Direct Stafford Loan Program - Financial Aid Office
In Direct Stafford Loan Subsidized, Unsubsidized and PLUS loans, Ohlone College has the authority to refuse the origination of a loan and/or originate a loan at less than the amount requested by the student. This is done on an individual student basis.
A Caution About Student Loans
It takes time for a loan application to be processed by the College and the government. Delivery of loan checks will be 30 days from the beginning of the loan period for new borrowers to ensure their continued enrollment at the time the check is disbursed. Student loan checks are released to the students after enrollment has been verified; twice per semester.
You should not plan to use the loan money to pay registration fees, early fee payments or to buy your textbooks as these funds will arrive after classes begin, but you may be able to utilize an Emergency Short Term Loan for those purposes.
Ohlone College participates in the William D. Ford Federal Direct Stafford Loan (Direct Loan) Program. Students who previously received loans through the Federal Family Education Loan (FFEL) Program will now borrow through the Direct Stafford Loan Program.
The Direct Stafford Loan Program offers the same types of loans as the FFEL Program and generally has the same terms and conditions as FFEL Program loans, but instead of a bank lending the money, the U.S. Department of Education (the Department) lends the money directly to students through Ohlone College.
The Direct Loan Program helps students from both low- and middle-income families. The fixed interest rate on the loan changes every July 1st, but is capped at 8.25%.
The federal government pays the interest on a subsidized loan while the student is enrolled at least half-time in an eligible educational institution with a 2.0 or higher GPA. Repayment begins six months after the student is no longer enrolled at least half-time, but interest will accrue during the grace period. An unsubsidized loan is not need based and interest accrues while the student is in school.
The amount a student can borrow depends upon the need determined on the FAFSA, your dependency status, and the number of units you have completed. Your need will be determined by subtracting other sources of student aid and the expected family contribution from the college costs. The maximum subsidized amount based on eligibility for a dependent student is $3,500 a year as a freshman (less than 30 units) and $4,500 a year as a sophomore (30 or more units). Subsidized or unsubsidized amounts will be determined based on unmet need. Independent students may be eligible for an additional $6,000 in unsubsidized monies.
Ohlone College has the authority to refuse the origination of a loan and/or originate a loan at less than the amount requested by the student. This is done on an individual student basis.
You must be enrolled in at least six (6) semester units (half-time status), and demonstrate satisfactory academic progress (2.0 or higher cumulative and current GPA) at the time of loan application. Repayment begins six (6) months after you cease being a half-time student, withdraw or graduate from college.
| Academic Level | Subsidized Direct Stafford Loan |
|---|---|
| First Year (less than 30 units) | $3,500 per academic year |
| Second Year (30 or more units) | $4,500 per academic year |
How to Apply for a Direct Stafford Loan
To be considered for the Direct Stafford Loan, you must complete the 2012-2013 FAFSA and all other required documentation from the Financial Aid Office of Ohlone College. You must also be enrolled in and complete a minimum of 6 units (from the prior semester) and meeting satisfactory academic progress requirements.
Bachelor's Degree students applying for a student loan need to complete a Financial Aid Appeal and are required to be enrolled in and complete a minimum of 6 or more degree applicable units from their current Student Education Plan (SEP).
New Direct Stafford Loan Students
If this is your first loan, or first Direct Stafford Loan while at Ohlone College, along with being enrolled in and completing a minimum of 6 units (from the prior semester) and meeting satisfactory academic progress requirements, you must attend an on-site Loan Workshop (schedule of loan workshop dates and locations). At the workshop, you can complete and sign (online) a Direct Stafford Loan Master Promissory Note (MPN) and other loan-related documents.
To complete the MPN, you will need to provide your Social Security Number, date of birth, and driver’s license number as well as two personal references (full name, address and telephone numbers). You will use your FAFSA PIN to electronically sign the MPN.
Once all steps are complete, including completing the financial aid file, loan processing time is approximately two-to-three weeks. For first-time loan students, the loan check is disbursed after the first 30 days into the semester to ensure continued enrollment, so please plan accordingly. Loan checks will be disbursed twice during the semester, similar to the Pell disbursements. Any outstanding charges owed to Ohlone College will be deducted from your loan amount then the remaining funds will be mailed. The checks are mailed to the student using the address on file with Admissions and Records. It is the student’s responsibility to update their contact information with Admissions and Records.
Returning Direct Loan Students
- Complete the 2012-2013 FAFSA online and submit requested documents to complete your Financial Aid file.
- Complete a minimum of 6 units from the prior semester (including Summer term)
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Meet and maintain Financial Aid Satisfactory Academic Progress requirements.
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If you are on Financial Aid Warning, you must attend an SAP workshop. If you are on Excessive Units / Disqualification, you must submit an appeal and a Student Education Plan (SEP) for review.
- Read the Loan Information for Returning Borrowers.
- Complete the 2012-2013 Direct Loan Request Form and Student Statement of Understanding (PDF) and return it to the Financial Aid Office by the deadline. Note: A new Master Promissory Note (MPN) is not necessary for continuing students.
- Once your Financial Aid file is complete, loan processing time is approximately two to three (2-3) weeks. You will receive a letter notification from the loan servicer after we certify your loan request.
- Checks are mailed to the address on file with Admissions and Records. Any outstanding charges owed to Ohlone College will be deducted from your loan then the remaining funds will be mailed to you.
Students have the right as a borrower to cancel all or part of the loan within 14 days of the disbursement. If you wish to cancel any part of a loan, please notify the Financial Aid Office. After 120 days of the disbursement date you decide to cancel, you are responsible for paying loan fees and any accrued interest.
As a result of having new loans under the Direct Stafford Loan Program and previous loans under the FFELP, you may owe payments to two or more different entities. You can check your loan balances and loan holders/servicers by creating a login on the National Student Loan Data System, at www.nslds.ed.gov, using the same PIN that you used for the FAFSA and the MPN.
More information about the Direct Stafford Loan Program can be found at the Department of Education Student Loan website.
Emergency