Loans

Student loans can be confusing for students. There are many different types of loans and it can be overwhelming to determine what kind of loan is best for you to borrow. Also, once in repayment, there are many options for repayment plans and consolidation.

Topics of Interest

Provided by SALT: 60+ Ways to Get Rid of Your Student Loans (Without Paying Them)

A number of programs exist that may forgive, discharge, or pay for all or a portion of your federal student loans. However, finding the ones that could work for you can be dizzying and confusing-especially if you have to do it out all on your own.

So, SALT created 60+ Ways To Get Rid Of Your Student Loans (Without Paying Them) to help you out. This easy-to-navigate eBook collects everything in one place. We haven't found another resource like it (and we'd know-we work in student loans), so dig in to get the details on:

  • Federal programs like Public Service Loan Forgiveness and Teacher Loan Forgiveness.
  • State-by-state programs that could eliminate all or a portion of your student loans.
  • The next steps to take advantage of any of these options.

*** Please note that you must be a registered HCC member of SALT to be able to access this document.​  You can join at SALTmoney.org/hcc

Provided by SALT: Running on Empty? Don't Fall Behind on Your Student Loans

This article talks about the options available to help you deal with job loss, a death in the family, accidents, and more, without defaulting on your student loans.


150% Time Limitation on Loan Subsidy 


This legislation limits the timeframe for which you are eligible to receive the subsidy on Federal Direct student loans and it impacts students considered to be new borrowers after July 1, 2013. New borrowers include:· Those who have never borrowed a Federal Direct student loan prior to July 1, 2013.· Those who have previously borrowed, but have a zero balance due as of July 1, 2013.  This legislation limits Federal Direct Subsidized loans to 150% of the length of a student's academic program. For example, new student borrowers in a 2-year program can only receive subsidized loans for 3 years. The length of time is measured in academic years. Students who reach this limit may be eligible for Federal Direct Unsubsidized loans if they are otherwise eligible to receive them.

Furthermore, students who reach the 150% point and have not yet completed their program will lose the subsidy on all outstanding subsidized loans. The loans do not enter repayment at this point; however, the borrower becomes responsible for paying the interest rather than the government. This limit is based on the amount of time a student is enrolled in a program and not the amount the student borrows (with some exceptions). Less than full-time enrollment status will impact the length of time a borrower is eligible for the interest subsidy. The legislation was passed in hopes of encouraging students to complete programs of study more quickly and allowances are granted when a student completes a degree/certificate within the 150% timeframe.

It is important to note that this is separate from Satisfactory Academic Progress, aggregate loan limits, and the Pell grant lifetime eligibility used limits. Approval of Satisfactory Academic Progress appeals will not extend the length of time in which you will qualify for the subsidy on student loans.  This is very new and complicated legislation. The Department of Education is still trying to find out the logistics of how some of this will all work and they continue to offer information to us as it is available. If you would like more information we encourage you to come to the HCC Financial Aid Office during our regular business hours to meet with the counselor-on-call. They can assist you in reviewing your borrowing history and explaining how this legislation will impact you. 

Please click here for an attachment from the U.S. Department of Education for additional information.


Resources

SALT - www.saltmoney.org.  Financial counseling and student loan advice. 

Student Loans -  www.studentloans.gov

Federal Student Aid - www.studentaid.ed.gov

 

Holyoke Community College
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