Loans

William D. Ford Direct Student Loan

The William D. Ford Direct Student Loan is a federal interest-delayed loan for college students. Eligibility is based upon the Free Application for Federal Student Aid (FAFSA). As long as students are enrolled in at least six credit hours each semester, no interest accrues and no payments are due. Interest begins at graduation or when the student is no longer enrolled in six credit hours. After graduation there is a six month grace period before repayment begins. Students who do not qualify for the interest subsidy may still borrow in the William D. Ford Unsubsidized Student Loan program. Apply for a William D Ford Direct Student Loan. Students must complete a promissory note and an entrance interview on the site before they can receive the William D. Ford Loan funds and an exit interview when they complete their time at Hesston College. Information regarding the terms of all William D Ford Direct Student Loans, sample repayment schedules and loan repayment information is available at studentloans.gov.

William D. Ford Direct Loan Limits

First Year – $3,500
Independent students (as determined by the FAFSA) can borrow an additional $6,000 in the direct unsubsidized loan. An additional $2,000 direct unsubsidized loan is available to dependent students.
Second Year – $4,500
Independent students (as determined by the FAFSA) can borrow an additional $6,000 in the direct unsubsidized loan. An additional $2,000 direct unsubsidized loan is available to dependent students.

Complete the following steps to have your William D. Ford Loan Funds applied to your account.

  1. Sign in with your PIN from FAFSA at studentloans.gov and complete the Entrance Counseling Session (takes about 30 minutes)
  2. Complete the Master Promissory Note (Subsidized/Unsubsidized)

You must complete both steps for your funds to be applied to your account.

Questions? Call Dori Roth at 620-327-8220 or email dori.roth@hesston.edu or call the Direct Loan Applicants Service Line, 800-557-7394

William D. Ford Direct Unsubsidized Student Loan

The William D. Ford Direct Unsubsidized Loan is not based on need and the interest begins to accrue on this loan as soon as the funds are disbursed. A student can arrange to make interest only payments or allow the interest to accrue while in school, during the grace period, and during any authorized deferment periods. As long as students are enrolled in at least six credit hours each semester, no payments are due. After graduation there is a six month grace period. Apply for a William D. Ford Direct Student Loan. Students must complete a promissory note and an entrance interview on the site before they can receive the William D. Ford Loan funds and an exit interview when they complete their time at Hesston College.

Federal Perkins Loan

The Federal Perkins Loan is a federal loan awarded and administered by Hesston College. Eligibility is based upon the Free Application for Federal Student Aid (FAFSA). As long as students are enrolled in at least six credit hours each semester, no interest accrues and no payments are due. After graduation there is a nine month grace period before interest and repayment begin. The Federal Perkins Loan has an annual interest rate of 5%. Students receiving Perkins loans must complete Entrance Counseling and a promissory note before beginning classes. When they finish their Hesston years, they must also complete an Exit Interview.

Hesston College Loan

The Hesston College Loan is awarded and administered by Hesston College. Beginning July 1, 2014, an annual interest rate of 10% begins to accrue six (6) months after leaving Hesston College. (Prior to July 1, 2014, an annual interest rate of 10% begins to accrue as soon as the loan is disbursed). A minimum monthly payment of $50 is due during the repayment period which begins six months after the student is no longer at least a half-time student.

William D. Ford Direct Parent Loan for Undergraduate Students (PLUS)

The William D. Ford Direct Parent Loan for Undergraduate Students (PLUS) lets parents of dependent students borrow money to cover any costs not already covered by the student’s financial aid package, up to the full cost of attendance. PLUS loans have a fixed interest rate of 7.2% for the 2014-15 school year but is reevaluated every year in June. Parents with a previous PLUS loan at Hesston College can borrow the difference between the students cost of attendance and the financial aid they have been awarded.

PLUS loan process

New borrowers must complete the following steps. Parents with a previous PLUS loan at Hesston College must complete step one.

  1. Visit studentloans.gov, sign in with the parents’ FAFSA PIN, click on Request Direct PLUS loan, choose Parent PLUS and proceed with the application process. Upon completion of the application process, studentloans.gov will inform you if you are approved or denied for a PLUS loan. If approved, proceed to step two.
  2. Complete the Master Promissory Note for the PLUS loan.

Alternative Education Loan

Alternative Education Loans help bridge the gap between the actual cost of an education and the limited amount the government allows students and their parents to borrow in its programs. Alternative loans are borrowed in the student’s name. In most cases the student will need a cosigner to meet the credit requirements. Alternative loans are offered by private lenders and there are no federal forms to complete. Some families turn to alternative education loans when the federal loans don’t provide enough money or when the family wants to borrow additional money in the student’s name. Apply for a loan at Elm Select.