Annual Limits

Annual Limits for Loans Disbursed after July 1, 2008
Annual Loan Limits for Dependent Student
Grade Level by Credits Subsidized Maximum Total (Subsidized and Unsubsidized)
Freshman (0-25) $3,500 $5,500
Sophomore (26-56) $4,500 $6,500
Junior/Senior (57+) $5,500 $7,500
Annual Loan Limits for Independent Students
Grade Level by Credits Subsidized Maximum Total (Subsidized and Unsubsidized)
Freshman (0-25) $3,500 $9,500
Sophomore (26-56) $4,500 $10,500
Junior/Senior (57+) $5,500 $12,500
Lifetime Maximum Loan Limits
Dependent students: Maximum SUB $23,000 $31,000 Total 
Independent Students:

Maximum SUB $23,000

$57,500 Total

Interest Rates and Fees

150% Rule

Beginning July 1, 2013, a new borrower - one who has no outstanding balance on a FFEL or Direct Loan - can obtain federal Direct Subsidized loans for a maximum of 150% of the published length of his educational program. 

For example, a student enrolled in a four-year program will have six years' worth of subsidized loan eligibility. Once a student reaches the 150% mark in a particular program, future subsidized loan eligibility in that program ends. The student would be eligible only for unsubsidized loans.   

A student who reaches the 150% limitation, who has not graduated and continues to be enrolled in the same or a shorter undergraduate program, will have their interest subsidy end for all outstanding subsidized loans. Repayment does not begin, but like unsubsidized loans, the student (rather than the government) would become responsible for interest that accrues from this point forward.  

Unlike other measures in determining continued aid eligibility, this provision is not affected by the total dollar amount borrowed. Any and all periods of subsidized loan borrowing will count against the 150% time limit.

Policy for Outside Sources of Aid

Satisfactory Academic Progress

Loan Code of Conduct

Leave of Absence

Effects of Withdrawal from the College (Return of Title IV Funds)

FSA Ombudsman

Subsidized Calculation/Overaward   

The subsidized Federal Direct Stafford Loan amount cannot exceed the cost of attendance (COA) minus the expected family contribution (EFC) minus the estimated financial aid (EFA) (including any educational loans) received during the loan period. Any decrease in the COA or increase in the EFC or increase in EFA received may result in an over-award. The over-award may require loan funds previously received to be reallocated.

Enrollment Change

A student must be enrolled at least half-time (six credit hours) in eligible courses for each semester within the loan period. When a student withdraws, drops below half-time or does not enroll in a semester within the loan period, Hampden-Sydney must cancel the Federal Direct Stafford Loan disbursements with a disbursement date that is after the effective date of withdrawal or less than half-time attendance. If a student returns and enrolls within the same academic year, he must reapply to receive a Federal Direct Stafford Loan. Retroactive withdrawals or drops may require the student to immediately repay funds previously disbursed to his tuition account.

One-Semester Only Graduating Seniors

Per federal regulation, loans for graduating seniors attending only one semester of an academic year must be prorated. Proration limits the amount of the subsidized and/or unsubsidized Federal Direct Stafford Loan a graduating senior can borrow as a fall only loan.  The proration is based on a ratio of the number of hours enrolled during the semester divided by twenty-four hours multiplied by the applicable annual loan limit. If you have questions about how loan proration may affect you, please contact the Office of Financial Aid.

Exit Counseling

When you graduate or withdraw from Hampden-Sydney, you must complete online Exit Counseling for information about your rights and responsibilities as a Federal Direct Stafford Loan borrower. These are the same rights and responsibilities that were part of the Master Promissory Note (MPN) you signed. Notices will be sent to graduating seniors in mid-April if such counseling requirements apply.