Federal Direct Student Loans

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Federal Direct Loan Information

The Federal Direct Loan program offers loans at a low interest rate with repayment terms designed with students in mind.  In most cases, students will not have to start repaying the loans until six months after a student graduates and/or enrolls in less than six units (half-time).

Loans must be repaid with interest so it is important to understand the rights and responsibilities as a borrower.  All borrowers are required to complete the Loan Entrance Counseling before the office processes a loan.

Taft College participates in the William D. Ford Federal Direct Loan Program.  The U.S. Department of Education is the lender for the William D. Ford Federal Direct Loan Program.  Direct Loans are issued by the federal government.  The loan is serviced by the Federal Direct Loan Servicing Center.  There are no banks or lending institutions.

Types of Direct Loans

Subsidized Loans

Subsidized Loans are available to eligible students who demonstrate financial need to help cover the costs of higher education at a college or career school.  If you qualify, the federal government will pay the interest on the loan while students are in school and during periods when students are authorized to defer loan payments.

Unsubsidized Loans

Unsubsidized Loans are available to students regardless of financial need.  Students are responsible for the interest which accumulates on the unsubsidized loan while the student is attending school, during the grace period and during any periods when the student is authorized to defer the loan payments.  The students have the option to pay the interest during while enrolled in school or pay it later.  If students delay payment the interest will be added to the principal balance.  This addition of interest to the principal balance of the loan is known as capitalization.

Annual Loan Limits

First-Year Undergraduate Annual Loan Limit $3 500 subsidized + Up to $2 000 additional unsubsidized $3 500  subsidized + Up to $6 000 additional unsubsidized
Second-Year Undergraduate Annual Loan Limit $4 500 subsidized + Up to $2 000 additional unsubsidized $4 500 subsidized + Up to $6 000 additional unsubsizied

Fees and Interest Rates

For all Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2019 and before October 1, 2020 the origination fee is 1.059%

For all Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2020 and before October 1, 2021 the origination fee is 1.059% (rate subject to change after July 1st)

For all Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2019 and before October 1, 2020, the interest rate is 4.53%

For all Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2020 and before October 1, 2021, the interest rate is 4.53% (rate subject to change after July 1st)

Repayment of Federal Direct Student Loans

After graduating, leaving school or enrolling in less than half-time (6 or less units), a student will have a six month “grace period” before the first loan payment is due.  All Direct Loans must be paid back with interest.  Typically, a student will have 10 years to repay the Direct Loan.  The Exit Counseling Guide will provide a complete picture of repayment options.

Steps to request a Student Loan

  1. Complete the FAFSA.
  2. Complete and submit all requested financial aid requirements as listed on your CougarTracks student portal.
  3. Receive an award offer.
  4. Meet Federal Financial Aid Satisfactory Academic Progress Policy standards.
  5. Be enrolled in 6 or more degree applicable units toward your Program of Study.
  6. Complete Direct Loan Entrance Counseling.  Print confirmation page.
  7. Complete Annual Student Loan Acknowledgement. Print confirmation page.
  8. Print completed Master Promissory Note (MPN).
  9. Print Loan History Page.
    • Login to www.studentaid.gov
    • Once logged into the account, search for the box labelled “My Aid”, click on “View Details”.
    • Scroll down the page and under “Loan Breakdown”, click on “View Loan Details”.
    • Print page. If you do not have access to a printer, please click on “Print”, click on the drop down menu for destination, save as a PDF.  Send the document as an attachment in an email message.
  10. Submit all academic transcripts for all institutions listed on the Loan History Report. If you have not received any student loans, please submit all academic transcripts of prior institutions.
  11. Submit a Comprehensive Educational Plan.  A Comprehensive Educational Plan must be completed with your counselor.  Call (661) 763-7748 to schedule an appointment to meet with your counselor.
  12. Complete Cash Course Modules: Budgeting Basics and Funding Sources and submit completed Budget Wizard Worksheet.
    • Create or login to Cash Course.
    • Once logged in, click on “My Assignments”.
    • Select your Instructor “Joanne Dumbrigue”.
    • Complete the assigned Coursework and complete, print and submit the Budget Wizard Worksheet.
  13. Complete the following forms:
  14. Due to the COVID-19, the Taft College Campus is closed to students.  Please submit your documents to the following email address: jdumbrigue@taftcollege.edu
  15. Please allow 5-10 business days after the submission of all documents for the review of your student loan request.