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Since scholarships and grants and work study will not cover the full cost of attendance for the majority of students, loans will be the option to bridge the gap. Unlike scholarships and grants, loans will have to be repaid to include interest. There are several loan options available to assist with the cost of attendance. Please carefully review the benefits of each loan type and select the best option for your situation.
The loan process can begin one of two ways:
Federal Loans
http://www.federalstudentaid.ed.gov/federalaidfirst/index.html
FFELP Stafford Loans
Stafford loans are students loans that are offered to the student based on the grade level and the EFC. Students need to be enrolled at least half time status to receive a disbursement. The guarantor will send a Notice of Guarantee and Disclosure statement to borrower with the expected disbursement date.
- Complete a FAFSA with the Department of Education.
- The Department of Education will access the information provided on FAFSA and send the student a SAR (Student Aid Report) which needs to be carefully reviewed. The school would receive the EFC (Estimated Family Contribution) to be able to process the student’s eligibility for the available aid.
- The Financial Aid counselor would view the student’s eligibility and then an award would be posted for students that have met all applicable requirements. Please view HU Net for your eligibility status or to see the outstanding requirements for your financial aid. You may also contact counselor for eligibility requirements and your status. The student would need to accept the aid offered to the student.
- Once loans have been accepted, the loan department would be able to certify the loans with our guarantors or the specific lender of choice from the student. We would make sure the student is receiving the correct amount of the loan for their grade level based on the current number of earned hours and classification that the school has for the student. The classification is as determined by the earned hours with the Office of the Registrar at Hampton University.
- All first time students, regardless of classification, would need to complete Entrance Counseling. Entrance Counseling is to ensure that students are aware of their rights and responsibilities as a borrower of a federal loan. Entrance counseling can be completed online at (Entrance Loan Counseling)
- Lenders require a valid promissory note in order to release funds to Hampton University on the student’s behalf. You are able to sign the promissory note electronically on the guarantor’s website or you can request a paper copy to be mailed to you to complete.
- Hampton University’s disbursement dates are generally scheduled every Tuesday and Thursday. After the funds have disbursed to the university, the student can view HU Net to see the disbursement and the new account balance. If the student is due a refund, The Office of Student Accounts would be able to now process that refund. It is the advice of this office that students sign up for E-Refund on HU Net to expedite the refund process. For further information on the E-Refund process, please contact the Business Office at 757-727-5221 or toll-free at 1-800-624-3327.
- All students that have borrowed federal student loans are required to complete exit counseling. Exit Counseling is to advise the student of their rights and responsibilities as a student borrower. This session will also provide the student with the repayment options that are available and options to avoid the loan going into default.
Request to Reduce Stafford Loan
Request to Cancel Stafford Loan
Request to Increase Stafford Loan Due to Classification Change
FFELP Parent PLUS/Grad PLUS Loans
http://www.federalstudentaid.ed.gov/federalaidfirst/index.html
PLUS loans are credit based loans that are offered to graduate students and parents of dependent undergraduate students. Please be advised that students would need to be enrolled at least half time to receive a disbursement. The guarantor will send a Notice of Guarantee and Disclosure statement to borrower with the expected disbursement date.
- Complete a FAFSA with the Department of Education
- The Department of Education will access the information provided on FAFSA and send the student a SAR (Student Aid Report) which needs to be carefully review. The school would receive the EFC (Estimated Family Contribution) to be able to process the student’s eligibility for available aid
- The graduate students and the parent of dependent undergraduate students would need to complete a credit check with our guarantors or the specific lender of their choice. Our guarantors are American Student Assistance, Educational Credit Management Corporation, and USA Funds. For borrowers who choose lenders outside our designated process, you need to make sure that you make Hampton University aware of the approval with that particular lender.
- Once Hampton University receives the approval from the lender, the loan department will determine the amount the student is eligible to receive and send the certification to the lender. For borrowers that go outside of our designated process, please be aware that certifying the loan may take longer due to the method we need to process the loan with the specific lender.
- In the event that the parent PLUS loan is denied, the student would be eligible to receive an additional unsubsidized loan. The amount of the loan is determined by the classification that the Office of the Registrar at Hampton University has for the student. After the loan is denied, the student would need to submit a letter to the loan department in the Financial Aid Office in order to receive the additional loan. The letter should state that the student is requesting the additional unsubsidized loan due to the denied PLUS loan.
- The parent is welcome to appeal the denial with the lender that denied the loan. Also, you can add an endorser to the application. In the event, the parent is able to get the loan approved later; the unsubsidized loan will be retracted from the student’s award and account, when applicable.
- First time Grad PLUS borrowers will need to complete Entrance Counseling in order to receive a disbursement. Entrance counseling is to ensure that the borrower is aware of their rights and responsibilities as a borrower of a federal loan.
- Borrowers and endorsers will applicable would need to sign promissory notes with the lender before the lender would release the funds to the school. You are able to sign the promissory note electronically on the guarantor’s website or you can request a paper copy to be mailed to you to complete.
- Hampton University’s disbursement dates are generally scheduled every Tuesday and Thursday. After the funds have disbursed to the university, the student can view HU Net to see the disbursement and the new account balance. Generally, accounts with a PLUS loan have refunds issued to the borrower of the PLUS loan. If the borrower chooses to have the refund released to the student, they would need to submit this request in writing to the Business Office. If the student is due a refund, the Office of Student Accounts would be able to now process that refund. It is the advice of this office that students sign up for E-Refund on HU Net to expedite the refund process. For further information on the E Refund process, please contact the Business Office at 757-727-5221 or toll-free at 1-800-624-3327.
- All students that have borrowed federal student loans are required to complete exit counseling. Exit Counseling is to advise the student of their rights and responsibilities as a student borrower. This session will also provide the student with the repayment options that are available and options to avoid the loan going into default.You can complete this process at (Exit Loan Counseling).
Request to Increase PLUS Loan
Request to Reduce PLUS Loan
Request to Cancel PLUS Loan
Request for Additional Unsubsidized Loan Due to PLUS Denied
Alternative Loans
Alternative loans are credit based loans that the student would need to apply for directly with a lender. Students are strongly encouraged to apply for the alternative loans with a credit worthy co signer. We offer a preferred lender list or the student can apply with a lender outside of the list. Please keep in mind that we will certainly welcome all approved loans, however it could take longer to receive a disbursement when going outside the school’s process. The reasons for the delay would be method that we are able to certify loan with particular lender, paper checks to be mailed to school and then endorsed by borrower, and paper checks go through two offices before we are able to post to a student’s account. The lender will send a Notice of Guarantee and Disclosure statement to borrower with the expected disbursement date.
- Student would need to apply for the private loan directly with the lender of their choice.
- The lender would notify Hampton University of the approval for the student.
- Once the approval has been received by the loan department, the loan will determine the amount the student is eligible to receive from the alternative loan and send the certification back to the lender.
- The student would need to follow up with lender on an outstanding requirements that lender has before they would disburse the funds to Hampton University.
- Students are able to use alternative loans to cover previous balances.
- Hampton University’s disbursement dates are generally scheduled every Tuesday and Thursday. After the funds have disbursed to the university, the student can view HU Net to see the disbursement and the new account balance. If the student is due a refund, the Office of Student Accounts would be able to now process that refund. It is the advice of this office that students sign up for E-Refund on HU Net to expedite the refund process. Please note that federal regulations dictate the time frame for your refund to be released. For further information on the E-Refund process, please contact the Business Office at 757-727-5221 or toll-free at 1-800-624-3327.
FAQs
Do I have to borrow the full amount offered in a particular loan type?
No. You are welcome to accept or apply for a portion of a loan instead of the full offer. 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 interest rate on the subsidized loan is fixed 6% and the government pays all the interest that accrues while the student is enrolled in school and during the grace period. The unsubsidized loan has a 6.8% interest rate and the student would be solely responsible for all interest that accrues on the loan. The Perkins loan is a better choice than the Stafford loans with a 5% interest rate. 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. Unsubsidized loans begin to accumulate interest as soon as they are disbursed. Students are able to pay toward the interest only while in school. You would simply need to select that option on the promissory note.
What is the interest rate for Stafford loans?The subsidized Stafford loan has a fixed interest rate of 6%. The unsubsidized loan has a fixed interest rate of 6.8%, which begins to accrue at the time of disbursement.
I accepted a Stafford Loan. How do I know when the loan has disbursed?
After the loan has been certified, the guarantor/lender will send out a disclosure statement 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. If the promissory note has been signed, entrance counseling is complete, and verification has been finalized, 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.
How can I receive a Perkins Loan?
Based on the EFC that was proved to the university by the Department of Education, the student could be offered a Perkins Loan on the award posted on HU Net. The student would need to accept the loan on HU Net. After accepting the loan, the student would need to sign a promissory note and complete entrance counseling with the Collections Office 757-727-5610. Please be advised that funds are limited.
My Perkins Loan has not disbursed. What do I have to do to get that loan?
Perkins Loans work differently than Stafford Loans. First, you must accept your Perkins Loan on HU Net. Then, you will complete the Perkins Loan Master Promissory Note and complete entrance counseling in the Collections Office.
What is the interest rate on the Perkins loan?
It is a fixed interest rate of 5%.
When do I start making loan payments?
Perkins loans go into repayment 9 months after separation from the university by way of graduation or withdrawal to include students that are enrolled for less than half time. Borrowers would repay this loan directly to Hampton University’s Collection Office. For more information please contact the Collection Office at 757-727-5610.
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 and Alternative loan.
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 due date to apply for a private loan.
What happens if an alternative loan is denied? If the lender denies the borrower, the student will need to contact the Business Office about signing up for the 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.
How can I receive a Grad PLUS loan?
Graduate students are would need to complete a credit check with our designated guarantors or directly with a lender of their choice.
What is the interest rate on the Grad PLUS loan?
It is a fixed interest rate of 8.5%.
Why do I have to file a FAFSA for a Grad PLUS loan?
The FAFSA gives Hampton University information required to determine the student’s eligibility for the PLUS loan. 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 received 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. Borrowers are advised to pay interest while in deferment so that the interest will not be capitalized
How can I receive a PLUS loan?
Parents of dependent undergraduate students can complete a credit check with our designated guarantors or directly with a lender of their choice. Graduate students can apply for the Grad PLUS loan with the same options to apply.
What is the interest rate on the Parent PLUS loan?
It is a fixed interest rate of 8.5%.
Why do I have to file a FAFSA for a parent PLUS loan?
The FAFSA gives Hampton University information required to determine the student’s eligibility for the PLUS loan. 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 received 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. Hampton University needs to receive a copy of the denial letter and a letter of request from the student for the additional unsubsidized loan due to the denied PLUS loan
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 lender 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, Hampton University completes an equation to determine how much a student can receive in loans. All funds that are processed through the Financial Aid Office must be within the budget that was set up for the student.
The equation is as follows
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.
How long will it take for Hampton University to process my loans?
The loan department certifies loans everyday. During the peak season (summer), it may take 2 – 3 weeks from the date the student accepted the loan on HU Net or when the school receives an approval from the lender. Please understand that there are sometimes issues that must be resolved before we are able to certify a loan with the lender. Some such issues are verification, lack of a FAFSA, lack of a certification request from the lender, and the student’s eligibility to receive federal aid.
When will I receive my student loan refund check?
After a disbursement has been credited to the student’s account, the Business Office would be able to process refunds for eligible accounts. If you are expecting a refund, you should direct questions about the refund to the Business Office or The Office of Student Accounts after the funds have disbursed to the student account. 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 757-727-5661 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, Grad PLUS, and Perkins 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 at (Exit Loan Counseling).
I am about to graduate. Why is there a hold on my account?
There is a hold for exit counseling for the federal loans that the student accepted and received a disbursement for. This is simply to advise that student the rights and responsibilities of being a borrower of a federal loan. Student will be advised of all options for repayment and how to avoid defaulting on the loans.(Exit Loan Counseling)
Where can I find information on my past loans?
The National Student Loan Data System (NSLDS) is the central database for student aid by the 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. The 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.
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