Applying Questions: 1. If I did not complete the Free Application for Federal Student Aid (FAFSA) can I still apply for a Hana Private Loan? Yes, the FAFSA is for the federal loans that are insured by the federal government. Hana Private Loans is not insured by the federal government and based on the credit history of the borrower. 2. Is it possible to qualify for a Hana Private Loan if I was not approved for Federal Financial aid? Yes, your eligibility for a Hana Private Loan is based on your credit (or your co-borrower's credit, if valid). This loan is not awarded on the basis of financial need. 3. How can I apply? • Online: You may go online at www.hanaprivateloans.com. This option is fast, easy, and secure. You will receive an instant response of your approval and funding decision in minutes. • Telephone: You may call a Hana Financial Advisor at 1-800-926-3216 • Paper: You may go online at www.hanaprivateloans.com download and print a paper application. You may also request a paper application by sending us an email slcinfo@hanafinancial.com or calling 1-800-926-3216 4. Can I apply on my own if I do not have good credit history? You can apply on your own but most likely you will not be approved. In this case, you will need a Co-Borrower. 5. Why would I need a Co-Borrower? Here are three scenarios where a Co-Borrower is required: • You are a U.S. Citizen with no established credit history; • You are an international student applying with a U.S. citizen or permanent Co-Borrower • You are an international student with a U.S. citizen or permanent resident applying on your behalf.   Fees and Interest Rates: 1. How do you calculate the interest on Hana Private Loan? Interest Rates and fees are determined based on the borrower's credit history at the time of application and repayment options are chosen. Variable interest rates are subject to change quarterly based on the changeability of the 3-month LIBOR rate. 2. What is the 3-month LIBOR rate? LIBOR stands for London Interbank Offered Rate. It's the rate of interest at which banks offer to lend money to one another in the wholesale money markets in London. It is a standard financial index used in U.S. capital markets and can be found in the Wall Street Journal. In general, its changes have been smaller than changes in the prime rate.   Repaying a Loan: 1. Is it required to pay back my loans? Yes, your student loans are responsibilities to be repaid. You need to repay the principal (the amount borrowed) and the interest (finance charges on the principal). 2. Are interest payments mandatory during deferment? No, you may choose to defer interest and principal payments while you are in school. However, unpaid accrued interest is capitalized at repayment and increase the repayment amount. To alleviate the overall cost of the loan, you should consider making interest payment during deferment. 3. Are there any prepayment penalties? No prepayment penalties.   Forbearance: 1. If I can not afford my monthly payments what are my alternatives? You may request a forbearance which is a postponement of payments or reduction in monthly payment for a limited, specified period of time which a borrower is unable to make payments. The interest will continue to accrue (accumulate) and you are still responsible to pay back your loans. 2. How do I know I am qualified for a forbearance? You should apply at least a month before you want the forbearance to start. Your lender will then notify you if you are qualified for a forbearance.