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Financial Aid

LOAN PROGRAMS

 

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Recently enacted federal laws will mean changes in some of the terms of federal student loans, beginning July 1, 2012. It is important to note that these changes do not affect the terms of any loans you have already. If you are taking out new student loans for the 2014-2015 academic year, the following changes may affect you:

Beginning July 1, 2013, new Stafford loan borrowers will qualify for subsidized loans for only 150 percent of the length of their educational programs. In other words, students pursuing four-year degrees would be eligible for subsidized loans for six years of study; students pursuing two-year degrees would be eligible for subsidized loans for three years of study.

There is now a temporary suspension of interest subsidy during grace period. A recent change in federal law temporarily suspends government subsidies of interest on Direct Subsidized Stafford Loans during a borrower’s six-month grace period. This change means that for Direct Subsidized Stafford Loans first disbursed between July 1, 2012, and June 30, 2014, the borrower will be responsible for any interest that accumulates during the six-month post-school grace period.

Also, an end of upfront interest rebate on Direct Loans. For Direct Loans first disbursed on or after July 1, 2012, borrowers no longer will benefit from an upfront interest rebate of 1 percent of the loan amount for Direct Stafford Loans. These interest rebates had been granted contingent on borrowers’ making their first 12 monthly payments on time. The change in the law will not affect a 0.25 percentage point interest rate reduction that Direct Loan borrowers may continue to receive by permitting their loan payments to be deducted automatically from their bank accounts.

More Information on Applying for Direct Loans

William D. Ford Federal Direct Loan Program

The Federal Direct Loan assists students from both low- and middle-income families. Students who demonstrate need for a portion or all of the annual limit will receive a 'subsidized loan' for which the federal government will pay the interest while the student is eligible for an in-school deferment and for the duration of any grace period. Direct loan payments are deferred while the student maintains halftime or greater enrollment in school. Repayment begins 6 months after the last date of enrollment in 6 units, or graduation.

Students who do not demonstrate need for part or all of the annual borrowing limit may still receive an 'unsubsidized loan' for which they must pay their own interest during the time they are in school.

A Direct Student loan is a long-term financial obligation which can limit your cash flow and your purchasing ability for many years into the future. We hope you will seriously evaluate whether taking on loan debt is truly necessary to make ends meet. We strongly recommend you look at other ways to meet your current financial needs by careful budgeting, taking on a part-time job, etc. If you decide a loan is a necessity to meet your educational expenses, borrow only what you need.
William D. Ford - additional information

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2014 - 2015 Application period

Fall 2014 Application period
September 4 - November 30

Spring 2015 Application period
February 6 - April 30

warning

THINK BEFORE BORROWING!

A Stafford Student loan is a long-term financial obligation. We have provided this brief to help you make an informed decision about borrowing a student loan, to understand Las Positas' loan process and loan policies. We hope you will seriously evaluate whether taking on loan debt is truly necessary to make ends meet. We strongly recommend you look at other ways to meet your current financial needs by careful budgeting, taking on a part-time job, etc. If you decide a loan is a necessity to meet your educational expenses, borrow only what you need.   Please read this description carefully and the Direct Loan Basics & Entrance Counseling Guide.  We would be happy to answer any additional questions you may have. 

To be considered for a Direct Loan, you must:

-Have a completed financial aid file at Las Positas,

-Have a total of 12 academic units at Las Positas. (Exceptions made ONLY for non-residents tuition paying students, with a bachelor's degree, and/or students eligible for loans only)

-Be academically eligible by meeting satisfactory academic progress (SAP) requirements,

-Be enrolled at least half time at Las Positas College (a minimum of six (6) units) during the loan period in courses which apply to your declared major. You must be working toward completion of an eligible transfer, certificate or Associate degree granting program. (English as a Second Language and Remedial Courses are not eligible classes for the loan program)

-Complete a Student Educational Plan (SEP) with a couselor for your declared major.

-You must working toward completion of an alegible transfer, certificate or Associate degree granting program.

-Students with outstanding loans from previous colleges who are new to Las Positas must submit official transcripts from their prior college.  Transcripts will be reviewed for progress and to determine courses that will count toward the student’s current academic goal.

A student is ineligible for any federal financial aid, including student loans, if in DEFAULT on a prior student loan(s), or if owes a repayment of Title IV financial aid to any school in the country. 

ABOUT DIRECT LOANS

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Both Direct Subsidized and Unsubsidized Loans are available at Las Positas:   

A subsidized loan is awarded based on financial need and eligibility. The federal government pays your interest charges while you attend school at least half time, for 6 months after the day you leave school or drop below half-time enrollment status, and while you have a deferment on your loan.

An unsubsidized loan is not awarded on the basis of need, but may not exceed the cost of attendance minus any other aid received. For unsubsidized loans, you must pay all interest charges.

loanInterest rate and fees effective July 1, 2013

Interest Rate

Origination Fee

Disbursement Date

After 7/1/14

After12/1/13 after 10/01/14

Direct Subsidized

4.66%

1.072% ---1.073

Direct Unsubsidized

4.66%

1.072% ---1.073

R E PAY M E N T:

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

DETERMINATION OF LOAN ELIGIBILITY     

Requesting a certain loan type and amount does not mean you are eligible for that type or amount of loan(s).

Cost of Attendance – Expected Family Contribution – Financial Aid awarded - Other Resources = Remaining Eligibility for Direct Loans

To begin review of a student loan request, the FAO (Financial Aid Office) reviews student’s total annual and aggregate loan debt, grade level, program level (Certificate, Associate, Transfer), academic eligibility (SAP), and current enrollment.  We ensure the student is not in default of prior loan nor owes a financial aid repayment using NSLDS, a national database showing all student loans and Pell Grants received by a student at any college or university across the country.  We review your academic and financial aid history, and if you are new to Las Positas, we verify attendance and progress with your instructors.

If our review results in approval, the FAO calculates loan eligibility by taking the student’s cost of attendance minus expected family contribution minus all financial aid awarded and other financial resources available to the student. 

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Steps in the Direct Loan Process

Step 1

Submit a 2014/2015 FAFSA   

If you haven’t already done so, you must FIRST submit a 2014/2015 FAFSA online at www.FAFSA.ed.gov and submit any in-school forms requested by the Financial Aid Office (FAO, indicated as requirements on CLASS WEB or the ZONE.  Direct Loans will only be considered AFTER your 2014/2015 financial aid documents have been processed and eligibility for free grant money has been determined.  

Step 2

Complete Entrance Counseling & Master Promissory Note (MPN)

LOG ON TO:     www.StudentLoans.gov

Complete:

1) ENTRANCE LOAN COUNSELING

and

2) A  MASTER PROMISSORY NOTE (MPN)

Step 3

Submit Loan Application for 2014-15

and Student Educational Plan to Financial Aid Office. (Student can attend a Student Educational Plan Workshop for Financial aid)

Loan Request Forms (student loan packets) are only available by request at the Financial Aid Office.  Upon approval of your submitted Student Loan Request, the financial aid office will send an e-mail message to your Zone E-mail alerting you to check your Financial Aid awards on The Zone Web Portal.  You may access your Zonemail via your Zone homepage.  You may also change your preferences so that your Zone email forwards to your personal email address.

Step 4

Receipt of Awarded Direct Loan refunds

Subsidized and/or Unsubsidized award amounts disburse in two payments.  Refer to ‘Direct Loan Refund Schedule’ below for payment (refund) dates.  Your Loan WILL NOT disburse if the Entrance Counseling and MPN are not completed.  The origination fee is deducted from the total amount of your loan awarded.

CONTINUED TUTORIAL

 

DIRECT LOAN REFUND SCHEDULE

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Academic Year Loan Period

Inclusive Dates

First Payment

Second Payment

Fall 2014&
Spring 2015

08/2014-05/2015

09/24/2014

02/18/2015

Fall 2014 Only

08/2014-12/2014

09/24/2014

11/05/2014

Spring 2015 Only

01/2015-05/2015

02/25/2015

04/15/2015

The refund dates shown above are estimates.  The first actual refund date will depend on when your file is completed and your loan is actually processed.  Authorized loans are visible on student accounts approximately 1 week prior to the refund date.   Funds are released via Higher One, who distributes the funds using the method of refund  you chose when activating your Las Positas Debit Card.

Step 5

Exit Counseling: www.nslds.ed.gov

Las Positas requires that you complete on-line Exit Counseling BEFORE your 2nd scheduled loan disbursement.  (Refer to ‘Direct Loan Refund Schedule’ for refund dates). 
Your 2nd disbursement WILL NOT disburse if this requirement is not successfully completed.
 

GRADE LEVEL FOR LOAN LIMIT DETERMINATION

The FAO must use the grade level as determined by the Las Positas Admissions & Records Office. A student who has completed less than 30 degree-applicable units is considered a first year student (freshman). A student who has completed 30 or more degree-applicable units is considered a second year student (sophomore).  If a student intends to include units earned from a prior school to establish 2nd year loan eligibility, s/he must request official academic transcripts be evaluated by Las Positas Admissions & Records and submit a 'Prior College Transcript Form' to the financial aid office.  Prior college units are counted only if they apply to the current degree and major being pursued.

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.

Please think about how much more you may need to depend on student loans in the future, once you transfer into a four year institution. Don’t mortgage your future by taking on debt unnecessarily at the community college level.

IMPORTANT UPDATE:
REGARDING RECENT CHANGES IN DIRECT SUBSIDIZED LOAN ELIGIBILITY

On July 6, 2012 the President signed into law the Moving Ahead for Progress in the 21st Century Act (MAP 21). This law places a limit on Direct Subsidized loan eligibility for new borrowers on or after July 1, 2013. A first-time borrower is no longer eligible for Direct Subsidized loans once the borrower has received Direct Subsidized loans for a period of 150% of the length of the borrower's educational program. The borrower also becomes responsible for accruing interest during all periods as of the date the borrower exceeds the 150 percent limit.

A first-time borrower is a borrower who has no outstanding balance of principal or interest on a Direct Loan or FFEL loan on July 1, 2013. Borrowers who had a loan balance which has been paid in full prior to receiving loans after July 1, 2013 are considered a first-time borrower.

LAS POSITAS COLLEGE LOAN POLICIES

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LOAN APPROVAL/DENIAL
: The Financial Aid Office may deny, on a case-by-case basis, a loan application for a student who has been in default, who has demonstrated or is demonstrating poor academic progress, and/or if student already has a high cumulative student loan debt. For new students to the college and for students with a history of questionable academic or financial aid progress, the financial aid office reserves the right to verify student’s actual attendance and progress in courses prior to loan approval. Poor attendance or progress may be a basis for denial of a loan or cancellation of a loan disbursement.  The Financial Aid Office may also limit an individual student’s approved loan amount based on a number of factors, including total cumulative debt, rate of academic progression related to debt incurred, and other considerations.

PRIOR TRANSCRIPT REQUIREMENT FOR STUDENTS WITH PRIOR LOANS: Students who are borrowing at Las Positas College for the first time who have outstanding loan balances from previous colleges are required to submit official transcripts from those other colleges before a loan is approved at Las Positas. Prior progress at previous colleges, in addition to any academic and financial aid history at Las Positas, will be a consideration for loan approval, as part of our default prevention plan. Students who have previously borrowed at Las Positas and have NOT attended any additional colleges since borrowing those loans are exempt from this requirement. 

Important
Loans will be authorized only after the ADD/DROP PERIOD is completed each semester.
New borrowers
at Las Positas are required to wait 30 days into their first semester to receive their first loan disbursement.

 

REQUIREMENT FOR AT LEAST 6 UNITS OF COURSEWORK TO HAVE BEGUN PRIOR TO LOAN DISBURSEMENT:  Students in short term courses must have at least 6 units of courses whose start dates have passed before funds can be released. Enrollment in late-start courses may affect the timing of a student becoming eligible to receive their loan funds depending on the number of units which began prior to the scheduled release date.  (English as a Second Language and Remedial Courses are not eligible classes for the loan program)

REQUIREMENT FOR ALL LOANS TO BE AWARDED IN TWO PAYMENTS: All student loans will be awarded equally between fall/spring semesters when students request the maximum annual amount(s).  No more than half the annual maximum will be awarded during the fall semester.  All student loans, even one-semester loans, must be disbursed in at least two disbursements. 

ALL BORROWERS MUST SUCCESSFULLY COMPLETE EXIT COUNSELING (www.nslds.ed.gov)  PRIOR TO RECEIVING THEIR SECOND DISBURSEMENT. 

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TIPS FOR LOANS

You can review all of your own loan history at www.nslds.ed.gov by logging in with your FAFSA pin number.

Borrow only what you really need; save your loan eligibility for when you attend a four year school to assist you in covering the increased expenses.

 

For more information on the Direct Loan Program

www.studentloans.gov

Financial Aid Information Page: http://www.finaid.org

 

Financial Aid

Building 1600
Room 1650 (second floor)
Tel: 925.424.1580
Fax: 925.449.6038
E-Mail Financial Aid

General Information


Federal School Code: 030357


2014-15 Fund Your Future Brochure
2014-15
Fund Your Future Workbook

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Page last modified: September 15, 2014