Federal Health Professions Student Loans

The 2024-2025 HPSL Application is now live in the Ole Miss Student Forms Portal! The Priority deadline is July 1st, 2024.

What are Health Professions Student Loans?

The Health Professions Student Loan (HPSL) is a low-interest, long-term federal loan. It is a need-based award available to eligible undergraduate and graduate students in the health professions to help pay for their cost of education. HPSL is made possible by the U.S. Department of Health and Human Services (not the Department of Education) and the University of Mississippi is responsible for administering the loan program. Students repay the loan directly to The University’s Office of the Bursar.

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 a full-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 the student graduates or drops below full-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.
• The grace period prior to the start of repayment is longer for HPSL than a Federal Direct Loan (12 months versus 6 months).
• The student may be allowed up to 10 years to repay the HPSL.
• HPSL may be consolidated with Federal Direct Loans for repayment purposes.

Eligibility for Health Professions Student Loans

A student’s HPSL eligibility is determined by the Financial Aid Office and is based on information 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 HPSL Application, even if a student is 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. Guidance about HPSL eligibility can be found here.
• Enrollment as a full time student in the pharmacy school (Pre-Pharmacy students are not eligible)
• 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 loan awards are determined each academic year. Students may reapply annually.

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 the Federal Reserve Board, regulations intended to increase transparency about loan terms and conditions.

Under these 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 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. It must be returned to the institution. If you need assistance completing the form, please visit the Office of Financial Aid at Ole Miss.

Lastly, 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. This 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. This allows you to consider carefully whether you want to assume this debt. If not, you may cancel it without further obligation.

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 these regulations, please visit our office.

How Much Can I Borrow?

The HPSL allocation is limited. The annual award amount will vary each year based on available funding 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.

1. Complete your FAFSA online at the Department of Education’s website https://studentaid.gov/h/apply-for-aid/fafsa. Be sure to file by the priority deadline each year (typically January 10). The University of Mississippi’s school code is 002440.
2. Information on parental income and assets must be reported on the HPSL application, even if the student is independent.
3. Once your FAFSA is processed, you will receive a FAFSA Submission Summary (FSS) documenting your financial resources and expected family contribution towards educational costs. This will be seen on the FSS as a Student Aid Index (SAI). An electronic copy will be sent to the Office of Financial Aid.
4. Complete your Health Professions Student Loan Application. First, you must create/log into your Student Forms account. This HPSL application process is all online. Please do not submit paper applications or documents. BE SURE TO UPLOAD THE APPLICATION ALONG WITH ALL OTHER REQUESTED DOCUMENTS AS ONE SINGLE FILE.
5. 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.
6. Download and complete the HPSL Contract located on your Financial Aid Award Notification.
7. Submit the contract by mailing it or returning it in person to the Office of the Bursar. They must have an original signature, not digital or copied.
8. The student must complete HPSL Loan Entrance Counseling. The Office of Financial Aid will email instructions to a student once awarded.

Disbursements of Funds

The loan proceeds will be processed through the Office of Financial Aid. Funds will credit first to a student’s Bursar bill and any excess funds will be mailed to the permanent address or directly deposited to the personal account provided to the Office of the Bursar.