Federal Direct Loans
Direct Loans are available for you to borrow to offset your tuition and assist you with any educational related expenses. The loans are made through the William D. Ford Federal Direct Loan Program and are administered by the U.S. Department of Education. Direct Loan Program offers the following types of loans:
Direct Subsidized Loan – the amount awarded is based on your financial need. Interest is charged during the life of the loan, including the time you are in school less than half-time, during grace period, and during eligible periods of deferment. The only exception that the interest is waived is while you are enrolled in college on at least half-time basis (6 units). To be eligible for Subsidized Loan, you must be enrolling at least half-time (6 units).
Direct Unsubsidized Loan – this loan is not based on your financial need. It is available for independent students only (with the exception of dependent students whose parents have been denied a PLUS loan). Interest is charged during the life of the loan, including the time you are in school, during grace period, and during eligible periods of deferment. To be eligible for Unsubsidized Loan, you must be enrolling at least half-time (6 units).
DIRECT LOAN LIMITS
||Up to $3,500
||Up to $4,500|
||Up to $6,000
||Up to $6,000|
Interest rates for Direct Subsidized and Direct Unsubsidized Loan, first disbursed between July 1, 2012 and June 30, 2013, are as follow:
Direct Subsidized is fixed at 3.4%
Direct Unsubsidized if fixed at 6.8%
LOAN WORKSHOP/ENTRANCE COUNSELING
All student loan borrowers, except those who attended a loan workshop in the 2011/2012 year at Santa Ana College, are new borrowers and are required to attend a loan workshop before a loan will be awarded. The loan workshop will cover federally required Entrance Counseling as well as Santa Ana College policies and procedures. You will complete the Entrance Counseling at the workshop. After you have accepted your pending award(s) on WebAdvisor, or have received your award letter, you can pick up a loan packet and sign up for a loan workshop at the Financial Aid Office. Space is available on a first come first served basis. For a list of dates and times that these workshops are offered, click here. No loans will be processed until you have attended the loan workshop.
If you attended a loan workshop last year and will be applying for another loan in the 2012/2013 year, you are a returning borrower and are not required to attend another loan workshop. After you have accepted your pending award(s) on WebAdvisor, or have received your award letter, you can pick up a loan packet from the Financial Aid Office. Please complete and return the packet as soon as possible. In addition, you are required to complete an Entrance Counseling on-line at www.studentloans.gov. No loans will be processed until you have turned in your loan packet and completed the Entrance counseling on-line.
All student loan borrowers (new and returning borrowers) are required to complete the Exit Counseling on-line each year. Exit Counseling is to be completed after the last loan disbursement of the school year. Exit Counseling can be completed at www.studentloans.gov. If Exit Counseling is not completed, a HOLD will be placed on your student’s record.
For disbursement of your Direct Loans, please refer to the District’s disbursement policies by clicking on the following link: RSCCD’s Disbursement Policy