|STUDENT LOAN MANAGEMENT
The Office of Financial Aid is committed to assisting you achieve educational success. Our mission is to support your success by encouraging advancement without the burden of large amounts of student loan debt by providing counseling, district-wide communication and financial literacy. Policies and guidelines are established for your benefit to offer valuable tools and information to assist in making wise decisions when borrowing student loans for educational purposes.
STUDENT LOAN POLICY
- Must have met satisfactory academic progress
- No prior loan defaults or grant overpayments
- Must meet Federal Student Aid eligibility standards
- Must be enrolled in at least 6 credit hours with attendance verified
- Must complete entrance counseling
- Must complete Master Promissory Note
- Must complete Financial Awareness Counseling
All loan requests will be reviewed on an individual basis
- If you graduate, withdraw completely or drop below 6 credits hours you must complete Exit Counseling at www.studentloans.gov. Failure to complete exit counseling will result in withholding of transcripts and diplomas.
- If you withdraw completely from all of your classes your loan will be recalculated according to federal regulations which may require a portion of the loan be returned to the U. S. Department of Education. This will result in you owing money to WCCCD and potentially the U. S. Department of Education.
- Remember that all student loans must be repaid.
FAILURE TO REPAY STUDENT LOANS WILL:
- Jeopardize your future eligibility for financial aid
- Negatively impact your credit worthiness for any future borrowing, including car loans, home mortgages or other consumer loans
- Result in withholding of tax refunds and legal prosecution
Other negative consequences may apply.
150% Direct Subsidized Loan Limit
A new regulation was put in place as a result of the enactment of the federal “Moving Ahead for Progress in the 21st Century Act”. The regulation limits a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower’s academic program.
Therefore, effective July 1, 2013, first time Direct Loan borrowers and students with no outstanding balance on a FFEL or Direct Loan are subject to a maximum eligibility period for subsidized loans of 150% of the published length of their academic program. For example, if a borrower is enrolled in a 2 year academic degree program, they have 3 years of eligibility to receive subsidized Direct Loans, (2 times 150% equals 3). If the borrower is in a one year certificate program, the eligibility period is 1.5 years. In addition, if a borrower does not complete their program, continues enrollment in that program or enrolls in another program of equal or shorter length, the borrower loses the interest subsidy on all outstanding subsidized loans. Timely program completion is more important now than ever before. Be sure you have an academic plan in place to help you stay on track with your program. For more information, please review the Fact Sheet.
COMPLETE THE FOLLOWING STEPS IN ORDER TO APPLY FOR THE FEDERAL DIRECT SUBSIDIZED/UNSUBSIDIZED LOAN
Step 1: Complete the loan request form which can be found under the forms link. This form should only be completed if you meet the eligibility requirement requirements listed above.
Step 2: Complete Loan Entrance Counseling: This federally mandated requirement is for your understanding of the borrower rights and responsibilities when borrowing a Federal Direct Loan. You must complete Loan Entrance Counseling and Financial Awareness Counseling online at www.studentloans.gov.
Step 3: Complete the Master Promissory Note (MPN): The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U. S. Department of Education. It also explains the terms and conditions of your loan(s). Be sure to read it carefully.
You may complete the Master Promissory Note online at www.studentloans.gov.
You will be required to use your U.S. Department of Education-issued PIN. If you do not have a PIN, you may request one from the official PIN website site at www.pin.ed.gov.
Your Federal Direct Loan(s) will not be disbursed until these requirements have been successfully met.