Loans

 Houston Graduate School of Theology

 

 

Loans – William D. Ford Direct Loan Program

The most common form of aid at HGST is the William D. Ford Direct Loan Program or Direct Loans. This aid is administered directly through the U.S. Department of Education. These loans are also referred to as Direct Loans, Stafford Direct, or by the name Title IV Aid which refers to the Federal code that governs the administration of federal funds for educational purposes.

The administration of Direct Loans is regulated by strict federal law which must be faithfully followed by all financial aid administrators and is overseen by the Department of Education. The law determines the criteria by which a student is deemed eligible for Title IV funds. The law also determines the requirements for processing and managing those funds. All students who wish to receive financial aid in the form of federal direct loans must adhere to these laws as well.

Unsubsidized Loans

Graduate students are not eligible for subsidized loans or Pell grants.

Unsubsidized loan quick overview:

  • The U.S. Department of Education is the lender.
  • Credit History and income are not a factor in determining eligibility for unsubsidized loans.
  • Currently, the maximum unsubsidized loan amount annually is $20,500 with a maximum aggregate of $138,500.
  • Currently, origination Fees are 1.072% (approximately $11 per $1000 or 53$ per $5000).
  • Interest Rate for graduate students – 5.41% currently but 6.8% historically. The interest starts to accrue when the funds are disbursed.
  • Repayment begins 6 months after the student graduates or drops below halftime.

Graduate Plus Loans Basics

Graduate Plus loans are only available to students who have received the maximum unsubsidized aid for which they are eligible but still have a portion of the Cost of Attendance that is unmet. Typically, during a given academic year, most students will not be eligible for Graduate Plus unless they register for summer classes.

Graduate Plus quick overview:

  • The U.S. Department of Education is the lender.
  • The borrower must not have an adverse credit history. A credit inquiry will show up on your credit report every time a Plus loan is requested.
  • The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial assistance received.
  • Currently, origination fees are 4.288% of the loan amount. (approximately $42.00 per$1000 or $214.40 per $5000)
  • Interest rate – currently 6.41%, historically it has been 7.9% and 8.5% and the rate is currently capped at 10.5%.
  • Repayment begins 6 months after the student graduates or drops below halftime.
  • All repayment plans, forgiveness programs and benefits are the same as those for Direct Unsubsidized loans.