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. A student may not borrow more than a total of $23,000 as an undergraduate student. The interest rate is set each school year on July 1st. The current interest rates are highlighted in red below.

Fixed Rates for Loans First Disbursed on or After July 1, 2006

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.

• 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 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 or on the following website

http://www.sdcity.edu/studentresources/financialaid/qualifykeep.asp

• 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

Entrance Interview 

All new borrowers at San Diego City College must complete an online entrance interview at:

StudentLoans.gov

Click on the link “Entrance Counseling” to complete the entrance interview.

Electronic Master Promissory Note (eMPN)

• You may now complete and sign your MPN electronically on the Internet. The electronic MPN (eMPN) may be signed at:

StudentLoans.gov

Click on the link “Sign your Master Promissory Note”.

• The eMPN is now be 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 download and complete a copy of the Direct Loan Request form from the following link:

Direct Loan Request form

On your Loan Request form you will need to provide four different references or contact persons that have a different address than you and 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 2-4 weeks for your loan to be processed.

Provided all other conditions, time frames and loan eligibility requirements have been met, your Direct Loan is ready to be disbursed.

For more information about the Direct Loan process and requirements click on the link below:

Direct Loan Information Guide

Important Deadline Dates

• December 3, 2010 - Last day to submit your loan request for the Fall 2010 semester only

• December 18, 2010 - Last day of the Fall 2010 semester

• May 6, 2011 - Last day to submit your loan request for the 2010-2011 academic year (Fall 2010 & Spring 2011 or Spring 2011 semester only)

• May 21, 2011 - Last day of Spring 2011 semester

First Year, First Time Borrowers

• First Year, First Time Borrowers cannot receive their first loan disbursement until 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 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.

· Economic Hardship

· Education Related

·  In School

· Military

· Parental Leave/Working Mother

· Public Service

· Temporary Total Disability

· Unemployment

For additional information, contact the Financial Aid Office.