Federal Direct Loans
(FDSLP) loans or "Direct Loans", administered by "Direct Lending Schools", are provided by the US government directly to Beulah Heights University students and their parents. The Federal Government pays interest on the subsidized loan while the student is in school. Students are required to pay interest on their unsubsidized loan while they are in school. Students are responsible to pay all the interest, although you can have the payments deferred until after graduation.
Direct and Direct Plus Loan
Student who wishes to receive a Direct Loan must complete a Free Application for Federal Student Aid (FAFSA) and a Master Promissory Note (MPN). A student may obtain an MPN from Beulah Heights University through the Virtual Financial Aid Office or the Department of Education. An MPN can be used to make multiple loans for multiple years of borrowing. Student and parent borrowers can log onto the Web and complete the MPN for Direct Stafford and PLUS loans at http://studentloans.gov.
Parents and graduate students applying for a PLUS loan must complete a PLUS Application and Master Promissory Note. All student PLUS borrowers must complete a FAFSA. A parent borrower must complete a FAFSA. All PLUS borrowers will receive the Borrower's Rights and Responsibilities statement with the loan application. Concerning a Direct PLUS loan, students or parents of dependent students may obtain additional loans based on the original MPN for up to 10 years after the date the parent first signed.
The Federal Direct PLUS loan enables parents of dependent students and graduate students with good credit histories to borrow up to the student's cost of attendance minus other estimated financial assistance under the Direct Student Loan program. Therefore, a graduate student has additional PLUS eligibility beyond the maximum subsidized and unsubsidized loan limits.
Adverse credit history and use of endorser
To borrower a PLUS loan, the applicant must not have an adverse credit history. Adverse credit is defined in the regulations as the applicant being 90 days or more delinquent on a debt or having been subject in the last five years to a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of an FSA debt. The absence of any credit history is not considered adverse credit. If a PLUS borrower has an adverse credit history, the applicant has the option of receiving a PLUS Loan using an endorser who does not have an adverse credit history.
Student may borrow from both the Direct Subsidized and Unsubsidized loan programs as follows:
Dependent undergraduate students (excluding dependent undergraduates whose parents are unable to obtain PLUS loans are eligible for an additional $2,000 in unsubsidized Direct Loan funds each academic year. For these students, the annual loan limits are:
- $3,500 combined subsidized and/or unsubsidized plus $2,000 additional unsubsidized for dependent first-year undergraduates;
- $4,500 combined subsidized and/or unsubsidized plus $2,000 additional unsubsidized for dependent second-year undergraduates;
- $5,500 combined subsidized and/or unsubsidized plus $2,000 additional unsubsidized for dependent third-year, or fourth-year undergraduates.
These loan limits represent the total of all subsidized and unsubsidized Director Loans a dependent undergraduate student may borrow at each level of study, for a single academic year. Note that a dependent undergraduate whose parent is unable to obtain a PLUS loan is not eligible to receive both the $2,000 and the additional unsubsidized Direct Loans described above. Plus the additional $6,000 or $7,000 in unsubsidized Direct Loan that is available to independent undergraduates and dependent undergraduates whose parents are unable to obtain PLUS loans (see- below).
There are higher additional unsubsidized annual loan limits for independent undergraduate students. These higher additional unsubsidized loan limits also apply to dependent undergraduate students whose parents are unable to borrow PLUS loans due to adverse credit or other documented exceptional circumstances.
The annual loan limits for independent undergraduates and dependent undergraduates whose parents are unable to obtain PLUS loans are:
- $3,500 combined subsidized and/or unsubsidized plus $6,000 additional unsubsidized for independent first-year undergraduates;
- $4,500 combined subsidized and/or unsubsidized plus $6,000 additional unsubsidized for independent second-year undergraduates;
- $5,500 combined subsidized and/or unsubsidized plus $7,000 additional unsubsidized for independent third-, or fourth-year undergraduates.
These loan limits represent the total of all subsidized and unsubsidized Direct Loans that an independent undergraduate student (or a dependent undergraduate whose parent is unable to obtain a PLUS loan) may borrower at each level of study, for a single academic year.
The total amount student can borrow per year based on their academic credit hours is:
- 0-27 credit hours enrolled in a program of student that is at least a full academic year, Dependent $5,500 and Independent $9,500
- 28-60 credit hours enrolled in a program of student that is at least a full academic year, Dependent $6,500 and Independent $10,500
- 61+ credit hours enrolled in a program of student that is at least a full academic year, Dependent $7,500 and Independent $12,500
- 12+ credits hours enrolled in a program of student that is at least a full academic year, Graduate $20,500.
The maximum outstanding total subsidized and unsubsidized Stafford loan debt is:
- $31,000 for a dependent undergraduate student,
- $57,500 for an independent undergraduate student (or a dependent undergraduate student whose parents does not qualify for PLUS loans). No more than $23,000 of this aggregate amount may be in the form of subsidized loans.
- $138,500 for a graduate or professional student (including loans for undergraduate study). No more than $65,500 of this aggregate amount may be in the form of subsidized loans.
After a student graduates, leave school or drops below halftime he/she has six months before repayment begins. This is called a "grace" period. If the student has a subsidized Direct Loan; the student will not have to pay any principal or interest during that period. If the student has an unsubsidized Direct Loan, the student will be responsible for the interest during the six month period.
Private / Alternative Loans
Students who need more loan funds than what has already been awarded in federal loans can apply for a private education alternative loan. You will need to choose a lender and apply to that lender for the loan. Private education loans are credit-based, and students are more likely to be approved if they apply with a credit-worthy cosigner.
Disbursement of Loan Funds
The requirements for Beulah Heights University to disburse Federal Direct Loan funds is within three days of funds posted onto BHU 's federal cash account. Direct Student Loan funds will be disbursed to students in at least two installments, and no installment will be greater than half the amount of the student’s loan. The loan money must first be used to pay for the student's tuitions, fees, and room and board, if applicable.
The Students receive an award letter with their anticipated disbursement dates. Once the student has met the attendance requirement, the student’s disbursements will be confirmed for release. The students receive an electronic from the Business Office informing him/her how much money was received, and the amounts that were posted to his/her student's account. If there is an available balance after tuition, fees, dorm and books are paid; the student will be issued a direct deposit or funds applied to debit card for the difference.
Plus loans will first be applied to the student's tuition, fees, room and board, and other school charges. If any loan funds remain, the graduate student will be sent a direct deposit or put on debit card and dependent student's parent(s) will receive the amount in a check, unless the parents' authorize the amount to be released to the student or to be put into the student's school account.
The university also notifies the students' parents in writing whenever it credits the students' account with direct PLUS loan funds. The notification is sent to the student or parent not earlier than 30 days before or after the university credits the student's account.
The student or parents may cancel all or a portion of the loan, if the student or parents inform Beulah Heights University within 14 days after the university send the student or parents the notice, or by the first day of the payment period, whichever is later.
Note: Financial aid payments are applied to student accounts after the close of the add/drop period. If a student's account balance is a credit, it is the policy of the University to refund the credit to the student. If a credit balance refund is due the student, the refund is made to the student within 14 days, as required by federal regulations. A refund will be issued only if the student's balance is paid in full. If the credit balance is the result of a parent PLUS loan, the refund will be issued to the parent unless the parent has indicated that the refund should go to the student when the Parent PLUS Certification Form was completed. Additional information about student accounts can be found at https://www.beulah.edu/studenta-accounts.
The refund will be issued by direct deposit or a debitcard to the student and mailed to the student's mailing address. Direct deposit is the preferred method of refund as it is faster, more secure and costs less. Instructions for setting up direct deposit or debit card sign up can be found at https://www.beulah.edu/direct
Direct Loan Repayment
There are several choices of repayment plans. The loan servicer will notify the student (and/or parent) of the date the loan goes into repayment. If the student does not choose a repayment plan, they will be placed on the standard repayment plan. The longer the loans are in repayment, the more interest that will be accrued. If a student obtains a loan to pay for their educational program, the student will have to repay the full amount of the loan plus interest, less the amount of any funds returned to the lender determined after withdrawal during the Return of Title IV Funds calculation.
Standard Repayment Plan
The student pays a fixed amount each month until the loan is paid in full. The monthly payments will be at least $50, and up to 10 years repayment. Less interest is paid over time on this plan.
Graduate Repayment Plan
The payments start out low and will increase every two years. The length of the repayment period will be up to 10 years. More interest is paid over time on this plan.
Extended Repayment Plan
The student must have more than $30,000 in Direct Loan debt. Under the extended plan the student can take up to 25 years for repayment and two payment options: fixed or graduated. Fixed payments are the same amount each month, while the graduate payments start low and increase every two years.
Pay As You Earn Repayment Plan
Maximum monthly payments are 10% of discretionary income, the difference between the adjusted gross income and 150% of the poverty guideline for the family size and state of residence. Payments change as income changes. Student (or parent) must have a partial financial hardship. The length of the repayment period will be up to 20 years.
Income Contingent Repayment Plan
(Not available for parent PLUS Loans)This plan gives the flexibility to meet the Direct Loan obligation without causing undue financial hardship. Each year the monthly payments are calculated on the basis of the student’s adjusted gross income (AGI, plus spouse’s income, if married), family size, and the total number of Direct Loans. The maximum repayment period is 25 years.
Income-Based Repayment Plan
The required monthly payment will be based on the student’s (or parent’s) income during any period when he or she has a partial financial hardship. The monthly payment is adjusted annually. The maximum repayment period may not exceed 10 years.
Student borrowers are required to complete online exit counseling. The federal regulations require that all graduating students or students who received a student loan go through what is call an "Exit Interview." Student may go to www.nslds.ed.gov or www.studentloans.gov to complete their exit counseling.
The required elements that are covered in the exit counseling are as follows:
- Reinforce importance of repayment.
- Describe consequence of default.
- Stress that repayment is required regardless of educational outcome and subsequently employability.
- Provide an average anticipated amount, based on borrower's indebtedness or for average debt of Direct Loan borrowers at school or in same program.
- Review repayment option (standard repayment, extended, graduated, income sensitive/contingent) and consolidation.Discuss debt management strategies that would facilitate repayment.
- Review forbearance, deferment, and cancellation options and procedures.
- Inform student about availability of loan information through NSLDS website and the availability of the FSA Student Loan Ombudsman's Office.
- Collect driver's license number and state of issuance, expected permanent address, address of next of kin, and name and address of employer (if known), and update any changes to student's personal information (name, so security number, etc.).
- Provides student with contact information for lender(s) and reinforce importance of communicating change of status, etc., with the lender.
- Discuss debt management strategies and tax benefits.