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William D. Ford Federal Direct Student Loans

Hartnell College will participate in the William D. Ford Federal Direct Loan (Direct Loan) Program beginning with the 2010-2011 academic year. Direct Loans are low interest loans for student to help pay for your cost of education.  Direct Loans are a form of financial aid and must be repaid with interest.
Loans must be repaid!  We recommend that students borrow only when it is absolutely necessary. Students who are planning to transfer should be aware that loans are generally the largest portion of a financial aid package at four year colleges and should consider total educational indebtedness before borrowing at Hartnell.

Students who previously received loans through the Federal Family Education Loan (FFEL) Program will now borrow through the Direct Loan Program.  The Direct Loan Program offers the same types of loans as the FFEL Program and Direct Loans generally have the same terms and conditions as FFEL Program loans, but instead of a bank lending the money, the U.S. Department of Education lends the money directly to students through the student’s school. 

2011-2012 Loan Request Filing Deadlines:

Fall 2011:
Thursday, November 10, 2011

Spring 2012:
Friday, April 13, 2012


Direct Loan Application Requirements:


In order to be eligible to request a Direct Student Loan, you must meet all of the criteria listed below.
  • A 2011-2012 FAFSA must have been submitted.
  • Be enrolled in at least 6 or more degree applicable units.
  • Be in good Satisfactory Academic Progress (SAP) standing.
  • Submit all required documentation for your financial aid file to be complete. The Financial Aid Office will not accept loan applications if there are any outstanding documents/requirements.  You must have already received a File Complete Letter from the Financial Aid Office.
  • You must submit a Hartnell College Direct Loan Application for 2011-2012 by the dates listed above to the Financial Aid Office by the semester deadline in which you wish to receive funds from your Direct Loan. *Indicates the deadline to request a full year Direct Loan.

Subsidized Direct Loan

While you are in school at least half-time and during the grace and any approved deferment periods, the federal government will pay the interest on your Subsidized loans.  After you graduate, withdraw from school, or drop below half-time enrollment, there is a six month grace period before repayment of the loans begins.  When you enter repayment, you are responsible to begin repaying the amount you borrowed as well as the interest that will accrue during the repayment period.  Subsidized loans with a first disbursement from July 1, 2011 to June 30, 2012 will have a fixed interest rate of 4.5%.

Unsubsidized Direct Loan

This should be a loan of last resort—the federal government DOES NOT PAY THE INTEREST ON UNSUBSIDIZED LOANS!
Interest accrues immediately after disbursement.  If you borrow Unsubsidized loans, we strongly recommend that you begin making interest payments right after you receive your loan check.  If you do not make interest payments while you are in school, the interest continues to accrue and is added (capitalized) to your principal loan balance at repayment.  When interest capitalization occurs, you will then be paying interest on top of interest which greatly increases the amount of your loan and the total amount you will be repaying.  Unsubsidized loans with a first disbursement on or after July 1, 2006 will have a fixed interest rate of 6.8%. 

Parent Loan for Undergraduate Students (PLUS)

This loan allows parents with a good credit rating to borrow up to the total cost of their dependent student’s education minus any other aid for which the student is eligible.  Before a parent can apply for a PLUS loan, the student must have met all of the Direct Loan Application Requirements.  The PLUS loan has no grace period and interest will begin to accrue when the loan is first disbursed. This loan is disbursed to the parent, not the student.  Repayment of a PLUS loan begins 60 days after final disbursement. Dependent students whose parents do not qualify for a PLUS loan can borrow the same amount as independent students in the form of an Unsubsidized loan.  PLUS loans have a fixed interest rate of 7.9%.  For more information on parent PLUS loans, visit  www.studentloans.gov.

Direct Loan Annual Limits

 

Dependent Students
Direct Loan Annual Limits

DEPENDENT STUDENTS

Base Amount
Subsidized/Unsubsidized
Combined

Additional
Unsubsidized

Yearly Maximum

Grade Level 1
0-29.9 completed units

$3,500

$2,000

$5,500

Grade Level 2
30+ completed units

$4,500

$2,000

$6,500

 

  Independent Students
Direct Loan Annual Limits
 

INDEPENDENT STUDENTS

Base Amount
Subsidized/Unsubsidized
Combined

Additional
Unsubsidized

Yearly Maximum

Grade Level 1
0-29.9 completed units

$3,500

$6,000

$9,500

Grade Level 2
30+ completed units

$4,500

$6,000

$10,500

 

 

Aggregate Loan Limits
Maximum Total Outstanding Loan Debt

Subsidized/Unsubsidized Aggregate


DEPENDENT STUDENTS

$31,000
(maximum $23,000 subsidized)


INDEPENDENT STUDENTS

$57,500
(maximum $23,000 subsidized)

Proration

Students attending Hatnell College for one semester ONLY are subject to prorated loan amounts.  This calculation is the number of units enrolled in divided by 24 and multiplied by grade level loan amounts.  

Benefits of the Direct Loan Program

Direct Loans and FFEL Program loans have the same annual and aggregate loan limits, the same deferment and cancellation provisions, and most of the same repayment plans (Standard, Graduated, Extended, Income-Based).  The interest rates for FFEL Program Stafford Loans and Direct Subsidized and Unsubsidized Loans are also the same.  Direct Loans also have some benefits that are available only in the Direct Loan Program:

  • Up-Front Interest Rebate
  • Income Contingent Repayment Plan (in addition to the Income-Based Repayment Plan)
  • Public Service Loan Forgiveness Program
  • No interest charged (for up to 60 months) during qualifying periods of active duty military service (for loans first disbursed on or after October 1, 2008

 

Hartnell College's 2011-2012, Student Step by Step
Direct Loan Processing & Loan Application Guide

 

Direct Loan Links

The information provided above has been taken in part from publications provided by the Direct Loan program. For more complete information, please refer to the following publications (links open in a new window):

Additional Information

Hartnell College looks forward to participating in the Direct Loan Program and offering the benefits of Direct Loans to our students.  For additional information about Direct Loans, visit www.direct.ed.gov/student.html or the Financial Aid Office for more information.