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At Hawai'i Community College, we understand that student loans can be intimidating. That’s why we have partnered with Inceptia, a division of the National Student Loan Program, to provide you with free assistance on your student loan obligations to ensure you feel comfortable and can be successful in your loan repayment.
Inceptia may be calling to help you with next steps in your repayment journey. Their friendly counselors are there to help you every step of the way. While you are in your grace period, they might reach out to you to answer questions you may have on your repayment options. If you become delinquent on your loans, they may also contact you to help find a solution that works within your means.
The Inceptia counselors are there to help you with every step by staying in touch with you via phone calls, letters, and/or emails. They will not be collecting money from you. Inceptia’s nonprofit purpose is to help you find answers to your questions and solutions to your issues. We encourage you to visit Inceptia’s Student Loan Knowledge HQ website at HeroKnowl.org.
To be eligible for Direct Loans, first complete the 2021-2022 Free Application for Federal Student Aid (FAFSA) at fafsa.ed.gov and submit all required documents requested by the Financial Aid Office.
LOAN APPLICATION DEADLINES:
- 2021-2022 Fall & Spring Loan: Wednesday, November 31, 2021
- Fall 2021 ONLY Loan: Wednesday, November 30, 2021
- Spring 2022 ONLY Loan: Wednesday, April 27, 2022
A Student Borrower must:
- Complete a loan entrance counseling session at www.studentaid.gov. Print and attach confirmation to your Student Loan Application.
- Electronically sign a Direct Loan Master Promissory Note with your FSA User ID at www.studentaid.gov. Print and attach confirmation (1st page only) to your loan request form.
- Submit this direct loan request form (with attached confirmations) to the HawaiiCC Financial Aid Office.
Note: Any borrower who has 0-29.99 credits at Hawaii Community College and who has never received a Federal Student loan will have their loan funds disbursed no earlier than 30 days after the first day of instruction . 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 less than full-time, there may be a delay in disbursement. To receive Federal Student loans you must be enrolled in at least 6 credits. Please notify the Financial Aid Office of any desire to cancel your loans. You will receive an email notification within 30 days from the date your loans are disbursed to inform you (or paper letter to your parent for Direct PLUS Loans) that you have 14 days from the date of notification to cancel part or all of the loan.
PLUS Loan Borrower must:
- Request a PLUS loan at www.studentaid.gov
- Sign in with your FSA User ID.
- Submit a Parent PLUS Loan Application to the Hawaii Community College Financial Aid Office.
After you have completed all requirements:
- Hawaii Community College Financial Aid Office will certify the loan and electronically forward the information to the US Department of Education.
- Funds will be electronically disbursed to your student’s UH student account and pay any outstanding institutional charges (e.g. tuition and fees). If there is a credit balance, a refund will be processed and sent to you (if you have not signed up for E-Refund, the Business Office will cut a refund check; if you did not authorize the credit balance be given directly to the student).
- Hawaii Community College recommends all students to sign up for E-Refund. (E-Refund information can be found at https://www.hawaii.edu/myuhinfo/refunds/)
Parent eligibility and other requirements for Parent PLUS:
- You must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time (6 credits) at HawCC.
- Credit check & endorser alternative:
When you apply for a Direct Parent PLUS Loan, the Department will check your credit history. To be eligible for a PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan.
- Additional requirements:
Parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.
General Direct Loan Information:
- You must be enrolled for at least half time status (6 credits) to be eligible for a student loan.
- If you are a first-time, first-year student loan borrower, the disbursement of your loan funds cannot be made until 30 days after the first day of instruction
- If your loan period is for a single semester (Fall only OR Spring only), your loan funds will be disbursed in two equal installments during the single semester, one at the beginning and one at the midpoint. If you drop below half time status before the midpoint disbursement, undisbursed funds will be cancelled.
- There is a 1.0597% loan origination fee on all subsidized and unsubsidized loans and 4.228% for PLUS loans disbursed on or after October 1, 2020 and before October 1, 2022. The loan fee will be proportionately deducted for each loan disbursement.
- You may decline your loan funds and/or cancel future disbursements by submitting a written statement to the Financial Aid Office.
- When you leave school (graduate/transfer/officially withdraw) or enroll for less than half time status you will be required to complete Exit Counseling at studentaid.gov.
- If, after leaving school, you decide to return and attend at half-time status or above, you may be eligible for an In-School Deferment. This deferment allows you to temporarily stop payments on your Direct Loans. Click here for further information.
- Federal student loans are considered to be financial aid and are subject to our Satisfactory Academic Progress (SAP) Policy.
- Your loan information will be submitted to the National Student Loan Data System (NSLDS) and accessible by authorized agencies, lenders, and institutions
Federal Direct Subsidized Loan – (3.73% interest rate for loans disbursed between July 1, 2021 and July 1, 2022)
- Awarded to students who demonstrate financial need as determined by your Free Application for Federal Student Aid (FAFSA) and the Financial Aid Office. Interest is paid by the Federal government while you are enrolled at least half-time status and during any approved deferment periods.
Federal Direct Unsubsidized Loan – (5.28% interest rate for loans disbursed between July 1, 2021 and July 1, 2022)
- Typically awarded to students who do not demonstrate financial need. You are responsible for the interest that accrues on the loan, which starts after the loan is disbursed. Although principal payments can be postponed, interest will be capitalized, meaning the lender will add the accrued interest to the principal balance you owe.
Federal Direct Parent PLUS Loan – (6.28% interest rate for loans disbursed between July 1, 2021 and July 1, 2022)
- The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid received.
- Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. For further information click here.
How Much Can I Borrow?
The maximum amount a student may borrow each academic year depends on the following:
- Grade level in college as determined by credits earned
- Freshmen = 0-29.99 earned credits
- Sophomore = 30+ earned credits
- Length of academic program
- Cost of attendance
- Dependency status (dependent or independent)
Annual loan limits are as follows:
For dependent undergraduate students; excluding dependent students whose parents are unable to obtain Direct PLUS Loans, the combined Direct Subsidized and Unsubsidized Loan annual limits are:
- $5,500 for dependent first-year undergraduate, not more than $3,500 of which may be subsidized; and
- $6,500 for dependent second-year undergraduate, not more than $4,500 of which may be subsidized.
For independent undergraduate students, the combined Direct Subsidized and Unsubsidized Loan annual limits are:
- $9,500 for independent first-year undergraduate (and for dependent first-year undergraduates whose parent are unable to obtain a Direct PLUS Loan), not more than $3,500 of which may be subsidized; and
- $10,500 for independent first-year undergraduate (and for dependent first-year undergraduates whose parents are unable to obtain a Direct PLUS Loan), not more than $4,500 of which may be subsidized.
For Direct PLUS Loans, parents of dependent undergraduate students, the annual limit is up to the student’s cost of attendance minus any other financial aid resources, including outside scholarships.
When you leave school (graduate/transfer/officially withdraw) or enroll at less than half-time status, your 6-month grace period begins. During your grace period you are not required to make payments on your Direct loans. At the end of your grace period you will be placed on the Standard Repayment Plan, but you can always work with your servicer to change it to a repayment plan that works best for your. To see repayment plan options, click here.
Don’t Borrow Blindly
It’s important to understand all the terms of your loans and their repayment responsibilities before you borrow. Student loans are nearly impossible to discharge in bankruptcy, so the student loan choices you make today could impact you for the rest of your life.