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Federal Direct Loans

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 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

ELIGIBILITY REQUIREMENTS

  • 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

All loan requests will be reviewed on an individual basis

WITHDRAWAL/GRADUATION/ENROLLMENT LEVEL REQUIREMENTS

  • If you graduate, withdraw completely or drop below 6 credits hours you must complete Exit Counseling at https://studentaid.gov/h/manage-loans. 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

Part of the FAFSA Simplification Act repeals the 150% Subsidized Usage Limit Applies (SULA) requirements. The repeal is effective for all Direct Loans first disbursed on or after July 1, 2021. It is not limited to new borrowers.

For the 2021–2022 academic year, it is possible for a student that has reached the 150% Subsidized Usage Limit to regain Federal Subsidized Loan eligibility for the 2021–2022 academic year as long as the student has not reached the $23,000 total borrowing limit for Federal Subsidized Loans.

SULA still applies to Direct Subsidized Loans first disbursed before July 1, 2021, but the U.S. Department of Education will retroactively restore the subsidy and remove accrued interest on the older loans, even if those borrowers don't borrow again.

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 on WCCCD Student Forms. The form must be downloaded and completed with an original signature and then uploaded to your WCCCD Student Forms account for submission. Complete instructions for submitting a Loan Request are posted on the Financial Aid Forms. 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 online at https://studentaid.gov/h/manage-loans.

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 https://studentaid.gov/app/launchMpn.action.

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You will be required to use your U.S. Department of Education-issued FSA ID. If you do not have FSA ID, you may create one by logging on to https://studentaid.gov/apply-for-aid/fafsa/filling-out

Your Federal Direct Loan(s) will not be disbursed until these requirements have been successfully met.