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Student Loans

William D. Ford Federal Direct Loan (Formerly the Stafford Loan)

The Department of education is the guarantor for the low-interest federal loan program available to both undergraduate and graduate students. The program includes both subsidized and unsubsidized. Your eligibility for the Direct subsidized and unsubsidized loans is based on the information reported on the Free Application for Federal Student Aid (FAFSA).

2017-18 Academic Year

All students at Hood who apply for need-based financial aid are expected to meet their first level of financial need with subsidized student loan assistance. Interest does not accrue nor does repayment begin on subsidized student loans until the student ceases enrollment as at least half-time Most students will borrow through a combination of federal and institutional loan programs to meet a portion of their educational expenses.

Students who do not demonstrate need according to the federal need analysis methodologies may consider borrowing funds through the unsubsidized version of the Federal Direct Loan Program or private alternative student loan programs. Interest begins to accrue on unsubsidized student loans immediately during in-school and grace periods.

Parents of students who are ineligible for need-based forms of financial aid or who need additional funds beyond their financial aid eligibility may also consider borrowing through the Federal Direct Parent Loan for Undergraduate Students (PLUS) Program.

The individual processing procedures for each loan program are described below.

Federal Direct Loan Program

Under the Federal Direct Stafford Loan Program, loans are made directly by the federal government to students through Hood College.

  • Hood’s financial aid office determines your maximum eligibility to borrow funds through the subsidized and unsubsidized versions of the Direct Stafford Loan Program. If you wish to decline this loan offer or borrow a lower amount, notify the financial aid office in writing via regular mail or email at
  • This program requires that you electronically complete and sign a Master Promissory Note (MPN). Students who borrowed through the Direct Stafford Loan Program during the previous academic year are not required to sign another MPN. If you have not previously borrowed funds through the Direct Stafford Loan Program at Hood, you must complete an Electronic MPN and complete the Federal Direct Stafford Loan Entrance Counseling requirement at
  • Hood will receive proceeds of Direct Loans electronically after we receive confirmation that an electronic master promissory note has been submitted to the Federal Direct Loan Servicing Center and Entrance Counseling has been completed. The Direct Loan proceeds are credited directly to your student account.