2010-2011 HBU Catalog - Houston Baptist University

half-time, but repayment begins six months after dropping below half-time. The student is the borrower and must
attend HBU loan counseling before the first loan at HBU can be released. A first year student demonstrating
financial need may borrow up to $3,500 a year. A second year status undergraduate may borrow up to $4,500 a
year. Students who have achieved third or fourth year status may borrow $5,500 a year. Graduate students are
eligible to borrow $8,500 a year. These loan limits are coordinated into the financial aid package, and may not
exceed need. Maximum subsidized loan debt is $23,000 for undergraduates, and $65,500 for graduate or
professional study, including amounts borrowed as an undergraduate student. Recipients must submit the Free
Application for Federal Student Aid.
Stafford Unsubsidized Loan for Dependent Students
The same eligibility requirements as the Stafford Subsidized Loan apply except students do not have to
demonstrate need. Applicants must seek aid from the Stafford Subsidized Loan before applying for the Stafford
Unsubsidized Loan, and students can have this loan in combination with the Stafford Subsidized Loan. The
student is responsible for the interest that accrues on the Stafford Unsubsidized Loan while in school and
deferment periods. Some deferment options are available. The loan limits are $2000 more than the Stafford
Subsidized Loan. Recipients must submit the Free Application for Federal Student Aid.
Stafford Unsubsidized Student Loan for Independent Students
This loan is available to independent undergraduate and graduate students. The annual limit is $4,000 for first
and second year undergraduates. Students who have achieved third or fourth year status are eligible to borrow up
to $5,000 annually, and graduate students may borrow up to $12,000 annually, not to exceed the cost of
education. These amounts are in addition to the Stafford Subsidized Loan amounts.
The subsidized and unsubsidized Stafford Loan interest rates are variable and adjusted on an annual basis every
July 1, but will not exceed 8.25%. The borrower will be assessed a small origination/insurance fee. Repayment of
principal begins six months after the borrower ceases at least half-time enrollment. All loans must be repaid.
Federal PLUS Loans for Graduate Students (GRPL)
Like parent PLUS borrowers, graduate student PLUS borrowers will undergo a credit check before
borrowing and will enter repayment on the date of the final loan disbursement. The maximum amount
varies, there are some deferment options available, and the interest rates vary. Recipients must submit the
Free Application for Federal Student Aid.
Federal Parent Loan for Students (PLUS)
This loan is for parents of undergraduate student who are enrolled at least half time. A credit-worthy parent is the
borrower. Repayment begins while the student is in school. The maximum amount varies, there are some
deferment options available, and the interest rates vary. The student of the parent must submit the Free
Application for Federal Student Aid.
Deferments and Loan Terms
Stafford loan borrowers may have a deferment for circumstances such as half time study at a postsecondary
school, student in an approved graduate fellowship program, unable to find full time employment, or economic
hardship. All borrowers should refer to their promissory notes for details of the terms, and interest rates.
EMPLOYMENT
Federal College Work Study (CWS)
Federal College Work Study is a federal program that allows students who demonstrate need to earn money to
help pay for educational expenses. The total CWS award depends on your need, the amount of money the
university has for this program, and the amount of aid received from other programs. Students earn minimum
wage for most positions and are paid bi-monthly. A portion of the Federal Work Study funding is allocated to
positions that perform community service duties. Awardees should contact the Financial Aid Office at (281) 649-
3471 for information regarding available jobs. It is the student‘s responsibility to locate a position.
Eligibility
To receive student financial aid from these federal programs, the student must:
1. Be enrolled in a degree or certificate program or other program leading to a recognized educational credential,
or in a program of study abroad approved for credit at HBU.
2. Be a U.S. citizen or an eligible noncitizen. An eligible non-citizen is one who is: (1) a U. S. permanent
resident with an Alien Registration Receipt Card (I-551); (2) a conditional permanent resident (I-551C); or (3)
2010-2011 HBU Catalog www.hbu.edu/catalog Page 36