Central Texas College

Loans

 

 2013-2014 ACADEMIC YEAR

STUDENT LOANS FOR 2013-2014

** The LAST DAY to apply for SUMMER loans is June 20, 2014 **

**NO Student Loans will be processed for Summer II Classes**

* NOTE:   A student must be enrolled in at least 6 credit hours before a loan can be processed.

LOANS
 

  • Central Texas College participates in the William D. Ford Federal Direct Loan Program for Dependent and Independent Undergraduate Students and Federal Direct PLUS Loan Program for parents of Undergraduate Dependent Students.

    William D. Ford Federal Direct Loan Program (Direct Loan Program)

    The Federal program that provides loans to eligible student and parent borrowers under Title IV of the Higher Education Act. The loan programs include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Funds are provided directly by the federal government to eligible borrowers through participating schools.

  • Federal Loan Eligibility Requirements
     
    • Student must complete the FAFSA.
    • Student must meet academic progress as determined by the Financial Aid Office with a cumulative GPA at or above 2.0.
    • Student must be enrolled at least half-time (six semester hours per term).
    • Student must be a citizen or eligible non-citizen.
    • Student must not be in default on any federal loan or owe a refund back to any federal program.
    • Student must not have already exceeded aggregate loan limits.
  • Federal Loan Maximums (for loans first disbursed on or after July 1, 2008)
     
    Federal Loan Maximums

    Classification
    Dependent
    Undergraduate
    Independent Undergraduate
    Freshman (0 to 30 credit hours) $5,500 – No more than $3,500 of this amount may be subsidized $9,500 – No more than $3,500 of this amount may be subsidized
    Sophomore (31 to 72 credit hours) $6,500 – No more than $4,500 of this amount may be subsidized $10,500 – No more than $4,500 of this amount may be subsidized

    NOTE: The amounts shown in the chart above are the maximum amounts that you may borrow as a full-time student (12 hours per semester) for the academic year. All annual loan limits are subject to proration and cannot exceed the Cost of Attendance.


    Subsidized Stafford Loan/Direct Stafford Loan
    • Available to students who demonstrate financial need determined by the FAFSA.
    • You will be paid through the school in at least two installments per semester.
    • The U.S. Department of Education pays the interest on this loan:
    • While you are in school at least half-time.
    • For the first six months after you leave school (referred to as a “grace period”).
    • During a period of deferment (an approved postponement of loan payments).

    IMPORTANT:   Time Limitation on Direct Subidized Loan Eligibility for First-Time Borrowers on or after July 1, 2013:

    There is a limit on the maximum period of time (measured in academic years) that you can recieve Direct Subsidized Loans.  In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of the educational program in which the borrowere is enrolled. 

  • Unsubsidized Stafford Loan/Direct Unsubsidized Loan
    • Does not require students to demonstrate financial need.
    • The U.S. Department of Education does not pay interest on unsubsidized loans.
    • You will be paid through the school in at least two installments per semester.
    • To determine the amount of your unsubsidized loan, the school will use this equation:
         Cost of Attendance
      - Federal Pell Grant (if eligible)
      - Subsidized Stafford/Direct Loan amount (if eligible)
      Any other financial aid you receive
      = Amount of unsubsidized loan (up to the maximum loan amount)
    • Stafford Entrance Loan Counseling
      All first time Federal Direct loan borrowers at Central Texas College must complete entrance counseling before their loan will be accepted and processed. Borrowing a student loan is a serious financial obligation and the entrance counseling will provide you with important information you need to know to be able to make an informed decision about student loan borrowing. Complete your online entrance counseling on the Federal Direct Loan Servicing website at www.studentloans.gov. This session provides additional information regarding loan programs such as monthly repayments, deferments, grace period and cancellation.

    • Stafford Exit Loan Counseling
      Federal Regulations require all students who received a Federal Family Education Loan or Direct Loan to complete a mandatory exit counseling prior to graduation or after dropping below half-time attendance. Exit counseling is available by going directly to http://www.studentloans.gov. You will need a list of two different references (relatives or friends) that will always be in contact with you. Include their name, address and phone number.

    • Repayment
      When you borrow a student loan, you sign a legal document called a promissory note, which establishes your obligation to repay that loan, and in certain cases, future loans under that same promissory note. The most important thing you can do during repayment is to stay in close contact with your lender. If you have trouble making your monthly payments and need help, contact your lender to learn more about the many options available to you.

      Here is a brief summary of the repayment guidelines established in your promissory note:
      • Your payments are expected on a monthly basis.
      • Unless your lender agrees otherwise, the minimum monthly payment will be at least $50.
      • Your minimum annual payment will not be less than the amount of interest due and payable.
      • The maximum time allowed for repayment is usually 10 years.
      • You may prepay on your loan at any time without penalty. This will reduce the total amount of interest you pay on your loan.
      • Your lender will give you the opportunity to choose a standard, graduated, income-sensitive, or extended repayment schedule.
    • Student Certification

      When applying for a student loan, a student understands the following:
      • If you are a first-time student loan borrower, your school cannot receive your first disbursement until 30 days after the first day of your enrollment period. The student also understands that the first loan disbursement will not be available to purchase books.
      • In most cases, loans are distributed in two disbursements for each semester. The loan disclosure statement provides the date for each disbursement. You can obtain a copy of your loan disclosure statement at http://www.studentloans.gov
      • If cumulative and/or semester grade point average falls below 2.0, you may not be able to apply or receive proceeds of the Federal Stafford Loan.
      • If a student withdraws or stop attendance any loan check will be returned to the lender.
      • CTC will process and/or release loans for students that are enrolled in 16- or 8-week classes only. Terms or semesters shorter than 8 weeks cannot be considered.
      • CTC offers main campus, online and classes on Fort Hood and other military installations with the United States and around the world. Mixing/changing length of classes (16 week, 8 week, etc) will affect the loan.
    • To Apply

      For instructions on completing the online Direct Loan application, please click the following icon:
      Federal Direct Loans