Loans

The Arkansas Colleges of Health Education provides financial assistance to eligible students enrolled in eligible programs through federal and private student loans. Below is important information about student loans.  Visit studentaid.gov for the most current information about federal and private student loans and important announcements from the Department of Education, such as COVID-19 emergency relief flexibilities.

Federal Student Aid

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 back with origination fees and interest charged to the student, for which additional information may be found at StudentAid.gov.

Student loans should be borrowed wisely and to pay for educational expenses to pursue a program of study. Educational expenses may include costs for: tuition, fees, room, board, books, supplies, equipment, dependent child care expenses, transportation, and rental or purchase of a personal computer.

Direct Loans

Graduate/professional students are eligible to borrow two types of Direct Loans:

• Direct Unsubsidized Loans as a graduate/professional student
• Direct PLUS Loans as a graduate/professional

Direct Unsubsidized Loans

Direct Unsubsidized Loans have a maximum annual and lifetime aggregate limit that can be borrowed.

Graduate or Professional Annual Loan Limits

Graduate or professional students enrolled in certain health professions have higher annual and lifetime aggregate Direct Unsubsidized Loans eligibility. 

*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: 

• Free Application for Federal Student Aid (FAFSA®) each academic year
• Entrance Counseling for Subsidized/Unsubsidized/PLUS Loan as an undergraduate or graduate/professional student one-time only
• Master Promissory Note for Subsidized/Unsubsidized Loan as a graduate/professional student one-time only

Direct PLUS Loans

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: 

• Free Application for Federal Student Aid (FAFSA®) each academic year
  • Federal School Code for ACHE: 042568
• Entrance Counseling for Subsidized/Unsubsidized/PLUS Loan as an undergraduate or graduate/professional student one-time only
• Master Promissory Note for PLUS Loan as a graduate/professional student one-time only

Adverse Credit History

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:

1. Obtaining an endorser who does not have an adverse credit history or
2. Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history.

If approved after an adverse credit history is found must complete the following requirements for ACHE (Federal School Code: 042568) at studentaid.gov: 

• A new Master Promissory Note for a PLUS loan as a graduate/professional 
• PLUS Credit Counseling

Direct Loan Interest Rates & Fees

Students who borrow Direct Loans are required to repay those loans back with interest, which will affect the total amount that must be repaid.  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.

Sample Loan Repayment Schedule

Listed below are two charts that gives examples if you pay the interest as it accrues or if you don’t pay the interest and it is capitalized for two types of loans:

• Direct Unsubsidized Loan as an undergraduate student:
  The chart below shows the difference in the total amount you would repay on a $30,000 Direct Unsubsidized Loan if you pay the interest as it accrues during a 12-month deferment or forbearance period, compared to the amount you would repay if you do not repay the interest and it is capitalized at the end of the deferment or forebearance period.

*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.

• Direct Graduate Loans
  The chart below shows the difference in the total amount you would repay on a $30,000 Direct PLUS Loan if you pay the interest as it accrues during a 12-month deferment or forbearance period, compared to the amount you would repay if you do not repay the interest and it is capitalized at the end of the deferment or forbearance period. .

*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.

Tax Deduction

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.

Forbearance or Deferment Options

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:

• Federal Perkins Loan
• Direct Subsidized Loan, and/or
• Subsidized Federal Stafford Loan

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.

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.

How to request a deferment

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.

What is forbearance?

Students that are granted forbearance may be able to stop making their payments or reduce their monthly payments for up to 12 months.

What happens to my loan during forbearance?

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:

• Discretionary forbearance may be granted by lender due to:
• Financial Hardship
• Illness
• Mandatory Forbearance will be granted by the lender if you meet the eligibility criteria:
• Medical, dental internship or residency programs, and you meet certain requirements
• Total amount you owe each month for all the student loans you received is 20 percent or more of your total monthly gross income (additional conditions apply).
• Serving in a national service position for which you received a national service award.
• Performing teaching service that would qualify for teacher loan forgiveness.
• Qualify for partial repayment of your loans under the U.S. Department of Defense Student Loan Repayment Program.
• Member of the National Guard and have been activated by a governor, but you are not eligible for military deferment.

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.

How to request a forbearance

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.

Trouble Making your Student Loan Payments

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.

National Student Clearinghouse

The college reports students 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.

Why should I take out federal student loans instead of a private loan?

Federal Student Loans offer students:

• Fixed interest rates
• Several Types of Repayment plans that are affordable
• Consolidation options for your federal student loans
• Forbearance or Deferment
• Public Service Loan Forgiveness Programs for Direct Loans

Common Origination and Disbursement

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. for origination and disbursement. Students may visit studentaid.gov to access or inquire about their Title IV Loans and/or grant data.

National Student Loan Database System (NSLDS)

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:

• Types and amounts
• Interest accrued
• Loan Servicers
• Repayment Amounts

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.

Entrance Counseling

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: 

• To extent practicable, any effect accepting the loan will have on the eligibility of the borrower for other forms of aid 
• An explanation of the use of the Master Promissory Note 
• The seriousness and importance of the students’ repayment obligation 
• Information on how interest accrues and is capitalized during periods when interest is not paid by the borrower or the U.S. Dept of Education 

• Borrowers of unsubsidized or graduate PLUS loans have the option of paying interest while in-school 
• Definition of half-time enrollment and the consequences of not maintaining half-time enrollment is available in Eligibility 
• Importance of contacting appropriate offices if student withdraws prior to completion of program of study, so the ACHE Office of Financial Aid can provide Exit Counseling, including repayment options and loan consolidation 
• Examples of monthly repayment amounts based upon:  
  • Range of student levels of indebtedness of subsidized and unsubsidized loans or graduate PLUS loan borrowers with subsidized and unsubsidized loans, depending upon the types of loans the borrower has obtained or 
  • Average cumulative indebtedness of other borrowers in the same program(s) of study as the borrower at the same school once available 

• The obligation of the borrower to repay the full loan amount regardless of whether the borrower complete the program, takes longer than normal to complete the program, is unable to obtain employment upon completion, or is otherwise dissatisfied with or does not receive educational or other services the borrower purchased from the school 
• Consequences of loan default, including adverse credit reports, federal delinquent debt collection procedures, and litigation 
• For first-time borrowers subject to the 150 percent Direct Subsidized Loan eligibility limitation, the limitation on eligibility for Direct Subsidized Loans and possible borrower responsibility for accruing interest on previously received Direct Subsidized Loans, including: 
  • Loss of eligibility for additional subsidized loans 
  • How a borrower’s maximum eligibility period, remaining eligibility period, and subsidized usage period are calculated
  • Possibility of becoming responsible for accruing interest on previously received Direct Subsidized Loans and the portion of a Direct Consolidation Loan that repaid a Direct Subsidized Loan during in-school status, the grace period, authorized periods of deferment, and certain periods under the Income-Based and Pay As You Earn repayment plans
  • Impact of borrower responsibility for accruing interest on the borrower’s total debt 

• Information about the NSLDS and how the borrower can access the borrowers’ records 
• Name and contact information for individual the borrower may contact with questions about the borrowers’ rights and responsibilities or the terms and conditions of the loan 

• Comparisons of maximum interest rates for an unsubsidized loan and for graduate PLUS, periods when interest accrues on unsubsidized and on graduate PLUS, and points at which unsubsidized loans and graduate PLUS enter repayment 
• Disbursement, for each borrower, compliance with disclosure/counseling requirements 

Master Promissory Note

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:

• How interest is calculated
• When interest is charged
• Available repayment plans
• Deferment and cancellation provisions
• Your Personal Identifying Information
• Your School Information
• Information about Two References

Borrowers that sign a MPN are agreeing to repay all loans that are made under a MPN even if:

• You don’t complete your education
• You can’t get a job after you leave school, and/or
• You didn’t like the education you received

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.

Annual Student Loan Acknowledgment

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:

• Verified FSA ID
• School Name*
• Degree Name*
• Field of Academic Program*

* first-time borrowers only

Exit Counseling

Students who graduate, withdraw or drop below half-time are required to complete Exit Counseling online at studentaid.gov shortly before or within 30 days.  Completing exit counseling provides you with important information to prepare you for repayment of your student loans, such as:

• Average anticipated monthly repayment amount based on borrower’s indebtedness or on average indebtedness of borrowers who obtained loans for attendance at the institution or in the borrower’s program of study  
• Available repayment plan options, including a description of the different features of each plan and sample information showing, for each plan, the average anticipated monthly payments, interest paid, and total payments 
• Options to prepay or pay on a shorter repayment schedule 
• Option to consolidate a loan and the consequences of loan consolidation, including total interest and fees to be paid, length of repayment, underlying loan benefits (e.g., grace periods, forgiveness, cancellation, deferments, etc.), prepayment option, change of repayment plan options, and borrower benefit programs that may vary among different lenders 
• Debt Management Strategies designed to facilitate repayment 
• Option to change repayment plans 
• Information on how to contact the entity servicing the borrower’s loans 
• Use of the Master Promissory Note 
• Seriousness and importance of the repayment obligation 
• Obligation to repay the full loan amount even if the borrower does not complete the program, is unable to obtain employment upon completion, or is otherwise dissatisfied with or does not receive educational or other services purchased from the school 
• Consequences of loan default, including adverse credit reports, federal delinquent debt collection procedures, and litigation 
• General description of the terms and conditions for full or partial forgiveness or discharge of principal and interest, deferment of principal or interest, forbearance, or extension of repayment period 
• Forgiveness or discharge benefits available to a FFEL borrower who consolidates his or her loan into a Direct Consolidation Loan 
• A paper or electronic copy of the information the U.S. Department of Education (ED) makes available under Section 485(d) of the Higher Education Act of 1965 (HEA) as amended 
• Availability of the Ed’s Federal Student Aid Ombudsman’s office 
• General description of the types of tax benefits that may be available to borrowers 
• Information on availability of Title IV loan information in the National Student Loan Data System (NSLDS) and how borrowers may access his or her records 
• For first-time borrower subject to the 150 percent Direct Subsidized Loan eligibility limitation, information on: 
  • How borrower’s maximum eligibility period, remaining eligibility period, and subsidized usage period are determined 
  • Borrower’s total subsidized usage periods at the time of exit counseling  
  • Consequences of continued borrowing or enrollment, including the possible loss of eligibility for additional subsidized loans and possibility for becoming responsible for accruing interest on previously received subsidized loans as well as portions of Direct Consolidation Loans that repaid a Direct Subsidized Loan during in-school and grace periods, periods of authorized deferment, and certain periods under the Income-Based and Pay As You Earn repayment plans 
  • Impact of becoming responsible for accruing interest on total debt 
  • ED will inform borrower of whether he or she is responsible for accruing interest on his or her subsidized loans 
  • Borrower can access NSLDS to determine whether he or she is responsible for accruing interest on any Direct Subsidized Loans or portion of Direct Consolidation Loans that repaid a Direct Subsidized Loan 

• Document, for each borrower, compliance with counseling requirements 

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:

• Closest living relative
• Two references who live in the United States
• Current or expected employer (if known)

Loan Disclosure Statement

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:

• Anticipated date and amount of the disbursement before the disbursement is made.

• • Which funds are from subsidized loans and which are from unsubsidized loans.
  • Student’s right to cancel all or a portion of a loan or loan disbursement and have the loan proceeds returned to the U.S. Department of Education.
  • Procedures and deadlines by which the student must notify the school that he or she wishes to cancel the loan or loan disbursement.

• Disbursement Notification
  • Notice when FSA loan funds are credited to the student’s account.
  • Notification will be sent no earlier than 14 days before and no later than 14 days after crediting the student’s account.

Federal Student Aid Feedback System

Students may file a complaint, report suspicious activity, or provide positive feedback via the FSA Feedback System.

Private Student Loans

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.

Obtaining a Credit Report

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.

Consequences of not Repaying Student Loans

Repayment of your student loans is important as if you are delinquent or default on your students loans you may be faced with:

• Adverse credit reports, federal offset and litigation
• Charges may be added to your loans, such as:
• School’s collection expenses
• Late charges
• Attorney’s fees
• Repayment schedules for loans that have been accelerated are more stringent than the original repayment schedule.
• No longer eligible for any deferment provisions
• Federal and State tax refunds may be seized
• Wages garnished
• Borrower loses eligibility for further funding from the Federal Student Aid programs and may not qualify for private loans if unable to meet credit check criteria.

Student Loan Forgiveness/Repayment

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
• State Loan Repayment Program

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.