THE OFFICE OF FINANCIAL ASSISTANCE

Federal and State Loan Programs

William D. Ford Federal Direct Loan Program

Education is an investment in your future, and one way many people choose to fund that investment is through carefully considered borrowing.  When managed correctly, an educational loan can be an invaluable tool in financing your HSSU education.  Of course, since loans must be repaid, you should explore all your aid options and borrow only what you absolutely need. 

Federal Direct Subsidized/Unsubsidized Loans

These loans are available to every student in a degree-seeking program who submitted a valid FAFSA.  Subsidized loans are offered to students deemed to have financial need, while unsubsidized loans are available to all students. 

  Class Maximum 
Dependent Students*+ Freshman Level $5,500 No more than $3,500 can be subsidized
  Sophomore Level $6,500 No more than $4,500 can be subsidized
  Junior and Senior Level  $7,500 No more than $5,500 can be subsidized
Independent Students* Freshman Level $9,500 No more than $3,500 can be subsidized
  Sophomore Level $10,500 No more than $4,500 can be subsidized
  Junior and Senior Level $12,500 No more than $5,500 can be subsidized

 *You are considered to be an independent student if you are: at least 24 years old; married; have children support; a veteran; a member of the armed forces; of an orphan or ward of the court.  If none of these apply, you are considered to be a dependent student for federal student aid purposes. 

+ Dependent students who have been denied a Parent PLUS loan are eligle to borrow an additional $4000 in unsubdized loan funds. 

Interest Rate

  • For loans borrowed during the 2020-2021 academic year: 2.75%
  • For loans borrowed during the 2019-2020 academic year: 4.53%
  • For loans borrowed during the 2018-2019 academic year: 5.05%

These interest rates are fixed for the life of the loan. 

For subsidized loans, the U.S. Department of Education pays the interest while you are enrolled in at least half-time (six credit hours or more). Interest accrues on unsubsidized loans while you are in school and both types of loans after you leave school.  You can pay the interest as it accrues otherwise, the interest will be capitalized when repayment begins.

Origination Fee:  A loan origination fee is deducted at disbursement. 

  • For loans first disbursed on or after October 1, 2020 and October 1, 2021 the fee is 1.057%.
  • For loans first disbursed on or after October 1, 2019 and October 1, 2020 the fee is 1.059%.

Requirements to receive loan:

First time borrowers:

Continuing borrowers:

Repayment:  You’re not required to make any payments while in school.  Repayment begins six months after you graduate, withdraw or drop below half-time enrollment.  The minimum payment is $50, but the amount will likely be higher depending on the amount you borrow.

The standard repayment period is 10 years but can be as long as 25 years depending on amount borrowed and chosen repayment plan.

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