General Loan Information
- Federal Direct Student Loans
- Federal Direct Parent PLUS Loans
- Federal Direct Graduate PLUS Loans
- Alternative/Private Loans
**Note: All Federal Direct Loans require a FAFSA application**
Federal Direct StUDENT Loans
Direct Student Loans are low-interest loans for eligible students to help cover the cost of higher education. Eligible students borrow directly from the U.S. Department of Education.
Direct Student Loans include the following types of loans:
- Direct Subsidized Loans(“Sub Loans”) are awarded to undergraduate student borrowers based on financial need. For these loans, interest on the loan is paid by the government while the student is in school. The subsidized interest rate is 3.76% for the 2016-2017 academic year. Repayment begins 6 months after graduation, or when the borrower drops below half time enrollment (grace period*). The amount a student may borrow each year is limited by grade level and academic progression. New Direct Loan borrowers must complete a Master Promissory Note (MPN) in order to receive Direct Student Loan funds. Please visit www.studentloans.gov to complete your MPN and loan entrance counseling, which is also required. *Note: If you receive a Direct Subsidized Loan first disbursed after July 1, 2012, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest is added to your principal balance.
- Direct Unsubsidized Loans(“Unsub Loans”) are awarded to student borrowers without regard to financial need. The current unsubsidized interest rate for undergraduate stuents is 3.76% and for graduate students it is 5.31%. Interest on an unsubsidized loan accrues while the borrower is in school. Borrowers can choose to make quarterly interest-only payments to avoid increasing their loan principle, or defer interest payments until the loan enters repayment. Interest is added to the principle of the loan through a process called capitalization; resulting in a higher principal amount. Annual and aggregate (total) loan limits for each student are set by grade level and academic progression. Repayment begins 6 months after graduation, or when the borrower drops below half time. New Direct Loan borrowers must complete a Master Promissory Note (MPN) in order to receive Direct Student Loan funds. Please visit http://www.studentloans.gov/ to complete your MPN, and loan entrance counseling if required.
For more information or to apply for Federal Direct Student Loans, click here.
If you have questions about your repayment options and want to see what your monthly payments might look like, GO TO www.studentloans.gov for more information and to "use the repayment estimator" calculator.
Federal Direct Parent PLUS Loans
The Parent Loan for Undergraduate Students (PLUS) is a federal program to help parents cover the difference between college costs and any financial aid offered to the student. The Parent PLUS Loan lets parents borrow money to cover any costs not already covered by the student's financial aid package, up to the full cost of attendance. Parent PLUS loans are approved based on the credit-worthiness of the parent and are the financial responsibility of the parent, not the student. The offer or acceptance of a Parent PLUS loan DOES NOT guarantee credit approval of such a loan. The parent borrower must apply for and be credit approved for the loan with the Direct Lending program prior to HPU processing any loan. Parent PLUS loans are made through the Direct Loan program. The current PLUS interest rate is 6.31% for the 2016-2017 academic year. Repayment begins after the loan has been fully disbursed. Please visit www.studentloans.gov for information and to start the application process.
For more information or to apply for a Federal Direct Parent PLUS loan, click here.
Federal Direct Graduate PLUS Loans
The Graduate PLUS loan program is a federal program for graduate and professional students, who are enrolled at least half-time. Students may borrow up to the cost of attendance, less any financial aid, if they have completed the FAFSA and are credit-worthy. The Federal Direct Graduate PLUS Loan is a low interest loan program that enables graduate students to borrow directly from the U.S. Department of Education. The current interest rate for a PLUS loan is 6.31% for the 2016-2017 academic year and interest begins accruing as soon as the loan is disbursed. The Grad PLUS loan can be deferred as long as the student maintains at least half time enrollment. Please visit www.studentloans.gov for specifics of the application process.
For more information or to apply for a Graduate PLUS loan, click here.
If your federal financial aid does not cover your total budget (or cost of attendance) you may be able to borrow additional funds through alternative loans. This can be helpful to students who have used their full loan eligibility during the Fall and Spring and need funds for the Summer term, for those who need additional funds during the school year, or, in some instances, for students who have a prior balance on their student accounts.
Alternative loans are credit based. Students who are borrowing alternative loans without any credit history may need a co-signer in order to qualify for these loans. You may apply for these loans on-line and the lenders will contact us to certify the loans for you.
For more information or to apply for an Alternative loan, click here.
Instructions for DIRECT StUDENT and PLUS Loan Applications
Go to www.studentloans.gov.
First time Student Loan Borrower:
LOG-in using student's FSA ID and password.
Click on "Undergraduate Students" or "Graduate/Professional Students" tab that corresponds to you.
Select “Complete Entrance Counseling”. Complete entire entrance counseling.
Select “Complete Loan Agreement for a Subsidized/Unsubsidized Loan (MPN)”.
Parent PLUS Loan Borrower:
Borrowing parent should LOG-in using parent's FSA ID and password (not student).
Select "Parent Borrowers" tab.
Select “Apply for a PLUS Loan”.
If approved, select “Complete Loan Agreement for a PLUS Loan (MPN)”.
Graduate PLUS Loan Borrower:
LOG-in using graduate student's FSA ID and password.
Select "Graduate/Professional Students" tab.
Select "Apply for a PLUS Loan" and complete the process.
If approved, select “Complete Loan Agreeemnt for a PLUS Loan (MPN)”.
Continuing Stafford FFELP Loan Borrower:
Continuing HPU student: If you have applied for a Stafford Loan with HPU prior to the 2010-11 school year, your loans were borrowed through the Federal Family Loan Program (FFELP). If you have not done so already, you will be required to complete a new MPN for your Direct Loan. Your Direct Loan MPN, once completed, will be valid for 10 years and will not have to be resubmitted each year.
Transfer Student: If you completed a Direct Loan MPN or borrowed a Direct Loan at another school within the last 10 years, you do not have to complete a new MPN. However, you are required to complete a new entrance counseling at HPU.
National Student Clearinghouse/Loan Deferment
Hawai'i Pacific University has authorized the National Student Clearinghouse (NSC) to provide enrollment and degree verifications on our behalf. The NSC is the nationally recognized source for student enrollment verifications and these verifications are accepted as official by companies and organizations worldwide. Lenders and other financial aid related agencies will automatically receive regularly scheduled enrollment reports. If you are enrolled at least half-time or more, but have been notified by your lender or other agency that there is a discrepancy, you may complete an In-School Deferment form and submit it to the Registrar's Office.