Loans are borrowed monies that must be repaid with interest. For the 2010-2011 academic year, all University of Hawaiʻi campuses have converted to the WIlliam D. Ford Federal Direct Loan Program. The following are the types of loans that are offered at the University of Hawaiʻi – West Oʻahu.
Direct Subsidized Stafford Loan
A fixed interest rate loan at 4.5% beginning July 1, 2010 awarded to undergraduates and graduates who demonstrate financial need. This loan is funded by the federal government and the federal government pays the interest on the loan until repayment begins and/or while you are in deferment. A loan fee of up to 3% may be assessed at each disbursement.
Important Changes to the Direct Subsidized Stafford Loan Program
In January 2012, Public Law 112-74 amended HEA section 428(a)(3)(A)(i)(I) to temporarily eliminate the interest subsidy provided on Direct Subsidized Loans during the six month grace period provided to students when they are no longer enrolled on at least a half-time basis. This change will be effective for new Direct Stafford Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.
Direct Unsubsidized Stafford Loan
A fixed interest rate loan at 6.8% beginning July 1, 2006 awarded to the undergraduates and graduates who do not demonstrate financial need, but may also be used to supplement a Subsidized Stafford loan. The federal government does not pay for the interest on this loan; you are responsible for the accrued interest from the time of disbursement until repayment in full. However, you have the option of capitalizing your loan until repayment begins, having it accrue interest while you are in school and having that accrued interest added to the principal loan amount. The terms for the Unsubsidized Stafford loan are the same as those for the Subsidized Stafford loan. A loan fee of up to 3% may be assessed at each disbursement.
Direct PLUS Loan
A federal loan for parents of dependent, undergraduate students enrolled at least half time. The PLUS loan has a fixed interest rate of 7.9% beginning July 1, 2010. Parents, who have an acceptable credit history, may borrow up to the cost of attendance minus any other financial aid. Repayments usually begin 60 days after the final loan disbursement for the academic year with interest charged from the date of the first disbursement until the loan is paid in full. A loan fee of up to 4% may be assessed at each disbursement. To apply for the parent PLUS loan, submit a completed Parent PLUS Loan Request form to the Financial Aid Office. For additional information regarding the Direct PLUS Loan, go to http://www.direct.ed.gov/parent.html