FAFSA
Federal Student Aid
Federal Student Aid
Federal Direct Loans
Direct Loan Applications are to be completed online. A completed FAFSA and Financial Aid File with the Office of Financial Aid is required before you may apply for Direct Loans.
What is a Direct Loan?
A Federal Direct Loan is a need based loan insured by the federal government and guaranteed by a guarantee agency. There are two types of Direct Stafford Loans, subsidized and unsubsidized. Both loans require a student to be enrolled at least halftime in a degree or certificate program at an eligible institution. There is a fixed interest rate of 3.4% for Subsidized Loans and 6.8% for Unsubsidized Loans.
Subsidized Loans
The federal government will pay the interest on these loans while the student is enrolled in school at least half time and during grace and deferment periods.
Unsubsidized Loans
Interest begins when the loan is disbursed. Students are responsible for paying the interest while in school. Payment of interest can be deferred by capitalizing the interest; however, this increases the amount of repayment.
Subsidized Loans
The federal government will pay the interest on these loans while the student is enrolled in school at least half time and during grace and deferment periods.
Unsubsidized Loans
Interest begins when the loan is disbursed. Students are responsible for paying the interest while in school. Payment of interest can be deferred by capitalizing the interest; however, this increases the amount of repayment.
How much can I borrow?
The amount you can borrow annually is based on you dependency status and grade level. Your total financial aid, including all student loans can never exceed your “Cost of Attendance”.
*Dependent Students in need of additional loan funds, please see a Financial Aid Technician
| Subsidized or Unsubsidized | Additional Unsubsidized (Independent Students Only) | |
|---|---|---|
| Freshman (0-29 units) | $3,500 ($1,750 for one semester borrowers) |
$6,000 ($3,000 for one semester borrowers) |
| Sophomore (30+ units) | $4,500 ($2,250 for one semester borrowers) |
$6,000 ($3,000 for one semester borrowers) |
How do I apply for a Direct Loan?
If you are interested in applying for a Direct Stafford loan for the 2012-2013 Academic Year, please follow the instructions below:
Summer 2013 Loans are based on remaining eligibility and will be disbursed at the end of July.
The interest rate for both subsidized and unsubsidized loans is 6.8% with an origination fee of 1.051% .
- Click the link for Step 1 to view the "Federal Direct Stafford Loan Information". Print out the form for your records. Read and review the form prior to continuing, as you will need the information from this form in order to complete the application process.
- Click the link for Step 2 and complete the Entrance Loan Counseling.
- Click the link for Step 3 and complete the Loan Request Form.
- Once you have read and reviewed the information to ensure you are eligible, click the link for Step 4 "Apply for a Direct Stafford Loan" button and follow the instructions online. You will need to refer to the Loan Information that you printed out as you go through the process. Save the Loan Information with your important paperwork for future reference.
DIRECT STAFFORD LOAN |
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*Completing Exit Counseling is not required for the first disbursement, however, it must be completed before you withdraw, graduate, or drop below half time attendance.
How will my loans be disbursed?
Direct Stafford Loans will be disbursed at Fullerton College no sooner than 30 days after the beginning of the academic period and will be disbursed to students on their North Orange Card debit card, depending on their refund preference. All loans requested thereafter, will be disbursed approximately two to four weeks after all steps are completed. Federal law requires that the loan be disbursed in at least two equal installments during the loan period.
*All Direct Stafford loans for students who already have a bachelor’s degree will be denied or cancelled unless an appeal is approved by the Director of Financial Aid.
*All Direct Stafford loans for students who already have a bachelor’s degree will be denied or cancelled unless an appeal is approved by the Director of Financial Aid.
If you have any questions regarding Direct Stafford Loans please contact:
Fatima Villegas (714)732-5286
Teresita Guillen-Soto (714)732-5282
