Federal Direct Loan (Subsidized)

Loan Information for 2013-2014

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 for disbursements on or after July 1st. Congress has passed a bill setting the interest rates for this year and future years. This bill has been signed by President Obama. The interest rates are shown below.

Fixed Rates for Loans First Disbursed on or After July 1, 2013

LOAN TYPE GRADE LEVEL First Disbursed Between July 1, 2013 and June 30, 2014 caps on interest rates 
Subsidized Loans Undergraduate


3.86%

8.25% 
PLUS Loans Parents  6.41% 10.50% 

Borrowers are required to pay an origination and insurance fee. These fees are deducted from the proceeds of the loan.
For loans disbursed between July 1, 2013 and November 30, 2013, the origination fee is 1.051%.
For loans disbursed on or after December 1, 2013 the origination fee is 1.072%.

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
 

New Lifetime Limits (150% of Program)

Effective July 1, 2013, students who are considered new borrowers will have a lifetime limit on Subsidized loan eligibility of 150% of their declared program. A new borrower is a student who has a $0 (zero) balance of loans in repayment. This includes students who have never borrowed a Subsidized loan and students who previously borrowed a Subsidized loan and who has repaid the loan or will repay the loan in the future so that the balance is now $0.

The 150% limit is based on each student's program. In general, students at a community college are enrolled in a two year Associate's degree program. Therefore, they will be limited to three years of Subsidized loan eligibility. Once students reach the 150% limit, they will no longer be eligibile for Subsidized loans at a two year school.
 
Students who transfer to a four year university will receive a new limit at that school which generally will be up to six years. Students who transfer from a four year university and who have borrowed three years of Subsidized loans prior to attending a community college will not be eligible for a Subsidized loan because they will have already reached the 150% limit.

General Loan Eligibility Requirements

  • 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 the Financial Aid Office along with your completed Direct Loan Request form.

 The Request form can downloaded from the following link: Direct Loan Request form

Electronic Master Promissory Note (eMPN)

  • You must complete and sign your MPN electronically on the Internet. The electronic MPN (eMPN) may be signed at:
    StudentLoans.gov
    Click on the link "Sign Master Promissory Note".
  • The eMPN is now a multi-year document. It will be valid for up to 10 years at San Diego City College and you will not have to complete and sign a new eMPN every year.
  • You can sign your eMPN at any time even before you submit your loan request.
  • You will be required to use your U.S. Department of Education issued PIN to complete an electronic MPN. To apply for a PIN, you must go to http://www.pin.ed.gov/PINWebApp/pinindex.jsp
  • Once you sign the eMPN, the U.S. Department of Education will update their database and send an acknowledgement to our school.  If you request a paper MPN, the U.S. Department of Education will print and send you a copy of your MPN.  After signing your eMPN and successfully completing the online entrance interview, select San Diego City College as your school of choice, print your confirmation and you are now ready to submit your Direct Loan Request form. 

On your Loan Request form you will need to provide four different references or contact persons that all have a different address than you and that have a different address from each other and who will know how to contact you. You will need to provide their name, complete mailing address, phone number and relationship.

References to be provided include the following:

  • Parent or other adult relative
  • Grandparent or other adult relative
  • Friends or Neighbors

After submitting your loan request, it may take a minimum of 2-4 weeks for your loan to be processed. During our peak periods, it may take longer.

Provided all other conditions, time frames and loan eligibility requirements have been met, your Direct Loan will be set up for disbursement.

Important Deadline Dates

  • December 2, 2013 - Last day to submit your loan request for the Fall 2013 semester only
  • December 16, 2013 - Last day of the Fall 2013 semester
  • May 9, 2014 - Last day to submit your loan request for the 2013-2014 academic year (Fall 2013 & Spring 2014 or Spring 2014 semester only)
  • May 24, 2014 - Last day of Spring 2014 semester

First Year, First Time Borrowers

  • First Year, First Time Borrowers cannot receive their first loan disbursement until a minimum of 30 days after the start of the semester
  • First Year means you have not completed 24 or more units in your current program or major at San Diego City College
  • First Time Borrower means you have not received a FFEL or Direct Loan from any other college

You may also be required to submit a student education plan if you want to be considered for a second year loan amount. The actual loan amount for which you are eligible will be determined by the Financial Aid Office. You must have financial need to qualify for a Subsidized loan and you must repay the loan.

Direct Loan Deferment Forms

You can download the following Deferment PDF forms by clicking on each link. Be sure to read each deferment condition for the eligibility criteria.

If you need additional information, please contact the Financial Aid Office.

This page was last updated on December 2, 2013.