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Loan Information

Federal and Stafford PLUS Loan Information

Loan Forms 

Stafford and PLUS Loan Information 

Loan Limits and Special Notes 

Alternative Loan Information 

Perkins Loan Information 

Apply for Federal Education Loan 

Stafford and PLUS Loan Repayment Calculator 

 Loan Forms

2012-2013 Loan Information Sheet
2013-2014 Loan Information Sheet 

 

 Stafford and PLUS Information

Stafford 

PLUS 

Who is eligible? 

  • Students who have completed the FAFSA, meet the FAFSA citizenship requirements, and are enrolled at least 1/2 time (6 units).

Subsidized Stafford: 

  • Awarded based on demonstrated financial need as determined by the FAFSA.

  • The federal government pays the interest while you are in college.

Unsubsidized Stafford: 

  • For all eligible students, regardless of financial need.

  • You are responsible for paying the interest that accrues while you are in school. However,

    • You can either let interest accumulate or pay the interest while in school with no penalty.

    • *If interest is accrued, it is added to the outstanding principal balance of the loan once you go into repayment.

     
 

Who is eligible?
 

  • Parents and stepparents of DEPENDENT (as determined by the FAFSA) undergraduate students attending school at least half-time and making satisfactory academic progress. 
  • Must be U.S.citizens or eligible residents.
  • Loan approval is subject to credit criteria as established by the federal government.

  • A credit report will be obtained from a national credit bureau.

  • If a parent is denied for a PLUS loan, the student may be eligible for an additional unsubsidized loan.  Please contact the Financial Aid Office for details. 

What is the PLUS annual loan limit? 

  • Parents can only take out up to the Cost of Attendance (COA) minus any other aid.

 

Stafford Interest Rates: 

  • Subsidized: 3.86%  (for 2013-2014)                          

  • Unsubsidized: 3.86% (for 2013-2014)     
     
  • Interest rates are FIXED for the life of the loan. 
 

PLUS Interest Rates: 

  • 6.41% 

  • Interest rates are FIXED for the life of the loan.

  • If the parent qualifies, payments—along with interest— may be deferred. See the repayment section for details.

 

Stafford Fees: 

All Stafford Loans are subject to a 1.051% origination fee.

PLUS Fees:
All PLUS loans are subject to a 4.204% origination fee. 
Please keep this 4.204% reduction in mind when figuring out the total amount of loan you need.

Stafford Repayment: 

  • Begins following a 6-month grace period after you graduate, withdrawal, or drop below half-time enrollment.

  • You may take 10-25 years to repay your loan.  For more information please visit www.direct.ed.gov.

  • Please note that you may make payments while you are in school, with no penalty.

  • Students may consolidate their Stafford Direct Loans.  For more information, please visit www.loanconsolidation.ed.gov

 

PLUS Repayment: 

  • Begins within 60 days of the final disbursement of the academic year.

  • You may be eligible to defer your payments while your student is enrolled in school at least half time - please visit www.direct.ed.gov for more details.

  • Parents are also eligible to consolidate PLUS loans.  Please visit www.loanconsolidation.ed.gov for more information.

 

 

 Stafford and PLUS Loan Delivery

The Enrollment Services Office will disburse loan funds by crediting your Student Account.  If your loans create a credit to your account you can notify Enrollment Services if you would like the funds to be sent back. Sending money back is recommended as it means less you will have to pay back in the future. However, if refund checks are requested, funds will be disbursed to the student.  SDCC policy states that PLUS loan funds are applied to the student's account before Stafford loans, therefore, any credit will be from the Stafford loan and will go to the student.

Apply for a Direct Stafford Loan  

Apply for a Direct PLUS Loan 

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 Loan Limits and Special Notes

What are the Stafford Loan Limits?

Maximum Annual Loan Amounts 

Borrower Academic Level 

(Based on units earned) 

Dependent Students (SUB/UNSUB*) 

Independent Students 

*and dependent students with PLUS denials 

Freshman

(0-29 units)

$5,500

(up to $3,500 of which may be subsidized)

$9,500

(up to $3,500 of which may be subsidized)

Sophomore

(30-59 units)

 $6,500

(up to $4,500 of which may be subsidized)

 $10,500

(up to $4,500 of which may be subsidized)

Junior

(60-89 units)

 $7,500

(up to $5,500 of which may be subsidized)

$12,500

(up to $5,500 of which may be subsidized)

Senior

(90 + units)

 $7,500

(up to $5,500 of which may be subsidized)

 $12,500

(up to $5,500 of which may be subsidized)

Teacher Credential

 $7,500

(up to $5,500 of which may be subsidized)

 $12,500

(up to $5,500 of which may be subsidized)

Aggregate Loan Limits 

Dependent Students 

Independent Students (including dependents w/ PLUS denials) 

$31,000 

(no more than $23,000 can be subsidized)

$57,500 

(no more than $23,000 can be subsidized)

Disbursements 
All students need to be verified for attendance each semester before loan funds can be disbursed.

EnrollmentYou must be enrolled for 6 units or more, throughout the loan period to receive funds. If you drop classes, register for fewer units, or withdraw from school you may lose federal loan funding.

Returning Loan Funds
If you wish to cancel all, or a portion of your loan, please contact the Enrollment Services Office immediately.

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 Alternative Loan Information

Who is eligible?  Students that have an outstanding debt at SDCC, established credit history, and/or a credit-worthy co-borrower, may be eligible for a private loan. Refer to the SDCC Preferred Alternative Loans and corresponding websites listed below for more information.

Interest Rates and Fees:  Interest rates and fees are assessed on an individual basis by the lender. Interest rates can be as high as 15% without caps. Qualifications for the best rates and fees vary depending on the loan.

Repayment:  Repayment usually begins 6 months after the student graduates or drops below 6-units; however, some loans have a 3-unit minimum for enrollment. There are many repayment benefits that different loans offer. Please, refer to the links below for detailed information on our preferred alternative loans.

Alternative Loan Lender Information and links to Apply  

Please note: In order to provide the best customer service to our students and parents, SDCC has identified several lenders to choose from.  We have chosen these lenders based on the following criteria: interest rate, repayment reductions offered, loan benefits to the borrower, prior experience, online services, and customer service.  We do not endorse any particular lender.  You may choose any lender who offers Alternative/Private Education Loan even if they are not on our list.

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 Federal Perkins Loan Program

The Federal Perkins Loan is designed to assist students who have a substantial amount of remaining need after other aid including Stafford Loan eligibility has been utilized.  Interest is 5% and fixed.  The repayment of principle and interest beings nine months after a student ceases to maintain at least half-time enrollment.

The Office of Enrollment Services will contact Perkins Loan recipients to complete the necessary paperwork.   

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