Federal Direct Student Loan Program

The Federal Direct Loan Program provides financial assistance to students from low- and middle-income families. Loans help cover education costs, and repayment begins six months after graduation or when enrollment drops below half-time (6 units).

Types of Direct Loans

• Subsidized Loan: Available to students who demonstrate financial need. The federal government pays the interest while the student is in school and during the grace period.
• Unsubsidized Loan: Available to students regardless of financial need. Interest accrues while the student is in school and must be paid by the borrower.

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Eligibility Requirements

To qualify for a Direct Loan, students must:
✔ Complete the FAFSA and submit required financial aid documents.
✔ Meet Satisfactory Academic Progress (SAP) requirements.
✔ Be enrolled in at least 6 units at Las Positas College in an eligible degree or certificate program.
✔ Have a Student Educational Plan (SEP) on file.
✔ Not be in default on any prior student loans or owe a repayment of Title IV financial aid.

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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 – Student Aid Index – Financial Aid awarded - Other Resources = Remaining Eligibility for Direct Loans

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Application Period for 2024-2025

Fall	September 3 - November 29, 2024
Spring	February 3 - April 30, 2025

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Interest Rates & Fees (2024-2025)

	Interest Rate	Origination Fee '24-25
Disbursement Date	7/1/2024 - 7/1/2025	10/1/2024 - 10/1/2025
Direct Subsidized	6.53%	1.057%
Direct Unsubsidized Undergraduate	6.53%	1.057%

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Annual & Lifetime Borrowing Limits

Subsidized Loan Limits

• $3,500 – First-year students (0-29 completed units)
• $4,500 – Second-year students (30+ completed units)

Unsubsidized Loan Limits

• Dependent Students:
  • $5,500 (Freshman) or $6,500 (Sophomore) in combined Subsidized/Unsubsidized loans.
• Independent Students:
  • May qualify for an additional $6,000 in Unsubsidized loans per year.

Lifetime Loan Limits

• Dependent Undergraduates: $31,000 total (max $23,000 Subsidized)
• Independent Undergraduates: $57,500 total (max $23,000 Subsidized)

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Application Process

Step 1: Submit FAFSA

• Complete the 2024-2025 FAFSA: FAFSA Application
• Ensure all required financial aid documents are submitted.

Step 2: Complete Entrance Counseling & Master Promissory Note (MPN)

• Log in to: StudentAid.gov
• Complete:
  • Entrance Loan Counseling
  • Master Promissory Note (MPN)

Step 3: Submit Loan Application & Student Education Plan (SEP)

• Submit a completed Loan Application.
• Attach a Student Education Plan (SEP) dated within the last 12 months.

Step 4: Loan Disbursement

• Loans are disbursed in two payments per semester.
• Ensure Entrance Counseling and MPN are completed; otherwise, funds will not be released.
• Exit Counseling is required before receiving the second disbursement.

Step 5: Complete Exit Counseling

• Required before receiving the second disbursement.
• Complete online at: StudentAid.gov

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Loan Disbursement & Refund Schedule (2024-2025)

Academic Year Loan Period	Inclusive Dates	First Payment	Second Payment
Fall 2024 & Spring 2025	08/2024-05/2025	10/01/2024	01/28/2024
Fall 2024 Only	08/2024-12/2025	10/01/2024	10/22/2024
Spring 2025 Only	01/2025-05/2025	02/25/2025	03/25/2025

• Funds are released via BankMobile Disbursements.
• Loans will not be disbursed until the Add/Drop Period is completed.
• New borrowers must wait 30 days into their first semester to receive funds.
• Students in late-start courses must have at least 6 units started before funds are released.

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Loan Approval & Denial Policies

The Financial Aid Office may deny loans if a student:

• Has a history of loan default or excessive student loan debt.
• Demonstrates poor academic progress or attendance.
• Fails to meet financial aid eligibility requirements.
• Is not making satisfactory academic progress in their program.

Loans are awarded in two disbursements per semester. No more than half the annual loan amount will be awarded during the fall semester.

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Responsible Borrowing & Resources

• Borrow only what you need to minimize future debt.
• Save loan eligibility for when you transfer to a four-year institution.
• Check your loan history: StudentAid.gov
• Estimate future loan payments: FSA Loan Simulator
• Learn about debt relief options: StudentAid.gov/debtrelief

For more information, visit:

• Federal Student Aid: StudentAid.gov
• Financial Aid Information: FinAid.org