FEDERAL PERKINS LOAN FEDERAL STAFFORD LOAN FEDERAL PLUS LOAN
ALTERNATIVE LOAN UNITED METHODIST LOAN
General Requirements and Information
To be considered for the Federal Stafford Loan and the Federal PLUS Loan students must complete the Free Application for Federal Student Aid (FAFSA).
Deadline for Spring 2010 Loan Applications: One week prior to the end of the term.
To be eligible for all federal loans and some alternative loans for students, you must be enrolled at least half-time (six credits per semester).
Your Student Loan Disbursements
After Hamline has certified the loan, and the lender receives your fully completed Master Promissory Note (MPN) and approves your loan, the lender will send loan documents notifying you of your loan approval.
If you are a first-time borrower at Hamline University, you must complete student loan entrance counseling before your funds can be credited to your account.
Federal regulations require that Stafford Loans have multiple disbursements. Your loan proceeds will be sent to Hamline University, by your lender, at the beginning of each term.
Lender List Selection Guidelines
Hamline University does not endorse any specific lenders, but has compiled a list of experienced lenders who are committed to providing quality service at a reasonable cost. The selection committee used the following criteria to determine the lender list based on lender responses to a Request for Information Survey:
- Low lending costs
- Cost saving benefits
- Variety of loan products that include federal and/or alternative loans
- Attractive loan terms
- Satisfactory customer service to the student and the school
- Acceptable historical volume or demand
- Suitable processing capabilities
The lender list is to be used as a guide to help parents and students compare different lenders so they can choose a loan program that will provide them with the best benefits.
Hamline University does not receive any preferred loan terms based on volume agreements, nor receive any type of payment from any lender for placement on the lender list. The decision is made based on the lender’s performance along with the products and services offered to students.
Although Hamline University has a lender list, students or parents are welcome to borrow from any lender they choose, even if that lender is not on the list.
Student Loan Code of Conduct
Federal Perkins Loan
Federal Perkins Loans are borrowed directly from Hamline University. The loan is interest free until repayment begins, which is nine months after the student leaves school or drops below half-time status. The fixed annual interest rate is 5.00%.
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Online Application Process
Step 1: Check your award letter for eligibility.
Step 2: An email notification will be sent to your preferred email address in Piperline when your loan is available online after July 1, 2009. The email will direct you to www.signmyloan.com to sign for your Perkins Loan. Your FAFSA PIN will serve as your electronic signature. If you don’t have a PIN, you can request one at www.pin.ed.gov. |
Once you have electronically signed your Master Promissory Note (MPN), your Perkins Loan dollar amount will be applied to your account on a semester basis for the 2009–2010 academic year. If you have Perkins Loan eligibility on your award letter and you do not want to borrow this loan, please send written notice to the Financial Aid Office or email
sasmail@hamline.edu.
Subsidized and Unsubsidized Federal Stafford Loans
All eligible students may apply for the Federal Stafford Loan for up to the amount shown on the financial aid award letter. The Financial Aid Office determines the portion of the loan that the federal government pays interest on while the student is in school (Subsidized Stafford Loan).
The Federal Stafford Loan has an origination fee of up to 1.0% and a default fee of up to 1.0%, which is taken off each disbursement. Loan funds will be electronically wired to Hamline University and will be credited to the student’s account by the Financial Aid Office.
The Subsidized Stafford Loan is interest-free until the repayment period, which begins six months after the student leaves school or drops below half-time status. The interest rate on the undergraduate Subsidized Stafford Loan disbursed after July 1, 2009 is a fixed rate of 5.60%.
The Unsubsidized Stafford Loan does not carry the in-school interest subsidy. The interest rate on the Unsubsidized Stafford Loan is a fixed rate of 6.80%. The lender and the student determine the method of in-school interest payment and/or accrual. The terms of the out-of-school repayment on the Unsubsidized Stafford Loan are identical to the Subsidized Stafford Loan.
Annual Stafford Loan Limits
| First-year |
$5,500 - no more than $3500 will be subsidized |
| Sophomore |
$6,500 - no more than $4500 will be subsidized |
| Junior–Senior |
$7,500 - no more than $5500 will be subsidized |
| Post Baccalaureate |
$7,500 - no more than $5500 will be subsidized |
Independent Undergraduate/Post Baccalaureate students may be eligible for additional annual Unsubsidized Stafford Loan funding based on your cost of attendance.
Aggregate Stafford Loan Limits
Dependent Undergraduate
Subsidized $23,000
Total Subsidized and Unsubsidized $31,000
Independent or Undergraduate without access to PLUS
Subsidized $23,000
Total Subsidized and Unsubsidized $57,500
Choosing a Lender
Although Hamline University has a lender list, you are welcome to borrow from any lender you choose, even if that lender is not on the list. Also note that the lender list does not constitute an endorsement of any lender by Hamline University. The information on the lender list is updated by the lender periodically as terms may change.
| NEW HAMLINE BORROWERS STAFFORD LENDER LIST, APPLICATION AND ENTRANCE COUNSELING |
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| RETURNING HAMLINE BORROWERS STAFFORD LENDER LIST AND APPLICATION |
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Federal PLUS Loan
Dependent undergraduate students may have a Federal PLUS Loan included in their Hamline University Financial Aid Award Letter. Depending on need, a parent may borrow up to Hamline’s “cost of attendance” minus any other financial aid that is awarded to the student. The Hamline University Student Financial Aid Award Letter indicates the amount a parent may consider borrowing for a student’s education during the coming school year.
PLUS Loans are available to “creditworthy” parents of dependent students who are enrolled at least half-time. If the PLUS Loan is denied, the student should contact the Office of Financial Aid to determine if she/he is eligible to borrow additional funds through the Federal Unsubsidized Stafford Loan program.
The Federal PLUS Loan has an origination fee of 3.00% and a default fee of up to 1.00%, which is taken off each disbursement. Some guarantors may pay the default fee on behalf of the student. Loan funds will be electronically wired to Hamline University and will be credited to the student’s account by the Financial Aid Office.
The PLUS Loan is flexible to allow a parent to decide how much to borrow. Repayment of the PLUS Loan begins within sixty days after the final disbursement of the loan proceeds. (However, some lenders will allow a parent to apply for a forbearance while the student is still in school.) The PLUS loan interest rate is fixed at 8.50%. PLUS loan borrowers have up to ten years to repay their PLUS Loan(s). The minimum monthly payment on a PLUS Loan is $50 per month. With recent passing of legislation, interest paid on PLUS Loans may be tax deductible. Consult with your tax advisor for more details.
Choosing a Lender
Although Hamline University has a lender list, you are welcome to borrow from any lender you choose, even if that lender is not on the list. Also note that the lender list does not constitute an endorsement of any lender by Hamline University. The information on the lender list is updated by the lender periodically as terms may change.
| FEDERAL PLUS LOAN LENDER LIST AND APPLICATION |
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Alternative Loans
The option to apply for an alternative loan may be included in your Hamline University Financial Aid Award Letter. There are a variety of alternative loans available. All alternative loans are based on satisfactory credit history, and some may require a creditworthy cosigner.
Alternative loans help bridge the gap between the cost of attendance and the amount of federal loan eligibility. Typically federal student loans are less expensive and offer better terms than alternative education loans, so be sure to exhaust your eligibility for federal student loans before considering an alternative education loan. The interest rate and fees on an alternative loan vary depending on the student and/or cosigner’s credit. The interest rate is variable and may change as often as quarterly.
Choosing a Lender
Although Hamline University has a lender list, you are welcome to borrow from any lender you choose, even if that lender is not on the list. Also note that the lender list does not constitute an endorsement of any lender by Hamline University. The information on the lender list is updated by the lender periodically as terms may change.
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ALTERNATIVE LOAN LENDER LIST AND APPLICATION |
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NOW |
United Methodist Loan
The United Methodist Loan is only available to students who are members of the United Methodist Church. The maximum amount for eligible members is $2,500 for undergraduate students. The borrower must have a creditworthy co-signer. Repayment begins no later than six month after the student leaves school. The current interest rate is 6%, which accrues while the student is attending school. Please see the Student Administrative Services Office for an application.
