Catalog and Student Handbook 2021–2022 > Financial Aid > Types of Aid > Self-Help Aid > Loans

Loans

Loans are available to assist you in meeting your educational costs. All the loans available are long-term, low-interest loans. No loan may be made if you are unwilling to repay the loan. A student is not eligible to receive a student loan if the student is in student loan default. In order to manage and lower DMC's default rate, students who fall into the following categories must submit a Loan Appeal Packet to be considered for student loans:

• Students who have already borrowed more than the DMC recommended loan limit of $17,500 (regardless of what college the loan was borrowed at)
• Students who have defaulted student loans previously
• Students requesting an unsubsidized loan in excess of $1,000 per semester

Types of Student Loans

The types of student loans available are Direct Loan Subsidized (DLSUB)/Direct Loan Unsubsidized (DUNSB). The U.S. Department of Education (ED) is your lending institution and will be responsible for all your correspondence and repayments.

Applying for Federal Loans

To apply for a federal student aid direct loan, you must

1. Be fully admitted to DMC.
2. Have your FAFSA application submitted and processed.
3. Submit a Financial Assistance Change Request (REPAK Form).
4. Complete the Loan Entrance Counseling online at the Federal Student Aid website (https://studentaid.gov) (explains the obligations you agree to meet as a condition of receiving a direct loan). You must complete this step within two weeks of being offered a student loan.
5. Complete the Master Promissory Note (MPN) at the Federal Student Aid website (https://studentaid.gov). You must complete this step within two weeks of being offered a student loan.
6. Attend a mandatory Loan Advising Workshop on campus. You may attend any time before being offered a loan, but you must attend within two weeks after being offered a loan.
7. Be enrolled in at least six hours and maintain satisfactory academic progress.

After steps 1–7 are met, the first disbursement will be issued by DMC approximately two weeks after the start of the first six credit hours of the semester.

First-time borrowers are required to wait 30 days for their first disbursement. One-semester loans are disbursed in two payments.

Federal Stafford Annual Loan amounts for a single academic year are provided in the subsequent tables.

Loan amounts may be adjusted down based on an individual's Cost of Attendance (COA).

All direct loans are funded by the Federal Government and pay a 1.059% loan origination fee from each disbursement. This fee is subject to change every July 1. The interest rate charged on Direct Loans is 4.53% which also is subject to change every July 1.

First-Time Borrowers

Learn about the time limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers on or after July 1, 2013 at the Subsidized and Unsubsidized Loans section of the Federal Student Aid website (https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized#eligibility-time-limit).

Know Before You Owe!

Have questions about student loans? For more information, please visit the Subsidized and Unsubsidized Loans section of the Federal Student Aid website (https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized).

National Student Loan Data System (NSLDS)

The National Student Loan Data System is the U.S. Department of Education's (ED) central database for student aid.

NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants, so recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data. The system can help you learn about your loan status, assist with repayment methods to keep your loan out of default and keep you aware of where your loan debt is currently.

Federal Loan Servicers

Students go into loan repayment six months after they stop attending at least half-time. Once you go into repayment, you will be contacted by a federal loan servicer to make payment arrangements.

Parent Loans

The following is the main parent loan:

• Federal Parent Loans for Undergraduate Students (PLUS)
• Your parents may borrow funds under this loan program on behalf of you, if you are a dependent undergraduate student. Parents can borrow up to the cost of education minus other financial aid you may have received. Parent borrowers must have a good credit history to qualify and not currently be in default of their own federal student loans. A processed FAFSA must be on file and parents must apply for the PLUS loan online at Federal Student Aid website (https://studentaid.gov). If approved, the parent must complete a PLUS loan form available in the Financial Aid Services office.

For detailed information on how to apply for a PLUS Loan, go to the Types of Financial Aid section of the Del Mar College website (https://www.delmar.edu/becoming-a-viking/afford/types-of-aid.html).

Alternative Loans

Alternative loans are private loans offered by lending institutions. They are not part of the federal government guaranteed loans and should only be used when all other options have been exhausted. Research all possibilities for scholarships, grants, work-study and federal loans before borrowing from an alternative loan program. Students are required to complete a FAFSA application each academic year and must maintain Satisfactory Academic Progress to be considered. Students can never receive more loan money than their cost of attendance and overall unmet need.

Keep the following in mind if considering an Alternative Loan:

• Annual Percentage Rate (APR)
• Loan Limits
• Repayment Terms
• Cosigner Requirement
• Repayment Incentives
• Interest Capitalization
• Lender for Federal Loans