The Arkansas Colleges of Health Education provides financial assistance to eligible students enrolled in eligible programs through federal and private student loans. Visit studentaid.gov for the most current information about federal and private student loans and important announcements from the Department of Education.
The Arkansas Colleges of Health Education participates in programs under the Higher Education Act of 1965, as amended (HEA) and the Federal student financial assistance programs (Title IV, HEA programs) for eligible programs.
Federal student financial assistance programs are available to eligible students in an eligible program in the form of Title IV, HEA Stafford Direct Loans through the William D. Ford Federal Direct Loan (Direct Loan) Program. The Direct Loan Program is the largest federal student loan program and the lender is the U.S. Department of Education. These loans must be repaid by the student / borrower with fees and interest. Additional information regarding loans, repayment, fees, and interest can be found at StudentAid.gov.
Student loans are to be used for educational expenses incurred by the student. Educational expenses may include tuition and fees, room, board, books, supplies, equipment, dependent childcare expenses, transportation, and rental or purchase of a computer. Because student loans must be repaid with interest, students should borrow wisely and live within a budget.
Graduate/professional students are eligible to borrow two types of Direct Loans:
Direct Unsubsidized Loans have a maximum annual and lifetime aggregate limit that can be borrowed.
| Type of Loan | Annual Loan Limits | Lifetime Aggregate Limits |
|---|---|---|
| Direct Unsubsidized Loans | Up to $20,500 per year | Up to $138,500 (no more than $65,500 in Subsidized Loans) |
Graduate or professional students enrolled in certain health professions have higher annual and lifetime aggregate Direct Unsubsidized Loans eligibility.
| Program with Higher Limits | Annual Loan Limits | Lifetime Aggregate Limits |
|---|---|---|
| Osteopathic Medicine | *Up to $47,167 per year (12 months) | Up to $224,000 (no more than $65,500 in Subsidized Loans) |
*OMS I, II and IV students have 10 months in their academic year and the annual loan limit is pro-rated to $42,722.
The lifetime aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have previously received under the Federal Family Education Loan (FFEL) Program. As a result of legislation that took effect July 1, 2010, no further loans are being made under the FFEL Program.
Effective for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. The $65,500 subsidized aggregate loan limit for graduate or professional students includes subsidized loans that a graduate or professional student may have received for periods of enrollment that began before July 1, 2012, or for prior undergraduate study.
If the total loan amount you receive over the course of your education reaches the lifetime aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.
Students who wish to borrow a Direct Unsubsidized Loan must be eligible for federal student aid and complete the following requirements for ACHE (Federal School Code: 042568) at studentaid.gov:
Direct PLUS Loans do not have a maximum and/or lifetime aggregate limit that can be borrowed. Students do have a limit on the maximum amount of financial aid they can receive for the academic year that may not exceed their cost of attendance.
Students who wish to borrow a Direct PLUS Loan must be eligible for federal student aid, not have an adverse credit history, and complete the following requirements for ACHE (Federal School Code: 042568) at studentaid.gov:
Students who apply for a Direct PLUS Loan and are found to have an adverse credit history are not eligible for a Direct PLUS Loan. These students may qualify for a Direct PLUS Loan through one of these two options:
If approved after an adverse credit history is found must complete the following requirements for ACHE (Federal School Code: 042568) at studentaid.gov:
Students who borrow direct loans must repay these loans with interest. Students should be fully aware that the initial loan amount will increase as a result of the accruing interest. The interest rate for a Direct Loan is determined by Congress and is a fixed interest rate for the life of the loan based upon when the first disbursement occurred. Students who borrow Direct Loans will have a loan fee deducted proportionately from each loan disbursement that is received. View the below charts for the most current Direct Loan Interest Rates and Fees.
Listed below are charts that provide examples of capitalization related to paying interest.
| If you pay the interest as it accrues… | If you do not pay the interest and it is capitalized… | |
|---|---|---|
| Loan Amount | $30,000 | $30,000 |
| Interest for 12 Months (annual interest rate of 6%) | $1,800 (paid as accrued) | $1,800 (unpaid and capitalized) |
| Principal to be Repaid | $30,000 | $31,800 |
| Monthly Payment | $333 | $353 |
| Number of Payments | 120 | 120 |
| Total Repaid | $41,767* | $42,365 |
*The total repaid includes $1,800 in interest that was repaid as it accrued during the 12-month deferment or forbearance period.
The example in the chart above shows you would pay $20 less per month and $598 less altogether if you pay the interest as it accrues during the 12-month deferment or forbearance period.
| If you pay the interest as it accrues… | If you do not pay the interest and it is capitalized… | |
|---|---|---|
| Loan Amount | $30,000 | $30,000 |
| Interest for 12 Months (annual interest rate of 8%) | $2,400 (paid as accrued) | $2,400 (unpaid and capitalized) |
| Principal to be Repaid | $30,000 | $32,400 |
| Monthly Payment | $364 | $393 |
| Number of Payments | 120 | 120 |
| Total Repaid | $46,078* | $47,172 |
*The total repaid includes $1,800 in interest that was repaid as it accrued during the 12-month deferment or forbearance period.
The example in the chart above shows you would pay $29 less per month and $1,094 less altogether if you pay the interest as it accrues during the 12-month deferment or forbearance period.
You may be able to claim a federal income tax deduction for interest payments you make on Direct Loans. For further information, refer to IRS Publication 970, available at irs.gov/publications/p970.
Under certain circumstances students with federal student loans may be eligible for forbearance or deferment that allows temporary postponement or reduction of federal student loan payments. Students that wish to request deferment or forbearance on their student loans must apply through their loan servicer. However, they must still continue to make monthly payments on their student loans to avoid default until they are approved for a forbearance or deferment.
What is Deferment?
A deferment is a period during which repayment of the principal and interest of your loan is temporarily delayed.
What happens to my loan during Deferment?
Students who receive a deferment on their federal student loans do not need to make payments on them. The federal government may pay the interest on certain loans during a period of deferment:
The federal government does not pay the interest for any loans that are deferred that are Unsubsidized or PLUS loans. The student is responsible for paying the interest that accrues (accumulates) during the deferment period, but your payment is not due during the payment period. If you don’t pay the interest on your loan during deferment, it may be capitalized (added to your principal balance) and the total amount you repay will be higher.
| Situations you may apply for deferment during a period of: | Is Deferment available? | If so, how long is deferment available? | |
|---|---|---|---|
| Direct Loans | FFEL Loans | Perkins Loans | |
| Enrolled at least half-time | Yes | Yes | Yes |
| Enrolled in an approved graduate fellowship program or approved rehabilitation training program if disabled | Yes | Yes | Yes |
| Unemployment or inability to find full-time employment | Yes (Up to 3 years) | Yes (Up to 3 years) | Yes (Up to 3 years) |
| Economic hardship (Includes Peace Corps service) | Yes (Up to 3 years) | Yes (Up to 3 years) | Yes (Up to 3 years) |
| Service qualifying for Perkins Loan discharge/cancellation | No | No | Yes |
| Active duty military service during a war, military operation, or national emergency | Yes | Yes | Yes |
| During 13 months following the conclusion of qualifying active duty military service, or until you return to enrollment on at least a half-time basis, which is earlier, if you: Are a member of the National Guard or other reserve component of the U.S. Armed forces and Were called or ordered to active duty while enrolled at least half-time at an eligible school or within six months of having been enrolled at least half-time | Yes | Yes | Yes |
Students who are received a Direct Loan or FFEL Program borrower who had a loan that was first disbursed (paid to you on your behalf) before July 1, 1993 may be eligible for additional deferments for such situations as teaching in a teacher shortage area, public service, being a working mother, parental leave or temporary disability. Additional information may be found from your loan servicer.
Students who have Direct Loan(s) will need to request a deferment from their loan servicer(s). Students who have Perkin Loan(s) will need to request a deferment from the school they were attending at the time they received the loan.
Students who are enrolled in school at least half-time that would like an in-school deferment may need to request an In-School deferment Form from their loan servicer. Students who have Perkin Loan(s) will need to request a In-School Deferment Form from the school they were attending at the time they received the loan. The student will provide the In-School Deferment Form to the Registrar to complete so the student may send this information to his or her loan servicer(s) or school to process and review.
Students that are granted forbearance may be able to stop making their payments or reduce their monthly payments for up to 12 months.
Students that are unable to make their scheduled loan payments, do not qualify for a deferment may be able to request a forbearance from their loan servicer. Students may be eligible to receive two types of forbearances:
The federal government does not pay the interest for any loans that are in forbearance. The student is responsible for paying the interest that accrues (accumulates) during the forbearance period, but your payment is not due during the payment period. If you don’t pay the interest on your loan during forbearance, it may be capitalized (added to your principal balance) and the total amount you repay will be higher.
Students request a loan forbearance from their loan servicer and may be required to provide documentation to support the request. The loan servicer will provide you with confirmation if your loan forbearance is approved or denied.
Students that are having any trouble making loan payments, should immediately contact their loan servicer to explore all options available to them. Students that do not qualify for a deferment or forbearance may qualify for a different repayment plan that offers lower payments than you’re currently making.
The college reports student information and their enrollment status to the National Student Clearinghouse (NSC) on a periodic basis. The NSC then reports this enrollment information to the National Student Loan Data System. This information is used to verify enrollment statuses and loan repayment dates.
Federal Student Loans offer students:
Students who are awarded a Direct Unsubsidized or Direct PLUS Loan as a graduate/professional student will have their information submitted to the Common Origination and Disbursement (COD) system by the Office of Financial Aid. Students may visit studentaid.gov to access or inquire about their Title IV Loans and/or grant data.
NSLDS is the U.S. Department of Education’s central database for student aid. It receives data from schools, agencies that guaranty loans, the Direct Loan program, and other U.S. Department of Education programs. NSLDS allows students to be informed about outstanding federal student loans:
Note: Information about your loans will be reported to the National Student Loan Data System (NSLDS). Information in NSLDS is accessible to schools and loan servicers for specific purposes as authorized by the Department of Education.
Students at ACHE who receive Direct Unsubsidized Loans or Direct Graduate PLUS Loans as a graduate/professional student for the first-time will need to complete Entrance Counseling online at studentaid.gov prior to disbursement.
Entrance Counseling provides the following important information:
The Direct Loan Program has two different two types of Master Promissory Notes (MPN) for Direct Unsubsidized loans and Direct PLUS loans. Both MPN’s may be reviewed, electronically signed and submitted online at StudentLoans.Gov.
The Master Promissory Note (MPN) is a legal document in which you promise to repay your Direct loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your student loan(s). The MPN will be a multi-year note and will be good for up to ten years and includes:
Borrowers that sign a MPN are agreeing to repay all loans that are made under a MPN even if:
Students must sign a MPN before disbursement of their loan(s) may occur and at that time will receive the Borrowers’ Rights and Responsibilities Statement. Students who require additional information about their Borrower Rights and Responsibilities should contact the Office of Financial Aid for assistance.
Students who accept federal student loans are encouraged to complete the Annual Student Loan Acknowledgement (ASLA) at studentaid.gov each academic year. If this is your first time accepting a federal student loan, you are acknowledging that you understand your responsibility to repay your loan. If you have existing federal student loans, you are acknowledging that you understand how much you owe and how much more you can borrow.
The Annual Student Loan Acknowledgement (ASLA) can be completed in less than 10 minutes. You will need to have the following information on hand when you complete this:
* first-time borrowers only
Students who graduate, withdraw or drop below half-time are required to complete Exit Counseling online at studentaid.gov within 30 days. Completing exit counseling provides you with important information to prepare you for repayment of your student loans, such as:
You will be asked to provide your contact information (name, address, e-mail address, telephone number), financial aid, income (if employed) as well as contact information for your:
Students who will receive Direct Loans will receive a Loan Disclosure Statement from the Common Origination and Disbursement (COD) System for Direct Unsubsidized Loans and Direct PLUS Loans available in an electronic format via the Direct Loan Electronic Master Promissory Note (MPN) Web site. The COD System will e-mail a message to a borrower’s e-mail address providing notice that a disclosure statement is available on the Direct Loan Electronic MPN Web site. The borrower can sign in with his or her Federal Student Aid username and password to retrieve, view, and print his or her disclosure statement(s). Students who opt out of electronic statements will receive a paper disclosure statement. The disclosure statement contains the following information:
Students may file a complaint, report suspicious activity, or provide positive feedback via the FSA Feedback System.
Students may choose to receive private (external) student loans to pay for their educational expenses up to their cost of attendance minus any other financial aid they may receive for the academic year. Private loans may be found through a variety of lenders with different interest rates (fixed and/or variable), repayment plans, forbearance and deferment options. Additional information regarding the differences between federal and private student loans may be found at StudentAid.ed.gov.
The Arkansas Colleges of Health Education uses the FASTChoice web tool to host our historical lender list along with disclosure information required by the Federal Reserve Board of Governors under Section 128(3)(1) of the Truth in Lending Act (TILA). The Fast Choice web tool is, used to provide a comparison of historical lenders students at the Arkansas Colleges of Health Education have previously used within the last 3 years. Students may search for and apply for private loans on their own and is not required to use the historical lender list. The ACHE Office of Financial Aid will process any approved private student loans for eligible students enrolled in an eligible program.
A Private Education Loan Applicant Self-Certification Form is available along with the information needed for the completion of the form (to the extent that ACHE possesses the information) upon request from an enrolled or admitted student private education loan applicant or the parent loan applicant of an enrolled or admitted student.
Students should compare private student loans against federal student loans before deciding to borrow from private sources. Private student loans may not be able to provide students with as many benefits and may be more expensive than Federal Student Loans. Contact the Office of Financial Aid via e-mail or phone to discuss student loan options.
It is important to check your credit report as an adverse credit history may affect your ability to be approved for a Direct PLUS Loan or private loans. Federal law allows anyone to request a free credit report every 12 months atAnnualCreditReport.com, which allows you to check your credit with three major credit reporting agencies (Equifax, Experian and TransUnion).
The three major credit reporting agencies generally have the same information, so we recommend you check your credit at different intervals throughout the year. Checking your credit often ensures information is correct and allows you to catch signs of identity theft early.
Repayment of your student loans is important as if you are delinquent or default on your students loans you may be faced with:
Students may wish to reduce student loan debt after leaving school by participating in programs such as, but not limited to:
Public Service Loan Forgiveness Program
Students who are employed by a government or not-for-profit organization may be able to receive loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program. PSLF forgives the remaining balance on Direct Loans after 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Visit studentaid.gov for additional information.
State Loan Repayment
Students may wish to apply for student loan repayment on their own through their state or other organization.
