A federal student loan, made through the William D. Ford Federal Direct Loan Program, for which eligible students borrow directly from the U.S. Department of Education at participating schools. Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans are types of Direct Loans.
Unsubsidized Direct loans are loans for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan. Repayment for this loans begins after graduation or when the student drops below part-time. The student has up to 10 years to repay this loans.
To accept, decline or accept part of the federal direct loans you are offered you will need to complete a Federal Direct Student Loan Form. In order to receive funding from the Federal Direct Unsubsidized Loan program, you must go to studentloans.gov to complete Entrance Counseling and sign a Master Promissory Note (MPN). Both of these must be done before funds will be released from the federal loan center. These steps are explained in detail in steps 1 and 2 on the Federal Direct Student Loan Form.
A Federal Direct PLUS loan is a non-need based federal loan program. A loan made by the U.S. Department of Education to credit-worthy graduate or professional students for which the borrower is fully responsible for paying the interest regardless of the loan status. Please refer to the PLUS Loan section of the Federal Student Aid website an Office of the U.S. Department of Education for a more detailed explanation, available at studentaid.ed.gov/sa/types/loans/plus
* US Citizen or eligible Non-US Citizen
* Not in default on prior educational loans
* Meets federally defined creditworthiness standards
* Enrolled at least half time (3 credit hours for graduate students)
Interest begins to accumulate upon the first disbursement. Repayment begins 60 days after the final disbursement during the academic year in which the loan is disbursed, or you have the option of deferring the loan payments until you graduate, withdraw, or drop below half-time enrollment status. You will be responsible for repaying both the principle and accumulated interest. The maximum repayment period is generally 25 years.
For more information on these loans please visit the Federal Student Aid website. Please Note: An origination fee will be charged on each loan that will be deducted from the loan before disbursement. Also students who are non-degree seeking or who are seeking teacher certification after graduation are only eligible for alternative loans in most cases.
The Direct Loan Origination Center will notify the borrower Federal Direct Grad PLUS loan credit check is denied. The Financial Planning Office does not provide notice if your credit check was denied. If the credit check is denied, there are three options:
If your financial assistance package does not cover your expenses, you have the option of applying for an alternative or private (nonfederal) student loan. Some private lenders offer credit-based loan programs to creditworthy students and/or students with creditworthy cosigners. Interest rates, loan fees and other specifics of such loans should be carefully evaluated. Before pursuing private alternative loans, students and parents should ALWAYS pursue Federal loans first; if additional funding is needed, students should consider a Federal PLUS Loan or the tuition payment plan before pursuing alternative loans.
If students decide to use private alternative loans, they must apply for these loans in enough time for them to use the funds to pay the High Point University charges by the due date. Private alternative loan lenders will require a creditworthy cosigner. This can be a spouse, parent, another adult relative, or other person who meets the lender’s requirements for the loan. A cosigner will be responsible for the loan if the student does not pay it back. Students who apply for a private alternative loan must complete a Self-Certification Form and submit it to the lender prior to loan approval.
The Office of Student Financial Planning will assist families in understanding and pursuing this lending avenue but cannot be responsible for the actual application. Below are several common private lending options utilized by High Point University students and families. Utilize the link provided to find out specific information and complete an on-line application if interested.
Because of the uncertainty of the current credit markets and the inability of certain lenders to secure private alternative loan funding, the pool of lenders willing and able to make private alternative loans is shrinking.
In order to consider a private alternative loan as payment toward the Student Accounts bill, the student must have received final approval from the lender. Processing time varies from lender to lender, but the average approval time is two to four weeks if everything is submitted in a timely manner. Be sure to allow enough time for processing.
Please refer to our Code of Conduct regarding Educational Loans.
Click below to easily compare and apply for Alternative Loans: