Federal Direct Subsidized/Unsubsidized Loans
Academic Year Loan Limits
2010-2011
| Type of Student |
Subsidized |
Unsubsidized |
Dependent
undergraduate |
| Freshman |
$3,500 |
$2,000** |
| Sophomore |
$4,500 |
$2,000** |
Independent
undergraduate |
| Freshman |
$3,500 |
$4,000 |
| Sophomore |
$4,500 |
$4,000 |
These loan limits represent the total of all subsidized and unsubsidized Direct Loans a dependent or independent undergraduate student may borrow at each level of study for a single academic year.
The college determines the amount of loans that a student can receive.
** If you are a dependent student, you cannot borrow more than the base amount unless your parents were denied a Federal PLUS loan. In that case, you may borrow an additional unsubsidized loan up to the total amount allowed for your grade level.
NOTE: As part of SFCC’s Default Management Plan and federal regulations, you must maintain satisfactory academic progress to be eligible for financial aid. To receive a student loan, you must maintain a GPA of 2.0 or higher with a completion ratio of at least 67 percent.
Federal Direct Subsidized Loan:
A loan that is based on financial need. The federal government pays the interest on your behalf while you are enrolled in school on at least a half-time (6 or more credit hours) status during your grace period and during authorized periods of deferment.
Federal Direct Unsubsidized Loan:
A loan that is not need-based. Students are responsible for the interest that accrues from the date of your first disbursement forward. Interest can be paid while you are in school or it can be postponed until you enter repayment. If you postpone paying interest, it will be capitalized or added to your principal amount, increasing the balance on which interest accrues daily.
Steps in Applying for a Federal Direct Student Loans:
Financial aid files must be completed at least three weeks prior to your fee payment due date for you to use your award toward payment of your tuition and books. If your file is incomplete by your fee payment due date, you must cover the cost of tuition and books. You will be reimbursed to the extent of your eligibility.
STEP 1: Eligibility Requirements
To be eligible for a Direct Subsidized or Unsubsidized Student Loan, you must:
- Be a U.S. citizen or an eligible non-citizen.
- Be enrolled or accepted for enrollment in an eligible program of study at least half time for the entire loan period.
- Be making satisfactory academic progress, if currently enrolled, with at least a 2.0 GPA or more and a completion ratio of at least 67 percent.
- Not be in default or owe a refund on any federal education grant or loan unless, satisfactory arrangements have been made to repay the outstanding debt.
Additional Requirements:
- All first-year, first-time undergraduate students, including transfer students from other institutions, may not be eligible to receive a Direct Student loan their first term of enrollment at SFCC. Once you have completed at least 12 hours at SFCC with at least a 2.0 grade point average (GPA) and at least 67 percent completion ratio, you may be considered for a loan. Exceptions may be made on a case-by-case basis.
- All returning students must have an overall cumulative (all colleges) GPA of 2.0 with at least 67 percent completion ratio. Transfer grades are included in the calculation of your GPA and your completion ratio. It is your responsibility to make sure all transfer work is evaluated by SFCC registrar and you have been accepted into a Title IV eligible program of study before your loan will be processed.
- You must be enrolled and attending at least half-time (6 or more credit hours and 8 or more clock hours) to be eligible to receive a loan. This does not include consortium agreement hours and audit (X) courses; they will not be considered in the hour calculation for loan processing.
- As part of SFCC’s Default Management Plan, if you have a prior defaulted loan status, you will be required to go through additional loan counseling.
STEP 2: Application Process
Apply for financial aid by completing the Free Application for Federal Student Aid at www.fafsa.gov. In step 6 of the application, list SFCC School Code 001522. If you do not have a PIN, please apply for one at www.pin.ed.gov before submitting the Free Application for Federal Student Aid (FAFSA); this will expedite the process.
- Complete the Federal Direct Student Loan Request Form, and submit it to the SFCC Financial Aid Office.
- At SFCC, all FIRST-TIME borrowers are required to go through Entrance Counseling prior to a loan being processed. You may complete this requirement at www.studentloans.gov. To complete this requirement, you will use the same Federal Student Aid PIN you used to complete the FAFSA. Entrance counseling provides information on what it means to borrow funds and your responsibility toward repayment.
STEP 3: Complete a Direct Loan Master Promissory Note (MPN)
WHY? Although you may have previously signed an MPN to receive FFEL Program Loans, a FFEL MPN cannot be used to make Direct Loans. ALL borrowers must complete a Direct Loan Master Promissory Note (MPN).
The MPN is the legal document through which you promise to repay your Direct Loans and any accrued interest and fees to DOE. It also explains the terms and conditions of your loans. A Direct Loan MPN can be used to make loans for up to ten (10) years.
LOG ON and complete a Direct Loan MPN electronically at www.studentloans.gov. To complete a Direct Loan MPN electronically, you will use your Federal Student Aid PIN that you used to complete the FAFSA.
STEP 4: Attend a Financial Aid Literacy Workshop
If you are a FIRST-TIME borrower at SFCC or a RETURNING student borrower who have never attended this workshop, you are required to attend a Financial Aid Literacy Workshop. You will receive an email to your account informing you of the dates and times for all the financial aid literacy workshops throughout the college. Contact the Financial Aid Office for more information.
STEP 5: What Happens Next?
- Your loan funds will automatically be credited to your student account, if the Direct Loan Processor has a valid MPN on file for you and you have completed the loan Entrance Counseling.
- Your loan funds cannot be disbursed until you begin 6 credit hours or 8 clock hours during the term and will be paid in two equal disbursements (i.e. ½ of the loan in fall and ½ in spring term).
- Your loan check will be disbursed based on federal regulation requirements. Please be sure that SFCC Admissions Office has your correct mailing address.
- All debt owed to the college will be deducted before the remaining balance check is mailed. If the amount of your loan proceeds does not cover your obligation in full, you will be responsible for paying the balance to SFCC Cashier’s Office.