Direct Loan FAQs
Q: How do I apply for a Federal Direct Stafford loan at HSU?
Students who are eligible will have loans automatically awarded after their FAFSA file is completed in our office. This practice is referred to as “pre-packaging” and is common in higher education. You will be notified at your HSU email account when your awards are available for viewing.
Q: What if I don’t want my loan that was pre-packaged?
You will be able to accept, reduce or cancel the award on your myHenderson account.
Q: When will my loan check be available?
If your FAFSA information has been completed and you have completed the MPN and Entrance Counseling, you may be able to pick up your check during or after registration. You should check your financial aid awards on myHenderson. If your loan shows an amount in the disbursed column, your funds have been released to be applied to your student account.
We strongly recommend that you sign up for direct deposit at the HSU Business office. You can avoid waiting in long lines and making that trip to your bank.
Q: This is my first year in college. I’ve heard there will be a hold on my loan funds.
Per federal regulations, all first time freshmen borrowers must complete 30 days of enrollment before their loan funds can be released. You should make sure you have alternative funds for purchasing your books.
Q: I received notification that I did not meet HSU’s Satisfactory Academic Progress requirements for federal aid. Can I still receive my student loans?
No. Direct Stafford loans are a form of federal aid. Not meeting satisfactory academic progress makes you ineligible for all federal aid programs.
Q: My parent applied for a Direct Parent PLUS loan and was denied. How much more money can I borrow on my unsubsidized loan?
Students who have completed 0-59 hours can borrow an additional $4000.00 for the year. Students who have completed 60 or more hours may borrow an additional $5000.00 per year. Actual amount a student is eligible for will be based on the cost of attendance less all other aid received.
You must request the additional funds through our office; they are not automatically awarded because of the PLUS denial.
Q: I’m an aviation major. Can I borrow more Direct Stafford funds than other majors?
No. All student loans limits are the same regardless of major. Most aviation majors borrow the maximum Direct loans and fill the gap with private student loans.
Q: What is the difference between a subsidized and an unsubsidized loan?
As its name implies, a SUBSIDIZED loan is one where the government pays the interest on the loan while the student is in school. An UNSUBSIDIZED loan is one where the government does not pay the interest while the student is in school, that is, the student is responsible for paying the interest.
Repayment is deferred for BOTH loans until six months after the student graduates or stops attending school at least half-time. Borrowers will receive quarterly statements from their lender and have the option of making interest payments while the loans are in deferment.
Q: What is "loan counseling", an "entrance interview" or "entrance counseling session?"
All of these terms refer to the same thing. The federal government requires all first-time student loan borrowers to participate in loan entrance counseling prior to receiving a Federal Student Loan. During this session, you will review basic facts about loans, managing your education expenses and your rights and responsibilities as a student loan borrower. You can participate in loan counseling by clicking the link above.
Q: Do I have to sign a Master Promissory Note before I can receive Stafford Loans?
Yes. Once you have been awarded and completed loan entrance counseling, you must sign a Master Promissory Note (MPN). The MPN is a legal agreement to the terms and conditions of the loan, including repayment. The MPN is valid for 10 years and can cover multiple Direct Stafford Loans from different institutions so it is not necessary to sign a new note for each loan. You can electronically sign the MPN for Direct Stafford Loans at www.studentloans.gov.
Q: I accepted my student loan on through on myHenderson, what if I change my mind?
You may cancel all or a portion of your loan by informing us in writing. If the loan has not been disbursed, you may do this at any time. If the loan has been disbursed, you must do so within 14 days after we send you notice that we have credited your account with your loan funds or by the first day of the payment period, whichever is later.