Student Loans

Student Loans

Federal Direct Loan Information:
Types of Loans Available
. Eligibility
. Annual Limits
. Interest Rates
. Federal Direct Loan Application
. Application Deadlines
. Deferment & Forbearance
. Default

Ventura College participates in the William D. Ford Federal Direct Loan Program.  The U.S. Department of Education is the lender for the William D. Ford Federal Direct Loan Program.

We take our obligation to provide applicants with information about borrowing a student loan seriously. Applicants are educated about borrowing a loan and are expected to read all the materials and borrow wisely. This is a loan, it not a grant and must be paid back. The loan is to be used for educational related expenses at Ventura College (VC). Loans must be repaid with interest so it is important to understand your rights and responsibilities as a borrower. All borrowers are required to complete Loan Entrance Counseling before we may certify a loan.

Direct loans are issued by the federal government. The loan is serviced by the Federal Direct Loan Servicing Center. There are no banks or lending institutions. Interest rates are set every July 1st

There are TWO types of STUDENT Direct Loans:

Subsidized Loans are available to students who meet certain financial need criteria. Ventura College will always process a subsidized loan first.

Repayment of principal and interest on the loan will begin six (6) months after the student ceases enrollment as at least a half-time student (6-8.5units) or is not progressing in an eligible program.

Please Note: Direct Subsidized loans will no longer be eligible for an interest subsidy during the six-month grace period. You will be responsible for the interest that accrues while your loan is in the grace period. You do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of your loan when the grace period ends.

Unsubsidized Loans are available to students regardless of financial need. You are responsible for the interest that accumulates on an unsubsidized loan while you attend school, during the grace period and during any periods when you are authorized to defer your loan payments. You have the option to pay the interest during school or postpone payment. If you postpone payment, the interest will be added to your principal balance.

Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers on or after July 1, 2013

Applicants must choose the loan program (subsidized and/or unsubsidized). Ventura College cannot and will not certify a loan that is not requested (and will not automatically modify the loan request without submitting a Loan Revision Form to the Financial Aid Office).

Federal laws require all borrowers to participate in student loan Entrance Counseling. The counseling explains the terms and conditions for the loan. It also provides borrowers with information about the various Direct Loan repayment options.

Direct Loan Eligibility - Completing the Federal Direct Loan application and submitting it to the Financial Aid Office does not guarantee eligibility. Applicants must meet all federal aid eligibility requirements.

Eligibility includes, but is not limited to:
. Completing the Free Application for Federal Student Aid (FAFSA)
. Submitting all requested documents including evidence of Entrance Counseling
. Completing and signing a Master Promissory Note (MPN)
. Submitting the Direct Loan application by the published deadline date(s)
. Maintaining good academic standing as outlined in our Satisfactory Academic Progress Standards (SAP)
. Maintain half-time enrollment at all times during the loan period
. Be enrolled in an eligible program of study at VC
. Amount of financial need (Cost of Attendance minus Expected Family Contribution)
. Year in college (as determined by your Ventura County Community College District (VCCCD) academic transcript

VC reserves the right to refuse to certify a loan under conditions established by 34.CFR 685.301. Borrowing the low-interest, Federal Direct Loan is a privilege. Some conditions for refusing to certify a loan to high risk borrowers include but are not limited to:

. The student is not making progress or enrolled in an eligible degree, certificate or transfer program at Ventura College. This decision is made independently from the (SAP) Appeal process.
. The student has already borrowed the maximum loan amount appropriate for community college programs.
.The student appears to be or has been in default or delinquent on federal financial aid obligations.
. Notification of previously discharged federal student loans due to disability or bankruptcy.
. Instances of inconsistent, fraudulent FAFSA, or admissions application information.
. The student has a drastic change in requested borrowing amount from previous year(s).
. The student has valid and applicable education for employment and is choosing to pursue another educational endeavor. This decision is made independently from the SAP appeal process.

Annual Maximum Student Loan Limits

Federal law specifies annual loan limits on Federal Direct Loans based on your year in college and your dependency status. At Ventura College, you must have completed 30 college level units toward your program of study to be considered a second year student. If you don.t have 30 units at Ventura College but had units elsewhere and you want to be considered a second year student, outside transcripts must be submitted and evaluated by Ventura College.s Admissions and Records Office.

Dependent Student
Grade Level Base Amount Additional Unsubsidized Total
1st Year $3,500 $2,000 $5,500
2nd Year $4,500 $2,000 $6,500
Undergraduate Aggregate Loan Limit $31,000 (no more than $23,000 may be subsidized)
Independent Student
Grade Level Base Amount Additional Unsubsidized Total
1st Year $3,500 $6,000 $9,500
2nd Year $4,500 $6,000 $10,500
Undergraduate Aggregate Loan Limit $57,500 (no more than $23,000 may be subsidized)

Annual Interest Rates

The interest rate is fixed at 4.66% for all borrowers.

Prior Federal Loans and Financial Aid History. If you currently have a Stafford Loan and would like to check the interest rate, servicer information, and other financial aid history, go to the National Student Loan Data System.

Interest rate cap for military members. If you qualify under the Service Members Civil Relief Act, the interest rate on loans you obtained before entering military service may be capped at 6% during your military service. You must contact your loan servicer to request this benefit.

In addition, interest is not accrued (for a period of no more than 60 months) on Direct Loans first disbursed on or after October 1, 2008, while a borrower is serving on active duty or performing qualifying National Guard duty during a war or other military operation or other emergency, and serving in an area of hostilities qualifying for special pay.

Other than interest, is there a charge for this loan?

There is a loan fee on all Direct Subsidized and Unsubsidized Loans. The loan fee is a percentage of the amount of each loan you receive. For loans first disbursed on or after December 1, 2013 and before October 1, 2014, the loan origination fee is 1.072%. For loans first disbursed on or after October 1, 2014 and before October 1, 2015 the fee is increased to 1.073%. We will deduct the loan origination fee proportionately from each loan disbursement. The specific loan origination fee that you are charged will be reflected in a disclosure statement that we send to you.

Before Accepting a Student Loan...

Explore scholarships, grants, and Federal Work-Study opportunities at Ventura College. Also:
. Budget your own resources to live more economically.
. Borrow only what you need. Loans must be paid back even if you don't graduate, transfer or are unhappy with your education or training or are unable to obtain employment.
. Understand that you have the right to cancel or refuse to accept any future Federal Direct Loan disbursements by submitting a Loan Revision Form.

Click here to download Federal Direct Loan Request Application PDF Version 

Award Notification of loan eligibility is sent via email. 

. Ventura College will electronically transmit loan information to the Direct Loan Servicing Center. 
. To indicate the loan information is received, the Direct Loan Servicing Center will send a loan disclosure notice to the applicant approximately two weeks after transmission. 
. Ventura College will receive the electronic acceptance of your MPN. 
. Check www.nslds.ed.gov for your student loan history.

Loan Disbursements

Direct Stafford Loans are issued to students in multiple disbursements. Stafford borrowers will be charged loan fees which are deducted from the loan proceeds and are used to cover the costs of loan defaults and other administrative costs of the Direct Loan Program. After your loan has been certified, you will receive a Loan Disclosure Statement with pertinent information regarding your loan, including disbursement dates, deducted fees, and net disbursement amounts.

Half-time enrollment (6 to 8 ½ units) must be maintained and is verified before each loan disbursement.

Please Note: If you are a first-year, first-time loan borrower there will be a 30 day delay in your first loan disbursement.

Loan Request Deadlines

Fall 2014 Only: November 26, 2014*

Spring 2015 Only: April 16, 2015*

Summer 2015 Only: June 18, 2015*

*Loan requests received after the application deadline will not be processed

Loan Exit Counseling:

Federal regulations require that all student borrowers who graduate, withdraw, or drop below half-time enrollment complete loan exit counseling. Always notify your lender of your current address, phone number and contact information in a timely manner. The National Student Loan Data System (NSLDS) website has the most current contact information for the Holder/Servicer of your loan(s).

Avoid Default At All Costs

If you run into financial problems with your repayment schedule, contact the Direct Loan Servicing Center at (800)848-0979. There may be solutions that can keep you on track and protect your credit rating. Visit the Direct Loan Servicing Center for tips on managing loan debt.

Deferment, Forbearance, & Default

A Deferment or Forbearance allows you to temporarily postpone making your federal student loan payments or to temporarily reduce the amount you pay.

Under certain circumstances, you can receive a deferment or forbearance that allows you to temporarily postpone or reduce your federal student loan payments. Postponing or reducing your payments may help you avoid default. You.ll need to work with your loan servicer to apply for deferment or forbearance; and be sure to keep making payments on your loan until the deferment or forbearance is in place.

How do I request a deferment?

Most deferments are not automatic, and you will likely need to submit a request to your loan servicer, the organization that handles your loan account. If you are enrolled in school at least half-time and you would like to request an in-school deferment, you.ll need to contact your loan servicer. Your deferment request should be submitted to the organization to which you make your loan payments.

How do I request forbearance?

Receiving loan forbearance is not automatic. You must apply by making a request to your loan servicer. In some cases, you must provide documentation to support your request.

DEFAULT

Don.t ignore your student loan payments. Loans must be repaid.

If you don.t make your loan payments, you risk going into default. Defaulting on your loan has serious consequences. Your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government all can take action to recover the money you owe.

There are steps you can take to repay your federal student loan successfully and avoid going into default. Understanding your loan agreement, staying on top of your loan information, and making sure to contact your loan servicer if you are having trouble making payments can help you avoid default.

When placed in default, any William D. Ford Federal Direct Loan (Direct Loan) Program loan or Federal Family Education Loan (FFEL) Program loan that is owned by the U.S. Department of Education (ED) is assigned to ED.s Default Resolution Group for collection. Defaulted FFEL Program loans that are not owned by ED will be assigned to a guaranty agency for collection.

If you are unsure which type(s) of loan(s) you have, check your original loan documents or use the National Student Loan Data System (NSLDS®). Note that information about any private student loan you may have received will not be included in NSLDS.

Don.t get discouraged if you are in default on your federal student loan. You have several options for getting your loan out of default. These include

Loan consolidation allows you to pay off the outstanding combined balance(s) for one or more federal student loans to create a new single loan with a fixed interest rate.

Work with your loan servicer to choose a federal student loan repayment plan that.s best for you.

To make your payments more affordable, repayment plans can give you more time to repay your loans or be based on your income. Use the Repayment Calculator at www.studentloans.gov, Managing Repayment Tab >>Repaying Your Loans.

For additional information on these subjects, please go to www.studentloans.gov

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