What are Health Professions Student Loans?
The Health Professions Student Loan (HPSL) is a low-interest, long-term federal loan made to undergraduate and graduate students in the health professions to help pay for their cost of education. HPSL is a loan program of the Department of Health and Human Services. The University of Mississippi is responsible for administering the loan program on our campus. Students repay the loan directly to The University.
Health Professions Student Loans are need-based aid. Eligibility is based on financial need as determined by federal guidelines. Interest does not accrue on the loan for the student during:
Advantages of the Health Professions Student Loan
The interest rate is 5%.
It carries no origination and guarantee fees. Many other loans have fees of at least 2-3%.
Repayment of the loan does not begin until you graduate or drop below half-time status.
In cases of economic hardship, payments may be deferred, extended, or reduced.
The loan is forgiven in case of permanent disability or death.
You may be allowed up to 10 years to repay the HPSL.
HPSL may be consolidated with Stafford Loans for repayment purposes.
Eligibility for Health Professions Student Loans
Your HPSL eligibility is determined by the Financial Aid Office and is based on information you provided in the Free Application for Federal Student Aid (FAFSA).
Some of the required criteria is as follows:
Parent income and asset information reported on the FAFSA even if an independent student.
Although, all graduate students are considered independent according to the need analysis formula in Title IV of the Higher Education Act institutions still must take parents’ information into account for the purpose of awarding HPSL funds. This requirement cannot be waived. In cases where the parents refuse to provide income information, an affidavit documenting such a refusal cannot be accepted in lieu of the required information. Unless the parents are deceased, a student who does not provide parental income information may not be considered for HPSL funds. (Health Profession Programs: Health Professions Student Loan Chapter 3, Student Awards: Section 1, Student Eligibility Criteria: D. Financial Need: #2 Parent’s Financial Information)
Enrollment as a full time student in the pharmacy school
U.S. citizenship, permanent residency, or eligible noncitizen status
Satisfactory academic progress (as determined by the Office of Financial Aid)
No unresolved defaults or overpayments owed on Title IV educational loans and grants
Satisfaction of all Selective Service Act requirements
Both eligibility and awards are determined each academic year. Loans are usually issued for a single academic year.
Regulation Z Requirements
Private Loan Regulations (Title X of the Higher Education Opportunity Act)
As of February 14, 2010, both private lenders and institutions offering private loans to students must comply with a new set of regulations per the Federal Reserve Board.
Under the new laws, an institution offering private loans for postsecondary educational expenses (i.e. McKinstry Loans, Health Profession Student Loans, etc.) must first provide a disclosure about loan terms and features at the time of application and must disclose information about federal student loan programs that may offer less costly alternatives. If the initial application reaches an approval status, a second loan disclosure statement must be provided to the student at that time. If a student accepts the loan terms provided in the second disclosure statement, a third final disclosure must be provided when the loan is consummated.
An additional piece of the new private loan regulations requires an applicant to complete a “self-certification form” and return it to the institution before the loan may be approved. The “self-certification form” may be found here, then return the completed form to the institution. If you need assistance completing the form, please visit the Office of Financial Aid at Ole Miss.
Last, an institution must provide the student with a 3 day rescission or “right-to-cancel” period after the final loan disclosure form is sent to the student. The 3 day rescission period means that once the school has certified your loan and it is ready to be disbursed, there is a mandatory 3 business day waiting period before the institution may disburse the loan funds
Below is an example of what to expect if you apply for a private loan:
- Apply online (you will receive the Application Disclosure Statement)
- If approved for the loan, you will be provided an Approval Disclosure Statement
- Complete the Self-Certification Form and return to the institution
- Finally, you will receive a Final Disclosure Statement
(allowing you up to 3 days to cancel the loan before it is disbursed)
If you have any questions related to the new regulations, please visit our office.
How Much Can I Borrow?
Health Professions Student Loans amounts vary based on amount of funds received from the Federal Government and the number of applicants demonstrating need.
The interest rate is computed at the rate of 5% per annum simple interest on the unpaid balance.
The Application Process
Because federal regulations require that awards first be made to the most needy students, the Office of Financial Aid will determine your eligibility.
Please read the following information:
Complete your FAFSA online at the Department of Education’s website http://fafsa.ed.gov. Be sure to file by the priority deadline each year (February 15). The University of Mississippi’s school code is 002440.
Information on parental income and assets must be reported on the FAFSA even if the student is independent.
Once your FAFSA is processed, you will receive a Student Aid Report (SAR) documenting your financial resources and expected family contribution towards educational costs. An electronic copy will be sent to the Office of Financial Aid of the schools listed on your FAFSA.
Download, complete, and submit the Scholarship for Disadvantaged Students and Health Professions Student Loan Application with the required documentation to the Office of Financial Aid. The priority deadline is May 14 of each year.
If you are awarded the Health Professions Student Loan (HPSL), you must accept all or a part of your award on the online Financial Aid Award Notification found under the Check Your Award Status link on the Financial Aid website.
Download and complete the HPSL Contract located on your Financial Aid Award Notification.
Submit the contract by mailing it or returning it in person to the Office of the Bursar.
The student must complete HPSL Loan Entrance Counseling by completing the process on the website Ole Miss Online Entrance Counseling.
Disbursements of Funds
The loan proceeds will be processed through the Office of Financial Aid. Funds will credit first to your Bursar bill and any excess funds will be mailed to your permanent address or directly deposited to your personal account.