IMPORTANT TERMS AND INFORMATION CONCERNING YOUR FEDERAL STAFFORD LOAN

Students should ALWAYS exhaust their Federal loan resources before seeking other alternative loan funds from private lenders.    Students are in charge of deciding which lenders to use, so please make your choice carefully.  Although the interest rates and repayment terms are the same from lender to lender, some lenders may offer “borrower benefits” that make the loan more attractive. 

High Point University has chosen several lenders to offer students as loan resources.  HPU chose these lenders based on lender reputation, terms of repayment, stability of the financial institution, and customer service for both the student and the institution.  HPU has never chosen lenders based on any other criteria, and all of our decisions have been in the best interest of the student.  If the student wishes to choose a lender from the ones listed below, HPU will honor that request.  If the student wishes to choose a lender not listed below, HPU will also honor that request as long as the student provides the necessary information in the “other” section under the Lender Selection item on the front page of this form.  If you wish to find a lender other than the ones listed and do not have a lender in mind, you may choose to click on the Student Loan Information link below to use the Federal Lender Search Engine.

If you have financial need remaining after your EFC (estimated family contribution as determined by the FAFSA), the amount of any Federal Pell Grant funds your are eligible for, and aid from other sources are subtracted from your cost of attendance, you can borrow a FFEL Loan to cover some or all of that remaining need. This type of loan is a subsidized loan. If you are eligible for a subsidized loan, the government will pay the interest on your loan while you're in school, for the first six months after you leave school, and when you qualify to have your payments deferred.

Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your grade level. (Annual loan limits are listed below.)

You might be able to borrow loan funds beyond your subsidized loan amount or even if you don't have demonstrated financial need. In that case, you'd receive an unsubsidized loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you are eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate and be capitalized (that is, added to the principal amount of your loan).

You might be able to receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as it doesn't exceed the annual loan limits.

How will I get the loan money?
You'll be paid through High Point University. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If loan money remains, you'll receive the funds by check or in cash, unless you give the school written authorization to hold the funds until later in the enrollment period.

How much can I borrow?
If you're a dependent undergraduate student, each year you can borrow up to:

• $5,500 if you're a first-year student enrolled in a program of study that is at least a full academic year.
• $6,500 if you've completed your first year of study and the remainder of your program is at least a full academic year.
• $7,500 if you've completed two years of study and the remainder of your program is at least a full academic year.

If you're an independent undergraduate student or a dependent student whose parents have applied and were unable to get a PLUS Loan (a parent loan), each year you can borrow up to:

• $9,500 if you're a first-year student enrolled in a program of study that is at least a full academic year (at least $4,000 of this amount must be in unsubsidized loans).
• $10,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (at least $4,000 of this amount must be in unsubsidized loans).
• $12,500 if you've completed two years of study and the remainder of your program is at least a full academic year (at least $5,000 of this amount must be in unsubsidized loans).

These amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized FFELs, individually or in combination. Because you can't borrow more than your cost of attendance minus both the amount of any Pell Grant you're eligible for and any other financial aid you'll get, you may receive less than the annual maximum amounts.

What's the interest rate?
Interest rates for the 2009-10 academic year are fixed at 6.8% for the Stafford Loan Program and 8.5% for the Parent Plus Loan.

When do I pay back the loan?
After you graduate, leave school, or drop below half-time enrollment, you will have a six-month "grace period" before you begin repayment. During this period, you will receive repayment information, and you'll be notified of your first payment due date. You are responsible for beginning repayment on time, even if you don't receive this information. Payments are usually due monthly. You can access all of your student loan information at www.nslds.ed.gov.

The following lenders are frequently used by the Office of Financial Planning for Subsidized Stafford, Unsubsudized Stafford and Parent Plus Loans.  For more information on specific lender benefits, please utilize the link provided:

Chase
www.chasestudentloans.com

Citibank
www.studentloan.com

College Foundation Inc. www.cfnc.org

SunTrust
www.suntrusteducation.com

Wachovia
studentloans.wachovia.com

Additionally, it is the student's responsibility to have an exit interview before leaving the University or in the event he or she registers for less than half-time basis (minimum of six credit hours). The Office of Financial Planning will provide borrowers of any Federal Direct Loan repayment information during the semester in which they plan to graduate. It is the student's responsibility to contact the Office of Financial Planning if they are not contacted when they withdraw or enroll less than half-time (minimum of six credit hours) to obtain exit interview information. Exit counseling information online.

Federal Parent PLUS Loans
PLUS Loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. To be eligible to receive a PLUS Loan, your parents generally will be required to pass a credit check. If they don't pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan, promising to repay it if your parents should fail to do so.

The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. For example, if your cost of attendance is $6,000 and you receive $4,000 in other financial aid, your parents could borrow up to--but no more than--$2,000.

What's the interest rate on PLUS Loans?
The interest rate is fixed at 8.5 percent.  Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.

How will my parents be paid?
For a FFEL PLUS Loan, the loan funds will be sent to High Point by the lender. In most cases, the loan will be disbursed in at least two installments (no installment can be greater than half the loan amount). The funds will first be used to pay for your tuition and fees, room and board, and other school charges. If any loan money remains, your parents will receive the amount as a check or in cash, unless they authorize it to be released to you or to be put in your school account. Any remaining loan money must be used for your education expenses.

Is there a charge for a PLUS Loan?
Your parents will pay a fee of up to 4 percent of the loan. This fee is deducted proportionately each time a loan payment is made. For a FFEL PLUS Loan, a portion of this fee goes to the federal government to help reduce the cost of the loans.  Also, if your parents don't make their loan payments when they're scheduled, they may be charged collection costs and late fees.

When do my parents begin repaying a PLUS Loan?
Generally, repayment must begin within 60 days after the final loan disbursement for the academic year. There is no grace period for these loans. This means that interest begins to accumulate at the time the first disbursement is made. Your parents must begin repaying both principal and interest while you're in school.

Is it ever possible to postpone repayment of a PLUS Loan?
Yes. Under certain circumstances, your parents can receive a deferment or forbearance on their loan. Generally, the conditions for eligibility and procedures for requesting a deferment or forbearance that apply to Stafford Loans also apply to PLUS Loans. However, since all PLUS Loans are unsubsidized, your parents will be charged interest during periods of deferment or forbearance. If they do not pay the interest as it accrues, it will be capitalized.

How do I apply for a Federal PLUS Loan?

You can complete PLUS loan prescreening by visiting the website of the lender of your choice (see list above).  If your loan is approved, the lender will instruct you on the next steps to take.  Once we receive lender approval, the school will certify the loan.

High Point University Student Financial Planning Code of Conduct and Policy on Education Loans

Preamble

This code of conduct applies to all High Point University officers, employees, and agents who have responsibilities with respect to education loans. This code reinforces and reflects High Point University's continuing commitment to conduct financial aid practices with integrity, free from conflicts of interest, in the interest of students, and in compliance with applicable law.

Any violations of this policy will be subject to the High Point University code of conduct.

Definition

For purpose of this code of conduct, lending institution means:

1. Any entity that itself or through an affiliate engages in the business of making loans to students, parents or others for purposes of financing higher education expenses or that securitizes such loans; or
2. Any entity, or association of entities, that guarantees or services education loans; or
3. Any industry, trade or professional association that receives money from any entity described above in subsections (a) and (b).

I. Limitations Regarding Lending Institutions

High Point University prohibits:

1. any revenue-sharing arrangement with any lending institution. Revenue sharing is any arrangement by which a lender pays High Point University a percentage of the principal loan taken by a borrower or otherwise compensates High Point University as a result of a borrower taking a loan.
2. accepting or soliciting anything of value from any lending institution related to its education loan activity, including but not be limited to: (i) revenue sharing by a lending institution with High Point University, (ii) High Point University’s receipt from any lending institution of any computer hardware for which High Point University pays below-market prices and (iii) printing costs or services.
3. accepting or soliciting staffing assistance from a lending institution, including but not limited to call center staffing or Student Financial Planning office staffing.
4. identifying any employee or other agent of a lending institution to students or prospective students of High Point University or their parents as an employee or agent of High Point University.
5. arranging with a lending institution to provide any opportunity loans, if the provision of such opportunity loans prejudices any other borrower. For purpose of this code, an opportunity loan agreement is an arrangement whereby a lending institution agrees to make loans up to a specified aggregate amount to students with poor or no credit history, or to international students whom the lending institution claims would not otherwise be eligible for its loan programs, in exchange for concessions or promises by the University that may prejudice other borrowers.
6. accepting or soliciting any funds to be used for private educational loans or opportunity pool loans in exchange for providing a lending institution with a specified number of federal loans, a specified loan volume or a preferred lender arrangement.
7. assigning a first-time borrower to a particular lender, or refusing to certify, or delaying certification, of any loan based on the borrower's selection of a lending institution.

II. Limitations on University Officers, Employees or Agents

High Point University prohibits any officer, employee, or agent of High Point University who has responsibility with respect to education loans from:

1. receiving any remuneration for serving as a member or participant of an advisory board of a lending institution, or receiving any reimbursement of expenses for so serving, provided, however, that participation on advisory boards that are unrelated in any way to higher education loans shall not be prohibited by the code. Notwithstanding the above, individuals are not prohibited from serving on a board of directors of a publicly traded or privately held company.
2. consulting or providing other contract services for a lending institution. This article does not prohibit a financial aid officer from consulting for, or serving on advisory board constituted by, the federal government consistent with federal law.
3. owning stock or holding any another financial interest in an educational lending institution, other than through ownership of shares in a publicly traded mutual fund or similar investment vehicle in which the person does not exercise any discretion regarding the investment of the assets of the investment vehicle.
4. soliciting or accepting gifts or anything of more than de minimus value on his or her own behalf or on behalf of another from or on behalf of a lending institution and receiving any payment or reimbursement by a lending institution to a University employee for lodging, meals, or travel to conferences or training seminars. This provision shall not be construed to prohibit any officer, employee, or agent of High Point University who has responsibility with respect to educational loans from conducting non-University business activity with any lending institution, or prevent High Point University from holding membership in any nonprofit professional association.

For purpose of this code, "gifts" include any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount, including services, transportation, lodging, and meals. A gift does not include standard materials, activities or programs related to a loan being provided; favorable terms, conditions or borrower benefits provided to a student employed by High Point University if comparable terms are provided to all students of High Point University; philanthropic contributions to an institution unrelated to education loans; or state education grants, scholarships or financial aid funds.

III. Member of NASFAA

As members of the National Association of Student Financial Aid Administrators (NASFAA), a person employed as a financial aid administrator of High Point University will follow the following NASFAA Code of Conduct. The full text can be found here.