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- About Direct Loans - Subsidized/Unsubsidized
- To Determine Eligibility
- Grade Level for Loan Limit Determination
- Steps in the Direct Loan Process and Application
- Complete Student Education Plan (Required)
- Payment Schedule
Federal Direct Loan Program
The Federal Direct Loan assists students from both low- and middle-income families. Students who demonstrate need for a portion or all of the annual limit will receive a 'subsidized loan' for which the federal government will pay the interest while the student is eligible for an in-school deferment and for the duration of any grace period. Direct loan payments are deferred while the student maintains halftime or greater enrollment in school. Repayment begins 6 months after the last date of enrollment in 6 units, or graduation.
Students who do not demonstrate need for part or all of the annual borrowing limit may still receive an 'unsubsidized loan' for which they must pay their own interest during the time they are in school.
A Direct Student loan is a long-term financial obligation which can limit your cash
flow and your purchasing ability for many years into the future. We hope you will
seriously evaluate whether taking on loan debt is truly necessary to make ends meet.
We strongly recommend you look at other ways to meet your current financial needs
by careful budgeting, taking on a part-time job, etc. If you decide a loan is a necessity
to meet your educational expenses, borrow only what you need.
- Additional information
If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog.
Example: If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years).
Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.
2019-2020 Application period
Fall 2019 Application period
September 1 - November 29
Spring 2020 Application period
February 1 - April 29
THINK BEFORE BORROWING!
A Stafford Student loan is a long-term financial obligation. We have provided this brief to help you make an informed decision about borrowing a student loan, to understand Las Positas' loan process and loan policies. We hope you will seriously evaluate whether taking on loan debt is truly necessary to make ends meet. We strongly recommend you look at other ways to meet your current financial needs by careful budgeting, taking on a part-time job, etc. If you decide a loan is a necessity to meet your educational expenses, borrow only what you need. Please read this description carefully and the Direct Loan Basics & Entrance Counseling Guide. We would be happy to answer any additional questions you may have.
To be considered for a Direct Loan, you must:
- Have a completed financial aid file at Las Positas,
- Be academically eligible by meeting satisfactory academic progress (SAP) requirements,
- Be enrolled at least half time at Las Positas College (a minimum of six (6) units) during the loan period in courses which apply to your declared major. You must be working toward completion of an eligible Transfer, Certificate or Associate degree granting program. (English as a Second Language and Remedial Courses are not eligible classes for the loan program)
- Must have a Complete Student Educational Plan (SEP), not an abbreviated plan, with a counselor for your declared major/degree program.
- You must working toward completion of an alegible transfer, certificate or Associate degree granting program.
- Students with outstanding loans from previous colleges who are new to Las Positas must submit official transcripts from their prior college. Transcripts will be reviewed for progress and to determine courses that will count toward the student’s current academic goal.
- A student is ineligible for any federal financial aid, including student loans, if in DEFAULT on a prior student loan(s), or if owes a repayment of Title IV financial aid to any school in the country.
ABOUT DIRECT LOANS
Both Direct Subsidized and Unsubsidized Loans are available at Las Positas:
A subsidized loan is awarded based on financial need and eligibility. The federal government pays your interest charges while you attend school at least half time, for 6 months after the day you leave school or drop below half-time enrollment status, and while you have a deferment on your loan.
An unsubsidized loan is not awarded on the basis of need, but may not exceed the cost of attendance minus any other aid received. For unsubsidized loans, you must pay all interest charges.
Interest rate and fees effective July 1, 2018 and Prior to July 1, 2019
|Interest Rate||Origination Fee 2019-2020|
|Disbursement Date||7/01/2019 to 06/30/2020||10/01/2019 to 10/01/2020|
|Direct Unsubsidized Undergraduate||4.53%||1.059%|
Begins six months after you either graduate OR drop below six (6) units. Payments are a minimum $50.00 per month or more, depending on the cumulative amount borrowed.
DETERMINATION OF LOAN ELIGIBILITY
Requesting a certain loan type and amount does not mean you are eligible for that type or amount of loan(s).
Cost of Attendance – Expected Family Contribution – Financial Aid awarded - Other Resources = Remaining Eligibility for Direct Loans
To begin review of a student loan request, the FAO (Financial Aid Office) reviews student’s total annual and aggregate loan debt, grade level, program level (Certificate, Associate, Transfer), academic eligibility (SAP), and current enrollment. We ensure the student is not in default of prior loan nor owes a financial aid repayment using NSLDS, a national database showing all student loans and Pell Grants received by a student at any college or university across the country. We review your academic and financial aid history, and if you are new to Las Positas, we verify attendance and progress with your instructors.
If our review results in approval, the FAO calculates loan eligibility by taking the student’s cost of attendance minus expected family contribution minus all financial aid awarded and other financial resources available to the student.
Steps in the Direct Loan Process
Submit a 2019/2020 FAFSA
If you haven’t already done so, you must FIRST submit a 2019-2020 FAFSA online at www.FAFSA.ed.gov and submit any in-school forms requested by the Financial Aid Office (FAO, indicated as requirements on CLASS WEB or the ZONE. Direct Loans will only be considered AFTER your 2019-2020 financial aid documents have been processed and eligibility for free grant money has been determined.
Complete Entrance Counseling & Master Promissory Note (MPN)
LOG ON TO:www.StudentLoans.gov
- ENTRANCE LOAN COUNSELING and
- MASTER PROMISSORY NOTE (MPN)
Submit Loan Application (loan application form) and 'Complete' Student Educational Plan to Financial Aid Office.
Loan Request Forms (student loan packets) are only available by request at the Financial Aid Office. Upon approval of your submitted Student Loan Request, the financial aid office will send an e-mail message to your Zone E-mail alerting you to check your Financial Aid awards on The Zone Web Portal. You may access your Zonemail via your Zone homepage. You may also change your preferences so that your Zone email forwards to your personal email address.
Receipt of Awarded Direct Loan refunds
Subsidized and/or Unsubsidized award amounts disburse in two payments. Refer to ‘Direct Loan Refund Schedule’ below for payment (refund) dates. Your Loan WILL NOT disburse if the Entrance Counseling and MPN are not completed. The origination fee is deducted from the total amount of your loan awarded. Your second payment will not disburse if you have not completed the EXIT counseling.
DIRECT LOAN REFUND SCHEDULE
|Academic Year Loan Period||Inclusive Dates||First Payment||Second Payment|
|Fall 2019 &
|Fall 2019 Only||08/2019-12/2019||09/24/2019||10/29/2019|
|Spring 2020 Only||01/2020-05/2020||02/25/2020||03/24/2020|
The refund dates shown above are estimates.
The first actual refund date will depend on when your file is completed and your loan is actually processed. Authorized loans are visible on student accounts approximately 1 week prior to the refund date. Funds are released via your selected refund preference through BankMobile.
Exit Counseling: National Student Loan Data System (NSLDS)
Las Positas requires that you complete on-line Exit Counseling BEFORE your 2nd scheduled loan disbursement. (Refer to ‘Direct Loan Refund Schedule’ for refund dates).
Your 2nd disbursement WILL NOT disburse if this requirement is not successfully completed.
GRADE LEVEL FOR LOAN LIMIT DETERMINATION
The FAO must use the grade level as determined by the Las Positas Admissions & Records Office. A student who has completed less than 30 degree-applicable units is considered a first year student (freshman). A student who has completed 30 or more degree-applicable units is considered a second year student (sophomore). If a student intends to include units earned from a prior school to establish 2nd year loan eligibility, s/he must request official academic transcripts be evaluated by Las Positas Admissions & Records. Prior college units are counted only if they apply to the current degree and major being pursued.
$3,500 for a first-year student (0-29 earned units which apply to the current degree and major) enrolled in an eligible certificate, associate or transfer degree program. ($3500 is the maximum annual amount allowed for any certificate-seeking student.)
$4,500 for a student who has completed the first year of study (30 or more earned units which apply to the current degree and major) in an eligible associate or transfer degree program. (Maximum amount for a student in an associate degree and/or transfer program.)
Dependent students are limited to annual maximum of $5,500 (freshman level) or $6,500 (sophomore level) in combined Subsidized/Unsubsidized Stafford loans.
Independent students may be eligible for up to an additional $6,000 in unsubsidized loans each year.
The maximum aggregate debt you can accumulate for all of your combined student loans is $31,000 as a dependent undergraduate student and $57,500 as independent undergraduate student (through a Bachelors degree). Only $23,000 of this amount may be in subsidized loans.
Please think about how much more you may need to depend on student loans in the future, once you transfer into a four year institution. Don’t mortgage your future by taking on debt unnecessarily at the community college level.
REGARDING RECENT CHANGES IN DIRECT SUBSIDIZED LOAN ELIGIBILITY
On July 6, 2012 the President signed into law the Moving Ahead for Progress in the 21st Century Act (MAP 21). This law places a limit on Direct Subsidized loan eligibility for new borrowers on or after July 1, 2013. A first-time borrower is no longer eligible for Direct Subsidized loans once the borrower has received Direct Subsidized loans for a period of 150% of the length of the borrower's educational program. The borrower also becomes responsible for accruing interest during all periods as of the date the borrower exceeds the 150 percent limit.
A first-time borrower is a borrower who has no outstanding balance of principal or interest on a Direct Loan or FFEL loan on July 1, 2013. Borrowers who had a loan balance which has been paid in full prior to receiving loans after July 1, 2013 are considered a first-time borrower.
LAS POSITAS COLLEGE LOAN POLICIES
LOAN APPROVAL/DENIAL: The Financial Aid Office may deny, on a case-by-case basis, a loan application for a student who has been in default, who has demonstrated or is demonstrating poor academic progress, and/or if student already has a high cumulative student loan debt. For new students to the college and for students with a history of questionable academic or financial aid progress, the financial aid office reserves the right to verify student’s actual attendance and progress in courses prior to loan approval. Poor attendance or progress may be a basis for denial of a loan or cancellation of a loan disbursement. The Financial Aid Office may also limit an individual student’s approved loan amount based on a number of factors, including total cumulative debt, rate of academic progression related to debt incurred, and other considerations.
PRIOR TRANSCRIPT REQUIREMENT FOR STUDENTS WITH PRIOR LOANS: Students who are borrowing at Las Positas College for the first time who have outstanding loan balances from previous colleges are required to submit official transcripts from those other colleges before a loan is approved at Las Positas. Prior progress at previous colleges, in addition to any academic and financial aid history at Las Positas, will be a consideration for loan approval, as part of our default prevention plan. Students who have previously borrowed at Las Positas and have NOT attended any additional colleges since borrowing those loans are exempt from this requirement.
Loans will be authorized only after the ADD/DROP PERIOD is completed each semester.
New borrowers at Las Positas are required to wait 30 days into their first semester to receive their first loan disbursement.
REQUIREMENT FOR AT LEAST 6 UNITS OF COURSEWORK TO HAVE BEGUN PRIOR TO LOAN DISBURSEMENT: Students in short term courses must have at least 6 units of courses whose start dates have passed before funds can be released. Enrollment in late-start courses may affect the timing of a student becoming eligible to receive their loan funds depending on the number of units which began prior to the scheduled release date. (English as a Second Language and Remedial Courses are not eligible classes for the loan program)
REQUIREMENT FOR ALL LOANS TO BE AWARDED IN TWO PAYMENTS: All student loans will be awarded equally between fall/spring semesters when students request the maximum annual amount(s). No more than half the annual maximum will be awarded during the fall semester. All student loans, even one-semester loans, must be disbursed in at least two disbursements.
ALL BORROWERS MUST SUCCESSFULLY COMPLETE EXIT COUNSELING (NSLDS) PRIOR TO RECEIVING THEIR SECOND DISBURSEMENT.
You can review all of your own loan history at NSLDS (National Student Loan Data System)by logging in with your FSA ID.
Borrow only what you really need; save your loan eligibility for when you attend a four year school to assist you in covering the increased expenses.
As students and their families make important decisions about investing their time and money in pursuing a college education, the California Community Colleges Chancellor’s Office is making available for the first time comparative information about the earnings of recent graduates who received an award in a specific program area at California community colleges.
For more information on the Direct Loan Program
Monday: 9am - 5pm
Tuesday: 9am - 7pm
Wednesday: 9am - 5pm
Thursday: 9am - 5pm
Friday: 9am- 1pm
Federal School Code:
We have an after-hours DROPBOX located in the hallway between the Admissions and Financial Aid Offices, for your convenience.
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- FSA Phone: 1-800-433-3243
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