Since scholarships and grants and work study will not cover the full cost of attendance for the majority of students, student loans are the option to bridge the gap.

Federal student loans allow students and their parents to borrow money to help pay for college through loan programs supported by the federal government. These loans usually have low interest rates and better repayment benefits and options. Usually, repayment on a federal student loan does not begin until after the student either graduates or drops below half-time enrollment status. Federal student loans can be used to pay expenses such as tuition, fees, room, board, books, supplies and transportation.

Unlike scholarships and grants, federal student loans have to be repaid to include interest. There are several loan options available to assist with the cost of attendance.

Please carefully read and review each Loan link listed to the left in an effort to assist with selecting the best option for your situation.

Hampton University Office of Financial Aid Code of Conduct

Do I have to borrow the full amount offered in a particular loan type?

No. You are welcome to accept all or just a portion of a loan that is offered. Please keep in mind that it would be better to accept the full amount of the subsidized loan before accepting any of the unsubsidized loan due to the benefits associated with the subsidized loan. The student would be solely responsible for all interest that accrues on the unsubsidized loan, while the federal government pays the interest that accrues on the subsidized loans while a student is enrolled at least half time in school. It is advised that students only borrow what they need to pay for the cost of attendance as loans have to be paid back with interest.

What is the difference between subsidized and unsubsidized Stafford loans?

The government pays all the interest on subsidized loans while you are in school at least half time. This does not hold true with the unsubsidized loans. Students are able to pay toward the interest only while in school. You would simply need to select that option on the promissory note or contact the servicer on the loan directly. Graduate level students are not eligible for subsidized loans after July 1, 2012.

What is the interest rate for Stafford loans?

Direct Subsidized and Unsubsidized loans for undergraduates have a fixed interest rate of 4.53%. Direct Unsubsidized loans for graduates have a 6.08% fixed interest rate. The interest begins to accrue at the time of disbursement. For more information, you may visit the U.S. Department of Education’s Interest Rates for New Direct Loans page: https://studentaid.ed.gov/about/announcements/interest-rate

I accepted a Stafford Loan. How do I know when the loan has disbursed?

After the loan has been originated with the U.S. Department of Education, a disclosure statement will be sent out to outline the scheduled disbursement dates and the details of the loan, such as interest rates and fees. Hampton University disburses funds on Tuesdays and Thursdays. Students are encouraged to check HU Net after 5pm on the day that the loan was scheduled to disburse. Students need to be sure to sign promissory notes, complete entrance counseling, and make sure that verification is complete (when applicable) for federal student loans. If the requirements are completed, but you still do not have a disbursement, please contact the Financial Aid Office’s loan department.

When do I start making loan payments?

Stafford loans generally go into repayment 6 months after separation from the university by way of graduation or withdrawal to include students that are enrolled for less than half time. Students can pay interest only on unsubsidized loans while in school so that the interest will not be capitalized.

If I want to consider refinancing my student loans, what companies have been identified as providing some of the best options in 2020?

Refinancing student loans is an option students may consider for a variety of reasons, such as repaying loans earlier, earning a lower interest rate, and others. There are also very important things to consider when refinancing federal student loans using private lenders, such as the potential loss of benefits available to federal student loan borrowers, which may not be offered by private lenders. The following article entitled Best Student Loan Refinance Companies of 2020, published by Money magazine, identifies Money’s findings of the top 5 refinance companies, and provides guidance students may want to consider: https://money.com/best-student-loan-refinance/.

Can Federal Student Loans be Forgiven, Canceled or Discharged?

In certain situations, you can have your federal student loan forgiven, canceled, or discharged. For more information, please visit the following Federal Student Aid webpage: https://studentaid.ed.gov/repay-loans/forgiveness-cancellation.

How can I cancel my Stafford loan?

Borrowers can cancel their Stafford loan by submitting a Request to Cancel Stafford Loan form. Please understand that there are fees that are deducted from the loan prior to the disbursement to the University by Direct Loans as outlined in the Notice of Guarantee.

What is the interest rate on the Alternative loans?

The interest rate on an alternative loan would vary depending on the lender and credit of borrower and co signer. You would need to speak with the alternative loan lender that you select to get the interest rate, terms and conditions for repaying your private loan.

How can I receive an Alternative loan?

Borrowers would need to apply for the loan directly with the lender of their choice. It is advised that borrowers obtain a credit worthy co signer before applying for the loan. The decision to approve or deny the loan is completely that of the lender. For your convenience, we have a link available to help you select a Lender.

Do I have to file a FAFSA for an alternative loan?

The FAFSA is not required for processing of an alternative loan. It is advised that the student complete a FAFSA and see what federal aid is offered before proceeding with an alternative loan. With this in mind, please do not wait until two weeks prior to Registration or a University payment deadline date to apply for a private loan. It is advised that students do research on what loan best suits their unique situation.

What happens if an alternative loan is denied?

If the lender denies the borrower, the student should contact the Business Office to inquire about the Special Deferred Payment Plan to cover the remaining cost of attendance.

When do I start making loan payments?

The terms will vary between the different lenders for the alternative loans. You would need to speak directly with the lender of your loan to get the specific terms for your loan.

What is the interest rate on the Grad PLUS loan?

It is a fixed interest rate of 7.08%.

Why do I have to file a FAFSA for a Grad PLUS loan?

The FAFSA allows us to determine the student’s eligibility for the federal student aid. Please be advised that we will not process approved Grad PLUS loans until the FAFSA has been received by Hampton University and the student is eligible to receive financial aid.

What happens if the Grad PLUS loan is denied?

The student would need to contact the Business Office about using the Deferred Payment Plan to cover the remaining cost of attendance. The student can add an endorser to the application for credit consideration.

When do I start making loan payments?

Grad PLUS loans can be deferred while the student is enrolled at least half time. Students would need to select the deferment option on the Grad PLUS application on www.studentloans.gov or by contacting their servicer. Borrowers are advised to pay interest while in deferment so that the interest will not be capitalized.

How can I receive a PLUS loan?

Students need to accept the PLUS loan offer on HU Net. After acceptance is complete, parents of dependent undergraduate students can complete PLUS loan application and promissory note on www.studentloans.gov. Graduate students can apply for the Grad PLUS on the same website.

What is the interest rate on the Parent PLUS loan?

It is a fixed interest rate of 7.08%.

Why do I have to file a FAFSA for a parent PLUS loan?

Both the student and the parent must meet general eligibility requirements in order to receive funds under the PLUS Loan program. Please be advised that we will not process approved PLUS loans until the FAFSA has been received by Hampton University and the student is eligible to receive financial aid.

What happens if the Parent PLUS loan is denied?

After a PLUS loan has been denied, the student is eligible to receive an additional unsubsidized loan. We must receive the credit decision from the U. S. Department of Education. Then, the student must submit a Request for Additional Unsubsidized Stafford Loan due to Parent PLUS Denial. The parent could also appeal the credit decision or seek an endorser (co signer). These appeal process and endorser addendum at available at www.studentloans.gov.

What happens if my denied PLUS loan is later approved?

In the event that the parent was denied a PLUS loan and the student received the additional unsubsidized loan, the unsubsidized loan will have to be retracted in order for the loan department to process the approved PLUS loan.

When do I start making loan payments?

Parent PLUS loans will enter repayment 60 days after the final disbursement. Parents can contact their servicer to get the loan deferred while the student is enrolled at least half time. Borrowers are advised to pay interest while in deferment so that the interest will not be capitalized.

Who decides my eligibility and the amount of a loan that I can receive?

Based on the EFC that was proved after the student completes the FAFSA, the Financial Aid staff determines how much a student can receive in loans based on applicable program guidelines. All funds that are processed through the Financial Aid Office must be within the budget that was set up for the student.

We calculate your eligibility using the following simple equation:

• Cost of attendance (Budget) – EFC = Need

Then we are able to offer need based aid for students that have a need based on the previous equation. We then determine the non need based loans with the following equation:

• Cost of attendance – other aid = eligibility for non need based aid.

Why was my loan reduced when the school became aware of my outside scholarship, stipends, remission of tuition, etc?

The Financial Aid Office must be sure to remain within the budget for all students. When students receive aid that was not accounted for originally, we must adjust the award accordingly. We would need to complete the equation to determine need for the student again to make sure that they are still eligible for the need based aid. This policy was included in the Disclosure statements that the student must agree to prior to being about to accept the award on HU Net.

How long will it take for the University to process my loans?

The loan department originates loans Monday – Friday. During the peak season (summer), however it may take 2 – 3 weeks from the date the student accepted the loan on HU Net (and the school receives a credit decision from the Direct Loans for PLUS loans). Please understand that there are sometimes issues that must be resolved before we are able to originate a loan. Some such issues are verification, lack of a FAFSA, lack of acceptance on HU Net, lack of an application and signed promissory note for the PLUS and Grad PLUS loans, and the student’s eligibility to receive federal aid.

When will I receive my student loan refund check?

A student may expect a refund if he or she does not have any past or present outstanding charges and if the loan disbursement creates a credit balance. After a disbursement has been credited to the student’s account, the Office of Student Accounts is solely responsible for processing refunds for eligible accounts. Please be advised per Federal guidelines, the Office of Student Accounts has up to 14 business days to process student refunds. If you have checked your student account on-line after the loans have disbursed and are expecting a refund, you should direct questions about the refund to the Office of Student Accounts at 1-800-624-3327. Please be advised that the Financial Aid Office is not able to advise the amount of or the status on processing a refund.

How can I receive my refund faster?

Students may apply for the E-Refund service, which provides an alternative to receiving a paper check. Proceeds from E-Refunds will be electronically deposited into student bank accounts, only. For more information about E-Refunds, please contact the Office of Student Accounts at 757-727-5221 or toll-free at 1-800-624-3327.

Are there any requirements that I need to satisfy before separating from Hampton University?

You will need to complete exit counseling for the Stafford and Grad PLUS loans before separating from the University. There are exit counseling sessions held at the end of the Fall and Spring semesters. You are welcome to complete the online session on NSLDS.

I am about to graduate, but there is a Financial Aid hold on my account?

All recipients of Stafford or Grad PLUS loans (both Direct and FFELP) must complete Exit Loan Counseling upon separating from the University. This is simply to advise students of his/her rights and responsibilities as a borrower of a federal loan. Student will be advised of all options for repayment and how to avoid defaulting on the loans on NSLDS.

Where can I find information on my past loans?

The National Student Loan Data System (NSLDS) is the central database for federal student aid by the U.S. Department of Education. All federal aid is reported to this data base such as federal aid that the student received from each school and guarantors, the dollar amount, disbursement dates, aid terms, and the servicer the student would need to make payments to. You can access the NSLDS by logging on to www.nslds.ed.gov. NSLDS tracks federal aid from approval and through repayment. You will need your PIN to access this database. You can obtain a PIN at www.pin.ed.gov.

How much can I borrow?

Please see the Loan Limits  document.