Office of Student Financial Planning


Federal Loans

A loan is financial assistance that enables students and parents to borrow money from the federal government, state government or private lenders. These loans must be repaid. Borrowers are responsible for signing a Master Promissory Note for each loan program, which is a binding, legal document through which the borrower agrees to repay the loan. To be considered for any of these loans, students must fill out the Free Application for Federal Student Aid (FAFSA).

Federal Direct Loans

A federal student loan, made through the William D. Ford Federal Direct Loan Program, for which eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans are types of Direct Loans. This chart gives the annual limits of various Direct Loans:

                       Loan Type  Freshman Sophomore Junior Senior Lifetime Limit
Subsidized Direct (Dependent)  $3,500  $4,500  $5,500  $5,500  $23,000
Unsubsidized Direct (Dependent)  $2,000  $2,000  $2,000  $2,000  $8,000
Subsidized Direct (Independent) $3,500  $4,500  $5,500  $5,500  $23,000
Unsubsidized Direct (Independent)  $2,000  $2,000  $2,000  $2,000  $8,000

Subsidized Direct loans are loans based on financial need for which the federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status. 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 these two loans begins after graduation or when the student drops below part-time. The student has up to 10 years to repay these loans.

Perkins Loans

A federal student loan, made by the recipient’s school, for undergraduate and graduate students who demonstrate financial need. For this loan HPU is the lender; you will make your payments to the school. This loan is administered by the Student Accounts Office. This loan ranges from $500 to $5,500 per year based on student’s remaining demonstrated eligibility and the availability of funding. Repayment for this loan begins 9 months after graduation or when the student ceases to be enrolled at least part-time.

Direct PLUS Loans (for parents or graduate students) – for

A loan made by the U.S. Department of Education to graduate or professional students and parents of dependent undergraduate students for which the borrower is fully responsible for paying the interest regardless of the loan status. PLUS stands for Parent Loans for Undergraduate Students. They are low-interest loans for credit-worthy parents of undergraduate students or graduate students. Eligibility For Parent and Student:

  • US Citizens or eligible Non-US Citizens
  • Not in default on prior educational loans

For Parent:

  • Borrows on behalf of the dependent student and is responsible for loan repayment
  • Meets federally defined creditworthiness standards

For Student:

Additional Information

  • This loan is not need based.
  • You may not borrow more than the cost of the student’s education minus any other financial aid received (such as grants, scholarships, or loans – including Direct Subsidized/Unsubsidized loans). High Point University will determine the actual amount you may borrow.
  • Origination fee of 4.292%
  • Current fixed interest rate of 7.21% – rates may change depending on legislation so please visit the Federal Student Aid Calculators and Interest website
  • Visit our Apply for PLUS Loan page on our Resource page for step-by-step instructions


For more information on these loans please visit the Federal Student Aid website or view this Direct Loan Basics document. Please Note: An origination fee will be charged on each loan that will be deducted from the loan before disbursement, for current rates visit the Federal Student Aid – Other Fees website. Also students who are non-degree seeking or who are seeking teacher certification after graduation are only eligible for alternative loans in most cases.


Our main office is located in Suite 100 of Roberts Hall.

Phone: (336) 841-9124
Fax: (336) 841-4649
FAFSA/Title IV School code: 002933