Loan Information for Domestic Students:

LOAN RESOURCES:
Loan Definitions
Managing Your Debt and Loan Repayment
Retrieve your Federal Loans 
Loan Deferment Eligibility
Loan Calculators

FEDERAL STUDENT LOAN PROGRAMS:
Federal Direct Loan Program 
Federal Perkins Loan Program

SUPPLEMENTAL LOAN PROGRAMS:
What is a Supplemental Loan?
Federal Direct GradPLUS 

Your Federal Student Loans: Learn the Basics and Manage Your Debt is a new brochure published by the U.S. Department of Education in April 2009 which offers comprehensive information on Federal Student Loans and managing debt.

Please be aware that this publication contains website addresses for information created and maintained by outside organizations. This information is provided for the reader's convenience. The U.S. Department of Education is not responsible for controlling or guaranteeing the accuracy, relevance, timeliness or completeness of this outside information. Further, the inclusion of information or website addresses does not reflect the importance of the organization, nor is it intended to endorse any views expressed or products or services offered.  All website addresses included in this publication were accurate at press time.

Income-Based Repayment (IBR): New Repayment Option Available Beginning July 1, 2009
• "Ditch Your Debt Gremlin" is a new video that helps to explain the new Income-Based Repayment option that is available beginning July 1, 2009 for students entering repayment or who are in repayment.
• Your best resources for information on this new program are IBR Info and Student Aid on the Web - IBR Information
• IBR info tip sheet

Retrieving Your Federal Loan History
Students that have borrowed Federal Loans, may access their loan history on the National Student Loan Database (NSLDS). This history will allow you to see who your lenders are and will also provide their contact information.

Please note, this web site does not provide loan history for Private Loans (Signature, CitiAssist, MEFA), nor do they track university or school named loans that you borrowed an institution. You should contact your institution that you borrowed these loans from for further details.

You will need your Federal Pin Number in order to access your loan history. This pin is the same number that you use to complete the FAFSA.

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Returning back to school or continuing on at a different school can create a tremendous amount of change in a short period of time. Perhaps you are relocating, or you are starting back in classes after being away from the classroom for a long period of time. This is an exciting time, but it is also when students can forget to follow up on important procedures that ensure that their credit remains intact. If you relocate and forget to notify your lender, you could be receiving late notices and not be aware. You could falsely assume that your loans will automatically go into deferment now that you are back in school. Please keep in mind that you are ultimately responsible as a borrower to check on your loan status (es) and that it is extremely important that you keep your loan records up-to-date.

Federal Direct and FFELP Stafford Loans, Federal Perkins Loans and many private and institutional loans have what is referred to as deferment options. These options allow students returning to school or continuing on at a new school to defer their loan payments. (It is important to note that most deferments require that you are enrolled in a degree seeking program at least half-time to be eligible. If you drop below 10 credits at HSPH, you will not qualify for a deferment.) You should always contact your lender regarding your loan terms and conditions and if you qualify for deferment. While in a deferment period the loans that you have borrowed that were subsidized (interest does not accrue while you are in school), should remain subsidized and the interest should either not begin or stop accruing.

Follow these easy steps to ensure a smooth loan-deferment process
1: Know who your lenders are.
You should be receiving information from your lenders on a regular basis, however if you are not sure who your lender(s) are, you may access your Federal Loan History on the National Student Loan Database (NSLDS)

If you feel as though you need further guidance, you should contact the institution(s) where you have borrowed loans, as they should have your loan history on record.

2: Make sure that your address is always up-to-date with your lenders
If you are not sure if you changed your address you should contact your lenders to be sure. They can not contact you if they do not know where you are. If you have recently moved, you should also be sure to forward your mail through the post office. This process can now be complete online at: http://www.usps.com/moversguide . Please keep in mind this is a temporary fix and that you should still contact your lenders.

3: Determine whether you need to complete a deferment form or whether the process is automated
Do I need to complete a deferment form or will it automatically update? Do not assume that your loan will automatically defer without checking with your lender. Below is what you need to know in order to determine if you need to complete a form or not.

Harvard University participates in The National Student Clearinghouse
As a National Student Clearinghouse participant Harvard University reports enrollment information through the each school’s Registrar’s Office. The National Student Clearinghouse receives this information from a central Harvard University database. The first scheduled date to send information to the clearinghouse for the fall term is at the end of September after the first add/drop period. Lenders that have made arrangements to participate with Harvard are able to download student’s current enrollment information directly from the clearinghouse. They match their records with the clearinghouse, and should a student meet their enrollment requirements, the student loan is automatically deferred without any necessary paper documentation. You may obtain further information about the Clearinghouse and what lenders participate by visiting: http://www.studentclearinghouse.org/students/default.htm

If your lender does not participate in the clearinghouse
If your school or lender does not use the National Student Clearinghouse service, then you must obtain a paper deferment form from the lender and submit it to the Registrar’s Office during or after the term registration period, located at 677 Huntington Ave. Kresge G-4, Boston, MA 02115. Please keep in mind that many lenders have deferment forms directly on their websites.

4: Follow up with your lenders mid-term
Regardless of whether your loan can be deferred through the clearinghouse or whether a deferment form is required, it is your responsibility to follow up with your lenders to ensure that your loans are in the proper deferment status.

Should you be notified that your loan(s) have gone into delinquency status because your loan did not get deferred, you should contact your lender immediately. The Office of Student Financial Services is always more than willing to work with students and to assist a student with making sure that their loan status is correct.

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Loan Calculators:
http://finaid.org/calculators/
http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html

http://cgi.money.cnn.com/tools/studentloan/studentloan.html

http://www.accessgroup.org/calculators/index.htm

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Federal Loan Programs

WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

Home Page: http://www.direct.ed.gov/

Federal Direct Student Loans are low interest loans provided to students with capital from the federal government instead of from a bank. The Direct Loan may be offered as a Subsidized or an Unsubsidized Loan or a combination of both.

• The subsidized loan is a need-based loan and no interest accrues while the student is enrolled (at least half-time) or during grace and deferment periods.
• The unsubsidized loan is not based upon need and interest accrues while the student is in school. It is the student's responsibility to pay the interest as it accrues OR the student may opt to have the interest capitalized (added to the principal balance).

Students are eligible for up to $18,500 in Direct Loans per year. The maximum subsidized portion is $8,500 (depending on financial need). The balance of $10,000 must be unsubsidized. If a student does not meet the financial need criteria, the full $18,500 will be unsubsidized. Full-time students may be eligible for an additional $12,500 per year through the unsubsidized loan program.

Effective July 1st, 2007 and before July 1st, 2008, the interest rate on the Federal Direct loans will be fixed at 6.8%. A .5% fee is deducted from the proceeds of the loan, at the time of disbursement to the student term bill. For more details regarding the Direct Loan interest rates, please visit: http://www.finaid.org/loans/scripts/interest.cgi

Direct loans are disbursed to the student's term bill after all required documentation is received, a Master Promissory Note (MPN) is signed, the student is registered, and for first-time borrowers, an Entrance Interview has been completed. Students will be instructed on how and when to complete necessary documentation. Exit Counseling is required for all graduating students as well as those whose enrollment falls below half-time are also required to attend.

To contact the Direct Loan Servicer, please call (800) 848-0979. For specific account information, payments online, tax forms, and electronic services, visit: http://www.dlssonline.com/index.asp

To look into the different types of consolidations, online applications, find out what loans are eligible to consolidate, or calculate repayments, you should go to: Direct Loan Consolidation: http://www.loanconsolidation.ed.gov/borrower/borrower.shtml. To contact Direct Loan Consolidation by phone, please call (800) 557-7392

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FEDERAL CARL D. PERKINS LOAN PROGRAM
Harvard Student Loan Office Homepage:
https://sfsportal.harvard.edu/admin/slo/index.shtml

The Perkins is a low-interest (5% fixed) federal loan program for students with exceptional financial need.

The maximum loan amount per year is $6000. Direct loans are disbursed to the student term bill once all required documentation is received, a Master Promissory Note (MPN) is signed, the student is registered, and for first-time borrowers, an Entrance Interview has been completed. Exit Counseling is required for all graduating students as well as those whose enrollment falls below half-time.

Students may receive in-school, grace and hardship deferments. Cancellation for certain careers (teaching, law enforcement) and service (volunteer and military) may also be possible.

The Harvard Student Loan Office houses your Perkins Loan. Therefore Customer Service and Collections is at the 580 Holyoke Center (1033 Massachusetts Ave, 2^nd Floor Cambridge, MA. The phone number is (800) 315-7192 or (617) 495-3782. Email contact is student_loans@harvard.edu.

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SUPPLEMENTAL LOANS

  
What is a Supplemental Loan?

Supplemental loans are any type of loan a student would borrow, if needed, to supplement their need-based loan funds (i.e. Direct Stafford, and Perkins). A supplemental loan is often used to finance any remaining costs not covered by grants and need-based loans – for example, a students may apply for a supplemental loan up to the amount of his/her HSPH budget minus other financial aid. 

As of July 1, 2006 graduate students became eligible to borrow the Federal GradPLUS Loan. This new loan program serves the function of a private loan, and it also has the benefits of a federal loan program, such as deferment, forbearance, consolidation, and death and disability cancellation. As Harvard University is a participant in the Direct Loan Program, you can borrow this loan through either the Department of Education’s Direct Loan program, or from any other lending agency (FFEL).  Please keep in mind, for a GradPLUS loan, unlike other federal loans, you must pass a credit check. A master promissory note will be required in order to disburse funds.

For students that are eligible for federal aid, the Direct GradPLUS Loan should be considered first.

Factors to consider when choosing a loan:

It is impossible for us to definitively tell you which loan you should choose as each borrower has a different set of factors which are more or less important to them. If you wish to have the smallest possible monthly repayment then borrowing the GradPLUS loan and electing a 25 year repayment plan will provide the lowest possible monthly payment amount. If you need maximum flexibility associated with in-school deferments due to future schooling plans, the GradPLUS loan is the way to go. If you anticipate periods of unemployment or economic hardship—or you want the ability to choose a variety of repayment plans—and the ability to change them as your circumstances change—then the GradPLUS loan is also the loan to borrow.

When considering which loan to borrow, you need to decide what factors are the most important to you.

Consider the following:

• Credit Requirements
• The impact of your credit
• Interest Rates
• Risk Tolerance
• Fees
• Repayment Incentives
• Total Cost
• Logistics of Repayment
• Deferment options including length of in-school deferment
• Forbearance options for periods of financial hardship
• Cancellation or Forgiveness Options
• Flexibility of repayment plans

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FEDERAL DIRECT GRADPLUS LOAN PROGRAM

The Direct GradPLUS loan is a federal loan with a fixed 7.9% interest rate and a 4% federal guarantee fee. The Department of Education will only charge 2.5% initially. The remaining 1.5% will not be charged unless you fail to make your first 12 monthly payments on-time.

Applicants must be a U.S. citizen or permanent resident and must have a satisfactory credit history. Individuals who apply and are turned down due to credit issues are eligible to obtain an endorser (co-signer) and reapply.

Borrowers are eligible to receive up to the cost of education minus all other aid received from all sources.

To apply for a Grad PLUS, applicants must complete and return a credit check authorization form. Once you have passed the credit check, you will be notified of approval. Promissory notes will be completed at your orientation.

GradPLUS borrowers qualify for deferment and forbearance. Deferments include unlimited in-school deferment, and up to 3 years of deferment for financial hardship and unemployment. GradPLUS loans also qualify for up to 3 years of forbearance. 

IMPORTANT NOTE: the GradPLUS loans do not have a grace period and repayment will begin within 30 days of completing your program.

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Some non-federal supplemental loan information is available here and may also be explored at the websites below.

 NOTE:  For full disclosure requirements on supplemental loan programs we invite you to visit our central ISite, Private Loans for Graduate and Professional Students