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Loans for Students

There are two types of Federal Direct Loans:

Subsidized: The U.S. Department of Education pays the interest while a student is in school at least half-time, during the grace period, and during deferment periods.
Unsubsidized: Not based on financial need. Interest is charged during all periods, even during the time a student is in school, during the grace and deferment periods.

To be eligible for loans students must be enrolled at least half time in an eligible program. Once you are no longer enrolled at least half time in an eligible program, you will receive a 6-month grace period on your Direct Subsidized and Unsubsidized Loans during which you are not required to make loan payments. You must begin repayment at the end of your grace period.

Supplemental Loan Form accepted through November 10, 2016, for the fall term, through April 6, 2017, for spring term and through June 23, 2017, for summer term.

For Direct Subsidized and Unsubsidized loans where the first disbursement is on or after July 1, 2016, and before July 1, 2017, the fixed interest rate is 3.76%.  

 

  1. How do I request a Direct Loan?
  2. How much can I borrow?
  3. Are there fees for my Direct Loan?
  4. When will I receive my loan money?
  5. How do I receive my loan money?
  6. Is there a deadline to apply for a Direct Loan?
  7. When do I pay my Direct Loan back?

 

  1. How do I request a Direct Loan?

    • Complete a Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov
    • Return all documents requested by the San Mateo County Community College District (SMCCCD) Financial Aid Office to complete your FAFSA application. Refer to your WebSMART for unsatisfied financial aid requirements.
    • Attend an SMCCCD College Funding Workshop. (Strongly encouraged!) Dates and times are listed below. Click here to register for a workshop.
      • Ensure your current education goal and major in WebSmart match your SEP. If not, update it in WebSmart.
    • Go to https://studentloans.gov to complete Direct Loan Entrance Counseling and the Direct Loan Master Promissory Note.
      • At the Federal Student Aid home page, click the Log In link. Input your FSA Username or E-mail address and FSA ID Password; then click Log In. Once you are signed in, click Complete Counseling. Click the Start Entrance Counseling link for Entrance Counseling.
      • NOTE: If you have previously completed a Direct Loan Entrance Counseling and Master Promissory Note, you do not need to complete them again.
      • Once you finish entrance counseling, click the Submit Counseling link. You will be at the Entrance Counseling Summary screen. Scroll down to the Next Steps section and click Complete a Master Promissory Note.
      • NOTE: If you have completed a Direct Loan Master Promissory Note (MPN) within the last 10 years, you can confirm your MPN status by clicking on the link Completed MPNs at the left hand side of the screen.
    • Complete the Supplemental Direct Loan Form  . This is a fillable PDF which you will complete online, then print and sign.
    • Submit the completed Supplemental Direct Loan Form to your Financial Aid Office, along with your current SEP. You will need to present a government picture ID for loan intake.
  2. How much can I borrow?

    SMCCCD is a two-year institution district. Therefore, students are only eligible to apply for a first-year (less than 30 units completed at SMCCCD) or second-year (30 units or more completed at SMCCCD) student loan. Note: Transcripts from other institutions WILL NOT be considered to determine grade level for loan eligibility. SMCCCD transcripts will be used solely to determine grade level eligibility.

    Annual Direct Loan Limits are as follows:

    ACADEMIC LEVEL DEPENDENT INDEPENDENT

     

    Subsidized

    Unsubsidized

    Maximum Total

    Subsidized

    Unsubsidized

    Maximum Total

    1ST Year
    (0-29.5 units)

    $3,500

    $2,000

    $5,500

    $3,500

    $6,000

    $9,500

    2nd Year
    (30+ units)

    $4,500

    $2,000

    $6,500

    $4,500

    $6,000

    $10,500

    Note: Your current loan request amount, prior loan debt, Financial Aid Satisfactory Academic Progress (SAP), program length and time left to complete it will be reviewed, and as a result your loan request could be reduced or denied.

  3. Are there fees for my Direct Loan?

    For all Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2014 and before October 1, 2015, the origination fee is 1.073%.  For all Direct Subsidized and Unsubsidized loans with a first disbursement date on or after October 1, 2015 and before October 1, 2016, the origination fee is 1.068%. 

  4. When will I receive my loan money?

    Student loans are paid in two equal disbursements during the selected loan period.  For academic year loans, the 1st disbursement is paid in fall and the 2nd disbursement is paid at the beginning of the spring semester.  For one-semester loans, the loan is paid in two equal disbursements during the semester.

    In accordance with federal regulations, no loan money may be released sooner than ten days prior to the beginning of a semester. HOWEVERif you are a first-time Direct Loan borrower, the 1st disbursement will be 30 days after the beginning of the semester.

    IMPORTANT!  To receive Direct Loan funds, you must be enrolled at least half time (6.0 units)! Please note! The start date of your classes will affect when you will receive your student loan. Please refer to your registration or the Class Schedule to determine the start date of your classes. 

  5. How do I receive my loan money?

    The Direct Loan is delivered to the student through the San Mateo County Community College District. Beginning fall 2015, the Financial Aid Offices at College of San Mateo, Cañada College, and Skyline College will provide students with a new and improved financial aid disbursement service through Money Network®!

    Students can choose Direct Deposit to their existing bank account or the SMCCCD Disbursement Prepaid Card. - See more at your college’s Money Network website:

    Cañada College - www.canadacollege.edu/myfunds

    College of San Mateo - www.collegeofsanmateo.edu/myfunds

    Skyline College - www.skylinecollege.edu/myfunds

    Please note - checks CANNOT be picked up!

  6. Is there a deadline to apply for a Direct Loan?

    Yes.  Deadline dates are listed on the Supplemental Direct Loan Form. 

  7. When do I pay my Direct Loan back?

    After graduating, leaving school, or enrolling less than half time, a student will have a six month "grace period" before the first loan payment is due. All Direct Loans must be paid back with interest. Typically a student will have 10 years to repay their Direct Loan. The Exit Counseling Guide   will provide a complete picture of your loan repayment options.

  8.  

    Federal Student Aid OMBUDSMAN

    If you have a problem or question about your student loan, the Federal Student Aid (FSA) Ombudsman of the Department of Education helps resolve disputes and solve other problems with federal student loans.  For more information about the FSA Ombudsman, go to studentaid.ed.gov or call 877.557.2575.  The mailing address is U.S. Department of Education, FSA Ombudsman Group, 830 1st Street, N.E. Mail Stop 5144, Washington, D.C. 20202-5144.  Fax number 202.275.0549.

     If you have additional questions, please contact your Financial Aid Office.
     

    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. For detail information on 150% Loan Limit visit Time Limitation on Direct Subsidized Loan Eligibility For First Time Borrowers  .

    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 becomes a first-time borrower.

    To register for a College Funding Workshop, please follow these steps:

    • Log in to your WebSmart account
    • Click on the Student Service -- Schedule appointments
    • Click MAKE an APPOINTMENT button above,
    • Click on the button on the Loan Workshop tab
    • Read instructions before making an appointment
    • Click Make Appointment tab-click on Make Appointment box
    • Click Find Appointments box (a list of workshops and locations will appear)
    • Select the appointment location, date and time
    • Click and select on your desired workshop
    • Verify the phone number and email address, and click CONTINUE
    • Your confirmation and instructions will be displayed on the following page.
      You should print this for your records.

     

    Workshop Schedule

    Cañada College

    Date Time Room

    Thursday, August 11, 2016

    4:00-5:00 pm

    Financial Literacy Lab 9-123

    Monday, September 12, 2016

    10:00- 11:00 am

    Financial Literacy Lab 9-123

    Tuesday, October, 11, 2016

    11:00-12:00 pm

    Financial Literacy Lab 9-123

    Thursday,  November 3, 2016

    3:00-4:00 pm

    Financial Literacy Lab 9-123 

    Skyline College

    Date Time Room

    Thursday, August 25, 2016

    2:00-3:00 pm

    Bldg. 2 – Room 2117B

    Thursday, September 22 2016

    2:00-3:00 pm

    Bldg. 2 – Room 2117B

    Thursday, October 27, 2016

    2:00-3:00 pm

    Bldg. 2 – Room 2117B

    Thursday, November 17, 2016

    2:00-3:00 pm

    Bldg. 2 – Room 2117B

    College of San Mateo

    Date Time Room

    Tuesday, August 30, 2016

    11:00 am-12:00 pm

    Bldg. 14 – Room 101

    Wednesday, September 21, 2016

    11:00 am-12:00 pm

    Bldg. 14 – Room 101

    Thursday, October 20, 2016

    1:00-2:00 pm

    Bldg. 14 – Room 101

    Monday, November, 7, 2016

    1:00-2:00 pm

    Bldg. 14 – Room 101

    Supplemental Loan Form accepted through November 10, 2016, for the fall term, through April 6, 2017, for spring term and through June 23, 2017, for summer term.