Loan Frequently Asked Questions

What's the difference between subsidized and unsubsidized loans? 

SUBSIDIZED loans are for students who show a financial need. Students who have a subsidized loan do not pay the interest on their loans while attending college.

UNSUBSIDIZED loans are for students who do NOT show a financial need. Students with Unsubsidized Loans are responsible for paying interest while attending college. Interest is either paid quarterly or can be deferred and rolled into the principle making overall cost of the loan substantially higher.

How much can I borrow?

Subsidized Limits

$3,500 for a first-year student (0-29 earned units) enrolled in an eligible certificate, associate or transfer degree program.  ($3500 is the maximum annual amount allowed for any certificate-seeking student.) $4,500 for a student who has completed the first year of study (30 or more earned units) in an eligible associate or transfer degree program.  (Maximum amount for a student in an associate degree and/or transfer program.)

Unsubsidized Limits

Dependent students are limited to annual maximum of $5,500 (freshman level) or $6,500 (sophomore level) in combined Subsidized/Unsubsidized Stafford loans. Independent students may be eligible for up to an additional $6,000 in unsubsidized loans each year. The maximum aggregate debt you can accumulate for all of your combined student loans is $31,000 as a dependent undergraduate student and $57,500 as independent undergraduate student (through a Bachelors degree).  Only $23,000 of this amount may be in subsidized loans.  Therefore, please think about how much you may depend on student loans once you enter a Bachelors program; don’t mortgage your future by taking on debt unnecessarily at the community college level.

How do I know if I’m eligible?

Eligibility requirements are the same as those required for other sources of Title IV federal financial aid, including meeting satisfactory academic progress requirements. Additionally, a loan student must always maintain enrollment in a minimum of 6 units each semester. Students who do not complete 6 units will be disqualified from receiving their loans.

How do I choose a lender?

All Loans Will Now Be Direct Through The Federal Government

How and when do I begin repaying back my loan?

Repayment begins six months after you either graduate OR drop below six (6) units. Payments average $50.00 per month or more, depending on the cumulative amount borrowed.