Loans - Financial Aid Office
A loan is money borrowed that must be paid back with interest. If your grant and/or scholarship awards are not enough to cover your school expenses, a low-interest federal loan is an option.
Federal Stafford Loan Program
Federal Family Educational Loan (FFEL) Program, commonly known as the Stafford Loan, is available for undergraduate and graduate students. This type of loan is based on the student’s (and parents’) income and unmet need as determined by your Free Application for Federal Student Aid (FAFSA).
The federal Stafford Loan Program consists of two types of loans: subsidized and unsubsidized. The subsidized loan is need based and the interest is paid by the federal government while the student is in school and during the six-month grace period after the student graduates. The unsubsidized loan is not need based and interest accrues while the student is in school.
Student loan interest rates change every July 1, but are capped at 8.25%. The fixed interest rate for the 2008-09 academic year will be 6.0% for subsidized loans and 6.08% for unsubsidized loans. The interest rate for variable loans originated prior to 6/1/2006 is 6.62% for the 2008-2009 academic year during in-school, grace, and deferment periods and 7.22% during repayment. 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. The student’s enrollment status must be at least half-time or six units.
Stafford Loan Amounts
| Grade Level |
Base Subsidized and Unsubsidized |
Additional Unsubsidized for Independent Students |
Maximum Subsidized and Unsubsidized |
| First Year
(less than 30 units) |
$3,500 |
$4,000 |
$7,500 |
| Second Year
(30 or more units) |
$4,500 |
$4,000 |
$8,500 |
How to apply for a Stafford Loan
The first step to apply for a Stafford Loan is to complete the FAFSA and Ohlone College’s financial aid file. Additionally, the student must have a declared major and meet Financial Aid Satisfactory Academic Progress standards. The student will then need to complete loan counseling, a loan request form, and the bank’s Master Promissory Note.
Many banks and other financial institutions offer the Stafford Loan. The student may choose any Stafford lender, but still must complete the loan counseling and loan request form through Ohlone College.
Additional details and entrance and exit loan counseling workshops are offered by the Financial Aid Office.
NEW Stafford Loan Students
If this is the student’s first loan, or first Stafford Loan while at Ohlone College, the student must attend an on-site Loan Workshop (schedule of loan workshop dates and locations).
Once all steps are complete, including completing the financial aid file, loan processing time is approximately two-to-three weeks. For first-time loan students, the check is disbursed once during the semester after the first 30 days of the loan period to ensure continued enrollment. Students will be notified by mail when the loan check is available for pick up at the Cashier’s Office.
RETURNING Stafford Loan Students
If you are a returning Ohlone College Stafford Loan recipient, you do not have to attend on-site loan counseling. Following are the new procedures for returning Ohlone College loan students:
- Complete the Federal Stafford Loan Request Form (PDF) (view with the free Adobe Reader software)and Student Statement of Understanding and submit the signed form to the Ohlone College Financial Aid Office. This form lets Ohlone College know how much the student wishes to borrow and that they understand the responsibilities of the Financial Aid and FFEL policies.
 Complete loan Entrance Counseling online at EdFund EdTe$t TM website. Ohlone College’s Financial Aid Office will be notified electronically that the entrance counseling has been completed. - Select the Stafford Loan portal (site requires an upgraded browser) to complete the online Master Promissory Note. Students have their choice of lenders. The Financial Aid Office is completing a list of lenders who presently do business with the Community Colleges. Proceed to that lender’s web site and complete an online Master Promissory Note. Ohlone College will receive electronic notification from EdFund and the lender that the student has completed the documents.
Once all steps are complete, including completing the financial aid file, loan processing time is approximately two-to-three weeks. Loan checks are disbursed once a semester. Students will be notified by mail when the loan check is available for pick up at the Cashier’s Office.
Download the Federal Stafford Loan Request Form (PDF) (view with the free Adobe Reader software).
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