How to Apply for Student Loans
1. Complete a Free Application for Federal Student Aid (FAFSA).
You must take 6 or more credits and be registered in a degree or certificate program, not owe a repayment on an over-award or be in default on Federal Direct Loans.
2. Review and complete the Steps to Receiving Loans in 2013-14.
For loans through spring term 2013, submit a Federal Direct Loan Revision Request Form only. For students seeking loans for the 2013-14 award year beginning with summer term, the loan application process will open up on June 3, 2013.
3. Next Steps
After you complete the above steps, CGCC will then begin the process to certify your loans and eligibility. Subsidized eligibility is always calculated prior to Unsubsidized. Subsidized is the least expensive loan option available. Your loan period is generally the current/next term for which you meet the loan application deadline through the end of the academic year. Exceptions may be considered on an individual basis with a written request.
An updated Award Letter will be issued reflecting loan awards by type and term. The net amount will be divided into term disbursements and applied to your student account.
CGCC participates in the federally sponsored Direct Loan (William D. Ford Federal Direct Loan) Program which offers student loans through the federal government.
When you accept an offered Federal Direct Loan at CGCC, you will borrow from the federal government and receive funds directly through CGCC.
Subsidized and Unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans.
It is important that you carefully consider your need to borrow since these loans must be repaid.
First-time borrowers must wait 30 days for their first Federal Direct Loan disbursement. Your loan funds will be available as of the 31st day of the first term that you receive loans. Disbursement dates are listed on the Financial Aid Calendar.
Single Term Borrowers
Single-term borrowers must have their disbursement split in two equal parts. The first disbursement is at the same time as the rest of their aid (except first-time borrowers, see above) and the second disbursement happening at the 50% point of the term. Disbursement dates are listed on the Financial Aid Calendar.
Maximum Annual Loan Limits at CGCC for Subsidized and Unsubsidized Loans
1st Year Student
0-45 credits in your current program
$3,500 - This amount may be in Subsidized or Unsusidized Loans depending on need.
$9,500 – No more than $3,500 of this amount may be in subsidized loans.
2nd Year Student
46+ in your current program
$4,500 - This amount may be in Subsidized or Unsubsidized Loans depending on need.
$10,500 – No more than $4,500 of this amount may be in subsidized loans.
When you graduate from CGCC, leave school, or cease to be enrolled at least half-time, you must complete a Web-based Exit Counseling session with important information about your loan obligations.
It is your responsibility to complete the session. Holds may be placed on your records, transcripts, and access to other services until the session is completed. CGCC will notify you when it’s time to complete the exit counseling session.
Federal Consolidation Loans combine one or more eligible federal student loans into a new loan with a single lower payment and a fixed interest rate.
- Maximum interest rate: 8.25%
- Application Fees: None
- Origination Fees: None
- Prepament Fees: None
- Length of Repayment Period: Based on total loan balance, maximum of 30 years
As of July 1, 2010, all new consolidation loans are originated under the Direct Consolidation Loan program. Student borrowers can consolidate their qualifying federal education loans during grace, repayment, deferment or forbearance periods. Parent borrowers can consider consolidation at any time once each loan being included in the Consolidation loan has been fully disbursed.
Private loans are designed to meet the gap between the student’s financial aid package and the cost of attending college. These loans are offered by private lenders and may be more expensive than the Federal Direct Loan programs. You should always apply for federal student loans before using private lenders.
Compare the terms of the loans from several private lenders before choosing.
To apply for a private educational loan, you must provide all documentation requested by the lender and follow their application instructions. All private loan programs will do a credit check and/or an income-to-debt ratio check on either the borrower or co-signer or both.
Private loans are appropriate when:
- You have applied for the maximum amount of all federal loans suggested to you and still have a difference between the cost of attendance and the total financial aid you have received.
- You're ineligible for a federal loan. You may still qualify for a private loan because such programs are not bound by the same federal restrictions. For example, if you are not making Satisfactory Academic Progress, are in default on a federal loan, did not respond to verification requests, are enrolled for less than 6 credits, or are ineligible for federal loans for other reasons, you may be eligible for private loans instead.
- You are in arrears for a term prior to the current term. You may be able to receive a private loan for an earlier loan period.
Options and Restrictions
Some private loans do not have full deferment options. It is best to borrow only the amount that you absolutely require.
Private loans are for educational purposes only, which means you must be a registered student and the amount you borrow cannot exceed the cost of attendance minus other financial aid.
There are no maximum income restrictions. Individual lenders will evaluate credit history. Application fees are not refundable.