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Student Loans

Loans must be repaid!

Cabrillo recommends that students borrow only when it is absolutely necessary. Students who are planning to transfer should be aware that loans are generally the largest portion of a financial aid package at four year colleges, you should consider your total educational indebtedness before borrowing at Cabrillo.

Allow additional 5-8 weeks for the loan application process.

Note: Loans are also affected by the Federal Repeat Policy.

To take out a student loan, you must complete the Loan Application process EVERY school year.


2014-15 Loan Application Deadlines:

FALL 2014: Friday, October 31, 2014

SPRING 2015: Friday, April 10, 2015

Loan application processing for Fall 2014 will begin August.



Types of Loans Available at Cabrillo

William D. Ford Federal Direct Loans

Direct Loans are low-interest loans for students to help pay for the cost of a student’s education. The lender is the U.S. Department of Education rather than a bank or other financial institution. Direct Loans are a form of financial aid and must be repaid with interest.

Subsidized Direct Loan (Click here for more information)
While you are enrolled in at least 6 units and during any approved deferment periods, the federal government will pay the interest on your Subsidized Loans.  After you graduate, withdraw from school, or drop below 6 units enrollment, there is a 6 month grace period before repayment of the loans begins.  When you enter repayment, you are responsible to begin repaying the amount you borrowed as well as the interest that accrued and will accrue during the repayment period.  Subsidized Loans with a first disbursement from July 1, 2014 to June 30, 2015 will have a fixed interest rate of 4.66%. Borrowers of subsidized Stafford Loans first disbursed on or after July 1, 2014 are once again eligible for an interest subsidy during the 6-month grace period. The subsidy during the grace period had been temporarily removed by the fiscal year 2012 budget bill for loans first disbursed on or after July 1, 2012, and before July 1, 2014. 
Unsubsidized Direct Loan (Click here for more information)

The federal government DOES NOT PAY THE INTEREST ON UNSUBSIDIZED LOANS!This should be a loan of last resort!

Interest accrues immediately after disbursement.  If you borrow Unsubsidized Loans, we strongly recommend that you begin making interest payments right after you receive your loan. Call your servicer for more information. If you do not make interest payments while you are in school, the interest continues to accrue and is added (capitalized) to your principal loan balance at repayment.  When interest capitalization occurs, you will then be paying interest on top of interest which greatly increases the amount of your loan and the total amount you will be repaying.  Unsubsidized Loans with a first disbursement on or after July 1, 2014 to June 30, 2015 will have a fixed interest rate of 4.66%. 


Cabrillo College does NOT participate in Direct PLUS Loan or Private Alternative Loan programs.

 

Is there a time limit on how long I can receive loans?

First Time Borrowers (Click here for more information)

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog.
For example, if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years). If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years). 
Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.
Certain types of enrollment may cause you to become responsible for the interest that accrues on your Direct Subsidized Loans when the U.S. Department of Education usually would have paid it.  These enrollment patterns are described below: 


Do I become responsible for paying the interest that accrues on my Direct Subsidized Loans because . . .

Yes

No

I am no longer eligible for Direct Subsidized Loans and I stay enrolled in my current program?

X

 

I am no longer eligible for Direct Subsidized Loans, did not graduate from my prior program, and am enrolled in an undergraduate program that is the same length or shorter than my prior program?

X

 

I transferred into the shorter program and lost eligibility for Direct Subsidized Loans because I have received Direct Subsidized loans for a period that equals or exceeds my new, lower maximum eligibility period, which is based on the length of the new program?

X

 

I was no longer eligible for Direct Subsidized Loans, did not graduate from my prior program, and am enrolled in an undergraduate program that is longer than my prior program?

 

X

I lose eligibility for Direct Subsidized Loans and immediately withdraw from my program?

 

X

I graduated from my prior program prior to or upon meeting the 150% limit, and enroll in an undergraduate program that is the same length or shorter than my prior program?

 

X

I enroll in a graduate or professional program?

 

X

I enroll in preparatory coursework that I am required to complete to enroll in a graduate or professional program?

 

X

I enroll in a teacher certification program (where my school does not award an academic credential)?

 

X

For more information about Direct Subsidized Loan time Limitation:            https://studentloans.gov/myDirectLoan/images/DirectSubsidizedLoanTimeLimitation.pdf

How Much You Can Borrow

The amount you may borrow for a single academic year is shown in the tables below. The amount you will actually be eligible to receive may vary due to the following factors:

  • The loan amount you request;
  • Your year in school, based on the requirements of your chosen program of study at Cabrillo;
  • Whether you are considered a DEPENDENT or an INDEPENDENT student for federal financial aid purposes;
  • The length of time you will be in attendance, also known as your enrollment period, at Cabrillo during the academic year;
  • Your cost of attendance;
  • Your Expected Family Contribution (EFC);
  • Other financial aid you will receive during the academic year;
  • Your remaining eligibility under the annual or aggregate loan limits.

It is your responsibility to know what your total student loan debt is!  Find out at www.nslds.ed.gov

There is a loan aggregate (maximum) limit. If you plan to transfer, you will most likely need to take out more loans! Your loans at Cabrillo will be included in your loan aggregate limit, make sure you have enough if you plan to transfer.

Direct Loan Annual Limits

The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent or an independent student. The following tables show the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans

Dependent Students (Click here for more information)
Dependent Student
Direct Loan Annual Limits

DEPENDENT STUDENTS

Base Amount
Subsidized/Unsubsidized
Combined

Additional
Unsubsidized

Yearly Maximum

Grade Level 1
0-29.9 completed units

$3,500

$2,000

$5,500

Grade Level 2
30+ completed units

$4,500

$2,000

$6,500

Note: If your grade level changes mid year and you have already received a loan for the school year, you may be eligible to request additional Subsidized loan funds. To do so, submit a Student Correspondence request.

Independent Students (Click here for more information)
 Independent Student
Direct Loan Annual Limits
 

INDEPENDENT STUDENTS

Base Amount
Subsidized/Unsubsidized
Combined

Additional
Unsubsidized

Yearly Maximum

Grade Level 1
0-29.9 completed units

$3,500

$6,000

$9,500

Grade Level 2
30+ completed units

$4,500

$6,000

$10,500

Note: If your grade level changes mid year and you have already received a loan for the school year, you may be eligible to request additional Subsidized loan funds. To do so, submit a Student Correspondence request.

Loan Fees

The origination fee is 1.072 % for all Direct Subsidized and Unsubsidized Loans that are first disbursed on or after July 1, 2014 and through September 30, 2014. On or after October 1, 2014 and through September 30, 2015 the origination fee will be 1.073%.

Undergraduate Aggregate Loan Limits 

Aggregate limits are the maximum total outstanding loan debt. These aggregate limits include both Direct Subsidized and Unsubsidized Loans and any subsidized and unsubsidized Federal Stafford Loans received through the Federal Family Education Loan (FFEL) Program.

Dependent Students (Click here for more information)
$31,000 (maximum $23,000 subsidized)
Independent Students (Click here for more information)
$57,500 (maximum $23,000 subsidized)

The recommended maximum aggregate loan debt for your entire time at Cabrillo College is $17,000. Plan accordingly.

Proration

Students attending Cabrillo College for one term ONLY are subject to prorated loan amounts.  This calculation is the number of units enrolled in divided by 24 and multiplied by grade level loan amounts.

 

Direct Loan Publications  (Click here for more information)

 

Direct Loan Application Process (click on step for more information)

To take out a student loan at Cabrillo, you must complete these required steps EVERY school year:

1. Complete your financial aid file and receive a Final Review Done email (Click here)

You will receive a Final Review Done email when the above steps are completed. Please refer to Financial Aid Processing Timelines.

Note: All students with Bachelors degree or beyond have exceeded the Maximum Time Frame for any program at Cabrillo College and MUST complete the Maximum Time Frame appeal process (refer to our SAP Policy for more details). Bachelor students taking preparatory courses necessary for their enrollment in an eligible program at another institution are only eligible for loans for a period of up to one year.

 


2. Complete Entrance Counseling online at www.studentloans.gov (Click here)
  • Complete online at www.studentloans.gov
  • Cabrillo College requires that you complete Entrance Counseling EVERY school year when you apply for a Direct Loan. Note: If you have completed Entrance Counseling for a previous school year, or current school year at another institution, you will need to click continue button in message box after you login.
  • Your U.S. Department of Education PIN is required to complete this step. This is the same PIN you used for your FAFSA. If you don't remember your PIN, you can retrieve it at www.pin.ed.gov.
  • Individualized instructions are included with each step, so read carefully before moving on to the next step.
  • We will receive notice of the completed Entrance Counseling electronically from the US Department of Education.
  • Once we receive notice that you have completed the Entrance Counseling, you will receive an email. You should receive this email within a week of completing your Entrance Counseling.

3. Sign a Master Promissory Note (MPN) online at www.studentloans.gov (Click here)
  • Complete online at www.studentloans.gov
  • Cabrillo College requires that you complete a new MPN EVERY school year that you apply for a Direct Loan. Note: If you have completed an MPN for a previous school year, or current school year at another institution, you will need to click continue button in message box after you login.
  • Your U.S. Department of Education PIN is required to complete this step. This is the same PIN you used for your FAFSA. If you don't remember your PIN, you can retrieve it at www.pin.ed.gov.
  • Once you open the online MPN web page, click on the “Complete new MPN for Student Loans” link. Follow the directions carefully. You will need two references to complete the MPN. Your PIN acts as your electronic signature and your promise to repay the loan. After you complete your MPN and submit it to the Department of Education, you will be able to print a copy for your records.
  • We will receive notice of the completed MPN electronically from the US Department of Education.
  • Once we receive notice that you have completed an MPN, you will receive an email. You should receive this email within a week of completing your MPN.

4. Complete loan forms (Click here)

Required Loan Forms

Do NOT submit the loan forms until Final Review has been done. Loan forms submitted before Final Review has been done or after the loan deadline for the term will be returned as denied.

Allow 5-8 weeks after you submit your loan forms to receive your loan funds.

The Direct Student Loan Application and Loan Obligation forms are located in your eforms library.

paper icon Direct Student Loan Application (eform)- REQUIRED

    • Think twice about borrowing before submitting.
    • Incomplete forms and forms received after loan deadline will not be processed.

NOTE: Only one application is accepted per school year. If you are attending Fall and Spring you must request the full year loan amount now. You will NOT be able to request additional funds in the Spring. Plan ahead. If your grade level changes mid year and you have already received a loan for the school year, you may be eligible to request additional Subsidized loan funds. To do so, submit a Student Correspondence request.


paper icon Loan Obligation form (eform) - REQUIRED

    • Please read carefully initial and sign.

     

       

    paper icon Educational Plan - REQUIRED

      • You will be required to be enrolled in 6 or more degree applicable units in order for your loan to be processed. Remedial units are not degree applicable and cannot be counted.
      • You obtain an Ed Plan by making an appointment with an Academic Counselor.
        Ed Plans are done BY APPOINTMENT ONLY. They will NOT be done during Express counseling sessions.

        BEFORE your appointment,

        • Some students may be required to attend an Education Plan Workshop prior to scheduling a counseling appointment to begin working on an ed plan. Details for the processs, and schedules, are available at: www.cabrillo.edu/services/counseling/edplanning.html You may also need to meet with a counselor during a scheduled 30 minute counseling appointment to complete your comprehensive education plan. Appointments can be scheduled by calling either 479-6274 or 479-6385.

          Your Educational Plan should extend until your date of program completion, graduation, or transfer. Be clear with your counselor about what you need. If you have attended other colleges, arrange to have official transcripts sent to Cabrillo Admissions and Records. Official transcripts from previously attended colleges need to be on file before you schedule an appointment with a counselor.


      paper icon Academic Progress Report - ONLY IF REQUESTED

  • If your SAP status is Warning or Probation, a progress report may be requested. This form will be used to determine eligibility for loan funds.
  • This form will only be available and accepted after the 4th week of the term.

 

    Remember, you must also complete the online Entrance Counseling and sign an MPN before we can process your loan application. These are done online at www.studentloans.gov. See specific steps for more information.


    Optional Loan Documents

 

paper icon Budget Planning Worksheet -OPTIONAL (pdf) – Provided for your use.  Do NOT submit.

    • Use realistic estimates - We want you to get an accurate idea of how much you actually need to borrow.
paper icon Computer cost printout - OPTIONAL
    • Must submit an itemized estimate from vendor at the same time you submit your Loan Application. This results in a budget adjustment in case you are not eligible for the full loan amount you requested.
    • Personal computer is a one time only budget adjustment at Cabrillo College.

5. Be enrolled in and attending 6 or more degree applicable units towards your major.
  • All loan students are required to be enrolled in and attending 6 or more degree applicable units. Note: Remedial classes are not degree applicable and the Financial Aid Repeat policy will affect which courses are counted.
  • Units from late starting or short term classes will not be counted unless you are currently attending the class.

6. Complete Exit Counseling online. (Click here)
  • Complete online at www.studentloans.gov.
  • Cabrillo College requires that you complete Exit Counseling every year before you can receive a 2nd loan disbursement.
  • Your U.S. Department of Education PIN is required to complete this step. This is the same PIN you used for your FAFSA. If you don't remember your PIN, you can retrieve it at www.pin.ed.gov.
  • Individualized instructions are included with each step, so read carefully before moving on to the next step.
  • You will need two references to complete the Exit Counseling.
  • We will receive notice of the completed Exit Counseling electronically from the US Department of Education.

Loan EXIT Counseling is REQUIRED:

  • Before receiving your 2nd Loan Disbursement
  • If you drop below half-time enrollment (6.0 units)
  • Within 30 days PRIOR to graduating or leaving Cabrillo
    30 Day Periods for Exit or Graduation
    Fall 2014 11/21/14 - 12/20/14
    Spring 2015 04/24/15 - 05/23/15

7. Loan Disbursements (Click here)
  • Loan funds are disbursed in two disbursements for both full year and one term loans. 
    • Full year loans are disbursed, once during the Fall term and the second during the Spring term. 
    • One term loans second disbursement will be after you have completed half of the term.
  • Second disbursements are released ONLY AFTER you have completed Loan Exit Counseling. You must complete Exit Counseling to receive the second disbursement of your loan. You can complete this requirement online at www.studentloans.gov. Cabrillo will be notified electronically once you complete your Exit Counseling. Your 2nd disbursement will be CANCELED if you do not complete the Exit Counseling requirement.
  • Subsidized and Unsubsidized funds may come together in one disbursement.
  • Any outstanding charges owed to the college will be deducted from your loan.
  • By law, a loan fee will be subtracted from each loan you receive. This fee will be subtracted proportionally from each disbursement of your loan. The loan fee will be on your loan disclosure statement that is sent to you by the Department of Education. This is also available under My Loan Documents at www.studentloans.gov.
  • If you want to decrease or cancel your loan, please notify the Financial Aid Office by completing a Student Correspondence eform.
  • Keep your address current. You can verify/update your address on WebAdvisor.
  • If you do not maintain Satisfactory Academic Progress or if you drop below 6 degree applicable units, you will not be eligible to receive your disbursement and your loan will be canceled.
  • If your SAP status is Probation or Warning, you may be required to submit a Progress Report from all your Instructors to determine eligibility for loan funds.
  • You must be enrolled in and attending 6 degree applicable units towards your major or the loan will be canceled.  Classes enrolled in but are repeats per the Financial Aid Repeat policy will not be counted.
    • Remedial units are not degree applicable and cannot be counted (i.e. ESL, 200 level courses).
    • Units from late starting or short-term classes will not be counted unless you are currently attending the class.

Allow 5-8 weeks after you submit your loan forms to receive your loan funds.


Loan Processing Timeline

Step 1: Entrance Counseling and signed MPN completed by loan deadline. Entrance and MPN Received Notice emails sent.
Step 2:

Required loan forms submitted by loan deadline AFTER Entrance Counseling, MPN and Final Review Done are completed.

Note: Loan forms submitted prior to the Entrance, MPN, and Final Review Done steps being completed, will be returned as denied and a Returned Loan Notice email will be sent.

During peak processing periods, timelines could be doubled for steps 3-6

Step 3: Loan forms are reviewed, loan is originated and sent to Department of Education. Loan Originated email sent.
2-3 weeks
Step 4: Department of Education processes loan and sends you a disclosure statement with disbursement dates. Allow approximately two weeks from the disbursement dates for processing.
1-2 weeks
Step 5:

Enrollment and academic progress is verified, loan(s) is processed. Disbursement Notice email sent.
1 week

  Note: 2nd disbursements will be canceled within three weeks of the disbursement date if you do not complete Exit Counseling, meet SAP requirements, or are not registered in 6 degree applicable units towards your major.
Step 6: Loan(s) are disbursed through College Bank and Higher One to student's Cabrillo Access Card.
1-2 weeks

Note: Loans are not disbursed until after the 4th week of term unless you are in an Allied Health program (RN, RT, DH).

 


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