Navigating Student Loans at Howard University: A Comprehensive Guide

For students aspiring to attend Howard University, understanding the available financial aid options, particularly student loans, is crucial. This article provides a detailed overview of the various loan programs and related resources offered to both undergraduate and graduate students at Howard University, empowering them to make informed decisions about financing their education.

Federal Direct Loan Program

Howard University participates in the Federal Direct Loan Program, offering several types of loans to eligible students. A significant advantage of these federal loans is that there is no requirement to demonstrate financial need for Direct Unsubsidized Loans, which are available to both undergraduate and graduate students. The university determines the amount a student can borrow based on the cost of attendance and any other financial aid received.

Direct Subsidized Loans

These loans are specifically for undergraduate students who demonstrate financial need. The government pays the interest on subsidized loans during periods of at least half-time enrollment, the grace period, and authorized deferment periods.

Direct Unsubsidized Loans

Available to both undergraduate and graduate students, these loans do not require demonstration of financial need. However, interest accrues from the moment the loan is disbursed until it is fully repaid.

Direct PLUS Loans

The Direct PLUS Loan is available to the parent (biological, adoptive, or in some cases stepparent) of a dependent undergraduate student enrolled at least halftime in an eligible degree program. The Direct Graduate PLUS Loan is available to graduate or professional students enrolled at least halftime in an eligible degree program.

Read also: Tuition and Fees at Howard

Key Features of PLUS Loans (Information for 2024-2025):

Borrower: The parent in the case of Parent PLUS Loans, or the graduate/professional student for Graduate PLUS Loans.
Co-signer: A co-signer is not required; however, a co-signer could be used in the event the main borrower’s application is denied.
Interest Type: Variable fixed, meaning borrowers would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan. Interest is capped at 10.5%.
Interest Rate: 9.08% for 2024-2025.
Fees: A 4.228% origination fee is deducted from the total amount borrowed.
Repayment: Immediate repayment begins 30-60 days after the final disbursement. Interest-only and deferred payment options may be available; contact the loan servicer for details.
Credit Check: A review of credit-worthiness is required.
Borrowing Amount: When applying, borrowers can choose a specific amount or opt for the maximum available.

Application Process for Direct PLUS Loans:

Create an FSA Account online.
Complete the PLUS Application at studentaid.gov. A completed FAFSA is required before the PLUS application can be reviewed.
Complete the online Master Promissory Note (MPN) and PLUS Loan Application, ensuring the borrower information matches the original MPN.
Select Howard University (school code 001448 or G01448) on the application.

Loan Servicers and Repayment

Approximately 7-10 business days after the first loan disbursement, the loan is assigned to a loan servicer. The loan servicer will send information regarding the loan and manage the repayment process. Borrowers can review their loans and obtain loan servicer contact information by accessing nslds.ed.gov, using their FSA ID to log in.

Repayment Plans

The Federal Direct Stafford Loan Program offers various loan repayment plans designed to meet the needs of almost every borrower. Some common plans include:

Standard Repayment Plan: Fixed monthly payments over a set period (typically 10 years).
Graduated Repayment Plan: Payments start low and increase every two years.
Income-Sensitive Repayment Plan: Monthly payments are based on annual income.
Extended Repayment Plan: Lower monthly payments spread out over a longer period (up to 25 years).

It's important to note that calculations provided by Howard University are estimates and may not reflect the actual amount computed by the Direct Loan Servicing Center.

Deferment and Forbearance

If borrowers encounter difficulties making monthly loan payments, they may be eligible to postpone payments through a deferment or forbearance. Deferments are also an option for students returning to school after an absence.

Loan Forgiveness

Borrowers may be eligible to have their Federal Direct Stafford Loan or Federal Perkins Loan forgiven under specific forgiveness programs.

Loan Consolidation

If deferment and forbearance options are exhausted, borrowers may consider loan consolidation. A Direct Consolidation Loan allows combining one or more federal education loans into a new loan with potential advantages.

Summer Aid

Howard University offers limited options for summer aid. To inquire about summer awarding:

A valid FAFSA must be on file.
Students must be enrolled at least half-time to be eligible for federal loans and Pell Grant.
Pell Grant-eligible students will receive awards automatically.
Summer courses will not count towards HUFS requirements.
Students with remaining loan eligibility will need to complete a Federal Direct Loan Adjustment Form.

Private/Alternative Loans

Students ineligible for Federal Direct Loans or needing additional funds beyond federal aid may apply for private/alternative loans. It's crucial to compare loan products from several lenders to find the best fit. The ELM Select online tool provides information on loan programs frequently used by Howard students.

Considerations for Private Loans:

Students should exhaust Federal loan options before considering private loans.
Parent borrowers should compare costs with the Federal PLUS loan, which usually has better repayment terms.
Fees charged by some lenders can significantly increase the cost of the loan.
Research and choose a lender that is right for you. Don’t be afraid to ask questions and make sure you take the time to compare what each lender has to offer before making a decision.

Application Process for Private Loans

Private loans are certified once a student has enrolled in the requested semester. Students should check with their private lender to ensure they meet the minimum requirements for their private loan application - such as minimum credit hour requirements.

Key Requirements

The Truth In Lending Act (TILA) and the Higher Education Act of 1965, as amended (HEA), require a lender to obtain a self-certification signed by the private loan applicant before disbursing a private education loan.

Additional Financial Aid Options

Scholarships, Grants, and Fellowships

These are forms of financial aid that do not require repayment. They come from various programs both inside and outside the University, including Senators, Delegates, the federal government, community groups, and Howard University departments.

Howard University Freshman Scholarships (HUFS)

Available to incoming First Time in College Students (FTICs). The HUFS award criteria may change every year, and no internal application is needed.

Federal Work-Study Program

Provides opportunities for students to work on-campus to financially support their education. Eligibility is based on financial need.

Outside Awards

Outside awards can help reduce the need for loans.

Term-Time Work and Summer Employment

These can also reduce the need to borrow.

Payment Plans

Payment plans can lessen the burden of a term bill balance by stretching it out over time.

Savings Accounts

Savings accounts are great for any student.

Master Promissory Note (MPN)

The Master Promissory Note (MPN) is the legally binding contract that sets the terms and conditions for the loan you are borrowing. An MPN is required for each loan program.

Important Terms and Conditions for Federal Direct Student Loans

For unsubsidized loans, the maximum amount that will be recommended for a 9-month academic year is $40,500, less the amount of the student’s subsidized loan. The overall aggregate limit for subsidized and unsubsidized loans is $224,000 for a student enrolled in certain health professions programs of study, including medicine.

Counseling Sessions

Each student approved to receive a Federal Direct Student Loan must sign a Master Promissory Note (MPN). The MPN enables you to sign a Direct Loan promissory note only once during your academic career at the Howard University College of Medicine. This one note will allow you to continue to borrow each year up to the aggregate amount along as enrollment is continuous. Signing the MPN is your promise to repay your Direct Student Loans in accord with the specified terms and conditions. The MPN also includes important language about your rights and responsibilities as a student loan borrower.

The entrance counseling session or interview occurs before the school makes your first loan disbursement. The exit counseling session or interview occurs at graduation or withdrawal from school. Both sessions are required and will provide important information about your Federal Direct Student Loans, including interest rates, loan fees, yearly and total maximum amounts that may be borrowed, maximum repayment periods, repayment options, grace and deferment periods, forbearance provisions, and the definition and consequences of default.

Repayment and Grace Period

Repayment begins six months after graduation or from the date enrollment status changes to less than one-half time. For all Federal loans, student borrowers have an automatic grace period of 6 months before repayment begins. The grace period begins when the student graduates or is no longer enrolled as at least a half-time student.

Deferment

A deferment differs from a grace period in that it must be applied for. For Federal Direct Student Loan borrowers, deferments are available for: (1) at least half-time study at an eligible school and (2) up to three years for any reason that has caused an economic hardship. During deferment periods for Federal loans, payments on the principal may be deferred but interest is charged.

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