Applying for Student Loans
After you have filed a FAFSA on the web, the Student Finance Office receives your information and then sends you an offer of financial aid (award letter). This "award letter" identifies the various types of student financial aid you may be eligible for, such as the Federal Pell Grant, SEOG, New York State TAP, Federal Stafford Loans, Federal Perkins Loans, and the Federal Work-Study Program; it will also identify any Hilbert grants and scholarships awarded to you from Hilbert College's institutional funds.
Beginning with the Fall 2010 semester (the 2010-2011 Academic Year), Hilbert College will participate in the William D. Ford Federal Direct Loan Program. All federal student and parent loans will be disbursed by the U.S. Government. Under this program, students cannot choose a private lender for Stafford or PLUS loans. The Department of Education acts as the lender on behalf of the student. The Department of Education website explains the direct lending program in greater detail.
ALL STUDENTS (NEW AND RETURNING) MUST FOLLOW THESE DIRECTIONS TO RECEIVE FEDERAL STAFFORD LOANS:
When applying for student loans, always keep the following in mind:
1. Federal Direct Stafford Loans are your first and BEST option. (a description/link- Stafford loans)
2. Federal Direct Parent Plus Loans are your SECOND BEST option. (a description/link-PLUS loans)
Parents are encouraged to apply for a Plus Loan even if they fear a denial of this loan; dependent students are entitled to an additional Federal Unsubsidized Stafford loan if their parent is denied a Federal Parent Plus loan. As a result, there are some situations where parents should apply for a plus loan, even if they know they will denied. The Plus denial notice sent to the financial aid office WILL AUTOMATICALLY trigger the financial aid office to offer a son or daughter additional unsubsidized stafford loans should they need it.
3. Private loans are considered a "LAST RESORT" option; students and parents are encouraged to consider private loans through a variety of lenders and guarantor agencies. Private loans should be ALWAYS BE used prior to credit cards, or high interest, short term consumer/personal loans. Private loans are not listed on your Hilbert College Award Letter. If you want to apply for a private loan, this link will show you the variety of rates, benefits and links to a variety of private loans. There are many times when families will use a private loan to make up the balance between the aid offered, their projected family contribution and the actual bill. Parents and students are always free to choose the lender of their choice.