DIRECT LOANS


Federal Direct Loans are almost always less expensive than any other form of educational borrowing.  They are loans that must be repaid, with interest; however, to keep these loans affordable, the federal government has establish many payment plans and programs for loan deferment, cancellation, and forbearance that protect the borrower in case of disability, temporary unemployment, returning to school, etc.  At YVCC, we do not process loans until we have considered each applicant for gift aid funding.  Then, after a student has been awarded grant fund or has been notified that he/she will not be receiving grant funding, the student has the opportunity to request a federal loan to help pay educational costs.  The Federal Direct Ford Loan Program provides two types of loans to YVCC students.  The subsidized Federal Direct Stafford Loan which is need based does not generally accrue interest while the student is in school (up to 150% of the standard, published length of the program and the Direct Unsubsidized Stafford Loan Program where interest begins accruing form the point of disbursement. Loan request forms are generally available in August for the upcoming school year.  New borrowers must sign Master Promissory Notes and undergo entrance counseling on line and submit documentation that these have been completed with the loan request form.  Instructions are included with the Loan Request Form.

Annual and aggregate limits for subsidized and unsubsidized loans.

Year

(45 credits per year)

Dependent Students Independent Students
First-Year Undergraduate Annual Loan Limit$5,500—No more than $3,500 of this amount may be in subsidized loans.$9,500—No more than $3,500 of this amount may be in subsidized loans.
Second-Year Undergraduate Annual Loan Limit$6,500—No more than $4,500 of this amount may be in subsidized loans.$10,500—No more than $4,500 of this amount may be in subsidized loans.

Third-Year and Beyond Undergraduate

Annual Loan Limit

$7,500—No more than $5,500 of this amount may be in subsidized loans.$12,500—No more than $5,500 of this amount may be in subsidized loans.
Subsidized and Unsubsidized Aggregate Loan Limit$31,000—No more than $23,000 of this amount may be in subsidized loans.$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.

Notes:

The aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have previously received under the Federal Family Education Loan (FFEL) Program. As a result of legislation that took effect July 1, 2010, no further loans are being made under the FFEL Program.

 

If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.


 

The interest rates for Direct Subsidized Loans and Direct Unsubsidized Loans are shown in the chart below.

Loan TypeBorrower TypeLoans first disbursed on or after 7/1/13 and before 7/1/14Loans first disbursed on or after 7/1/14 and before 7/1/15
Direct Subsidized LoansUndergraduate3.86%4.66%
Direct Unsubsidized LoansUndergraduate3.86%4.66%

 Other Loan Fees:

Loan TypeBorrower Type

Origination Fee deducted from each disbursement  when first disbursement

12/1/2013 - 11/30/2014

Origination Fee deducted from each disbursement when first disbursement

12/1/2014 - 9/30/2015

Direct Subsidized & Unsubsidized  LoansUndergraduate1.072%1.073%

 

Resources for Student Borrowers:

http://studentloans.gov

One stop information on federal loans:

  1. Complete Master Promissory Note (MPN)
  2. Complete Entrance Counseling
  3. Complete Exit Counseling
  4. Resources for working with loan servicers, types of deferments, etc.
http://yvcc.edu/financialaidGeneral information and forms for the financial aid processes at YVCC.
https://www.fas.ctc.edu/portal1/?col=160Access to private student financial aid records –awards, notices, missing documents, etc.