Loans

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 loans. Your eligibility for the direct subsidized and unsubsidized loans is based on the information reported on the Free Application for Federal Student Aid (FAFSA).

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 finaid@hood.edu.
• 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 studentaid.gov.
• 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.

Please go to studentaid.gov and complete the following loan requirements:

• Sign the MPN (Master Promissory Note).
• Complete entrance counseling.
• Complete exit counseling.
• Repayment.

Direct PLUS Loans

• Direct Loans are low-interest loans that parents use to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education. PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
• 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 cCounseling has been completed. The direct loan proceeds are credited directly to your student account.

Parent eligibility requirements for a Direct PLUS Loan

• Your child must be a dependent student enrolled at least half-time.
• Enrolled at a direct loan program school.
• Be considered a "dependent" student (under 24, unmarried and has no legal dependents at the time the Free Application for Federal Student Aid is submitted).

Additional requirements, credit check and endorser alternative

• A credit check will be done.
• Parents and their dependent child must be U.S. citizens or eligible noncitizens.
• If you are denied due to an adverse credit history, you may still borrow a PLUS Loan if you get an endorser (co-signer).

Applying for a PLUS Loan and the Master Promissory Note (MPN)

• You must complete a PLUS Application and master promissory note (MPN).
• The MPN is a legal document in which you promise to repay your loan(s), accrued interest and fees to the Department of Education.
• It explains the terms and conditions of your loan(s).

Loan limits, interest rate and loan charges

• There are no set limits for Direct PLUS Loans.
• The school will determine the actual amount you may borrow.
• The interest rate for Direct PLUS Loans is fixed.
• In addition to interest, there is a loan origination fee, so the loan amount you actually receive will be less than the amount you have to repay.
• Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional direct unsubsidized loan funds.

Please go to studentaid.gov and complete the following loan requirements:

• Sign the MPN (Master Promissory Note).
• Repayment.

Private educational loan programs are non-federal loans issued by banks, savings and loan associations, and credit unions. These programs allow students to borrow up to the full cost of attendance* minus other forms of financial aid. Most students will need a creditworthy co-signer such as a parent or other relative in order to obtain a private loan. Private educational loans carry a fixed or variable interest rates based on the LIBOR rate or the Prime rate and repayment periods may range from 5 to 25 years. Interest rates, origination fees, loan maximums and repayment terms should be carefully considered when researching and choosing a private loan.

Because each family's financial circumstances will differ, Hood College is unable to recommend a specific program that will best suit an individual family's needs. Before you decide to borrow, carefully investigate all of your options. Make sure that you understand the application procedures, eligibility criteria, interest rate and processing fees, disbursement procedures and repayment terms for each program you are considering.

To compare rates and terms for over 100 types of private loans click here.

Private alternative education loans are typically the most expensive borrowing option, and therefore, should only be considered after eligibility for all federal student and parent loan options have been determined.

Notification

Once an application is approved by a lender, the school will receive an electronic certification request. The proceeds of private alternative education loans may not be credited to a student's account until the funds are actually received by the College. If the loan proceeds will be used to pay a remaining balance due, the loan application process should be completed well in advance of the bill payment due date. Hood College MUST certify the loan prior to any funds being applied to the student’s account. If the student is unable to register for classes due to a prior balance, loan funds must be credited before the hold will be removed.

Hood College does not maintain a preferred lender list for private alternative education loans, nor are we able to recommend specific lenders. However, over the last several years, our students and parents have used the lenders listed in ELM Select to meet their education loan borrowing needs. Using ELM Select, a service provided by ELM Resources, students and parents can compare and contrast the terms and conditions of each loan option and select a private educational loan that best suits their financial circumstances. Students are not limited to the lenders appearing on the ELM Select list and may choose any lender that best suits their educational borrowing needs.

The Project on Student Debt, an initiative of the Institute for College Access & Success, a nonprofit independent research and policy organization, offers sound advice and information to consider when applying for a private alternative educational loan.

*A college's cost of attendance includes actual tuition and fees and standard allowances for room and board, books and supplies, transportation and personal expenses.

Consumer Financial Protection Bureau

In the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress established an Ombudsman for private student loans within the Consumer Financial Protection Bureau to assist borrowers with private student loan complaints. This means a single federal agency is now responsible for watching out for all students and families who choose to borrow private student loans. The website has a student portal that contains repayment advice, a comment area and a student can file a complaint online.

Hood College has partnered with CashCourse to provide free financial literacy resources for college students. The CashCourse program, funded by the National Endowment for Financial Education, is a customizable online financial education resource designed to assist college and university students in developing a better understanding on how to manage their finances.

Whether you are a new student planning for college, a current student trying to pay for college or a graduating senior and thinking about your future, it's clear that the financial decisions you make today will impact you financially now and in the future. Money management, financial literacy and budgeting are important for you to know and understand to ensure you are making good decisions for your personal finances and your future. CashCourse will help you build real life-ready financial skills.

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