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.

• Parents can borrow up to $20,000 annually and up to $65,000 total over the course of a student's undergraduate studies.
• 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 Alternative Education Loans

Private alternative education loans are non-federal loans offered by banks, credit unions, and other private lending institutions. These loans may help bridge the gap between your educational expenses and other forms of financial aid. Eligible students may borrow up to the cost of attendance, less any financial aid received. A college's cost of attendance includes actual tuition and fees and standard allowances for housing and food, books and supplies, transportation and personal expenses.

Most students will need a creditworthy co-signer, such as a parent or other relative, to qualify for a private loan. Interest rates may be fixed or variable, and loan terms vary by lender. Repayment periods typically range from 5 to 25 years. Because interest rates, fees, repayment options, and borrower benefits differ among lenders, it is important to carefully compare your options before borrowing.

To compare rates, terms, and borrower benefits from a variety of private lenders, visit Elm Select.

Hood College does not maintain a preferred lender list and does not endorse or recommend specific lenders. However, many Hood students and families have used lenders available through Elm Select to meet their educational borrowing needs.

Students and families are not limited to the lenders appearing in Elm Select and may choose any lender that best meets their borrowing needs.

Before You Borrow

We encourage you to thoroughly research each loan program and understand:

• Eligibility requirements
• Interest rates and fees
• Repayment terms and options
• Borrower benefits
• Application and approval processes
• Loan disbursement procedures

Loan Processing and Certification

Once a private loan application has been approved by a lender, Hood College will receive an electronic request to certify the loan. The College must certify the loan before funds can be disbursed and applied to a student's account.

Because private loan funds cannot be credited to a student's account until they are received by the College, students should complete the loan application process well in advance of any billing due dates.

If private loan funds are being used to satisfy an outstanding balance, the funds must be received and posted to the student's account before any registration or financial holds can be removed.