DIRECT LOANS
If you wish to take out a Direct Student Loan, wait until your eligibility for grants has been determined. Instructions for requesting a Direct Loan will be sent to you with your award notice or "loan only" notice.
You may choose to complete your online Master Promissory Note (MPN) and online loan counseling session ahead of time (prior to receiving your award notice or "no need; loan only" notice). You may click on the link below if you wish to complete the MPN and counseling at this time.
- PLEASE BE AWARE THAT COMPLETING THESE STEPS ONLINE DOES NOT MEAN YOU HAVE REQUESTED A LOAN AT YVCC!
- You will still need to complete a YVCC Direct Loan request form (available from our office) and submit it to our office AFTER you receive your award notice OR your "loan only" notice.
To complete your MPN and loan counseling at www.studentloans.gov, click here.
Subsidized Stafford is limited to 150% of program. Students who begin their college enrollment after July 1, 2013 will not have access to Federal Direct (Subsidized) Stafford Loans beyond 150% of the credits required for their degree or certificate program. They will be eligible only for Unsubsidized Loans and their Subsidized Stafford Loans may begin to accrue interest as well. Please click here for more information about this change.
150% Limit
General Information on Federal Direct Student Loans
Students at Yakima Valley Community College have access to two loans through the William D. Ford Federal Direct Loan Program. The Federal Direct Stafford Loan is a subsidized need-based loan where interest does not accrue until the student ceases to be enrolled at least half-time. First year students are limited to borrowing a maximum of $3,500 each year; second year students (who have earned 45 or more college level credits) may borrow up to $4,500 per year. If a student is not eligible for need-based aid, the same amount of loan is available through a non-need-based Federal Direct Unsubsidized Stafford Loan. For unsubsidized loans, the loan begins accruing interest at disbursement. Unless the borrower pays the interest while in school, the accrued interest will be "capitalized" (i.e. added to the loan principal) when the student goes into repayment. This base loan amount may be supplemented by additional unsubsidized loan up to $2,000 per year for dependent students and up to $6,000 per year for independent students. Additional information is available at www.studentloans.gov.
Federal Direct Stafford Loan Basics
|
Federal Direct Stafford/Ford Loan
(Need-based, Subsidized) |
Federal Direct Unsubsidized Stafford/Ford Loan (Non-need-based) |
Lender |
Federal government |
Federal government |
Interest Rate |
3.4% * |
6.8% |
Interest-free in school? |
Yes |
No |
Loan fees |
1.0% |
1.0% |
Annual maximums |
$3,500/freshmen
$4,500/sophomores |
$2,000/dependent freshman and sophomores**
$6,000/ independent freshmen & sophomores ** |
Grace period |
6 months |
6 months |
Repayment period |
to 10 years |
to 10 years |
Minimum payments |
$50/month |
$50/month |
Other information |
Additional repayment options beyond 10 years may be available. |
Additional repayment options beyond 10 years may be available. |
Cumulative maximums for all undergraduate work
(this includes further work beyond YVCC) |
$23,000 undergrad |
$31,000/dependent undergrad ***
$57,500/ independent undergrad *** |
*Interest rate is authorized only through June 30, 2013; then, rate reverts to 6.8%.
** May be increased by amount of unused portion of Subsidized Stafford/Ford Loan eligibility.
*** Aggregate loan amount includes Subsidized Stafford/Ford Loans. Changes are authorized beginning July 1, 2013.
Beginning with July 1, 2012, all Stafford loan disbursements reflect the 1% origination fee; loan proceeds (disbursements) will be 99% of the loan amount. Subsidizes for Stafford loans taken between July 1, 2012 and June 30, 2014 will end with enrollment and interest will accrue during the "grace period" even though no payments are required. (Please note the origination fee will be impacted if the federal budget uses that sequestration to balance the federal budget.)
Some links included within the Yakima Valley Community College (YVCC) Web pages will take you out of the YVCC site. Links are limited to those that meet our educational purpose. The linked sites are not under the control of YVCC and YVCC is not responsible for the content of any linked site or any link contained in a linked site, or any changes or updates to such sites. YVCC is not responsible for Webcasting or any other form of transmission received from any linked site. YVCC provides these links solely as a convenience and the inclusion of any link does not imply endorsement by YVCC or any association with their operators.