Repayment of the loan begins nine months after the student graduates, leaves school or drops below half-time enrollment status. The monthly payment amount will depend on the size of the loan debt and the length of the repayment period. Under certain circumstances the student may receive deferment, cancellation or forbearance on the Federal Perkins Loan. Only the school that makes the Federal Perkins Loan may grant a deferment. Forbearance or cancellation or make other decisions concerning that loan.

Federal regulations require all first-time Federal Perkins Loan borrowers to participate in Perkins Entrance Loan counseling before receiving the first disbursement of the loan proceeds. That Stafford Entrance Loan Counseling session can be completed by accessing the online student loan counseling website at: www.mapping-your-future.org.

Complete information about the terms of a Federal Perkins Loan, repayment obligations, deferment, forbearance, or cancellations can be obtained at the Financial Aid Office at Hiwassee College.

Federal Stafford Loan
The Federal Stafford Loan can be awarded on the basis of financial need (“subsidized” - federal government pays the interest while the student is enrolled) or awarded when no financial need is demonstrated (“Unsubsidized” - interest accrues while the student is enrolled). A first year student may borrow up to $2,625.00: a second year student may borrow up to $3,500.00.

This is a loan and must be repaid. Repayment and interest (at a variable rate not to exceed 8.25%) begin 6 months after the student ceases to be enrolled on at least a half-time basis.

Applications for the Federal Stafford Loan Program can be obtained through the student’s local lender or the Financial Aid Office of Hiwassee College.

Federal regulations require all first-time Federal Stafford Loan borrowers to participate in Stafford Entrance Loan counseling before receiving the first disbursement of the loan proceeds. Also, student loan borrowers must participate in Stafford Exit Loan counseling whenever they drop below half-time enrollment status, withdraw, or graduate. That Stafford Entrance Loan Counseling session can be completed by accessing the online student loan counseling website at: www.mapping-your-future.org.

Federal Parent’s Loan Program (PLUS)
PLUS Loans are available to meet student’s educational costs. Parents who have acceptable credit history can borrow a PLUS Loan to pay the expenses of a child who is a dependent student enrolled at least half time in an eligible program at an eligible school.

The annual limit on a PLUS Loan is equal to the student’s cost of attendance minus any other financial aid that may be received. For example, if the cost of attendance is $10,000 and the student receives $6,000 in other financial assistance, the parents can borrow up to $4,000.

The interest rate on a PLUS Loan is variable (adjusted annually), but it will never exceed 9 percent. The parents will be notified of interest rate changes throughout the life of the loan. Interest is charged on the loan from the date of the first disbursement until the loan is repaid.

Usually, the first payment is due within 60 days after the final loan disbursement for the year. There is no grace period for the PLUS Loan. Interest begins to accumulate at the time the first disbursement is made, and the parents will begin repaying both the principal and interest while the student is in school.