Loan Information for 2011-2012
The Federal Direct Loan is a federal loan program where students borrow directly from the Federal Government instead of from a bank or other lending institution.
A community college student may borrow up to $3,500 as a first year student and up to $4,500 as a second year student. Please review the aggregate loan limits for the maximum amount you can borrow from all schools.
The interest rate is set each school year on July 1st. The current interest rates are shown below.
Fixed Rates for Loans First Disbursed on or After July 1, 2006
| LOAN TYPE |
GRADE LEVEL |
First Disbursed Between July 1, 2010 and June 30, 2011 |
First Disbursed Between July 1, 2011 and June 30, 2012 |
| Subsidized Loans |
Undergraduate |
4.50Â |
3.40
|
| Graduate students |
6.80 |
6.80 |
| PLUS Loans |
Parent and Grad Student |
7.90 for Direct Loans |
7.90 for Direct Loans |
Borrowers are required to pay an origination and insurance fee which is currently, 1.0%. These fees are deducted from the proceeds of the loan. A Rebate of 0.5% of each gross disbursement is added back automatically to your check disbursement. You will keep the Rebate Amount if you make your first twelve monthly payments on time. Otherwise, the Rebate Amount will be added back to your principal balance to be repaid.
General Loan Eligibility Requirements
- The maximum total subsidized loan amounts you can receive as an undergraduate student is $23,000.
Aggregate Loan Limits: Maximum Total Outstanding Loan Debt
|
Dependent Undergraduate Students |
Independent Undergraduate Students* |
| Undergraduate |
$31,000 (maximum $23,000 subsidized) |
$57,500 (maximum $23,000 subsidized) |
| Graduate and Professional |
N/A |
$138,500 |
- You must be officially enrolled in and keep 6 or more units each semester with at least 1 class at San Diego City College
- Only classes taken at City, Mesa, Miramar or ECC will be counted towards your enrollment status
- You must maintain continuous half-time enrollment for the entire loan period to receive your loan check(s)
- If you drop or withdraw below 6 units at any time, you will not be eligible to receive your loan check(s)
- If your loan period is for one semester only, you will only be eligible for up to 1/2 of the annual loan amount
- If you enroll in classes that start later in the semester, your loan disbursement will be delayed until after the start of the late class that brings your enrollment up to 6 or more current units
- Loan requests must be submitted by the specified deadlines or your request will not be processed
- You cannot receive a loan once the loan period has ended
- You must be making Satisfactory Academic Progress (SAP) as published in the San Diego Community College District Financial Aid Bulletin. Click the link to the right of this page called Satisfactory Academic Progress to review the new SAP standards
- You must not be in Default on any Title IV Federal loan or owe an overpayment or repayment on any Federal Grant from any institution
- You must have unmet need based on your FAFSA application for a Subsidized loan
- You must meet and maintain all other Federal eligibility requirements
Entrance counseling
All new borrowers at San Diego City College must complete an online entrance interview at: StudentLoans.gov. Sign in with your Federal PIN and click on the entrance counseling link.
After successfully completing the online entrance interview, select San Diego City College as your school of choice. Print your confirmation and bring it to Financial Aid Office to pick up your Direct Loan Packet. The packet contains the Direct Loan Information Guide and the Direct Loan Request form.
Copies can downloaded from the following links: Direct Loan Information Guide and Direct Loan Request form.