Providing Dollars for OC Students

 
                            Direct Loans

 
What federal loan programs do you have available at the Olympic College Financial Aid Office?

Starting July 1, 2010 all colleges, including Olympic College will be required to participate in the William D. Ford Federal Direct Loan Program.  Federal Direct Loans are loans made out directly by the U.S. federal government to students for educational purposes.  There are various types of Federal Direct loans available to students who are attending or plan to attend college.  The loan types include:

•      Federal Direct Loans
•      Federal Direct Unsubsidized Loans
•      Federal Direct Parent (PLUS) Loan

What are the interest rates on the Direct Subsidized, Direct Unsubsidized and Direct PLUS Loans?

According the the U.S. Department of Education:

1. Loans, disbursed under the William D. Ford Federal Direct Loan Program, have either a fixed or a variable interest rate, depending on when the loan was first disbursed.
2. All Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan.
    A.  The interest rate for Direct Subsidized Loans for graduate borrowers and Unsubsidized Loans for graduate and undergraduate borrowers first disbursed on or after July 1, 2006 is 6.8%.
    B.  Interest rates for Direct Subsidized Loans for undergraduate borrowers have a fixed interest rate as follows:

• If disbursed on or after July 1, 2006 and prior to July 1, 2008 - 6.8%
• If first disbursed on or after July 1, 2008 and prior to July 1 2009 - 6.0%
• If first disbursed on or after July 1, 2009 and prior to July 1, 2010 - 5.6%
• If first disbursed on or after July 1, 2010 and prior to July 1, 2011 - 4.5%
• If first disbursed on or after July 1, 2011 and prior to July 1, 2012 - 3.4%
• If first disbursed on or after July 1, 2012 - 6.8%

        C.  The interest rate for Direct PLUS loans first disbursed on or after July 1, 2006 is 7.9%
3.  All Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans first disbursed before July 1, 2006 have variable interest rates.  The interest rate on these loans is changed on July 1 of every year.  Contact you loan servicer for more information regarding variable interest rates. 

What are the steps to apply for a Federal Direct Loan?

To apply and receive a Federal Direct Subsidized Stafford Loans and Federal Direct Unsubsidized Stafford Loans you must complete four steps:  

(1) the Free Application for Federal Student Aid (FAFSA) 
(3) Entrance Counselling session. 
(2) Master Promissory Note 
(4) Olympic College Direct Loan Request Form

All four steps or processes must be completed every academic year to receive loan funds.  In order to access and complete steps 3 and 4 below, you must have the following information available i.e., Social Security Number, First two characters of your last name, Date of Birth (dd\mm\yy) and FAFSA Pin.  To apply, complete the steps below:  

                1.  Complete the Free Application for Federal Student Aid (FAFSA).  

                2.  Complete the Online Entrance Counseling  (Printed confirmation page required)

                3.  Complete the Master Promissory Note (MPN).   (Printed confirmation required)

                4.  Complete the Direct Loan Request Form and submit the Financial Aid Office.

Important note about MPN and Entrance Counseling:  Students are required to turn in to the Financial Aid Office a printed confirmation that they have completed the Online MPN and Entrance Interview session online. Click here to view example of acceptable documentation.

For Federal Direct PLUS, please make an appoinment at the Financial Aid Front Office desk to speak with a Financial Aid Administrator. 

                                                                OTHER LOAN DETAILS
Bridge Loan
If a student's financial aid consists of a certified and approved student loan, or if you have been certified and approved for a student loan and your grant, tuition waiver, scholarship or other aid is not sufficient to cover your tuition for a particular term, you may use your loan to pay your tuition by bridging (borrowing against) your loan.

If your loan is certified and approved, and you meet the Bridge Loan criteria mentioned above, please see the Financial Aid Office for a Bridge Loan application.

Please note that you must be enrolled as at least a half time student (a minimum of 6 credit hours) to receive a loan, and that wait-listed classes do not count in the six credit hours.

Loan Disbursements
Loan disbursements (or balance after tuition and charges) are mailed on the 30th day of the term from each term of the loan period.  For single loans there are two disbursements that will be made.  The first on the 30th and the second will be shortly after the middle of the term.  The 1st disbursement dates for the quarters in the 2010-2011 academic year are:

Summer 2011:    August 4, 2011
Fall 2011:           October 19, 2011
Winter 2012:      February 2, 2012
Spring 2012:      April 25, 2012


Repaying Your Loan
Students who had borrowed in the past from FFEL lenders can continue to access
Information regarding their loan repayment.  Details can be found on the Federal Student Aid (FSA) website.

Exit Counseling Interview
Federal regulations require that any student who borrows money under the Stafford Loan program complete an Exit Counseling Interview before they go into repayment.  The Exit Loan Counseling is an online interactive session that offers important information about your student loan repayment obligations.  

Similarly, students who borrow funds under the Direct Loan program can complete their exit interviews on the NSLDS website listed below under important websites.

PLUS Loans
In some instances, parents would like to borrow loans on behalf of students.  The Parent Loan for Undergraduate Students (PLUS) is a federal loan program through which this can be done.  Students and parents interested in the PLUS can contact the Financial Aid Office or their lender.  For additional information on PLUS, click here. 


Important Websites:

The National Student Loan Data Systems (NSLDS) shows your loan amounts and exit interviews information

The Northwest Education Loan Association is the loan guarantee agency for the Washington state.

The Federal Student Aid Ombudsman is a useful site for students receiving financial aid.  

Student Loan Code of Conduct

Last modified:  December 6, 2011