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Direct Loans to Students Are No Longer Available

Effective July 1, 2013, HCC will no longer participate in the William D. Ford Direct Loan Program. Please click on this link and read the attached memo from HCC's President, Dr. Ervin V. Griffin, Sr., regarding this decision.


PRIVATE LOAN DEADLINES

Loan Programs

Private Education Loans
Private education loans are non-Federal Student Aid loans that are made to a borrower expressly for postsecondary education expenses, regardless of whether the loan is provided through the educational institution that the student attends or directly to the borrower from the private educational lender. HCC does not endorse the use of any particular private loan program but rather encourages its students to thoroughly seek ways to fund their education through sources other than loans. HCC will certify private education loans from any lender the student chooses. Loan processing will vary from lender to lender. Deadlines are posted in the financial aid office and on HCC’s website.

For a list of the major private education loans, refer to the following link:>
http://www.finaid.org/loans/privatestudentloans.phtml
This link provides a basic comparison chart that highlights the key characteristics of the major private education loans.

Applying for Private Education Loans – General Steps
(Steps may vary from lender to lender)

Step 1: Student must select a lender of their choice.
For a list of the major private education loans, refer to the following link:
http://www.finaid.org/loans/privatestudentloans.phtml
This link provides a basic comparison chart that highlights the key characteristics of the major private education loans. Please note: other private education loans may be available that are not included on this link. When reviewing the list of potential lenders, keep in mind that some do not participate with community colleges or may have criteria that cause you to not qualify for that particular loan.

Step 2: Apply with the lender. This process may vary depending on the lender. Most private education loan applications can be processed online. The lender will notify the student (borrower) of loan approval after a review of credit history. A Loan Approval Disclosure is presented by the lender and must be accepted by the borrower within a specified period of time.

Step 3: Student (borrower) must complete and submit a Self-Certification Form to the lender. This form is available from the lender or the Financial Aid Office.

Step 4: The lender sends a Loan Certification Request to the school.

Step 5: The Financial Aid Office will certify the loan after gathering all necessary information and paperwork from the student. Please note: you must meet HCC’s deadlines.

Step 6: The Final Disclosure is sent from the lender after the borrower has accepted the terms of the loan offer and the school has certified the loan amount but prior to disbursement. The Final Disclosure includes a Right-to-Cancel notice which gives the borrower three business days to cancel the loan without penalty. Lenders are prohibited from disbursing the loan until the expiration of the Right-to-Cancel period.

Step 7: The lender schedules the disbursement of funds taking into account the disbursement date requested by the school, the borrower’s Right-to-Cancel period, and the lender’s own rules regarding the Right-to-Cancel period.

Step 8: HCC Financial Aid Office will activate a student’s loan funds no earlier than eight business days after the lender has scheduled the disbursement to allow for expiration of the borrower’s Right-to-Cancel period. Therefore, students are cautioned to allow enough time for a loan to be processed so it will be in place to cover tuition charges by the payment due date prior to each semester.

Step 9: The lender disburses the loan proceeds to the school on the disbursement date and the funds are applied first to any existing balance due and then a refund check will be issued to the student for any remaining amount. Refund checks will not be processed until 10% of the semester has elapsed and instructors have turned in rosters verifying student attendance which generally results in refund checks being disbursed at the earliest during the 4th week of the semester.

Forgivable Education Loans for Service Program (FELS)
The Forgivable Education Loan for Service was established by the North Carolina General Assembly in 2011 and the first loans available for the 2012-13 academic year. The loan provides financial assistance to qualified students who are committed to working in North Carolina in fields designated as critical employment shortage areas.

To be eligible, a student must:
- be a North Carolina resident for tuition purposes;
- at the time of application, present a minimum grade point average (GPA) of: 3.00 for graduating high school students (weighted GPA) or 2.80 for undergraduate students pursuing an associate degree;
- register with the Selective Service System, if required;
- recipients must not be in default, or does not owe a refund, under any federal or State loan or grant program;
- meet the satisfactory academic progress requirements of the institution; and
- be willing to work in NC in a designated critical employment area.
To apply, a student must:
- visit www.cfnc.org for application and deadline.
FELS loan recipients must sign a promissory note that will require them to seek loan forgiveness through employment in an approved position or repay the loan in cash. Loan forgiveness is described in the FELS Rules. Generally, a loan for one academic year will be forgiven for one year of full-time employment. Loans will accrue interest at the rate of 8% per year from the date of the loan disbursement.

The award amount for a diploma and associate degree programs is $3,000 per year. The aggregate maximum loan limit is $6,000.