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 www.studentloans.gov
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 Student Guide to Financial Aid.
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 (www.hhloans.com)
A loan in the student’s name from the State of Texas. Requires a credit-worthy cosigner.
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 signing in at www.studentloans.gov with the Parent SS# and the Parent FAFSA PIN #. Choose “Complete PLUS Request Process”. After putting in personal information, choose 2013 in the drop down box. Complete the PLUS Pre-Approval section. Email the results to Howard Payne. If the loan is approved, complete the MPN by going to www.studentloans.gov and choose “Complete New MPN for Parent PLUS Loans”. 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. 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: http://studentaid.gov/repay-loans/disputes/prepare
Via telephone: 877-557-2575
Via Fax: 202-275-0549
Via Mail: U.S. Department of Education
FSA Ombudsman Group
830 First Street, N.E., Mail Stop 5144
Washington, D.C. 20202-5144
Contact the Ombudsman Group as a last resort. Make every effort to resolve your student loan problems before contacting the Ombudsman Group.