Undergraduate and GraduateFederal Health Professions Student Loans

What are Health Professions Student Loans?

Advantages of the Health Professions Student Loan

Eligibility for Health Professions Student Loans

Interest Rates

Applications: 2008-2009

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:

The twelve-month grace period after the student ceases attendance on at least a half-time basis.

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.

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.

Interest Rates

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 June 1 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 Loan Entrance Counseling by completing the process on the website Ole Miss Online Entrance Counseling. Follow the instructions for the Stafford Loan/Federal Perkins Loan, which has similar terms and conditions.

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.