Federal Unsubsidized Stafford Loans

This loan is awarded to students to assist with educational expenses, but is not based on demonstrated financial need. The federal government does NOT pay the interest on this loan while the student is enrolled. Students may pay the interest during periods of enrollment or choose to have the interest accrue and be capitalized. Repayment of the loan begins after a six-month grace period and the interest rate is 6.8% for the 2008/09 school year. The minimum monthly payment is $50.00. Interest on the Federal Unsubsidized Stafford Loan begins to accrue as soon as the lender disburses the funds.

Application Processing

Every year you need to complete your Free Application for Federal Student Aid as soon as you can after January 1. The first eligibility letters will be mailed in approximately August. These are usually the students who have a completed file by
May 1. Those files received after May 1 will receive a response approximately three months or more after applying.

If you are eligible for grants, your first award letter will not include student loans. If you find that you require additional funds you can follow these steps for requesting loan funds: Hopefully you can avoid borrowing while your at YVCC; however, if you find you can not attend without a loan, follow these steps:

1. Complete a Stafford Loan Request for first time borrower.

 
2. Once you have received your award letter listing the types and amounts of loans available, complete Step One and Two of the Loan Entrance Counseling (below) if you are a first time borrower. If you have previously borrowed a student loan at YVCC, you only need to complete Step Two, which is the Stafford Loan Information Sheet.



3. If you are a first time borrower, you will next be able to electronically sign your Master Promissory Note (MPN) from Northwest Education Loan Association (NELA), the guarantee agency, or Bank of America depending on your chosen lender, using the Step 3 link below. If problems are encountered with the website, the student may choose to complete the MPN on paper by visiting the Financial Aid office and requesting an MPN be sent to their home address.



4. When the MPN is received by NELA or Bank of America (either electronically or by mail), the loan is processed and delivered to the college, through the electronic transfer process. The first check will be sent to the college 30 days after the quarter starts for all new students.



5. Federal Stafford loans are subject to a 2% origination/default fee which is paid to the Federal government and guarantee agency to offset administrative costs and to provide loan insurance. This fee will be deducted from loan proceeds prior to each disbursement.

Disbursement Process

Please note: For first year, first time borrowers: the first loan disbursement will be delayed until 30 days after the beginning of the quarter in accordance with Federal regulations. Also, quarter loans will be divided in half, minus 2% - 2nd half coming in the fifth week of the quarter (dates will vary).

When loan funds are disbursed, outstanding registration fees, housing and other obligations will be credited to the student account.

Statements from lenders indicating disbursements dates are the dates the lender begins the payment process and NOT the date the college receives the funds. The process from the Loan Entrance Counseling session to receipt of the loan check can take as long as three weeks.

Lenders
Following is a list of lenders whom NELA (Northwest Education Loan Association) does business with on a regular basis. Yakima Valley Community College uses NELA as a guarantor service in processing Stafford loans. This list is in alphabetic order.

It is not mandatory to choose a lender from the above list. If your preferred lender is not listed please ensure they participant in the Stafford Loan program.

Application Processing for Student Loans

1. The student must first complete the "Free Application for Federal Student Aid".
   
2. The student must receive an award letter from YVCC listing the type and amount of loan that they are eligible for.
   
3. The student must then EITHER:
   Attend a loan counseling session held the first and third Tuesday of each month Tuesday at 2:30 pm at the Yakima campus (please call 574-6855 for location) or contact Diana Jennings for Grandview students.      OR
   The student can use the online Loan Entrance Counseling link found at the bottom of this page. If you choose to use the Loan Entrance Counseling link you MUST also complete the online Stafford Loan Information Sheet (see link below). After BOTH links are visited and submitted, an e-mail will be sent to the desk of Tessa Southards in the Financial Aid office. A loan cannot be certified without both forms being completed.
   
4. After the Financial Aid Office receives indication that the student has attended the Counseling session either in person or over the Internet AND the "Stafford Loan Information Sheet" has been received then the loan will be certified.  "Please note processing (Certification) can take up to ten days."
   
5. After certification the student will be able to electronically sign the Master Promissory Note (MPN) from Northwest Education Loan Association (NELA), the guarantee agency, or Bank of America using the link (Step 3) below. If problems are encountered with the website, the student may choose to complete the MPN on paper by visiting the Financial Aid office and requesting an MPN be sent to their home address. The note must be signed and returned to NELA or Bank of America, in the preaddressed envelope provided if using the paper method.
   
6. When the MPN is received by NELA or Bank of America, the loan is processed and delivered to the college.
   
7. Federal Stafford loans are subject to a 1% origination fee and 1% guarantee fee, which are paid to the Federal government and guarantee agency to offset administrative costs and to provide loan insurance. These fees will be deducted from loan proceeds prior to each disbursement.
   

This area is for students in their last quarter at YVCC only

Please choose the Online Loan Exit Counseling button for those who are in their last quarter at YVCC in SIX credits or more. Even if you are transferring to another College you still need to Exit from our School before continuing on. There are no further documents required for the Exit Counseling.

Exit Counseling Path

The 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 contents 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.