New Financial Aid Loan Updates Beginning Fall 2010 Semester
Glen Oaks Community College switches to the Federal Direct Student Loan Program:
Beginning with the Fall 2010 semester, GOCC will participate in the William D. Ford Federal Direct Loan Program. This means that students will now receive Stafford Loans directly through the U.S. Department of Education.
Student Loans
Glen Oaks Community College participates in the Federal Direct Stafford Loan Program. There are two types of loans under this program: subsidized and unsubsidized.
A subsidized Federal Direct Stafford Loan is a low-interest, fixed rate based on financial need. The student must complete the Free Application for Federal Student Aid (FAFSA) to apply for this loan. In addition, Glen Oaks Community College has a Federal Direct Stafford Loan Request Form, which is also required as part of the application process. The loan requires repayment after the student leaves school or enrolls less than six credit hours.
The student is required to sign a promissory note and complete entrance counseling (first-time borrowers only). In addition, when the student drops below half-time (6 credit hours or more) or leaves school, exit counseling is required. Glen Oaks will notify the student via postal mail when he/she drops below half-time enrollment. This notification includes a link to the Federal Direct Loan website for exit counseling.
A subsidized loan means the student is not charged interest on the loan during the following periods:
- The student’s enrollment in school is at least half-time (6 credit hours or more)
- A six-month grace period immediately following the student’s withdrawal or graduation from school
During the periods indicated above, the student is eligible to file a deferment, which authorizes the student’s payments to be postponed. The federal government “subsidizes” the interest during the deferment period.
An unsubsidized Federal Direct Stafford Loan is not based on financial need. The student is charged interest from the time the loan is disbursed until it is paid in full.
If the student allows the interest to accumulate, it will be capitalized. This means interest will be added to the principal amount of the loan and additional interest will be based on the higher amount. This will increase the total repayment amount of the loan. The student who chooses to pay the interest as it accumulates will repay less on the loan.
Fees are deducted from each loan disbursement. The fee is paid to the federal government to help offset the cost of the loan. Also, if the student does not make payments when required, he/she will be charged collection costs and late fees.
Loan Limits
The following loan limits apply to the Federal Direct Stafford Loan:
|
Dependent Students |
Maximum
Subsidized |
Maximum
Unsubsidized |
Maximum
Total |
|
Freshman (up to 28 credits) |
$3,500 |
$2,000 |
$5,500 |
|
Sophomore (29 credits or more) |
$4,500 |
$2,000 |
$6,500
|
|
Independent Students |
Maximum
Subsidized |
Maximum
Unsubsidized |
Maximum
Total |
|
Freshman (up to 28 credits) |
$3,500 |
$6,000 |
$9,500 |
|
Sophomore (29 credits or more) |
$4,500 |
$6,000 |
$10,500
|
Students or parents who receive a Federal Direct Stafford Loan or Parent Loan for Undergraduate Students (PLUS) will have their loan data submitted to the National Student Loan Data System (NSLDS), a central database for student aid information. This loan information will be accessible to guaranty agencies, eligible lenders and eligible institutions of higher education as determined by the Secretary of Education to be authorized users of the NSLDS.
For additional information reference Glen Oaks Student Loan Guide
Federal Parent Loan for Undergraduate Students (PLUS)
Government loans made to parents (of dependent students) who do not have an adverse credit history. Maximum loan amounts cannot exceed unmet cost. The interest rate on the PLUS loan is a variable rate not to exceed 9%. Payment begins 30 days after the first disbursement. To apply for a PLUS loan, parents need to complete a PLUS loan request form available at the Financial Aid Office.
Code of Conduct
The Financial Aid Office follows Glen Oaks Community College's Employee Code of Conduct (Policy 5.00) which prohibits conflicts of interest
The Financial Aid Office adheres to the Statement of Ethical Principles and Code of Conduct of the National Association of Student Financial Aid Administrators (NASFAA).
Glen Oaks Community College has published a Student Loan Code of Conduct persuent to the Higher Education Oppertunity Act of 2008.