Prospective Graduate Students
Eligible graduate students who complete the FAFSA® are eligible for financial help in the form of loans that must be repaid with interest. Loan types include unsubsidized loans and/or Grad PLUS loans, both of which can help cover any remaining educational expenses. HCU Students are encouraged, with the help of the Office of Financial Aid, to explore all other options before borrowing.
Graduate Unsubsidized Loan Limits
The Office of Financial Aid determines the amount a student can borrow based on the student’s cost of attendance, the FAFSA® determinations, other financial assistance received, and the loan limits set by the US Department of Education. The cost of attendance is the cornerstone of establishing a student’s financial need, as it sets a limit on the total aid that a student may receive for purposes of the federal loan programs. Students may never qualify for more than the annual or aggregate loan limit.
Effective July 1, 2026, the following loan limits apply to all new graduate student borrowers:
- Annual loan limits are: Unsubsidized loan amount is up to $20,500 (per academic year) for graduate students.
- Aggregate loan limits are: $100,500 for graduate students (including undergraduate borrowing).
Additionally, a lifetime aggregate cap of $257,500 now applies across all federal loans, and loans are prorated if enrolled less than full-time.
Interest and Origination Fees
Interest is charged during all periods, even during the time the student is in school and during grace and deferment periods. Students must either pay the interest quarterly to the Direct Loan Servicing Center or let the interest accumulate and capitalize. Capitalized interest makes the loan payback more expensive over time. No payment on the principal balance of the loan is necessary so long as the student’s enrollment remains half-time (six credit hours). The origination fee is deducted proportionately from each loan disbursement the student receives while enrolled in school. This means the money the student receives will be less than the amount actually borrowed. Students are responsible for repaying the entire amount borrowed and not just the amount received. Learn more about interest rates and fees →
Borrowing Options
Option I – Federal Direct Unsubsidized Loan Procedures
Federal Direct Unsubsidized loans are low-interest student loans available to students to assist with educational costs. Students applying for Federal Direct Loans must first:
- Complete the FAFSA® for the current school year.
- Fulfill other document requests once the FAFSA® data is received by the Office of Financial Aid.
Students must accept, reduce, or deny awards on the Populi student portal. Any reductions will be equally divided between fall and spring terms. Students may be able to borrow less by increasing their income, decreasing their expenses, or both. Another way to reduce what is borrowed and increase income is to identify non-loan sources of financial assistance. Graduate students will be offered Direct Loan amounts based on the cost of attendance, student request, and outside resources. Offered loan amounts can be accepted through the Populi Student Portal account. Students borrowing Federal Direct Loans for the first time at HCU must complete Entrance Loan Counseling and a Master Promissory Note prior to receiving a loan disbursement. Exit Loan Counseling must be completed once the Office of Financial Aid is notified the student is withdrawing, has filed an intent to graduate, or each time the student drops below half time.
Elimination of Graduate PLUS Loan
Effective July 1, 2026, the Graduate PLUS Loan Program has been discontinued entirely for all new borrowers. If a student has an active federal student loan of any kind that was disbursed before July 1, 2026, while enrolled in a qualifying program, the borrower may continue borrowing under previous loan limits for three academic years or until the student completes their program, whichever is sooner.
Eligibility and Requirements for Graduate Unsubsidized Loan
To be eligible, the student:
- must be fully admitted to the Graduate Program at HCU. Undergraduate students taking graduate-level classes are not eligible.
- must be a degree-seeking graduate student and enrolled at least half-time (six credit hours)
- must complete the FAFSA® and all other financial aid requirements.
- must adhere to all HCU enrollment and Satisfactory Academic Progress standards to be eligible for graduate loan funds.
- must complete the Annual Student Loan Acknowledgement counseling each year a loan is accepted.
Option II – Private or Alternative Education Loan
Private student loans, also known as alternative loans, are offered by private lenders. The loans are available to students who are not eligible for federal loans or who need assistance beyond their financial loan eligibility. These loans are made through banks and other financial institutions and are subject to their terms. Students must find an alternative loan lender on their own.
Manage Your Federal Loans
All student borrowers are encouraged to use the Federal Student Aid website to manage their federal student loans, and to:
- access their loan servicer contact information
- update their information
- understand student loan repayment
- lower the monthly payment
- get temporary relief from loan repayment
- apply for income-driven repayment
- understand loan delinquency and default
Office of Financial Aid Contact Information
You are invited to visit during business hours to have your financial aid questions and concerns answered, your forms reviewed for accuracy, and to pick up any additional forms or application materials you may need. If you need assistance, please call, email, or schedule an appointment to stop by the office located in the Business Office complex:
Phone: 256-766-6610, 800-367-3565 – x303
Fax: 256-716-8021
Email: kpowers@hcu.edu
