Does HPSP disqualify you from additional loans?

[iPhysician]

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There doesnt seem to be any current info on here about this, and the old threads have contradicting answers.

The basic question is in the title, but here is my scenario to give further detail to the question:

I have a family, wife + with two sons (toddlers). The monthly HPSP stipend, after taxes, should be around $1700 I would guess, which isn't enough to get by on for us. I was planning on taking about an about $2000/month in loans to cover the rest of our budget.

But, I have heard from some that the HPSP students are not allowed to take any addiitonal loans. I know I cant be the only one with a family who is considering HPSP, but I dont know of anyone with two kids who get by on $1700/month.

So, does anyone know if additional loans can be taken out? Can they be federal, or private only? Does this vary by school? (ie do I need to convince my school to raise my COA?)


Thanks for any help anyone can give.

 

[deuist]

When I was a student (2005-2009) there were people that took out additional loans.

 

[iPhysician]

When I was a student (2005-2009) there were people that took out additional loans.

Thanks for the reply...I have been hearing that things have changed.

. My recruiter has no idea, maybe I'll need to contact school FA counselors?

 

[met19]

When I was a student (2005-2009) there were people that took out additional loans.

i took out additional loans. but the school general has a total amt of fin aid that you can get- btwn scholarships and loans.

you could then take out private loans that do not affect total- but they do not come through the school or the gov't and therefore don't have the benefits of stafford, etc.

 

[Kingfisher]

i took out additional loans. but the school general has a total amt of fin aid that you can get- btwn scholarships and loans.

you could then take out private loans that do not affect total- but they do not come through the school or the gov't and therefore don't have the benefits of stafford, etc.

Yes, the school should have a set amount of money that can be borrowed and the HPSP scholarship counts against it but the stipend does not (at least it didn't for me). The set amount is for the standard single student. If you have a family you can apply for a higher budget amount that is usually depends on the size of your family. Your financial aid office should be much more helpful than your recruiter. He/she will probably be of little help to you from here on.

 

[Denatured]

HSCP doesn't affect loans.

 

[teacherman84]

Im a current student with a wife and 2 kids and we are able to get loans for the dfference between what the AF pays the school for tuition and expenses and the COA. For us it ends up being around 20k per year. Weve had this discussion on here before though and some schools count stipend and others dont...mine doesn't.
Ask the FA office or upperclassmen on HPSP at your school to find out for sure

 

[iPhysician]

Yes, the school should have a set amount of money that can be borrowed and the HPSP scholarship counts against it but the stipend does not (at least it didn't for me). The set amount is for the standard single student. If you have a family you can apply for a higher budget amount that is usually depends on the size of your family. Your financial aid office should be much more helpful than your recruiter. He/she will probably be of little help to you from here on.

Thank you!! I have emailed them and will call tomorrow. I really hope stipend doesnt count against it, and then all will be well.

HSCP doesn't affect loans.

wow, I've not heard of this program until I looked it up. Iooks interesting enough to look into...thank you.

 

[iPhysician]

Im a current student with a wife and 2 kids and we are able to get loans for the dfference between what the AF pays the school for tuition and expenses and the COA. For us it ends up being around 20k per year. Weve had this discussion on here before though and some schools count stipend and others dont...mine doesn't.
Ask the FA office or upperclassmen on HPSP at your school to find out for sure

OK, Thanks...I'll have to get in contact with my school.

 

[jabreal00]

There doesnt seem to be any current info on here about this, and the old threads have contradicting answers.

The basic question is in the title, but here is my scenario to give further detail to the question:

I have a family, wife + with two sons (toddlers). The monthly HPSP stipend, after taxes, should be around $1700 I would guess, which isn't enough to get by on for us. I was planning on taking about an about $2000/month in loans to cover the rest of our budget.

But, I have heard from some that the HPSP students are not allowed to take any addiitonal loans. I know I cant be the only one with a family who is considering HPSP, but I dont know of anyone with two kids who get by on $1700/month.

So, does anyone know if additional loans can be taken out? Can they be federal, or private only? Does this vary by school? (ie do I need to convince my school to raise my COA?)


Thanks for any help anyone can give.

Of course you can take out loans for HPSP. My wife and I were both HPSP. She went to Georgetown which is a very expensive school. Back when we were in medical school our HPSP stipend was about $1100. She took out loans. Go through your school's financial aid office.

 

[HalfListic]

I had a question about this as well...there seems to be a rumor going around that HPSP students are now only allowed private loans if they need more than the stipend. This would be silly, but now it makes me want to confirm with my school if thats the case or not.

 

[teacherman84]

I have been doing stafford loans for almost 3 years now on HPSP so unless something is changing I dont think this is the case. Again, im told it varies by school and how they count the stipend

 

[PanicAttack]

I borrow money for MPH classes and last year I ran into a problem - the stipend amount was counted against my "scholarships and grants" and therefore my total aid was at or near my cost of attendance. I was not able to borrow the full cost of my MPH tuition and fees.

This could EASILY be due to incompetence at my school's financial aid office and not reflect anybody else's experience.

 

[USArmyHPSP]

There was a time before the 2003-2004 academic year when HPSP students were allowed to obtain a full student loan as well as the stipend. The Department of Education changed the rules. How much loan is available depends on if the school believes the stipend to be income or a scholarship entitlement.

Stipend is not pay. It is a scholarship entitlement that is subject to Federal tax withholding. It is not subject to FICA which why it is not an earned wage. This is outlined in the DoD FMR, chapter 62.

Title 20, Chapter 28, Section 1087vv (j) (other financial assistance; tuition prepayment plans) indicates that estimated financial assistance received by the student shall include all scholarships, grants or other assistance at the time of determining need. The stipend falls under Sections 1087mm, 1087nn, and 1087vv (j) that prescribe other financial assistance shall include all scholarships, grants or other assistance.

So, if you attend a school that has determined that all students who attend are eligible for $62,000.00 in Stafford loans, they should be deducting the $22,000.00 in stipend (scholarship) leaving $40,000.00 available for HPSP students to loan out. In this example, a high cost area, you are eligible for a partial Stafford loan. In a low cost area, it is possible that the stipend will actually meet or exceed the allotted amount.

At the end of the day, it's entirely up to the Financial Assistance Office at the individual school.

 

[mrawesome]

I think it's probably up to the school. Mine shut me down entirely, saying that the stipend exceeded cost of attendance. I'd contact the financial aid offices of the schools you're looking at if you want to know for sure.