STUDENT LOAN OVERVIEW

Students borrow loans to assist in financing their college education. Student loans are considered part of the student’s investment in their education and becomes the student’s responsibility to manage and repay the loans once the student graduates. After students graduate, leave school, or drop below half-time enrollment, a student loan borrower will have an initial six-month grace period before they are required to begin repayment. At this point, student loan borrowers are required to complete the online exit counseling session at studentaid.gov. Students will receive communication from an assigned servicing agency, designated by the U.S. Department of Education to  manage repayment. To determine eligibility, students must complete the Free Application for Federal Student Aid (FAFSA), satisfy any outstanding requirements with the institution, maintain Satisfactory Academic Progress (SAP) toward your degree, be enrolled in an eligible degree-seeking program, and be enrolled at least half time (6 credits or more).

The U.S. Department of Education is the lender for Direct Subsidized and Unsubsidized Stafford loans. In accordance with the U.S. Department of Education regulations, a student’s Title IV loan information is submitted to the National Student Loan Data System (NSLDS). Authorized agencies, lenders, guarantors, servicers, and institutions have access to this information. For more information on student loans, student and parent borrowers can visit: studentaid.gov

DIRECT SUBSIDIZED – The Federal Direct Subsidized Stafford loan is available to prospective students who demonstrate financial need. Direct Subsidized Stafford Loans have a subsidized (government paid) interest while a student is enrolled at least half time (6 credits or more), during the initial six month grace period, and authorized deferments approved by the assigned loan servicer. The principal payment is not required and optional for prepayment while the student is qualified for in-school deferment.

DIRECT UNSUBSIDIZED – The Federal Direct Unsubsidized Stafford Loan is available to prospective students who may not qualify for a Subsidized Stafford Loan. This loan is not based on financial need. The Unsubsidized loan has the same basic terms and procedures as the Subsidized loan except that interest will start accumulating from the time that the loan is disbursed. Students have the option to prepay the interest while in school or opt to defer while qualifying for an in-school deferment.

If you have not previously received a Direct Loan or Federal Family Education Loan (FFEL), all first-time and re-entry students are required to successfully complete an entrance counseling session and a Master Promissory Note (legal binding agreement), before UH Maui College can release the first loan disbursement.

To complete the loan process, go to the loan process page at http://maui.hawaii.edu/financial/direct-loan-process/ page to complete the process and complete the below requirements.

1. Complete a Direct Loan Master Promissory Note (MPN) – The legal binding agreement in which a borrower agrees to repay federal student loan(s) and any accrued interest and fees to the assigned loan servicer. The obligation of the borrower is to repay the full amount of the loan(s), regardless whether the borrower does not complete the program completion, is unable to obtain employment upon completion, or is otherwise dissatisfied with or did not receive the educational or other services that the student borrower purchased from the institution.

2. Complete an Online Entrance Counseling session for Direct Subsidized and Unsubsidized Loans – During an entrance counseling, the borrower will be ensured to understand the responsibilities and obligations the borrower is assuming.

RATES AND FEES – If you receive a federal student loan, you will be required to repay the loan with interest. Interest is money paid to the lender for the loan amount borrowed. Interest is calculated as a percentage of the loan amount borrowed. You may prepay your loan principal and interest at any time. Prepayment may reduce the amount of interest you may owe. To review the current interest rates and origination fees for direct loans, please visit https://studentaid.gov/understand-aid/types/loans/interest-rates.

LOAN LIMITS – Annual loan limits for Independent and Dependant students (based on FAFSA) applies. In addition, there are undergraduate Aggregated Lifetime Loan Limits. For the most current information, visit https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized

DEFERMENT/FORBEARANCE – Student loan borrowers may qualify for a postponement, in a form of a deferment or a forbearance. Student loan borrowers are advised to contact their loan servicer to meet necessary requirements for qualification. Register online with your student loan servicer’s website and review your loan status frequently. For more information on types of postponement with your loans, visit studentaid.gov

REPAYMENT – Contact your assigned loan servicer to select a repayment plan. Check with your loan servicer which repayment plans are available to you. If you do not select a repaymnt plan, you loan servicer will default your plan on the Standard Repayment PLan with fixed payments over a maximum of 10 years. Students may also contact the Financial Aid office on campus for advising. To review the repayment process and explore your options, visit https://studentaid.gov/h/manage-loans. Repayment of a student loan will generally begin six months after the student graduates, withdraws from school, or is no longer enrolled at least half time (6 or more credits), for fall, spring or summer terms.

*If at any time this occurs, the borrower must complete a mandatory exit counseling session within 30 days at studentaid.gov. Please contact the UH Maui College Financial Aid office for an appointment. Contact the office at 808-984-3277 or email [email protected].

The online exit counseling provides important information, such as your rights and responsibilities as a student loan borrower. In addition, it provides and overview of your current active student loans, the student loan repayment process, a budgeting sheet,  a repayment plan overview and what happens if you are in default. At this time, contact your financial aid office or assigned lender for payment arrangement information.

Sample Repayment Plan

DEFAULTED LOANS – Defaulted loans will cease your eligibility for Title IV funds (loans, pell, work study), along with Title IV benefits such as deferment, forbearance, and repayment plans, and will negatively impact your credit score. Avoid future negative outcomes such as wage garnishment or tax offset by contacting your assigned loan servicer or assigned collection agency for a resolution. Options to resolve your defaulted loan may include: payment in full, loan rehabilitation and/or consolidation.

Resolve your defaulted loans by contacting:

U.S. Dept. of Ed Default Resolution Group at 1-800-621-3115 | Visit their website at myeddebt.ed.gov
For more information on defaulted school loans, visit https://studentaid.ed.gov/sa/repay-loans/default/get-out
For student loan advising, contact UH-Maui College Financial Aid office at 808-984-3277 or email [email protected].

NATIONAL STUDENT LOAN DATABASE (NSLDS) Access

Information is disclosed to prospective UH – Maui College student borrowers or parent borrowers of students who enter into an agreement regarding a Title IV, HEA loan, in which the loan information obtained will be reported to and tracked on the National Student Loan Data System (NSLDS) (nslds.ed.gov). NSLDS loan records are accessible by authorized agencies, lenders, and institutions [HEOA 489 amended HEA Sec. 485B] Prospective UH-Maui College student borrowers and or parent borrowers of students are advised that if they enter into a Title IV, HEA loan, the loan data will be submitted to the NSLDS, and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

Student borrowers or parent borrowers of student may access NSLDS online at nslds.ed.gov, which provides an integrated view of the Title IV loan(s) and grants, wherby the recipient of Title IV Aid can inquire about their federal loan and pell grant data. Borrowers can access the system using their unique FSA ID Username and Password (http://fsaid.ed.gov).

Visit our Manage Your Student Loans page to review quick links about student loans.

FEDERAL STUDENT AID PUBLICATIONS

The U.S. Department of Education provides a comprehensive online list of resources to assist students and families to understand their right’s and responsibilities with the Federal Direct Loan process. View and download resources at studentaid.gov/resources

IMPORTANT LINKS

Go to FSA ID to create or retrieve your username and password. (fsaid.ed.gov)

View your federal aid history (loans and grants) and loan servicer contact information at the National Student Loan Database (NSLDS) (nslds.ed.gov)

Direct Loan Information for students (studentaid.gov/understand-aid/types/loans)

Direct Loan Information for parents. (studentaid.gov/understand-aid/types/loans/plus)

Student Loan Cohort Default Rate (CDR) and how it compares to the national average. For more information, go to: https://www2.ed.gov/offices/OSFAP/defaultmanagement/cdr.html

RESOLVING LOAN DISPUTES

If you are unable to resolve an issue by working with a loan servicer, you may contact the Federal Student Aid (FSA) Ombudsman Group for Assistance.

U.S. Department of Education
Federal Student Aid
Ombudsman Group
830 First St. NE
4th Floor, UCP-3/MS 5144
Washington, DC 20202-5144
Toll Free: 1-877-557-2575
More info at: studentaid.gov/feedback-ombudsman/disputes/prepare.

If you have questions about your loans please contact our office:

Phone: 808.984.3277

Email: [email protected]