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.
Institutions are required to inform the student or parent that Direct Stafford loans 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.
Federal Direct Subsidized & Federal Direct Unsubsidized Loans
Undergraduate students may be eligible for the Direct Loan Program. These are low-interest loans that offer a range of flexible repayment options. Repayment can also be deferred while the student is enrolled at least half-time. Loan amounts are based on a number of 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. The student is responsible for the interest accrued 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.
The amount borrowed may not exceed the cost of attendance minus other aid per academic year. The aggregate limit for dependent students is $31,000, up to $23,000 of which can be Federal Direct Subsidized Loans. The aggregate limit for independent students (and dependent students whose parents cannot borrow a Federal Direct PLUS Loan) is $57,500, up to $23,000 of which can be Federal Direct Subsidized Loans.
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/interest-rates. 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.