Huntington Junior College students are eligible to participate in the Federal Direct Student Loan programs.
FINANCIAL LITERACY CLASS
All first-time Huntington Junior College loan borrowers attend a one-time Financial Literacy Class where they get information on Wants Vs. Needs, Budgeting, Student Loan Management and Repayment, Keeping Loan Debt to a Minimum, and Expected Future Earnings in their fields.
Once this class has been completed, students are instructed to complete required Direct Loan Entrance Counseling and a Master Promissory Note (MPN) online at www.studentloans.gov. A MPN is a binding legal document between the student and the Department of Education in which the student promises to repay the borrowed funds.
HOW MUCH SHOULD YOU BORROW
Once the Financial Literacy Class, Direct Loan Entrance Counseling, and Master Promissory Note have been completed, each student meets privately with a Financial Aid Advisor to complete personal reference information and review how much that student is eligible to borrow. At that time, the student is encouraged to borrow only what is needed because each dollar borrowed is a loan against future earnings.
DIRECT LOAN REQUIREMENTS
Students must be attending at least half-time (8 quarter hours) in order to receive student loan funds. All loans are subject to an origination fee, charged by the Department of Education, of up to 2%. Students receive a loan disclosure statement showing the net amount of each loan
All first-time borrowers at Huntington Junior College are subject to a thirty-day delay on their first disbursement of student loan funds. This delay also applies to any student who has withdrawn and is returning to Huntington Junior College.
STUDENT LOAN SERVICERS
Student loan servicers are organizations contracted by the Department of Education to process the details and paperwork involved in student loan transactions. Most documents students receive concerning their loans will come from these servicers, so it is important to learn which servicer is handling your loans.
SUBSIDIZED AND UNSUBSIDIZED DIRECT LOANS
Subsidized Direct Loans are need-based and do not accrue interest while you are enrolled in school on an at least half-time (8 quarter hours) basis.
Unsubsidized Direct Loans are not need-based and the interest begins accruing on the date the funds are disbursed. Students receive a quarterly interest statement from the loan servicer, but are not required to make interest payments. If students do not pay the interest each quarter, that interest is added to the amount of principal that the student has borrowed. Current interest rates can be found at www.studentloans.gov.
FEDERAL DIRECT LOAN REPAYMENT
Federal Direct Subsidized and Unsubsidized Loans go into repayment, whether the student graduates or withdraws, six months after the student ceases to be an at least half-time student.
There are multiple repayment plan options available to assist students in managing their student loans successfully. These options can be reviewed in detail by contacting the Huntington Junior College Financial Aid Office or at www.studentloans.gov.
It is important that both Huntington Junior College and loan servicers have up-to-date contact information for students.
SAMPLE LOAN REPAYMENT SCHEDULES
Examples of loan payments based on amounts borrowed, and how much students need to earn in order to repay loans can be found on the Loan Calculator at www.finaid.org.
PARENT LOANS FOR UNDERGRADUATE STUDENTS
Parent Loans for Undergraduate Students (PLUS Loans) require the parent to complete a Master Promissory Note and is subject to credit approval. Specific details, including interest and repayment requirements for PLUS Loans can be found at www.studentloans.gov.