Federal Loans

Although you have been offered Federal Student Loans, you are not required to accept them. It is important that you only borrow what you need for your semesters at GHC. Through your Charger Portal, you may decline, reduce or accept the offered loans.

Students who complete the FAFSA (Free Application for Federal Student Aid) application will automatically be offered federal student loans as part of their financial aid award package.

Be sure to read the below information carefully before accepting loan offers:

• Check your financial aid offers:

1. 1. Log into your Charger Portal
   2. In the Financial Aid section, click on the Financial Aid link.
   3. Select the appropriate aid year (encompasses fall, spring, and summer).
   4. Click on the Offers link.

• You may accept full or partial loan amounts but no less than $500 per semester.  If you choose to accept a partial loan amount, it is recommended to contact the Office of Scholarships and Financial Aid for assistance at finaid@highlands.edu.

• The loan amount(s) accepted will be split in half between two semesters unless otherwise noted.  The Department of Education charges an origination (processing) fee on each loan disbursement (amount is calculated based on the disbursement amount).

• You must be registered for at least 6 credit hours to receive a student loan.  You can check your Schedule/Bill to confirm your enrollment.

• Loans will not be disbursed until ALL three steps are complete (acceptance in Charger Portal, Entrance Counseling, Master Promissory Note).  Once ALL three steps are complete, loans can take up to four business days to process and appear on your Schedule/Bill.

Steps to Accept a Student Loan

1. Log into your Charger Portal
2. In the Financial Aid section, click on the Financial Aid link.
3. Select the appropriate aid year (encompasses fall, spring, and summer).
4. Click on the Offers link.
5. Click Accept to accept your loan offer(s).
6. Click Submit Decision.
7. Complete Entrance Counseling and sign your Master Promissory Note (log in with your FSA ID/password you used to complete the FAFSA).

Loan Reinstatements and Cancellations

Loan Reinstatements

To REINSTATE a loan you have previously declined, fill out the FA Reinstatement Request form (up to two-week processing timeframe).  Loans cannot be accepted or reinstated for a previous semester once that semester has ended.

Loan Cancellations

To CANCEL a loan you have previously accepted, fill out the FA Cancellation Request form (up to two-week processing timeframe).  Once loan disbursements move onto your account (usually within two weeks after classes start), you can no longer cancel a loan, and you will be responsible for repayment to your lender.

Annual and Aggregate Loan Limits

Based on your status, you can borrow up to a certain amount in federal loan funding.

Annual (Yearly) Loan Limits

All loan amounts will be split in half between two semesters unless otherwise noted.

Dependent Undergraduate Students

• Freshman-less than 30 credits       $5,500
• Sophomore-less than 60 credits    $6,500
• Junior-less than 90 credits              $7,500
• Senior-90 or more credits               $7,500

Independent Undergraduate Students

• Freshman-less than 30 credits       $9,500
• Sophomore-less than 60 credits   $10,500
• Junior-less than 90 credits             $12,500
• Senior-90 or more credits              $12,500

Aggregate (Lifetime) Loan Limits

Once you have borrowed up to this amount, you can no longer receive federal loan funds until/unless you pay enough on your loan balance to be able to borrow again.

Dependent Undergraduate Students

$31,000 (no more than $23,000 of this amount can be from Subsidized loan funds)

Independent Undergraduate Students

$57,500 (no more than $23,000 of this amount can be from Subsidized loan funds)

Who is my Lender and how much do I owe?

To see who your Lender is and how to contact them, click HERE for details on the amount you owe for the loan(s), the school(s) you borrowed the loan(s) from, and the timeframe(s).

Denial of a Parent PLUS Loan and Dependent Students

If a parent applies for a Parent PLUS loan on behalf of a Dependent student and the application is denied, the student could then receive loan funding at the Independent annual loan limits instead of the Dependent annual loan limits.

A Dependent Student means that you have to provide parent information on the FAFSA and do not meet the criteria to be Independent.  Click HERE to learn more.

Federal Direct Loans

Federal Subsidized Loans (based on financial need)

The Subsidized loan is offered to students who demonstrate financial need.  Financial need is based on a student’s EFC (Expected Family Contribution) amount as determined by the FAFSA and a school’s cost of attendance.  Subsidized loans do not accrue any interest and no payments are due while a student is enrolled in college at least half-time (six or more credit hours).  The student is allowed to make payments of any amount on the loan(s) before the actual repayment cycle begins if they wish to do so but it is not required.  Once a student is no longer enrolled in college for six consecutive months or they drop below six credit hours for six consecutive months, the lender will expect them to begin repayment on their loan(s).  Once repayment begins, the Subsidized loan begins to accrue interest and carries interest for the life of the loan.  Interest rates are fixed but subject to change on an annual basis.  Click HERE to view the current interest rates on federal loans.

Federal Unsubsidized Loan (not based on financial need)

The Unsubsidized loan is not based on financial need.  Financial need is based on a student’s EFC (Expected Family Contribution) amount as determined by the FAFSA and a school’s cost of attendance.  The Unsubsidized loan begins to accrue interest immediately after it is disbursed to the student's account and carries interest for the life of the loan.  No payments are due while a student is enrolled in college at least half-time (six or more credit hours).  The student is allowed to make payments of any amount on the loan(s) before the actual repayment cycle begins if they wish to do so but it is not required.  Once a student is no longer enrolled in college for six consecutive months or they drop below six credit hours for six consecutive months, the lender will expect them to begin repayment on their loan(s).  Interest rates are fixed but subject to change on an annual basis.  Click HERE to view the current interest rates on federal loans.

Parent PLUS Loan

The Parent PLUS loan is a loan for parents of dependent undergraduate students.  PLUS loan eligibility is based on a credit check performed on the parent borrower.  PLUS repayment begins within 60 days after all loan funds are disbursed to the student’s account.  PLUS borrowers can borrow up to the student’s cost of attendance less any other financial aid the student is receiving.  PLUS interest rates vary and are subject to change on an annual basis.  Parent borrowers must complete a Parent PLUS application for review. Please make sure that you fill out the Parent PLUS application and not the Graduate PLUS application which is for students pursuing a Graduate degree (Masters or PhD).

Learn more about Federal Student Loans

Review the Federal Student Aid website to learn more about the specifics of federal loans.

Additional Resources:

• Entrance Loan Counseling: https://studentaid.gov/entrance-counseling/
• Master Promissory Note (MPN): https://studentaid.gov/mpn/
• Understanding Student Loan Repayment (access with your federal FSA ID): https://studentaid.gov/h/manage-loans/