GCC announces entry into the William D. Ford Federal Direct Stafford Loan program
effective Fall 2010:
Direct Loans are low-interest loans for students and parents to help pay for the
cost of a student's education after high school. The lender is the U.S. Department
of Education (the Department) rather than a bank or other financial institution.
With Direct Loans, you borrow directly from the federal government and have a single
contact-the Direct Loan Servicing Center—for everything related to the repayment
of your loans, even if you receive Direct Loans at different schools. There are
three types of Direct Stafford Loans: Direct Subsidized, Direct Unsubsidized and
Direct PLUS.
Direct Subsidized Loans
This is a need based loan program that provides low interest loans to students who
are attending GCC at least half-time. If you are eligible for a Direct Stafford
Subsidized loan, the federal government pays the interest on the loan while you
are enrolled in school at least half-time (6+ credit hours per semester), in deferment
and during grace periods. Eligible students will see available subsidized loan amounts
listed along with Pell and other grants in their award package each year. See instructions
below on how to complete the loan process.
The interest rate for the 2010-2011 year is 5.6%
Annual loan limits are:
- $3,500 - First Year Students
- $4,500 - Second Year Students
Loan Process (to be completed each academic year):
Direct Unsubsidized Loans
This is a non-need based program that provides low-interest loans to students who
are attending GCC at least half-time. This loan is available to students who do
not demonstrate financial need. The student is responsible for the interest that
accrues on the Direct Stafford Unsubsidized loan during school, deferment and grace
periods. So, if payments on interest are not made during school or paid off once
the student graduates, the interest will be capitalized and added to the total loan
amount to be repaid.
The interest rate is fixed at 6.8%
Annual loan limits are:
- $2000 – Dependent students
- $6000 – Independent students
Beginning fall 2010 subsidized loans will be included in your initial eligibility
package along with Pell and other grant funds. If you decide you want
to also take out an unsubsidized loan you will need to follow the instructions below.
Unsubsidized Loan Process:
** Entrance & Exit counseling completed each year will count for both the subsidized
& unsubsidized loan awards. You may have to sign an additional Master Promissory
Note**
Beginning fall 2010 loans will come in two disbursements each semester. If you
are awarded a fall/spring loan you will have a total of four disbursements.
Entrance Counseling & Exit Counseling
Entrance and Exit Counseling must be completed each academic year.
Entrance Counseling must be completed every year before the first
disbursement may be made available to the student. You can complete this process
on-line through the Direct Loan website.
Exit Counseling is required and must be completed online through
Direct Loan website
for the following situations:
- Prior to receiving the 2nd disbursement
- 30 days prior to graduation
- Within 30 days of completely withdrawing during any semester; or
- Within 30 days of dropping below half time enrollment (6hrs) within any semester
For questions or issues concerning your Direct Loan
Direct Loan Customer Service number: 800/848-0979
Who is eligible?
A loan recipient must be enrolled at least half-time and be making satisfactory academic progress.
NOTE – if you are in default on a student loan or owe a repayment to another school
you will not be eligible for loans or any other federal aid until it has been repaid
or the Department of Education can provide a letter stating you are eligible for
Title IV federal aid.
Award Changes
Grayson County College reserves the right to review, reduce or cancel awards at
any time because of changes in aid availability and/or changes in the student’s
eligibility. Students receiving financial aid are responsible for notifying the
financial aid office of any additional aid received such as an additional scholarship
and/or additional funding.
*Please note, if you are receiving veteran’s education benefits please be aware
that your loan(s) may be reduced or cancelled. For more information please talk
with your VA representative or contact the Office of Financial Aid.*
Loan Awards & Disbursements
Federal regulations require multiple disbursements on Direct Stafford and Parent
PLUS loans. All loans will be disbursed in two disbursements each semester for a
total of four disbursements if the loan is a fall & spring loan.
The particular dates of disbursement will be determined each academic year and posted
to our website each academic year.
Students will receive a Disbursement Notification Letter from Grayson County College
within 14 days after funds have been electronically received by the college.
Students and/or parents have the right to cancel all or a portion of the loan and
have proceeds returned to the lender. Students that wish to cancel all or a portion
of their loan must provide a written statement to the Office of Financial Aid no
later than 14 days after the date listed on your disbursement letter. The statement
should include the student’s name, social security number and the amount of the
loan they wish to cancel. The student may also send this information via email to
studentloans@grayson.edu.
When are loans paid back?
Repayment for Direct Stafford loans begins six (6) months after the student graduates,
ceases at least half-time enrollment (enrolled in 5 credit hours or less) or completely
withdraws. Note, only one grace period is given per loan – once it has been used
you do not receive another.
Do I have to borrow the maximum amount?
No: It is important for you to determine the exact amount of money that you need
to borrow. You should only borrow as much as you need. Remember, you will have to
pay these loans back beginning six (6) months after you graduate, cease at least
half-time enrollment or completely withdraw.
What is the difference between subsidized and unsubsidized loans?
The Federal Subsidized loan is need based and the government pays the interest during
in-school status, grace periods and authorized deferment periods. The Federal Unsubsidized
loan is not need based and the borrower is responsible for paying the interest that
accrues during these loan periods.
What is a Federal Parent PLUS Loan?
The Federal Parent PLUS Loan is a fixed interest loan created by the federal government
to help creditworthy parents pay for their dependent student's education beyond
high school. The amount a parent can borrow for a student cannot exceed the student’s
total cost of attendance. Repayment begins 60 days after the loan is fully disbursed.
Interested students must complete their financial aid file, choose a lender and
complete the Parent PLUS portion of the loan application.
Important Websites
National Student Loan Data System (NSLDS): Click here to view your loan information.
Student Aid website
Loan Policy & Procedure
Texas Student Loan Guarantee
Teacher Loan Forgiveness
Click here to learn how to manage your credit and debt
Click here to view Estimated Repayment Calculator
Helpful website for money management:
http://www.smartaboutmoney.org/portals/1/resourcecenter/40moneytips07.pdf
Ultimatemoneyskills.com
If you have any questions, please contact the Office of Financial Aid 903/463-8794.