Loan Programs

Federal Direct Loans

Federal Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education. Additional information is available at

The student must be enrolled at least half-time (6 credit hours) and meet general eligibility requirements for the Federal Student Aid programs. More information about these requirements is available through the Loan Entrance Counseling guide.

The types of students’ Direct Loans are Subsidized Direct Loans and Unsubsidized Direct Loans. Direct Subsidized Loans are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while the student is enrolled at least half-time, during the student’s grace period and during periods of deferment.  Direct Unsubsidized Loans are not based on financial need and interest is charged during all periods.

Students must complete the Free Application for Federal Student Aid (FAFSA). First-time borrowers at Howard Payne University will be required to complete Entrance Counseling and a Master Promissory Note (MPN). This is a one-time requirement. In subsequent years, students who request a loan will be awarded a loan through the Serial Loan process. Students will be required to confirm that they want to continue to receive a Direct Loan under the MPN.

Students are required to complete a Exit Counseling when dropping below half-time or when enrollment ceases.

College Access Loan (CAL) Loans Online

A loan in the student’s name from the State of Texas.   Requires a credit-worthy cosigner.

Texas B-On-Time Loan

A loan in the student’s name from the State of Texas.  Limited funding and availability to students who have previously received this loan.    Requires yearly counseling.
To complete Yearly Counseling, please click here.    Click on “GET STARTED”
(At the end of the counseling, please complete the option to register counseling with HPU.)

Direct Parent (PLUS) Loans

Direct Parent (PLUS) Loans are low-interest loans available to parents of dependent students. Interest is charged during all periods. Parents must pass a credit check. Parents may apply for a Parent PLUS DIRECT Loan by logging in at with the Parent Borrower FSA ID and password.  Under “Parent Borrowers”, choose “Apply for A PLUS Loan”.   After entering parent’s personal information, choose the appropriate academic year in the drop down box. Complete the PLUS Pre-Approval section. If the loan is approved, complete the Master Promissory Note by going to and under “Parent Borrowers”, choose “Complete Loan Agreement for PLUS Loan (MPN)”. Complete and return the Parent Loan Request and Authorization Statement to the Office of Financial Aid. (NOTE: Parents who have already completed an MPN in a previous year do not need to complete another one.)

Federal Perkins Loans

This program was formerly known as the National Direct Student Loan Program. This is a need-based program, and is only awarded to students who have previously received this loan.  The annual loan limit is $4,000 for students who have not completed an undergraduate program. The maximum aggregate loan amount is $20,00 for those who have not completed an undergraduate program. These loans are made through the university and repayment is required. Borrowers begin repayment of their loans following graduation, termination or after ceasing to be at least a half-time student. Information concerning cancellation and/or deferment benefits, minimum monthly payments and the current interest rate may be obtained by contacting the Office of Financial Aid.

Student Loan Ombudsman

If you have been unable to solve a problem with your federal student loan, you can ask the Federal Student Aid Ombudsman Group for help. The Federal Student Aid Ombudsman Group of the U.S. Department of Education is dedicated to helping resolve disputes related to Direct Loans, Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans. The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about your federal student loans.

Please use the following information to contact the FSA Student Loan Ombudsman Group.
Via on-line assistance:
Via telephone: 877-557-2575
Via Fax:  606-396-4821
Via Mail:   FSA Ombudsman Group
P. O. Box 1843
Monticello, KY  42633

Contact the Ombudsman Group as a last resort. Make every effort to resolve your student loan problems before contacting the Ombudsman Group.