Low interest student loans are available to qualified students at Holmes Community College. Students loans, in general, must be repaid under some type of deferred repayment plan. All students who want to apply for any student loan must first complete the Free Application for Federal Student Aid. Students must be enrolled in 6 hours or more per semester at the time the loan funds are disbursed. Students who drop below 1/2 time (6 hrs) status will have their loans voided.
Federal Stafford Loan (FSL)
This type of loan is a low-interest loan made to a student by a lender such as a bank, credit union, or savings and loan association. This loan is insured by the federal government.
Amount: Freshmen undergraduates may borrow up to $2,625 per year, and sophomores up to $3,500, while juniors and seniors can borrow up to $5,500 per year, for a total of up to $23,000. Graduates may borrow up to $8,500 per year with an aggregate total (including undergraduate loans) of $65,500. The amount of each loan may not exceed the school’s estimate of educational expenses less financial aid from the school which includes such things as Pell Grants, CWS, SEOG, VA Benefits, Scholarships, etc., and your expected family contribution.
Loan Origination Fee: Lenders are currently authorized to deduct a loan origination fee from the loan proceeds.
Loan Eligibility: Effective October 17, 1986, the Federal Stafford Loan Program became a Need-Based Program like CWSP and SEOG.
Interest Rates: The current interest rate is 7.43 variable up to 9 percent per year for first time borrowers.
Repayment: Loans have a minimum repayment of $600 per year or a minimum of $50 per month. Remember, the actual minimum repayment will depend on the total amount borrowed. Repayment begins six (6) months after the last date of half-time enrollment.
Deferment: Borrowers on the loan program may defer payment for up to three (3) years while in the U.S. Military Service, Peace Corp, VISTA, U.S. Public Health Service, National Oceanic and Atmospheric Administration Corp., and Medical Internship. Student Deferment may be granted when the borrower re-enrolls in college half-time or more. The Federal Student Loan can be canceled only in the event of the borrower’s death or permanent and total disability. These loans cannot be canceled or "forgiven" for military service or teaching.
Unsubsidized Federal Stafford Loans
This loan program is available to eligible students, regardless of family income, for periods of enrollment beginning on or after October 1, 1992. The terms of the Unsubsidized Loans are the same as the terms for Subsidized Stafford Loans except as described below:
Interest Payment: The government does not pay interest on your Unsubsidized Federal Stafford Loan. You must pay all of the interest that accrues on this loan during the time you are enrolled in school, during the grace period, and during periods of repayment and authorized deferment. There are two ways for you to pay interest during these periods: (1) you may make monthly or quarterly payments to your lender or (2) you and your lender may agree to add your interest to the principal of your loan, but no more often than quarterly. (This is called capitalization.) If you do not make an interest payment as scheduled while in school or during a period of authorized deferment your interest will be capitalized.
Federal Origination Fee/Insurance Premium: You may be charged a 3.0% Origination Fee/Insurance Premium on each disbursement of your Unsubsidized Federal Stafford Loan.
Plus Loans
Federal Plus Loans may not exceed the student’s estimated cost of attendance minus any estimated financial assistance the student has been or will be awarded during the period of enrollment. Parents should talk with their lender about deferment provisions, interest rates, repayment period, and fees. Starting on or after October 1, 1992, all Federal Plus Loan checks will be sent to the institution co-payable to the institution and the parent borrower. The institution is required to collect an Authorization document from the parent before releasing this check to anyone (student) other than the parent. The institution must verify the student’s eligibility prior to forwarding the Federal Plus check to the borrower.