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).

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Application Process

Step 1: Submit FAFSA (Free Application for Federal Student Aid)

• Complete the 2025-2026 FAFSA: FAFSA Application
• You must ensure all required financial aid documents are submitted
  (You can review unsatisfied documents in CLASS-Web)

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

• Click the following to log in to Federal Student Aid account to complete:
  • Entrance Loan Counseling
  • Master Promissory Note (MPN)

Step 3: Submit Direct Intake Form/Loan Application 

•  Email lpcfinaid@laspositascollege.edu for Direct Intake Form
•  Complete the Direct Loan Application
  (Once a staff member approves your request, you will have access to complete the Federal Direct Loan Application)

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.
• Your 2nd disbursement WILL NOT disburse if this requirement is not successfully completed.
• Complete Exit Counseling through your Federal Student Aid account

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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 2025-2026

Fall	September 3, 2025 - November 28, 2025
Spring	February 3, 2026 - April 30, 2026

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Interest Rates & Fees (2025-2026)

	Interest Rate	Origination Fee 2025-2026
Disbursement Date	7/1/2025 - 7/1/2026	10/1/2025 - 10/1/2026
Direct Subsidized	6.39%	1.057%
Direct Unsubsidized Undergraduate	6.39%	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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Loan Disbursement & Refund Schedule (2025-2026)

Academic Year Loan Period	Inclusive Dates	First Payment	Second Payment
Fall 2025 & Spring 2026	08/2025-05/2026	09/30/2025	01/27/2026
Fall 2025 Only	08/2025-12/2025	09/30/2025	10/21/2025
Spring 2026 Only	01/2026-05/2026	02/24/2026	03/24/2026

• 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

Loan Frequently Asked Questions

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