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

Part-time Enrollment and Financial Aid

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 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 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 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 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.

Entrance Counseling

To help you understand your rights and responsibilities as you borrow federal loans for the first time, Federal Regulations mandate that you complete entrance counseling. The entrance counseling requirement must be met before the first disbursement of your loan(s) can be made to Hampden-Sydney.

The Direct Loan Entrance Counseling Guide provides an overview of information every new borrower needs to know before taking out their first loan.  Some key points of entrance counseling are:

  • understanding the terms and conditions of your loan
  • understanding loan types and loan limits
  • tips for borrowing responsibly
  • avoiding default
  • deferment and payment plan options

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 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.

The Direct Loan Exit Counseling Guide provides an overview of information that will help graduating seniors and students who have withdrawn from the College successfully complete online exit counseling which is required [by law] by the U.S. Department of Education and Hampden-Sydney College.