Loan Process and Information
Information on this page is for Fall 2012, Spring 2013 and Summer 2013.
Loan information for the 2013-14 academic year is coming soon.
The Loan Request Process for 2012-13
Harper College does not award federal student loans in the initial packaging of your financial aid. If you need loan funds to pay for education expenses, these additional steps must be taken to request a loan.
Step A: Complete a Loan Request Form
On the Loan Request Form, specify the loan amount you are requesting for either a specific semester or the academic year. Remember, borrow only what you need. These loans must be repaid to the federal government.
Step B: Complete Your Estimated Budget
Complete and print your Estimated Budget using the Budget Calculator at http://www2.ed.gov/offices/OSFAP/DirectLoan/BudgetCalc/budget.html. Submit a copy of your Estimated Budget with the Loan Request Form to the Office of Student Financial Assistance
after
completing Step C, if required.
Step C: Complete the Loan Entrance Counseling and a Master Promissory Note (First Time Borrowers ONLY) If you are a first time Federal Direct Stafford Loan borrower at Harper College, you are required to go to www.studentloans.gov and complete the Loan Entrance Counseling session AND complete and sign a Master Promissory before we can process your loan request. Once completed, the Loan Entrance Counseling session and MPN are valid for future federal loans while you are enrolled at Harper College. Repeat Harper College borrowers do not need to complete Step 3.
If you are eligible for a loan, the Subsidized Federal Direct Stafford Loan is awarded first because these loan terms are less costly. Any additional loan eligibility is awarded as an Unsubsidized Federal Direct Stafford Loan. Your loan disbursements are scheduled per federal regulations and paid to your Harper College account. These funds are applied towards your outstanding balance. Any remaining funds are refunded to you by the Business Office either by direct deposit or check.
Federal Direct Loans Information
Education loans are available but must be repaid according to the terms specified by the loan program. Borrow only the funds you need to pay for education expenses.
Federal Direct Loan Requirements
To receive a Federal Direct Loan, you must meet the General Eligibility Requirements for federal financial aid, be enrolled and attending at least six (6) credit hours of classes, and complete Harper College’s Loan Request Form.
Federal Direct Stafford Loans
There are two types of Federal Direct Stafford Loans; subsidized and unsubsidized. The total loan amount you may borrow cannot exceed the Cost of Attendance less other financial aid received. Note the differences.
Subsidized Federal Direct Stafford Loan
- Based on financial need.
- Interest is subsidized (paid) by the federal government while you are enrolled at least six (6) credit hours or in an approved grace or deferment period. Subsidized loans with a first disbursement on or after July 1, 2012 and before July 1, 2014 are not eligible for the federal interest subsidy during the six-month grace period before repayment begins.
- Interest rate for Subsidized Federal Direct Stafford Loans with a first disbursement between July 1, 2012 and June 30, 2013 is fixed at 3.40%.
Unsubsidized Federal Direct Stafford Loan
- Not based on financial need.
- Interest is paid by the borrower at all times; it accrues from the time of disbursement and can be paid incrementally or capitalized (added to the unpaid principal loan amount) after the six (6) month grace period.
- Interest rate for Unsubsidized Federal Direct Stafford Loans is fixed at 6.80%.
Federal Direct Stafford Loan Limits
The Federal Direct Stafford Loan annual and aggregate amounts you can borrow are based on your dependency status (dependent or independent), cost of attendance budget, financial need, and grade level. If eligible, you can borrow either subsidized or unsubsidized loans, or a combination of both loan types. Subsequent loans are available to eligible borrowers on an annual basis.
Federal Direct Stafford Loan Limits (Subsidized and Unsubsidized)
Dependent Students
| Class Level | Base Loan Amount (Maximum Subsidized and/or Unsubsidized) |
Additional Unsubsidized Loan Amount |
Total Annual Loan Amount | Maximum Total Debt from Stafford Loans (Aggregate Loan Limits) |
|---|---|---|---|---|
| First Year Limit: Undergrad/Freshman with less than 30 Earned Hours |
$3,500 | $2,000 | $5,500 |
$31,000 (no more than $23,000 can be in subsidized loans) |
| Second Year Limit: Undergrad/Sophomore with 30 Earned Hours or more |
$4,500 | $2,000 | $6,500 |
Independent Students
(and Dependent Students Whose Parents are Denied a PLUS Loan)
| Class Level | Base Loan Amount (Maximum Subsidized and/or Unsubsidized) |
Additional Unsubsidized Loan Amount |
Total Annual Loan Amount | Maximum Total Debt from Stafford Loans (Aggregate Loan Limits) |
|---|---|---|---|---|
| First Year Limit: Undergrad/Freshman with less than 30 Earned Hours |
$3,500 | $6,000 | $9,500 |
$57,500 (no more than $23,000 can be in subsidized loans) |
| Second Year Limit: Undergrad/Sophomore with 30 Earned Hours or more |
$4,500 | $6,000 | $10,500 |
Note: The Aggregate Maximum includes outstanding loans for ALL your undergraduate studies. Once you have reached the Aggregate Maximum, you cannot borrow until your debt is paid down below the set limits.
Disbursement and Origination Fee
Federal Direct Stafford Loans are awarded up to half of the annual loan eligibility each term. The loan funds will be equally split and paid across the terms during academic period funds are awarded.
A federal loan origination fee of 1% is assessed based on your total Subsidized and Unsubsidized Federal Direct Stafford Loan amount and is deducted at the time of disbursement.
Loan Repayment
Repayment on a Federal Direct Stafford Loan begins six (6) months after you graduate, withdraw, or drop below half-time enrollment. Are you continuing your education at another school? Contact your loan servicer to discuss how this impacts your loan repayment.
There are multiple repayment plans available to help students manage their debt. Deferment and forbearance options are available, if needed, to temporarily suspend payments for certain reasons such as attending another school, unemployment, or financial hardship. If you are having problems repaying your loan, help is available. Learn more about repayment plans, deferment or forbearance.
Federal Direct PLUS Loans
Federal Direct PLUS Loans are available to parents who want to borrow funds to help pay for their dependent student's educational expenses. We encourage families to exhaust all federal and state financial aid options before taking out a Federal Direct PLUS Loan.
A Federal Direct PLUS Loan:
- is not based on financial need
- borrower is the parent
- borrower is subject to a credit check
- has a fixed interest rate of 7.90%
- is assessed a federal loan origination fee of 4%, deducted from each disbursement
- is not subsidized by the federal government
- total amount cannot exceed the Cost of Attendance less other financial aid received
- repayment begins in approximately 60 days after the loan is disbursed
- borrower can have payments deferred while the student is enrolled at Harper College at least six (6) credit hours, and an additional six (6) months thereafter
To be considered for a Federal Direct PLUS Loan, the dependent student must file a FAFSA and be enrolled at least 6 hours at Harper College. The parent must meet the General Eligibility Requirements and Federal Direct PLUS Loan eligibility ; and for the initial loan, complete a Direct PLUS Loan Application that includes a credit check, and a PLUS Loan Master Promissory Note (MPN) online at www.studentloans.gov .
If a parent prefers to take out a Federal Direct PLUS Loan in lieu of a Federal Direct Stafford Loan, two letters are required. One written letter must come from the student declining to take out the Federal Direct Stafford Loan and another from the parent requesting to take out the Federal Direct PLUS Loan.
To learn more, go to Federal Direct PLUS Loan .
