Student Loans

Student Loans

Haywood Community College (HCC) participates in both the William D Ford Direct Loan Program, Parent Plus Direct Loan Program, and accepts Alternative/Private Loans. Each type of program has different requirements outlined below.

 

Federal Student Direct Loans

How to Apply

To apply for a Federal Direct Loan, you must have applied for Federal Financial Aid and have been determined to be eligible for a Direct Loan by the HCC Financial Aid Office.

1. ALL students must FULLY complete all sections of the Federal DIrect Loan Request Form. You may return this form in person, fax, or mail to the Office of Financial Aid.

Federal Direct Loan Request Form 2012-2013

Haywood Community College
Attn. Financial Aid
185 Freedlander Dr
Clyde, NC 28716
Fax: 828-627-4513

2. Complete a Master Promissory Note (completed at www.studentloans.gov) each academic year. You will need to sign in. Sign in requires a pin which can be the same as used on FAFSA or can be created from the link to the “pin site”. Once signed in please select “Complete a Master Promissory Note” and select “Subsidized/Unsubsidized” and follow the directions.

3. Complete 3 sections of entrance loan counseling which includes Direct Loan Entrance Counseling, Financial Literacy, and Grace Period & Repayment. The Financial Literacy class will be taken online at www.mappingyourfuture.org. For detailed information on how to access these classes please download our guide here.

Frequently Asked Questions (FAQ)

How much can I borrow each year under the Federal Direct Loan program?

The amount a student may borrow each year depends on 1) year in college as determined by credits completed in student's academic program of study/major, 2) length of academic program, 3) established cost of attendance, 4) eligible need as defined by your FAFSA application , 5) number of semesters indicated on loan request, and 6) minus other aid awarded.

Maximum amounts as follows:

Year SHC in Major Dependent Student Independent Student
First Year (Freshman) 0-29 credit hours $3500 + additional $2000 unsubsidized if eligible $3500 + additional $6000 unsubsidized if eligible

Second Year (Sophomore)

 30 or more credit hours $4500 + additional $2000 unsubsidized if eligible $4500 + additional $6000 unsubsidized if eligible

What are the interest rates for Direct Loans made to Undergraduate Students?

First Disbursement Date of Your Loan Subsidized Rate Unsubsidized Rate
On or After July 1, 2012 and prior to July 1, 2013 3.4% 6.8%

What is the difference between subsidized and unsubsidized loans?

Subsidized- The borrower is not charged interest while you are enrolled at least half-time (6 credit hours), during grace/deferment periods, and during certain periods of repayment under the Income-Based Repayment Plan.

Unsubsidized- The borrower is charged interest from the time the loan is disbursed until it is paid in full.

Are there additional fees associated with Federal Direct Loans?

Both Subsidized and Unsubsidized Federal Direct Loans have a 1.0% origination fee. Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent making the origination fee .5%. If you fail to make 12 on-time monthly payments, however, a charge for the initial rebate will be added to the outstanding balance of the loan.

When will I receive my loan disbursement?

Loan funds will be mailed from the Business Office on regularly scheduled disbursement dates throughout the academic year. All loans will be divided into at least two (2) equal disbursements.

General Considerations

Your Federal Direct Loan eligibility may change if you receive additional aid (such as scholarships, fellowships, work study, and agency awards), or if you change your enrollment. If your eligibility for a Federal Loan Changes we may:

  1. Cancel your loan
  2. Reduce future disbursements of your loan
  3. Refund to your lender amounts already delivered to you. If a refund is necessary, we will charge the refund to your college account. Billing balances created by financial aid refunds are subject to the rules governing the payment of all college student accounts

You should understand the following information regarding your Federal Direct Loan(s):

  1. You are obligated to repay loan(s) even if you do not complete the program, are unable to obtain employment, or are otherwise dissatisfied with the education or other services received
  2. You must repay loans with all accrued interest and deducted fees
  3. You have 10-25 years to repay loans (depending on the amount owed and the repayment plan you select)
  4. You may prepay all or part of loans at any time without penalty
  5. The minimum monthly payment for each loan is $50 per month, but can be more depending on the amount you borrowed
  6. Repayment will begin following a 6-month grace period. Grace periods begins when the student graduates, withdraws, or drops below half-time status (6 credit hours)
  7. You must complete Exit Counseling at www.mappingyourfuture.org upon entering your repayment period
  8. You are obligated to notify the Office of Financial Aid if you receive/will receive any additional aid as soon as possible. This includes, but is not limited to, scholarships, WIA funds, gifts, campus jobs, club awards, etc.

Parent Plus Direct Loans

Please note that only biological, step, and adoptive parents may apply for a Parent Plus Loan for your dependent student. Legal guardians and other terms of court wardship do not qualify.

How to Apply

To apply for a Parent Plus Direct Loan, th must have applied for Federal Financial Aid and have been determined to be eligible for a Direct Loan by the HCC Financial Aid Office.

1. The parent must fill out the Parent Plus Direct Loan Request Form. You may return these forms in person, fax, or mail to the Office of Financial Aid. Make sure to initial the second page.

Parent Plus Direct Loan Request Form 2012-2013

Haywood Community College
Attn. Financial Aid
185 Freedlander Dr
Clyde, NC 28716
Fax: 828-627-4513
2. Complete a Master Promissory Note (completed at www.studentloans.gov) each academic year. You will need to sign in. Sign in requires a pin which can be the same as used on FAFSA or can be created from the link to the “pin site”. Once signed in please select “Complete a Master Promissory Note” and select “Parent Plus” and follow the directions. This process will require a credit check.

3. If your student qualifies for one of other Direct Loan programs you will be notified of these options.

Frequently Asked Questions (FAQ)

How much can I borrow for my student each year under the Parent Plus Loan program?

The amount a parent may borrow each year depends on 1) established cost of attendance and 2) minus other aid received.

Maximum amounts as follows:

Tuition Status Dependent Student
In State $9,528
Out of State $15,672

What are the interest rates for Parent Plus Direct Loans?

Interest Rate 2011-2012 7.9%

Are there additional fees associated with Federal Direct Loans?

Parent Plus Direct Loans have a 4.0% origination fee and also offer a 1.5% rebate on the origination fee. Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent making the origination fee 2.5%. If you fail to make 12 on-time monthly payments, however, a charge for the initial rebate will be added to the outstanding balance of the loan.

When will the student receive the loan disbursement?

Loan funds will be mailed from the Business Office on regularly scheduled disbursement dates throughout the academic year. All loans will be divided into at least two (2) equal disbursements.

 

Alternative/Private Student Loans

The Financial Aid Office at Haywood Community College (HCC) works with many sources of alternative or private loans to help provide additional funding to students at the college. HCC does not endorse the use of any particular alternative loan program, but rather encourages students to thoroughly review the programs available and to select the program that best meets their personal needs.

General Considerations

  • Alternative or private loans are credit-based and students are NOT guaranteed to receive them.
  • In order to understand the credit-scoring system used by the lender to determine your eligibility we suggest that you review the information contained on www.myfico.com.
  • Under lender defined circumstances, some students may also be asked to have a co-signor or co-maker.

When determining which loan is best for you, obtain the following information from the lender(s) you are considering:

  • What are the current qualifications criteria, including credit score, a borrower (you) and/or a co-signor or co-maker must meet?
  • What is the current interest rate and fees (origination or repayment) associated with the loan: Remember, fees can negate differences in interest rate. Interest rates and terms may vary with each lender.
  • What are the standard and/or consolidated repayment terms available to borrowers? (Fixed or variable rate and maximum repayment period).
  • You should also ask any other questions to fully understand your responsibilities under the loan.

Selecting a Lender

Recent media attention has been directed to practices used by some U.S. colleges and universities in providing students with a “preferred lender list” for student loans. The practice has given rise to questions about possible conflicts of interest at some schools.

Haywood Community College (HCC) does not have a preferred lender list and does not engage in any of the practices that have come to light at very few institutions across the country. HCC has no representatives from student loan organizations on campus or appearing to represent HCC in any way. Neither do HCC staff members receive any funding or incentives whatsoever from lenders providing student loans.

It is HCC’s policy to process alternative loans from any lender the student selects. HCC students have a choice in the selection of lenders. This policy is consistent with federal regulations. For assistance in selecting an alternative or private student loan lender, visit either of the following websites:

http://www.studentloanlistings.com/

Student Loan Buying Guide

The Greentree Gazette publishes a “buying guide” several times a year to maintain updated information on the student loan programs. The guide highlights borrower benefits offered by different lenders as well as trends in the student loan industry. Look for “Private” loans.

www.finaid.org/loans/privatestudentloans.phtml

List of Private Student Loan Providers “FinAid! The Smart Student Guide to Financial Aid” has compiled a list of private lenders based on lender literature and a survey of rates charged to actual students.

The above web sites are provided solely to assist students in the selection of a lender. The above list does not constitute endorsement or recommendation by HCC.

Guidelines for Alternative/Private Loan Recipients

  1. Students are encouraged to complete a Free Application for Federal Student Aid (FAFSA) and list Haywood Community College as one of the colleges to receive a copy.
  2. Student will decide which lender best meets his/her needs by researching financial lending institutions of their choice. (See Web sites under Selecting a Lender)
  3. The Financial Aid Office (FAO) will certify alternative/private loans.
  4. Student notify the FAO when he/she applies for a private loan.
  5. The loan amount cannot exceed the Cost of Attendance (COA) minus Expected Family Contribution (EFC) and any other aid awarded by the FAO. Contact the FAO for COA figures.
  6. Student must be attending HCC at least half-time (6 or more credit hours per semester).
  7. Unless indicated otherwise, the loan will be disbursed over two terms.
  8. Student must be registered for classes prior to picking up Alternative/Private Loan check.
  9. Students pick up Alternative/Private Loan checks in the Cashier’s Office located in the Student Center. Contact the FAO at (828) 627-4756 for specific dates. Alternative/Private Loan checks may be cased at First Citizens Bank of Waynesville, NC.

Tuition and fees must be paid no later than 7 p.m. on the day before classes begin each semester.

Student who pick up loan checks and fail to pay tuition and fees are not enrolled. This information will be provided to the lender and the student will be notified about repayment based on school’s receipt of check from lender.

For additional information or if you have questions, please contact the HCC Financial Aid Office at (828) 627-4509 or email at hccaid@haywood.edu.

This page was last modified on Monday, October 22, 2012 at 03:20 PM