Loan Process Information		Lenders our Students have used
	Loan Counseling (Entrance/Exit)		Loan Repayment Options
	Master Promissory Note (MPN)		Loan Request Forms

LOAN PROCESSING INFORMATION
In an attempt to decrease the number of student loan defaults and lower the level of student loan indebtedness, Hawaii Community College (HawCC) is implementing the following student loan policy.

Hawaii Community College Student Loan Philosophy
While HawCC believes that student loans are an integral part of the federal aid programs, we are deeply concerned about student loan default and high student loan indebtedness. Therefore, whenever possible we will encourage students to select work-study or off-campus employment instead of student loans. In addition, we will encourage students to borrow as little as possible at the community college level- where educational costs are lower than at four-year colleges and universities.

Loan Application/Process:
The U.S. Department of Education requires that entrance loan counseling be provided for all first time Federal Stafford Loan borrowers. Even if you borrowed a student loan in the past at HawCC or at another school, you must complete loan counseling every year. This helps you understand, or reminds you of, your rights and responsibilities as a borrower. It also helps to ensure that your personal and reference information are current. Once loan counseling is complete, submit the Loan Data Request Form to the Financial Aid Office. The loan application will then be certified by the HawCC Financial Aid Office and forwarded to ELM Resources, which will forward the information to the lender and guarantor.

HawCC recommends you visit various lender’s websites to investigate the different borrower benefits as well as the capability to electronically sign (e-sign) a Master Promissory Note (MPN). (Please note: HawCC does not participate in the serial MPN. You need to sign a new MPN each year). If you have not electronically signed your MPN with your lender prior to HawCC certification for your loan, your lender will automatically send you a MPN, which needs to be returned to your lender. Once your lender receives your completed application/promissory note, it should take approximately one week for a loan check to arrive at HawCC. Unless you indicate that you will be going less than full-time, all loans will be certified at full time status (12+ credits). If you are enrolled in less than full time, there may be a delay in disbursement. You must submit attendance verifications for all classes prior to disbursement, with the exception of modular classes. To be able to pick up loan funds, at least 6 credit hours need to be certified. *Processing times are approximate and depend on loan volume.

• If any part of your loan request form is incomplete or incorrect, it will be returned to you.
• You must be enrolled in the number of credits your award was based on before a student loan check can be disbursed. The Financial Aid Office will verify that you are currently enrolled in the specified number of credits and that you have maintained satisfactory academic progress.
  

Loan Process

1. Student completes loan counseling at http://mappingyourfuture.org - Mandatory yearly

2. Submit Loan Data Request Form to HawCC FAO; e-sign MPN at lender's website

3. HawCC certifies loan and electronically forwards information to ELM

4. ELM forwards loan information to lender and guarantor on behalf of school and student

5. Lender will send student MPN - if no e-signature was performed prior to certification

6. E-sign MPN via lender's website or return paper MPN to lender

7. Lender sends funds to HawCC (funds will be returned if not picked up in 30 days)

8. Bring a attendance verification(s) to HawCC Financial Aid Office to pick up check release.
9. Pick up loan check from HawCC Business Office (check release only valid for that day)

Loan Counseling

Entrance Counseling
Federal Subsidized/Unsubsidized/PLUS Stafford Loan Program

All HawCC student borrowers are required to complete loan counseling every year. The Loan Entrance Counseling must be completed prior to loan request being processed. Counseling sessions can be completed via the Internet. You should go to http://mappingyourfuture.org/ and click on Student Loan Counseling Interview then select the “Stafford Entrance” box. Please follow the on-screen instructions. The Financial Aid Office will receive an electronic confirmation when the online session has been completed. At the conclusion of the on-line counseling session, you may contact the Financial Aid Office on campus at Building 379A Room 4 or (808) 974-7663 or hawloans@hawaii.edu with any questions. You may also complete the Entrance Counseling requirements at the Financial Aid Office. Please call to make an appointment.

Exit Counseling
Federal Subsidized/Unsubsidized/PLUS Stafford Loans

Prior to graduating, transferring, or dropping below half-time enrollment from Hawaii Community College, borrowers of Federal Subsidized/Unsubsidized Loans must complete an exit counseling session. You may complete this requirement via the Internet. You should go to http://mappingyourfuture.org/ and click on Student Loan Counseling Interview then select the “Stafford Exit” box. Please follow the on-screen instructions. The Financial Aid Office will receive an electronic confirmation when the online session has been completed. At the conclusion of the on-line counseling session, you may contact the Financial Aid Office on campus in Building 379A Room 4 or (808) 974-7663 or hawloans@hawaii.edu with any questions. You may also complete the Exit Counseling requirement at the Financial Aid Office. Please call to make an appointment.

Master Promissory Note (MPN)
Hawaii Community College does not participate in Serial MPN. You must sign a new MPN each year.

Electronically Sign Your MASTER PROMISSORY NOTE
Electronically sign with participating lending institution. If your lender does not have electronic signature or you did not electronically sign your MPN prior to school certification, your lender will send you a paper MPN to your address provided.

Please Read Before Choosing Your Lender HawCC does NOT recommend or endorse any lender(s). Students must select their lender. The Financial Aid Office cannot do so for you. Students may select any lender that participates in the Federal Family Education Loan (FFEL) Program. PLEASE READ CAREFULLY BEFORE CHOOSING A LENDER Borrower benefits vary from lender to lender. Some lenders offer ‘up front’ benefits like zero origination and default fees, some offer ‘back end’ benefits like interest reductions for a certain number of on time payments, and some lenders offer both. Students benefit from up front borrower benefits immediately. Back end benefits can offer considerable savings but only if the borrower meets the terms and conditions for receiving the different borrower benefit. Therefore, HawCC strongly recommends that you visit different lender websites to investigate the different borrower benefits and select the lender that offers the borrower benefits that best meet your needs. When selecting a lender, borrowers should also consider the following: Does the lender provide good customer service? Does the lender provide a toll free customer service/assistance telephone number that is available 24 hours, 7 days a week? Does the lender have a reputation for good customer service and problem resolution? Ask your friends, relatives, and other students who have used the lender. Ask your family, friends, and/or other students about the any prior business dealings (student loans, consumer loans, etc.) they have had with the lender or the lender’s parent company. Are there any consumer complaints to the State Attorney General or the Better Business Bureau about the lender? Does the lender sell its student loans to other entities? If the lender sells its loans, when, under what conditions, and to whom does the lender sell its loans? What is the lender's default rate? The lender’s default rate can be a reflection of how well the lender services its loans.
Lenders Hawaii Community College STUDENTS have used FROM 2007-2008
		American Savings Bank Electronically Sign Your Application on OpenNet for American Savings Bank     Lender Code: 832053
American Savings Website
		DISCOVER STUDENT LOANS Discover Student Loans 1-(800)-728-3030 Option 1 Lender Code: 831312
Discover Website
		FIRST HAWAIIAN BANK First Hawaiian Bank (FHB) General Student loans Information     Lender Code: 818260
FHB Loans Website
		SALLIE MAE EDUCATION TRUST Sallie Mae Education Trust 1-(888) 272-5543 Lender Code: 802218
Sallie Mae Website
		US Bank Effective May 27, 2009 US Bank will no longer accept Federal Family Education Loan applications certified by Hawaii Comminity COllege. However, Applications recieved prior to May 27, 2009 will be processed. Student Loans From US Bank 1-(800)-242-1200 Option 2 Lender Code: 815678
		Wachovia EDUCATION FINANCE Wachovia's Education Finance 1-(877)-689-0763 Lender Code: 830005
Wachovia's Website

A word of Caution About Loans

The main reason for giving financial aid is to assist a student in the pursuit of educational goals. Federal and state financial assistance is intended to supplement a student's resources to take away some of the day-to-day financial pressures that interfere with their pursuit. However, students are still expected to contribute to their educational expenses. When students receive loans for their education, they are expected to pay them back. Taking out a loan, for whatever reason, is incurring a debt. There are no ifs, ands, or buts about it. When students default on their educational loans, they make those funds unavailable to other students or make it much harder for other students to qualify for those funds. Yet those students, too, have financial needs, and it is grossly unfair of defaulters to add to their burdens. The default rate on loans to students have been alarmingly high and threatens the entire existence of this sort of financial aid. At this time, there is legislation pending that will cut off an institution's access to ALL federally funded financial aid for its students if loan default rates continue to climb. Needless to say, this would be disastrous to a large part of Hawaii Community College's student body. So, a word to the wise, if you take out a loan, make plans to pay it back. If you run into trouble paying back your loan, discuss it with your lender. Or if you feel more comfortable, you can contact our office. All lenders will gladly work with you to set up a payment plan that fits your budget. Defaulting on an educational loan not only hurts others, it also hurts you by denying you access to financial credit you might need to continue the next phase of your education, get a tooth filling replaced, buy a car, computer, or other major necessities.

Repayment Options
When it is time to start repaying your student loans, several options are available. Your lender will automatically set up your loan on the standard repayment plan. If you prefer another repayment plan simply call your lender to discuss your options. You also have the option to change your repayment plan on an annual basis by contacting your lender.

Standard Repayment

• Fixed monthly payment of at least $50.
• Repayment term cannot exceed 10 years, excluding in-school, grace and deferment or forbearance periods.

• Payments are smaller at the beginning of repayment and gradually increase over time.
• No single payment may be more than three times greater than any other payment.
• Repayment term is generally 10 years.

• Payments are adjusted annually based on your monthly gross income.
• Payment amount must cover at least the interest due.
• Repayment term varies.

• Available to borrowers that do not have an outstanding balance as of 10/07/1998 and have an outstanding balance of principal and interest totaling more than $30,000
• Payment must cover at least the interest due.
• To view the differences between repayment plans at a glance, visit the Loan Comparison Chart.

LOAN REQUEST FORMS

  Stafford Loan Request Form

  PLUS Loan Request Form

  Reference Contact for Loans

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