Student loans can have a much lower interest rate and sometimes the interest is deferred while students are in school. Keep in mind that any money you borrow needs to be repaid.PPCC is a participant in the Federal Direct Loan Program in which students borrow their Stafford Loan funds directly from the U.S. Department of Education rather than from a lender.
Want to learn more about ways to pay for college? Check out this "Money Matters" video for tips on budgeting, saving, and understanding the consequences of getting into debt.
Receiving Federal Loan Funds
To receive a loan you must file FAFSA, accept your loan offer on your financial aid award, then complete a Master Promissory Note (MPN) at www.studentloans.gov and attend Entrance Loan Counseling. You must also be enrolled in and attending half-time (6 credit hours). Entrance Loan counseling is a workshop that informs you on your loan options and repayment. If you have accepted your loan in your portal, please check your student e-mail for communication from Dianne Chan (firstname.lastname@example.org) regarding instructions for loan counseling on the Learning Management System.
Some loans are better than others. Subsidized loans do not accrue interest while you are in school and are better than an Unsubsidized, which does accrue interest even when you are taking classes.
Deadline for Loan Acceptance/Adjustments Per Semester:
Fall 2018 = December 4, 2018
Spring 2019 = April 23, 2019
Summer 2019 = July 23, 2019
A Federal Subsidized Loan is great because interest does not accrue when you are in school. This loan does not accrue interest while you are enrolled in school at least half time.
A Federal Direct Unsubsidized Loan is not based on your financial need. You are charged interest on this loan from the time the loan is disbursed until it is paid in full.
Federal Direct Stafford Subsidized Loan (the better loan)
Must have demonstrated financial need based on EFC
Must be enrolled in at least 6 credit hours
Does not accrue interest while student is enrolled in at least 6 credit hours
Requires repayment after graduating, ceasing enrollment, or drops below half-time enrollment
Must complete the Master Promissory Note (MPN) and Entrance Loan Counseling through D2L Online PPCC Portal to receive
Federal Direct Stafford Unsubsidized Loan
Does not require demonstrated financial need
Must be enrolled in at least 6 credit hours to receive
Accrues interest immediately after disbursement
Requires repayment after graduating, ceasing enrollment,or drops below half-time enrollment
Must complete Master Promissory Note (MPN) and Entrance Loan Counseling through the D2L Online PPCC Portal to receive.
Federal Parent (PLUS) Loan
Parents of dependent undergraduate students can borrow a PLUS loan to pay for educational expenses at PPCC as long as their student is:
Enrolled in at least 6 credit hours
Meets Financial Aid eligibility requirements
Parents are financially responsible for repayment of this loan, are required to go through a credit check to receive it, and interest accrues on this loan from the time it is disbursed.
If you do not make your loan payments, you can go into Loan Default after being delinquent for 270 days or more. Defaulting on your student loan can have a number of serious consequences including:
The national credit bureaus are notified and your credit rating can be affected.
The Internal Revenue Service can withhold your tax refund.
Your wages can be garnished.
You will be ineligible to receive federal or state aid if you return to college.
Be aware: Student loans are generally not dischargeable in bankruptcy!
Apply for Financial Aid
Use the Free Application for Federal Student Aid (FAFSA®) form to apply for financial aid for college or grad school.
Current interest rate on loans disbursed between July 1, 2018- June 30, 2019 are:
Direct Subsidized Loans (undergraduate students) – 5.05% Fixed
Direct Unsubsidized Loans (undergraduate students) – 5.05% fixed
Direct PLUS Loans (parents) – 7.6%
Please Note: interest rates generally increase or decrease every July 1.
Base loan amount per year
$3500 for freshmen (29 credits attempted or less)
$4500 for sophomore (30 - 59 credits attempted)
$5500 for 60+ credit hours
- Dependent students can request an additional $2000 unsubsidized loan per year. - Independent students can request an additional $4000 unsubsidized loan per year.
- All additional loan requests are reviewed on a case-by-case basis and are subject to denial.
Cumulative loan limits for a four-year, undergraduate degree program
$57,500 for an independent student
$31,000 for a dependent student
No more than $23,000 of either limits may be subsidized
Entrance Loan Counseling
Be sure you have completed the FAFSA. Upon completing the FAFSA you will receive a financial aid award containing which grants and loans for which you qualify. To receive a loan you will have to sign a Master Promissory Note at www.studentloans.gov and complete PPCC's online D2L Entrance Loan Counseling which you will automatically be signed up for when you accept your student loan on your award. Please check your PPCC Student Email for directions on how to begin the counseling session. Through an Entrance Loan Counseling Session, you will learn the types of loans, repayment options, and how to maintain your financial aid eligibility.