Direct Federal Stafford Loans
Hallmark College participates in the William D. Ford Federal Direct Loan (Direct Loan) Program designed to assist both students with demonstrated financial need and students with no financial need. The loan may contain an interest subsidized portion (for needy students) and/or an unsubsidized portion (for non-needy students). Students must meet the minimum criteria outlined in the financial aid Eligibility Requirements section. Eligible parents may also qualify for Parent Loans (Federal Direct PLUS Loans). Federal Stafford Loans are either subsidized or unsubsidized. If you have borrowed student loans and would like to view your loan status, loan amounts (individual and cumulative), please link to this website: National Student Loan Data System (NSLDS) - Student Access.
Types Of Loans
A Federal Direct Subsidized Loan is awarded on the basis of financial need. The federal government pays the interest on the loan until the student begins repayment or during periods of deferment.
A Federal Direct Unsubsidized Loan is not based on financial need. Interest is accrued from the time the loan is disbursed until it is paid in full. Students can choose to pay the interest while they are in school or allow it to accumulate until repayment. Students that do not pay the interest while attending school will pay more over the life of the loan.
Federal Direct PLUS Loan is a program available to parents of dependent students wishing to borrow on behalf of that student in order to meet the cost of attendance. The student's parents must be a United States Citizen or eligible noncitizen and must pass a required credit check in order to be eligible. The repayment period for Direct PLUS Loans begins on the date of the last disbursement of the loan.
Perkins Loans formerly known as National Defense Student Loan are low-interest loans for both graduate and undergraduate students with exceptional financial need. The school is the lender. The loans are made with government funds with a share contributed by the school. The student must repay these loans to the school.
Repayment Of Your Loan
No payment of the principal is required while the student is enrolled in school at least half-time or during their grace period. Students begin repayment of Stafford Loans six months after they graduate, withdraw from school or drop below half-time status. The following terms will apply once in repayment.
Minimum payment of at least $50.00 per month (this monthly payment may be more depending on the amount of loans borrowed) for Direct Loans and at least $40.00 for Perkins Loans.
Standard repayment term of 10 years, unless other terms are granted by the lender
Borrowers may have their payments temporarily postponed under certain conditions (deferment and forbearance)
No penalty for early repayment