The Loan Application Process
Step 1: Review all financing options. If you are thinking about borrowing a loan to cover education expenses, be sure to review all available options, including the Direct Parent PLUS loan, a state-sponsored loan, home equity loan, or a private alternative loan. If you areconsidering a private alternative loan, we suggest that the student borrow no more than $5,000 per year. Consider the monthly payment plan in conjunction with a loan. The monthly payment plan can reduce the amount of the loan and will reduce future interest and monthly payments. Contact our loan counselor with any questions you may have.
Step 2: Apply for the loan. Once you have selected the loan you want you will need to apply for it. Follow the instructions on how to apply. If you apply over the phone or by fax, or if you apply for a pre-approval, be sure to follow up with a paper or online application and promissory note.
Step 3: Borrow for the entire year. We suggest that you apply for a loan for the full academic year instead of borrowing a separate loan for each semester. This will make it more convenient for you, as you will not need to apply twice during the year. Applying for one semester at a time may cost you more money because of the minimum monthly payments, you may need to begin making payments sooner, and your application for the second semester loan may not be approved. If you will be attending only for the fall or spring term, then borrow for that one term.
Step 4: Complete all required forms and provide any necessary documents to the lender. Be sure to complete and submit the loan application and promissory note. Repeat Direct PLUS loan borrowers should not have to complete another Master Promissory Note. Student and custodial parent(s) must complete a FAFSA form each year a Direct PLUS loan is borrowed. Parents borrowing a Direct PLUS loan must confirm the loan amount with the financial aid office.
Step 5: If you are borrowing a Direct PLUS loan you will be working directly with our financial aid office about the loan. If you are borrowing a private alternative loan, we will be notified of your loan request after the lender has a completed application and your loan is approved.
Step 6: We need to certify the loan request. Our financial aid office will confirm that the student will be enrolled during the loan period, and will certify that the requested loan amount is within the student's eligibility. The student and/or parent cannot borrow more than the cost of attending Hampshire less any financial aid received.
Note: In order to be considered as a financing option to cover the college bill, actual loan approvals, not pre-approvals, are required by mid-August for fall term registration and by mid-January for spring term registration. A loan in process is not acceptable after these times, so be sure to submit all required documents early via fax, the web, or by mail.
Step 7: We receive the loan funds directly from the lender. Fall term disbursements (1/2 of the loan) are usually received in late August; spring term disbursements (the remaining 1/2 of the loan) are usually received in late January. Some private alternative loan lenders send us a paper check, which will be sent to you for your endorsement.
Be sure to contact our loan counselor along the way if you have any questions or concerns.