The William D. Ford Federal Direct Loan Program is a federal student loan program under which eligible students and parents borrow directly from the U.S. Department of Education (ED). Students interested in participating in this program must complete the Free Application for Federal Student Aid (FAFSA).
In addition to completing the FAFSA, a student who is offered a Direct Subsidized Loan, Direct Unsubsidized Loan or Direct PLUS Loan must complete a Master Promissory Note (MPN) and complete an Entrance Loan Counseling Session required by ED.
Federal Direct Subsidized Loan
Available to undergraduate students who demonstrate financial need as determined by federal guidelines. The U.S. Department of Education pays interest on Direct Subsidized Loans:
- While the student is enrolled in school at least half time (6 or more hours)
- For the first six months after the student is no longer enrolled (referred to as a grace period)
- During a period of deferment (a postponement of loan payments)
Federal Direct Unsubsidized Loan
Available to undergraduate, graduate and professional students. There is no requirement to demonstrate financial need. With an unsubsidized loan, the student is responsible for paying all interest that accrues during all periods (in school, grace and deferment periods). You may choose to pay only the interest portion when not required to make payments, which would keep your loan balance at the principal amount. If you choose to not to do so, the interest will be capitalized (added to the principal amount of your loan), resulting in an increase in both total debt and the amount of monthly payments once you are required to start making payments on your loan.
Parent Loan for Undergraduate Students
A PLUS is a loan that a parent of a full or part time undergraduate, dependent student takes out to assist the student in paying for college. The applicant is subject to a credit check. The borrowing limit for PLUS loans is the cost of attendance minus any aid the student will receive. Interest rates are adjusted every year on July 1st with a cap of 9%.
- Students whose parent(s) have been denied a PLUS may be eligible to receive additional Unsubsidized Loan funds.
Direct Loan Entrance Counseling
Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You’ll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.
You will be required to sign in using your FSA ID username and password. If you do not remember your FSA ID login, you can click here and follow the steps to retrieve it.
When the entrance counseling is completed successfully, confirmation will be sent to the BHCLR Financial Aid Office from the U.S. Department of Education.
- Entrance counseling must be completed in one session.
Master Promissory Note
MPN is a legal document in which the student promises to repay the loans and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of the loan(s).
You will be required to sign in using your FSA ID username and password. If you do not remember your FSA ID login, you can click here and follow the steps to retrieve it.
Direct Loan Exit Counseling
This process is required for all BHCLR student borrowers graduating, leaving school, or dropping below half-time enrollment. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment.
You will be required to sign in using your FSA ID username and password. If you do not remember your FSA ID login, you can click here and follow the steps to retrieve it.
When the exit counseling is completed successfully, confirmation will be sent to the BHCLR Financial Aid Office from the U.S. Department of Education.
- This step is required prior to you being approved for graduation.
- Exit counseling must be completed in one session.
Loan Reminder and Limits
First year, first time borrowers will not have funds disbursed to BHCLR until 30 days after classes begin.
Every loan must be delivered in two equal disbursements. The second disbursement must be delivered after the midpoint of the loan period. Borrowers typically receive one disbursement to coincide with fall and one to coincide with spring. Students enrolled for one semester only will receive one disbursement to coincide with the beginning of the semester and one disbursement following the midpoint of the semester.
Students must be enrolled in at least six (6) credit hours to be eligible for a student loan. Classes that you have successfully completed (a grade of C or better) will not be considered in determining your enrollment status for federal financial aid which includes student loans.
Borrowers Rights and Responsibilities – Click here to view pdf
Withdrawal
Student withdrawal from Baptist Health College Little Rock (BHCLR) may be a voluntary option to a student except during times of investigative suspension, disciplinary action or if dismissal for cause has occurred or may be pending.
Withdrawal from BHCLR may be a voluntary option to students up to the last day to withdraw as published in the BHCLR Academic Calendar, found in the BHCLR Catalog and on the BHCLR Website. A student whose behavior does not follow the schools’ policies and values will be considered from Administrative Withdrawal at any point during the semester. A student can not voluntarily withdraw during suspension for investigation or if dismissal is pending.
Process
Student Withdrawal (W)
- The student may voluntarily withdraw from BHCLR before the last day for a student withdrawals as stated in the BHCLR Academic Calendar by:
- Completing a BHCLR Withdrawal Request Form
- Completing the appropriate form(s) for affiliate institution as applicable; and
- Submitting a written statement of the reason for withdrawal
- Complete and submit all required forms to the coordinator or director of the program enrolled.
Administrative Withdrawal (WX)
- A student discontinuing study without following the policy for withdrawal or after the withdrawal date published on the Academic Calendar, shall be placed on Administrative Withdrawal (WX).
- The administrative action is recorded as an Administrative Withdrawal (WX) on the official transcript.
- The student is notified of an Administrative Withdrawal via certified US mail.
Student withdrawal document(s) are placed in the student academic file and maintained according to current student record policies.
Financial Refund
A student who officially withdraws or is withdrawn from Baptist Health College Little Rock is eligible for a financial refund as follows:
The refund schedule is based on the official date of withdrawal (voluntary or administrative) of a student. The official date of withdrawal is defined as:
- The student’s date of last documented attendance at any BHCLR scheduled learning activity (classroom, skills laboratory, computer laboratory, clinical laboratory, etc.)
- REFUND METHODOLOGY FOR ALL STUDENTS:
If the official date of withdrawal falls:
Before the end of the fifth business day in a semester = 100%
After the fifth, but before the end of the tenth business day in a semester = 50%
After the tenth business day in a semester = 0%
With the exception of the $100 registration fee, all tuition and fees payable to BHCLR will be eligible for refund according to the above schedule. Tuition, fees, and expenses collected by outside and/or partnering institutions and vendors will be refunded according to the policy of that institution and/or vendor. Examples of such expenses are textbooks, uniforms, Pulaski Technical College tuition and fees, etc.
Refunds are calculated based on the official date of withdrawal. A student must initiate withdrawal from the program by submitting a Withdrawal Request Form before a refund will be processed. Upon withdrawal, any credit balance resulting from Baptist Health Foundation funds will be returned to the scholarship fund account. The amount returned will not exceed the original amount of the scholarship.
Tuition and fee refunds are made within 30 days of withdrawal and after all outstanding balances to the school and supporting institutions are paid.
Title IV funds (Federal PELL and Stafford Loans) are earned in direct proportion to the length of time a student remains enrolled. If a student receiving Title IV funds discontinues study, for any reason, during the first sixty (60) percent of an academic semester, aid must be repaid by the student to BHCLR and/or the US Department of Education. Any repayment of aid as a result of a Return to Title IV calculation will be applied to the student account prior to tuition/fee refund.
RETURN OF TITLE IV FUNDS
This policy applies to students who receive federal student aid (Federal Pell Grant and Federal Direct Subsidized or Unsubsidized Loans) and completely terminate enrollment prior to completing 60% of the enrollment period.
Termination of enrollment can be the result of any of the following actions:
- Student initiates an official withdrawal from BHCLR
- Student is administratively dropped by instructors from all courses due to non attendance.
- Student is administratively withdrawn from all courses as a result of disciplinary action.
- Student is considered an unofficial withdrawal by receiving all failing grades, or a combination of failing grades, and either instructor initiated or student initiated drops.
The amount of Title IV aid an institution must refund to the federal aid programs is determined by the Federal Return to Title IV fund formula as specified in Section 484B of the Higher Education Act. BHCLR utilized software provided by the Department of Education to calculate the amount of aid that must be refunded which was initially utilized to pay institutional charges. The depart date provided by the Registrar’s Office is utilized to document the last date of enrollment. If the student is considered an unofficial withdrawal, and failing grades is earned for non attendance, the instructor must provide a last date of attendance for the course. This date is used in the Return of Title IV Funds calculation. If a date cannot be determined for an unofficial withdrawal, the mid point of the semester is utilized.
BHCLR restores unearned aid used to pay institutional charges in the following order within 30 days of the withdrawal determination:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant
A repayment may also be required of the student when a refund has been issued to a student from financial aid funds in excess of the amount utilized to pay institutional charges that the student fails to earn by maintaining enrollment. BHCLR will also restore these funds to the appropriate source in the above order within 30 days of the withdrawal determination.
Students are billed for any unearned aid that was refunded to the federal aid program that caused institutional charges to be unpaid. Additionally, students will be billed for any monies the school returns on the student’s behalf that is owed to the federal aid programs as a repayment of funds disbursed directly to the student for non institutional charges. Copies of the Return to Title IV calculation are provided to the student along with a bill when their Return to Title IV calculation is processed.
If a student earns more aid than was disbursed, the student may be eligible to receive a post withdrawal disbursement. Students are notified by mail of their eligibility for such a disbursement. If the post withdrawal disbursement is loan funds the student must confirm in writing that the loan funds are still wanted. A post withdrawal of grant funds is automatically credited to the student’s account for outstanding charges. A student, who does not have an outstanding balance, must confirm in writing their desire to receive grant funds.
If a student is entitled to an institutional refund of tuition and fees, those monies will first be applied to any outstanding balance to the school before being refunded to the student.
Terms and Conditions – Click here to view pdf
Loan Repayment Schedule – Click here to view pdf
Locating your student loans
Are you not sure who holds or collects on your federal student loans?
Visit the National Student Loan Database System and review your student loan history and locate your loan holders.