What are Health Professions Student Loans?The Health Professions Student Loan (HPSL) is a low-interest, long-term federal loan made to undergraduate and graduate students in the health professions to help pay for their cost of education. HPSL is a loan program of the Department of Health and Human Services. The University of Mississippi is responsible for administering the loan program on our campus. Students repay the loan directly to The University. Health Professions Student Loans are need-based aid. Eligibility is based on financial need as determined by federal guidelines. Interest does not accrue on the loan for the student during:
Advantages of the Health Professions Student Loan
Eligibility for Health Professions Student LoansYour HPSL eligibility is determined by the Financial Aid Office and is based on information you provided in the Free Application for Federal Student Aid (FAFSA). Some of the required criteria is as follows:
Regulation Z RequirementsPrivate Loan Regulations (Title X of the Higher Education Opportunity Act) As of February 14, 2010, both private lenders and institutions offering private loans to students must comply with a new set of regulations per the Federal Reserve Board. Under the new laws, an institution offering private loans for postsecondary educational expenses (i.e. McKinstry Loans, Health Profession Student Loans, etc.) must first provide a disclosure about loan terms and features at the time of application and must disclose information about federal student loan programs that may offer less costly alternatives. If the initial application reaches an approval status, a second loan disclosure statement must be provided to the student at that time. If a student accepts the loan terms provided in the second disclosure statement, a third final disclosure must be provided when the loan is consummated. An additional piece of the new private loan regulations requires an applicant to complete a “self-certification form” and return it to the institution before the loan may be approved. The “self-certification form” may be found here, then return the completed form to the institution. If you need assistance completing the form, please visit the Office of Financial Aid at Ole Miss. Last, an institution must provide the student with a 3 day rescission or “right-to-cancel” period after the final loan disclosure form is sent to the student. The 3 day rescission period means that once the school has certified your loan and it is ready to be disbursed, there is a mandatory 3 business day waiting period before the institution may disburse the loan funds Below is an example of what to expect if you apply for a private loan:
If you have any questions related to the new regulations, please visit our office.
How Much Can I Borrow?Health Professions Student Loans amounts vary based on amount of funds received from the Federal Government and the number of applicants demonstrating need. Interest RatesThe interest rate is computed at the rate of 5% per annum simple interest on the unpaid balance. The Application ProcessBecause federal regulations require that awards first be made to the most needy students, the Office of Financial Aid will determine your eligibility. Please read the following information:
Disbursements of FundsThe loan proceeds will be processed through the Office of Financial Aid. Funds will credit first to your Bursar bill and any excess funds will be mailed to your permanent address or directly deposited to your personal account. |
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