Federal Direct Loans are obtained through the federal government and they come in two varieties: subsidized and unsubsidized. Subsidized loans are only available to students demonstrating financial need, whereas Unsubsidized loans are available to students who do not qualify for a Subsidized Direct Loan but are otherwise eligible for financial aid. The Unsubsidized Direct Loan is also available to some independent students or dependent students whose parents do not qualify for the Federal Direct Parent PLUS Loan. The interest on a subsidized loan is partially paid for by the government, while the interest on an unsubsidized loan is paid entirely by the borrower.
The Federal Subsidized Direct Loan is available to students demonstrating financial need who are enrolled at least half time in a degree program. The interest rate is 3.4% for undergraduates for loans. The federal government pays the interest on subsidized Direct Loans while the student is enrolled, and during eligible grace and deferment periods. Loans go into repayment six months after the student becomes enrolled less than half-time status, leaves school, or graduates.
Loan funds will not be disbursed earlier than ten days prior to the start of a semester but Husson University's Financial Aid Office determines the actual disbursement date. Loan funds will not be applied to a student's account until all necessary documents are received by the Financial Aid Office, including Entrance Interviews.
The Federal Unsubsidized Direct Loan is a non-need-based loan that is very similar to the Federal Subsidized Direct Loan, except the interest is not paid by the federal government. You are responsible for any accrued interest from the time of the first loan disbursement. You have the option of paying the interest while in school or having the accrued interest capitalized when the loan repayment period begins. Capitalized interest is added to the student's principal loan balance. The interest rate for the Unsubsidized Direct Loan is 6.8%.
Dependent undergraduate students who do not demonstrate financial need for a Subsidized Direct Loan may borrow through this program. Combined Subsidized and Unsubsidized Direct Loans may not exceed the established annual loan limits. Dependent students whose parents cannot qualify for a Federal Parent Direct PLUS loan may qualify for additional loan amounts. Independent undergraduate students may borrow through the Subsidized Direct Loan program as well as through the Unsubsidized Direct Loan program if they demonstrate sufficient need.
Federal Perkins Loans are available to students who demonstrate exceptional financial need. The interest rate is fixed at 5% and interest does not begin to accrue until repayment begins 9 months after the student leaves school or graduates. In this case, Husson University is the lender, and all Husson financial aid applicants are considered for this type of loan. If your financial aid award letter indicates that you have been awarded the Federal Perkins loan, click here to complete your Master Promissory Note and Entrance Counseling.
Parents of students, and some graduate students, can apply for a PLUS loan, which carries a low interest rate (7.9% for loans disbursed on or after July 1, 2010) and usually allows up to 10 years for repayment. If you or your parents would like further information on this program, please go to www.studentloans.gov.
If a parent is denied a Parent Direct PLUS loan, please contact the Husson University Financial Aid Office at 1-207-941-7156 as the student may be eligible for the Unsubsidized Federal Direct Loan.
These private loans carry a higher interest rate than PLUS or Direct Loans and also require credit checks and most often a co-borrower. It is advised to explore other options before selecting this method of financing due to the debt burden placed on the student. Note that alternative loan borrowers are required to file the FAFSA.
For more information on alternative loans, or to apply, go to www.afford.com/husson
This forgivable loan program is available to Maine residents pursuing careers in education. Eligible undergraduate students may receive up to $3,000 a year. These loans can be forgiven by teaching in a public school in Maine upon graduation; otherwise, repayment begins with an interest rate of 9%. For additional information, please contact the Finance Authority of Maine (FAME) at 1-800-228-3734 or go to www.famemaine.com.
Federal Direct and Perkins Loan programs require that the borrower complete Entrance and Exit Counseling. Click here for information on Entrance and Exit Counseling.
Fastweb and FinAid have compiled a ten-page quick reference guide on choosing a student or parent loan. It includes information and advice about choosing an education loan, minimizing student loan debt, a list of key telephone numbers and web sites, and a variety of useful charts. Topics include interest capitalization, loan amortization, variable interest rates, the impact of increases in interest rates on monthly loan payments, the risks associated with borrowing too much money, It also describes Federal Perkins Loans, Federal Stafford Loans (Subsidized and Unsubsidized), Federal PLUS Loans (Parent PLUS and Grad PLUS), Federal Consolidation Loans, Private Student Loans, Private Consolidation Loans, Home Equity Loans and Lines of Credit, Credit Card Debt and Borrowing from Retirement Plans.
The quick reference guide is available on the FinAid site at www.finaid.org/loans/ChoosingStudentorParentLoans.pdf.
All of their quick reference guides are free and can be found at www.finaid.org/quickref.
In accordance with the Higher Education Opportunity Act (Public Law 110-315)(HEOA), Husson University is complying with the Program Participating Agreement requirement by publishing this Code of Conduct. In the HEOA, each institution that has a preferred lender arrangement for the purpose of offering FFEL or private education loans must comply with the code of conduct that is required under section 487(a)(25) of the HEA by institutions of higher education participating in the Title IV student loan programs (see Title IV-Student Assistance, Title IV programs-General, Program Participating Agreement, Code of Conduct).
This Code of Conduct applies to all of the officers, employees, and agents of the institution.
Husson University officers, employees and agents shall not participate in the following activities: