Federal Stafford Loans
This loan provides funding to assist students pay for their educational expenses. The loan is made to the student, and the student is directly responsible for repayment of this debt. Eligibility is contingent upon completion and submission of appropriate application documents. The Stafford Loan carries a fixed interest rate. Repayment of principal begins six months after you cease to be a student enrolled on at least a half-time basis.
There are two types of Stafford Loans. If you demonstrate sufficient financial need, you will qualify for the Subsidized Stafford Loan. The federal government pays the interest on this loan while you remain at least a half-time student. If you do not qualify for the full Subsidized Stafford Loan, you may borrow an Unsubsidized Stafford Loan, however, you must pay the interest on this loan while you are in school or opt to capitalize the interest and pay it, along with the principal, upon leaving school.
Stafford Loan funds are borrowed from a lending institution (bank), known as a lender. Repayment is made directly to the lender at the end of the six month grace period.
The amount of your student loan depends on the number of credits you have successfully completed. If you are a new student or have completed fewer than 28 credits, you are eligible for an annual maximum of up to $3,500. If you have completed or transferred in with between 28 and 57 credits, you are eligible for an annual maximum of up to $4,500. Once you have completed or transferred in with at least 58 credits, you are eligible for an annual maximum of up to $5,500.
Stafford Loan eligibility is determined by the Financial Aid Office. To apply for and receive such a loan, you must complete an Entrance Interview and a Stafford Loan Master Promissory Note online at www.hesc.com. If you are an incoming student whose file is complete, you will need to complete these forms online before the Stafford Loan can be processed. If you are a returning student a Master Promissory Note should already be on file.
In either case, you will need to complete an e-MPN for loan processing. After your promissory note has been received, your loan will be electronically certified by the college and the Student Accounts Office will receive the loan and credit it to your account, half in each semester. The FAFSA is the annual application for a Federal Stafford Loan.
Federal Perkins Loans
Funded by the federal government and administered by the College. Awarded based on financial need and availability of funds. Eligibility is re-evaluated each year. Repayment begins nine months after the student ceases at least half-time enrollment. The interest rate on this loan is 5%. If eligible, a promissory note must be signed with the Student Accounts Office before Perkins Loan funds can be credited to a student’s account.
Federal Parent Loans (PLUS)
If you are a dependent student, your parent may borrow up to the cost of your education, less any financial aid received. Approval is contingent upon a successful credit check. Loan proceeds (minus a 3% origination fee) are disbursed directly to your account, half in each semester. Please log onto www.HESC.com to complete the PLUS loan pre-approval process.
Once you have reviewed the borrower benefits and chosen a lender, you will need to complete a master promissory note online at www.HESC.com. Upon approval, your information will be sent to the college electronically for certification and disbursement. To use PLUS loan proceeds for the fall bill, the loan certification must be received by the Financial Aid Office no later than June 1st. The PLUS loan carries a fixed interest rate of 8.5%. If you need further assistance, please do not hesitate to contact our office directly.