The Federal Direct Loan is a federal loan program where you borrow directly from the Federal Government. The interest rate for new loans is a fixed rate which is currently 3.4% for loans disbursed from July 1, 2011 to June 30, 2012. New Federal regulations require schools to disburse loans only after the signed Promissory Note has been accepted. You are required to pay the Department of Education loan processing feeds that are currently 1%. The fees are deducted from the proceeds of your loan.
To qualify, a student must be enrolled in at least six units, demonstrate Satisfactory Academic Progress for aid recipients and must demonstrate financial need through the federal methodology using the FAFSA Application. To apply for a Federal Direct Loan, students must complete a mandatory loan entrance counseling session. The counseling session is required even if a student has attended a Stafford loan workshop in the past. If a student has attended a Direct Loan workshop at San Diego City, or Miramar Colleges in the past, it will not be necessary to conduct another entrance counseling session. Students must contact the Financial Aid Office or visit the College website for application procedures. You many complete the entrance counseling session online at: www.studentloans.gov.
The Financial Aid Office will be notified when the session has successfully been completed. In addition, you must fill out a Loan Request Form form your Financial Aid Office. You must complete an online multi-year Master Promissory Note at: www.studentloans.gov.
You may also be required to submit an Educational Plan and be enrolled at the campus of your declared major. Please ask your Financial Aid Office for more information. The actual loan amount for which you are eligible will be determined by the Financial Aid Office. Checks will be disbursed twice per loan period. If you are a first-time student or borrower, your check will not be disbursed until at least 30 y days after the start of the semester. If you have “Late Start” classes, of loan funds to be disbursed, you must be actively attending classes in at least six units.
For additional information, contact the Financial Aid Office.