Loans
As a Hastings College student, there are several types of loans available to help cover your costs while in school. Some are subsidized until after graduation, while others are not. Your eligibility for different school loans depends on your Free Application for Federal Student Aid (FAFSA).
We recognize the student loan process can be confusing, so please feel free to contact our Financial Aid Office at 402.461.7391 for assistance.
Federal Loans
If you decide to take out federal loans to finance your education, you’ll be required to complete Loan Entrance Counseling and Master Promissory Note (MPN).
For instructions on Direct Subsidized or Unsubsidized loans – go to studentaid.gov
Both of the following steps are required to receive either loan:
1. Under “Complete Aid Process” choose “Complete Entrance Counseling”
- Sign in with student FSA ID. (This is the ID used when completing the FAFSA)
- You will receive a confirmation once the counseling has been completed.
2. Under “Complete Aid Process/Complete Master Promissory Note (MPN)” choose “MPN for Undergraduates”
Federal Direct Subsidized Loans
Available from the U.S. Department of Education, Direct Subsidized Loans are low interest, long-term loans made to students with financial need. No interest or principal payments are required until six months after you graduate, withdraw or drop below half-time status. Your Direct Subsidized Loan, when combined with your other financial assistance, may not exceed your need.
Federal Direct Unsubsidized Loans
This program does not take into account your financial need when determining how much money you may borrow. No interest or principal payments are required until six months after you graduate, withdraw or drop below half-time status. However, you are required to pay or capitalize the interest accruing on the loan while you are in school and a deferment period.
Federal Direct Parent PLUS Loans
The Federal Direct Parent PLUS Loan Program assists parents of dependent students in meeting expenses not covered by other financial aid sources. Parents are limited to borrowing an amount equal to the cost of your education fees less your financial aid. Repayment of Parent PLUS Loans begins 60 days after the loan is fully disbursed, although in some financial circumstances, payments may be deferred.
Private Loans
After filing the FAFSA and exhausting all other possibilities for federal loans and grants for you and your parents, you might still need additional financing through private or alternative loan programs offered by banks. Through FASTChoice, you can find more information.
Federal Loan Information and Loan Application Instructions
The U.S. Department of Education has a Direct Loan Program that provides you and your parents with affordable, low-interest loan options to help finance your education.
Subsidized Loan – This loan is in your name only, and you must have financial need to qualify, which is based on your FAFSA. The federal government pays the interest on this loan while you are enrolled at least half-time in school and during a grace period when you are out of school.
Unsubsidized Loan – This loan is in your name only, but you are not required to have financial need to qualify. The borrower is responsible for paying the interest on this loan. Maximum loan amounts are shown below.
| Dependent Students | Maximum Loan | Subsidized Loan | Unsubsidized Loan |
|---|---|---|---|
| First Year | $5,500 | $3,500 | $2,000 |
| Sophomore | $6,500 | $4,500 | $2,000 |
| Junior or Senior | $7,500 | $5,500 | $2,000 |
Direct Parent PLUS Loan
Parents can borrow the cost of education minus other financial aid you may receive. The parent is responsible for paying the interest on PLUS loans, starting from the date the loan is first disbursed. Principal payments begin 60 days after the final disbursement; however, principal payments can be deferred while you are in school. Parents have up to 10 years to repay PLUS loans.
If your parent applied and is denied the loan, you become eligible to receive an additional Direct Unsubsidized Loan: $4,000 for First Year/Sophomore and $5,000 when you are a Junior/Senior.
The federal government determines the loan interest rates and origination fees, which are subject to change annually. To find them you can check the Federal Student Aid site here.
To calculate a sample repayment schedule, try this Education Quest calculator.
Direct Loan Instructions (Subsidized or Unsubsidized)
- You (the student) logs into www.studentloans.gov with your FSA ID. If you do not yet have your FSA ID, follow instructions on the page to create one.
- You will then complete the following required steps – Direct Loan Entrance Counseling and the Master Promissory Note. Once you finish, you will receive confirmation.
Direct PLUS Loan Instructions (apply after May 1. 2022 for the 2022-2023 academic year)
Both steps are required to receive the Parent PLUS Loan.
Step 1 – Application can be found at studentaid.gov
- Under “Apply for aid” – choose “Apply for Parent PLUS Loan”
- Sign in with parent FSA ID (This is the ID used to complete the FAFSA)
- Select “Direct Plus Loan Application for Parents”
- Complete the application
- Specify a loan amount – We advise not selecting “Maximum Amount” determined by your school. It is best to enter an actual amount. If you are uncertain how much to request, refer to your student’s award letter, a billing statement or contact the Hastings College Financial Aid Office to help estimate the loan amount needed.
- The Department of Education will charge a fee of 4.228% which is deducted from the requested amount. (You will want to add this onto your requesting amount.)
- The loan period for the entire year is August 17,2022 to May 11, 2023
- The loan period for fall only is August 17, 2022 to December 16, 2022
- The loan period for the spring only is January 4, 2023 to May 11, 2023
Once you submit the application, you will receive confirmation that the loan has been approved, denied or is pending.
If your loan has been denied, your student becomes eligible to receive an additional Direct Unsubsidized Loan. Freshman/Sophomore – $4,000 & Junior/Senior – $5,000. This loan will accrue interest and have an origination fee.
Step 2 – Complete Master Promissory Note (MPN)
Under “Complete Aid Process/Complete Master Promissory Note” – Choose “MPN for Parents”.
If you have question please contact us at hcfinaid@hastings.edu or call the staff in the Financial Aid office.
What is included in calculating the Cost of Attendance (COA)?
Cost of Attendance includes direct institutional charges from Hastings College (tuition, fees, room & board) as well as non-institutional charges which are charges the student may have that are NOT included on your bill from Hastings College (transportation, personal expenses, books/supplies, student and/or parent loan fees).
What does requesting the “Maximum Amount” on the Parent PLUS Loan mean?
Cost of Attendance less all awards including scholarships, grants and other loans your student is already receiving on their award package, would leave the “Maximum Amount” a parent could borrow. Remember this includes non-billable items a student may need.
Is the FAFSA required to borrow a Parent PLUS loan?
Yes, a dependent student must file a FAFSA in order for his or her parent to borrow a Parent PLUS loan.
Can divorced parents each borrow a Parent PLUS loan for the same academic year?
Yes, it is possible to have two parents apply for and receive a Parent PLUS loan for the same undergraduate student as long as the total amount awarded does not exceed the student’s cost of attendance (COA).
Is the parent borrowing the Parent PLUS loan the parent who is required to complete the FAFSA?
No, the parent borrowing the Parent PLUS loan is not always included in the FAFSA. According to the FAFSA instructions, parental information for the FAFSA should be from the paren the student lived with more during the past 12 months. The “noncustodial parent” may also borrow a Parent PLUS loan for the student.
How do I change the amount I wish to request once I have submitted the initial loan application?
To change the amount you are requesting you need to start a new application. This will override the existing one. It will ask you if you would like to change or modify the loan amount to the existing application on file and you will select the reference number to the loan. You will then enter the loan amount you are requesting and resubmit the application.
What if the initial amount did not cover my students balance when it was credited to their account? Can I request more then?
Yes, if you need to request an addition amount you can complete another application for the additional amount you are needing.
Can I cancel the loan if I find we do not need or want to take it?
Yes, you would need to email the Financial Aid Office at hcfinaid@hastings.edu requesting that the loan be cancelled.
