Loan requirements

Entrance Loan Counseling for Direct Loan

Regulations require that you receive loan counseling prior to your first disbursement of HSU Direct Loan funds even though you may have borrowed and received entrance counseling at a prior institution. This counseling is intended to provide you with important information about your responsibilities and rights as a borrower, and to ensure that you are making a knowledgeable decision to borrow. Funds will not be released until this requirement has been met.

Loan Counseling Instructions

Follow the instructions at the link below; take the quiz, and, if you pass it, print out the checklist of your "Rights and Responsibilities" for your records.

Entrance Loan Counseling site

Master Promissory Note (MPN)

The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). We should receive an electronic record of your MPN automatically; keep any copy you print for your records.

Master Promissory Note site. AOL users, look for the link to help use the e-MPN correctly.

Exit Loan Counseling for Direct Loan

You are REQUIRED to complete a loan EXIT COUNSELING session if you are:

  • Graduating
  • Withdrawing
  • Taking Leave of Absence
  • Dropping below half-time enrollment

The Direct Loan Servicing Center offers comprehensive and informative Online Exit Counseling, and is a fast and easy way to meet this obligation. Borrowers must complete Exit Counseling within 30 days of notification, or may have University services, such as transcripts, withheld until completion of the requirement is confirmed.

Direct Loan Online Exit Counseling

Borrowers with loan questions or concerns may contact the Financial Aid Office to schedule a loan counseling appointment or sign up for a small-group Exit Counseling session.

Loan repayment

At Humboldt State University, the average student debt incurred through federal student loan programs is about $18,500 for exiting undergraduates and about $27,000 for exiting borrowers in graduate programs. The Financial Aid Office monitors the aggregate loan amounts of HSU borrowers and may caution students when they have high loan levels.

There are loan calculators available to help you estimate your monthly payments based on your aggregate loan amount and projected potential monthly earnings. Estimating your payments now can help you to set a borrowing limit.

The William D. Ford/Stafford loan program has a six-month grace period that begins when you cease attendance or drop below half-time enrollment (including approved educational leaves). You are not required to begin paying back your loans until the end of the grace period.

Subsidized Direct Loans do not accrue interest until the end of the grace period. Unsubsidized Direct Loans, on the other hand, accrue interest even while you are in school. You may choose to pay the interest at this point or let it accrue.

Although you are not required to pay the accumulating interest while you are in school, we suggest that you try to make this payment if at all possible. Once the 6-month grace period ends, any unpaid interest that has accumulated is capitalized, that is, the unpaid interest is added to the principal of the loan.

The William D. Ford Direct Consolidation Loan or Federal Consolidation Loan programs allow you to combine one or more federal education loans into a new loan that offers several advantages such as one monthly payment, flexible repayment options, and reduced monthly payments.

Careful thought must be given to loan consolidation, as it is not the best choice for all borrowers. A Financial Aid Office counselor can assist with questions regarding your student loans and loan consolidation issues.

Beware of making hasty decisions based on mail and telephone solicitations from lenders marketing loan consolidation products—be a cautious consumer to determine the course of action and consolidation loan program that is best for you.

The Department of Education reports the making of federal student loans, their repayment and the failure to repay to any credit bureau organization with which the Secretary of Education has an agreement. This payment history will, positively or negatively, affect your future ability to qualify for any loan, including credit cards, cars, houses, etc.

It is important that you stay in touch with the loan servicer(s). If you change your name, move, leave school, transfer to another educational institution, or change your graduation date, inform your servicer right away. If the servicer's records indicate that you are no longer enrolled, or if your servicer cannot reach you, your loan could go into delinquency, or possibly default&mash;a situation with dire consequences.

With your federal PIN you may access information about all of your federal student loans on the National Student Loan Data System, including current loan holder or servicer.

Once repayment starts, if any problems arise that affect your ability to repay, you must remember to contact your loan servicer(s) immediately to discuss your situation to avoid jeopardizing your credit record.

Federal student loans have benefits you may qualify for to delay repayment or to arrange other repayment options; be proactive with your servicer to make these arrangements. A Financial Aid counselor may also be able to advise you about loan repayment issues and is a campus resource for such questions.

Web links for student loan and money management issues:

Student Loan Sites:
Money Management Sites:

Alternative/private Loans

Students seeking alternative/private loans are required to complete the Alternative/Private Loan Process & Questionnaire (pdf) before certification will take place.

If you have borrowed an alternative or private loan while at HSU, know that such loans carry their own rules and regulations and may or may not charge interest during the time you are enrolled in school. Check with your lender for more information regarding interest, grace periods, repayment, loan terms and conditions.