Loan Information
This page is designed to help you learn about the different loan options available to Hiram College students and their families, and to start the application process. As you are deciding what loans to borrow and for how much, be sure to borrow only what you need to cover your tuition and fees. It can be very tempting to borrow more than just what you need, but remember: the decisions you make now impact your future. We are here to help. Should you have any questions regarding these loan options, please contact our office.
Federal Stafford Loan (subsidized and unsubsidized)
The Federal Stafford Loan is a guaranteed student loan that allows students to borrow money toward their education and is deferred while the student is in school. However, interest accrues on the unsubsidized loan and can either be paid while the student is school or deferred. The interest rate is fixed and is based upon the type of loan that you are awarded. For the 2008-2009 academic year, subsidized loans are fixed at 6% and unsubsidized loans are fixed at 6.8%.
First-time borrowers are required to complete a Master Promissory Note (MPN) and complete loan counseling. Loan funds cannot be credited to your student account until this process has been completed. To do so, complete the following steps:
- Choose a lender. We understand that this can be a confusing and overwhelming process. To assist you in making the right choice, we have compiled a list of recommended lenders, which you are able to compare online at www.simpletuition.com/hiram. PLEASE NOTE: you have a right to choose any lender you would like that participates in the Federal Stafford Loan program. If you will be borrowing from a lender not included on our recommended list, please contact our office so that we can walk you through the necessary steps to ensure timely processing of your loans.
- Complete the Entrance Loan Counseling and Master Promissory Note (MPN). If you choose one of the lenders listed at www.simpletuition.com/hiram, simply click the "apply" button within the lender of your choice and it will walk you through the remaining steps. You will start this process by completing your entrance loan counseling. This counseling tells you more about your loans and your rights and responsibilities as a student loan borrower. After you complete the entrance loan counseling, you will then be asked to complete the MPN. You will need your FAFSA PIN number to electronically "sign" your MPN.
If you are choosing to borrow through a lender other than those listed at
Simple Tuition, click here to complete your entrance loan counseling:
Entrance Counseling for first-time Stafford Loan borrowers
Federal Perkins Loan Information
The Federal Perkins Loan is awarded to students with exceptional financial need. Interest is deferred while the student is enrolled in college at least half-time in a degree program. The interest is fixed at 5% and repayment begins nine months after the student ceases to be enrolled at least half-time or graduates.
First-time borrowers will be required to complete a Perkins Loan Master Promissory Note and Disclosure Statement, which will be mailed to your permanent address late summer.
Parent Loan Information
Please note: payments on PLUS Loans disbursed on or after July 1, 2008 may be deferred while the student is enrolled at least half-time. Interest will accrue and may be paid or added to the principal.
The Federal Parent Loan for Undergraduate Students (PLUS) is a loan borrowed in the parent's name on behalf of the student. Parents can borrow up to the cost of education less any financial aid the student has already received. The interest rate for this loan is fixed at 8.5%. Repayment on this loan begins once the loan has been fully disbursed, which is typically in January or February of the academic year in which the loan has been borrowed. This loan is not guaranteed and is based upon credit-worthiness. Should you apply and be denied this loan for any reason, the student is automatically eligible for an unsubsidized loan for either $4,000 (for freshman and sophomores) or $5,000 (for juniors and seniors).
The application is similar to the Stafford loan process listed above. You first need to choose a lender (see step one above under "Stafford Loan" about how to choose a lender). Once you have chosen a lender, you would then need to complete the application and promissory note, which can be done at www.simpletuition.com/hiram if you are choosing one of the recommended lenders. If you are choosing a lender outside the ones listed at www.simpletuiton.com/hiram, you should contact the lender directly to start the application process with them.
Alternative Loan Programs
You should always maximize your federal aid first. While at first glance it may seem easier to borrow all of your loan funds through one loan program, the alternative loans tend to carry higher, variable interest rates than the Stafford Loan. If you still have a balance after you have exhausted your federal, state and institutional grant and loan options, you can look to an alternative loan to fill in the difference. As stated above, be sure to borrow just what you need and do your research. A little time spent now can save you money in the future. There are many alternative loan programs available to students and not all loans are the same. They vary greatly and some of the things to pay attention to in your research is the interest rate (and how it is determined), repayment options, co-signer release, and fees. To begin your research and compare the loans, go to www.simpletuition.com/hiram or contact the lender of your choice directly.
Completing an EXIT Interview
This link is only to be used by students who have been directed to complete an online exit interview for their Federal Stafford Loan because they have withdrawn from Hiram College and/or transferred to another school.