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William D. Ford Federal Direct Loan Program
Grossmont College participates in the Federal Direct Loan
Program by offering subsidized and unsubsidized Direct Loans.
Federal Direct Loans (subsidized or
unsubsidized) are low-interest rate
loans made to students,
enrolled in six (6) or more units, by the federal government.
Direct Subsidized Loan: These loans are available
to students who demonstrate financial need. The federal
government pays the interest on this loan while you are in
college and during deferment periods.
Direct Unsubsidized Loan:
These loans are available to all eligible students and are not
based on financial need. You, the borrower,
are responsible for all interest payments (or capitalization of
interest) from the date the loan is disbursed.
Interest Rate:
As of July 1, 2012 the interest rate for subsidized loan is
fixed at 6.8% for subsidized loans disbursed from July 1, 2012
through June 30, 2013. The interest rate for unsubsidized loans is
fixed at 6.8%.
Loan
Amounts:
Grade level one students (freshman) may borrow a base amount of
$3,500 (subsidized and/or unsubsidized); Grade level two
students (sophomores) may borrow a base amount of $4,500
(subsidized and/or unsubsidized) per academic year. Loan amounts
for one semester only are one-half (1/2) the maximum yearly loan
amount not to exceed need or cost of attendance.
To apply for a subsidized or unsubsidized loan,
you must first apply for federal financial aid via the FAFSA.
All students applying for a loan must complete “Entrance
Counseling” before the processing of the loan application and
“Exit Counseling” before the receipt of the second check.
Entrance and Exit counseling are required on a yearly basis.
The deadline to submit a Federal Direct Student Loan application
is December 14, 2012 for the Fall 2012 semester, and
May 31, 2013 for the Spring 2013 semester. Tuition payments
will not be deferred for Federal Direct Student Loans. Loan
funds will not be disbursed during the first 30 days of each
semester.
If your total borrowing is $10,500 or more,
in addition to your student loan application, you will be
required to provide a budget worksheet with documentation of
expenses and resources as well as an educational plan based on
your educational goal. You will need to make an
appointment with your Financial Aid Advisor for further
consideration.
If your total borrowing is $13,500 or more, in addition
to your student loan application, you will be required to
provide a budget worksheet with documentation of expenses and
resources as well as an educational plan based on your
educational goal. You will need to make an appointment
with the Financial Aid Supervisor for further consideration. |
