The loan application process begins by completing the FAFSA (Free Application for Federal Student Aid). You may complete and submit your FAFSA at www.fafsa.gov.
Types of Federal loans
William D. Ford Federal Direct 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).
Subsidized loan – Interest is not charged on subsidized loans while the student is in school at least half-time, during your grace period, and during deferment periods. An interest rate of 3.8% is charged once the student has graduated.
Unsubsidized loan - Interest at a rate of 5.4% is charged on unsubsidized loans during all periods.
If you have been awarded a Direct Loan you will need to activate it by completing the Entrance Counseling and electronically sign the Master Promissory Note (MPN).
Federal Perkins Loan
A need based, low interest federal loan awarded to students who demonstrate exceptional financial need. Priority is given to students who meet the Feb. 15th priority deadline. Hood College is the lender, and the loan is made with government funds. No interest is charged on the Perkins loan while the student is in school. An interest rate of 5% is charged once the student has graduated.
In order to receive the Perkins loan you must complete the Perkins Master Promissory Note (MPN).
Direct PLUS Loan
This is a federally insured non-need based loan program available to parents of undergraduate dependent students. Parents are eligible to borrow up to the cost of attendance minus other financial aid received by the student. An interest rate of 6.4% is charged during all periods. Deferment is available on a year to year basis.
You may apply for the Direct PLUS Loan and electronically sign the Master Promissory Note (MPN) at www.studentloans.gov.
If you have any questions about this process, please call the Financial Aid Office at 301-696-3411 or 800-922-1599.