We got this emailed to us today and thought I would pass it on to anyone thinking about using the HPSP. I can only assume this would be the same for all schools, but I really don't know.
"""""""From VCOM
NOTE TO HPSP STUDENTS:
Please be aware that the military scholarship and reimbursements will
reduce the amount of money you are allowed by the federal government to
borrow. This may sound like a disadvantage, but it's a big advantage
to have any scholarship because it reduces the amount you borrow and pay
back. You graduate with less debt.
Since your tuition is paid, the amount you can borrow is reduced by
$29,500. Also, the REQUIRED texts are reimbursable as well as the amount
in the budget allocated for health insurance. We estimated REQUIRED
textbook costs to be $1,800 and there is $1,000 allocated for insurance.
Therefore, when you complete the Response Form for your Award Letter,
please be aware that you will need to reduce the amount you intend to
borrow to reflect these amounts.
Also, you want to be sure the amount of money you take out in
unsubsidized loan money does not negate your eligibility to receive the
Subsidized (need-based) Stafford Loan money. Since the disbursements are given
to you as ? in the fall and ? in the spring, you need to be sure the
amount you take out in Unsubsidized Stafford Loan money will still leave
you eligible for the second half of the Subsidized, meaning you don't
borrow so much that your maximum amount of $23,584 is realized in the
first disbursement.
Example:
Living expenses for MS II are budgeted to be $26,384.
You are reimbursed thru military for up to $1,800 for books
You are reimbursed thru military for up to $1,000 for medical insurance
So, HPSP students are eligible to borrow $23,584 (NOTE: this amount
could be increased if you have medical expenses that your insurance does
not cover or dependent care.)
On the response form, you would indicate the following as the amounts
you want to borrow to equal $23,584:
$8,500 Subsidized
$15,084 Unsubsidized
Your first disbursement in the fall would be:
$4,250 (1/2 of the Subsidized)
$7,542 (1/2 of the Unsubsidized)
Your second disbursement in the spring would be for the same amounts.
Choosing the above amounts for your response letter would be in keeping
with your being eligible for the full amount of subsidized money.