Hampshire College

The U.S. Department of Education offers the Direct PLUS loan for parents to borrow. This loan has a fixed 7.90% interest rate with an optional one quarter percent (0.25%) interest rate reduction when payments are made automatically from a bank account.

The Direct Loan Program services Direct PLUS loans. Your loan will not be sold or transferred to another company.

SPECIFIC INFORMATION ABOUT THE DIRECT PLUS LOAN:

• Loan holder: U. S. Department of Education
• Loan servicer: Direct Loan Servicing Center, Greenville, Texas
• Guarantor: U. S. Department of Education
• Lender code: n/a
• Origination fee: 4.0% of amount borrowed
• Default fee: None
• Ability to electronically sign online promissory note
• Automatic borrower benefit: Borrowers receive an up-front rebate of 1.5% of the amount borrowed; this will effectively reduce the 4.0% origination fee to 2.5%; borrower must make the initial 12 monthly payments on time to retain this benefit.
• Optional borrower benefits: One quarter of one percent (0.25%) interest rate reduction when payments are made from a bank account
• Interest rate: 7.90% fixed
• Lowest possible interest rate: 7.65% with optional borrower benefit

Click here for general information about the federal PLUS loan.

HOW TO APPLY: Direct PLUS loans are processed through the college’s financial aid office. Please follow the two steps below:

Step 1: Parent borrowers must complete a Direct PLUS Loan Request Form indicating the amount of the loan. Returning this form to us initiates the credit check process. Click here to print a copy of the Direct PLUS Loan Request Form. The parent borrower then faxes or mails the completed form to the financial aid office at Hampshire College for processing. If you cannot print the form from this web page you may request it by email at loans@hampshire.edu or by calling 413.559.6044.

Step 2: Parent borrowers must complete the Master Promissory Note (MPN) for the Direct PLUS loan. The MPN may be signed electronically at http://www.dlenote.ed.gov/ using the parent's federal PIN number. The federal PIN number is the same one used to sign the FAFSA. If you do not have a federal PIN number, you may request one at http://www.pin.ed.gov/. Signing the note is a one-time requirement. Future Direct PLUS loans will be linked to the original MPN.

If you have any questions about the Direct PLUS loan or the application process, please contact our loan counselor.