Federal Direct Loan
Direct Subsidized, Direct Unsubsidized and Direct PLUS Loans obtained through the Direct Loan Program® are acquired directly from the U.S. Department of Education. Students who receive a student loan of any type have a legal obligation to repay the loan. The student’s degree of success at Hondros College of Nursing does not alter this obligation. Terms and conditions of Federal Student Loans (Direct and Direct PLUS Loans) are listed on the Master Promissory Note signed by the borrower accepting the loan. To view a sample Master Promissory Note, go to https://studentaid.gov/mpn/
Institutions are required to inform the student or parent that Direct Loan information along with associated enrollment statuses will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by the student/parent, guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
As required by the Higher Education Opportunity Act, HCN has established and abides by a Title IV Code of Conduct. The following link provides HCN’s Title IV Code of Conduct: https://www.hondros.edu/tuition-and-financial-aid/title-iv-code-of-conduct/
Federal Direct Subsidized & Federal Direct Unsubsidized Loans
Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education. Undergraduate students may be eligible for the Direct Loan Program. These interest-based loans offer a range of repayment options. Repayment can also be deferred while the student is enrolled at least half-time. Loan amounts are based on several factors, including the number of credit hours taken each term and grade level as follows:
| 0-35 Credits Earned | Freshman Level Loan Limits |
| 36-71 Credits Earned | Sophomore Level Loan Limits |
| 72 or more Credits Earned | Junior and Senior Level Loan Limits |
Federal Direct Subsidized Loans
Available to undergraduate students who demonstrate financial need and otherwise meet the eligibility criteria. The federal government pays the interest on the loan while the student continues to be enrolled at least half time.
Federal Direct Unsubsidized Loans
Available to undergraduate and graduate students, regardless of financial need. Interest is charged during in-school attendance, during post-enrollment, during deferments, and during grace periods. The student is responsible for the accrued interest on the loan. The student may allow the interest to accumulate over the loan period, but Hondros College of Nursing suggests that the student pay the interest while in school.
Students requesting to use Direct Loans will be required to complete a Master Promissory Note (MPN) and Entrance Counseling (EC), if they are first-time borrowers.
Students begin repaying the loan after ceasing to be enrolled at least half time. Additional information on repayment, interest rates and loan fees for Federal Direct Loans is available at https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized. Monthly payments are based on aggregate borrowing, though the minimum monthly payment is $50 for each loan. Repayment is usually completed within 10 years. Students who leave school or drop below half-time status are contacted by their loan servicer to establish repayment schedules. Students must notify the college and their lender of a change in address.
Loan Exit Counseling
Federal student aid regulations require that all borrowers complete loan exit counseling for their Federal Direct Loans. Students must complete loan exit counseling when they are graduating, leaving Hondros College of Nursing, or enrolling for fewer than six credit hours. Loan exit counseling notifications are provided to all identified students, and students may visit https://studentaid.gov/exit-counseling/ to complete the process.
Federal Direct Plus Loans
This loan allows parents of undergraduate students who are dependent by federal definition to borrow the maximum of educational costs less financial aid per academic year (3 quarters). Additional information on interest rates and loan fees for Federal Direct Loans is available at https://studentaid.gov/plus-app/ . A credit check is performed to establish creditworthiness. Any credit refund created by a Federal Direct PLUS loan will be paid to the parent.