding any other financial aid).  All funds are received and applied to the student’s Huntingdon College student account.  You may check current interest rates and loan fees for Direct Loans here.

Undergraduate students whose parents do not qualify for a Direct PLUS Loan due to adverse credit may be eligible to receive additional loan funds in the Federal Direct Unsubsidized Loan Program.

Eligibility

• The student must complete the FAFSA.
• The student must meet and maintain Satisfactory Academic Progress.
• The student must meet all other financial aid eligibility requirements.
• Parent of undergraduate students must complete and submit a Federal Direct Parent PLUS Loan Request Form.
• Parent must not have defaulted on any previous federal student or parent loans.
• Parent must be a U.S. citizen or eligible noncitizen.
• The student must be enrolled at least half-time at Huntingdon College.
• Borrower must have good credit history.  Getting an endorser is an option if credit history is not sufficient to pass credit check.

Federal Direct Graduate PLUS Loans

The Federal Direct PLUS program is a popular financing option for Graduate students. Students may borrow up to the Cost of Attendance (excluding any other financial aid). Students must meet basic credit criteria set by the Department of Education. Credit approval is based on federally mandated criteria, not a credit score. Eligibility is determined upon receipt of the Federal Direct Graduate PLUS loan request form. all funds are received an applied to the student’s Huntingdon College student account. You may check current interest rates and loan fees for Direct Loans at https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized.

Eligibility

• Be fully admitted as a degree seeking student at Huntingdon College
• Be enrolled at least half-time
• Maintain Satisfactory Academic Progress standards
• Must be either a U.S. Citizen or eligible non-citizen (as defined by federal financial aid regulations)
• Complete a Free Application for Federal Student Aid (FAFSA) for the year you are applying for the loan
• Must not be in default on a education loan or owe an overpayment on a federal education grant, or other federal debt, or you have made satisfactory arrangements to repay that debt
• Meet basic credit criteria set by the U.S. Department of Education

Loan Repayment

When it comes to repaying your federal student loan, there’s a lot to consider.  Understanding the importance of repayment and the repayment details can save you time and money.

• Loan Repayment Estimator
• Overview of Repayment Plans
• Loan Consolidation

For parents of undergraduate students, repayment begins within after your loan is fully disbursed and lasts ten years.  Parent borrowers may contact their lender to request deferment of monthly payments while the student is in school.

Loan Disbursement Rules

Traditional Day students – Disbursements of loans will be made on the fourth week of each semester after the completion of billing and pending all required paperwork or processes are completed or received by the end of the first week of the semester. Disbursements will be made to the student’s Huntingdon College student account.

Evening Studies students – Disbursements of aid will be made on the third Monday of the first session of attendance each semester pending all required paperwork or processes are completed or received by the end of the first week of the first session you attend, including but not limited to the Award Acceptance form, Direct Loan MPNs, Federal Loan Counseling or academic transcripts. Disbursements will be made to the student’s Huntingdon College student account.

A Master Promissory Note (MPN) or agreement to repay the loan must be completed and signed prior to the loan approval and disbursement process.

Students must also complete online Federal Direct Stafford Loan Entrance Counseling before funds can be disbursed.

Terms and Conditions of Title IV, HEA Loans

Federal Perkins Loan

The Perkins Loan is a low interest loan awarded to both undergraduate and graduate students on the basis of financial need.  The loan is funded by the federal government, but the school acts as the lender.  Huntingdon College contracts with Heartland ECSI to service repayment of the loan funds, therefore, payments are made through Heartland ECSI.  Question concerning repayment on the Perkins Loan may be directed to the Financial Aid office at (334) 833-4428.

Important: Under federal law, the authority for schools to make new Perkins Loans ended on Sept. 30, 2017, and final disbursements were permitted through June 30, 2018. As a result, students can no longer receive Perkins Loans.

National Student Loan Data System (NSLDS)

HEOA Sec. 489 amended HEA Sec. 485B(d)(4) (20 U.S.C. 1092b)

Institutions that enter into an agreement with a potential student, student, or parent of a student regarding a Title IV, HEA loan are required to inform the student or parent that the loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

Private Student Loans

Private student loans should be considered “last resort” opportunities.  You should utilize all other financing options before applying for a private product.  Remember, federal student loan programs are less expensive than private loans and should be considered first.  Private loan interest typically begins accruing immediately and fluctuates with market rates.  Undergraduate private loan borrowers will typically be required to have a cosigner.

The lender, not Huntingdon College, determines eligibility for a private student loan.  However, Huntingdon College is required to certify your enrollment and calculate the amount you can borrow.  The total loan amount is limited to cost of education minus financial assistance.  Private student loans are sent directly to the Huntingdon College and will be applied to your Huntingdon College student account.

Huntingdon College does not endorse or recommend any specific private loan lenders or products.  Because we want to emphasize how important it is for you to choose your own lender, we do not state any preference of any lender over another and hence do not have a “preferred lender list.” Research and shopping around for the best loan is a good idea. Taking advantage of established relationships with lending institutions and the Internet are two good places to start.

The following form can be used to provide additional information about alternative loans: Self-certification form for private education loans

Institutional Code of Conduct for Education Loans