Loans
Loans have to be paid back with interest.
Glen Oaks Community College participates in the Federal Direct Loan Program. Funds are provided by the federal government. These loans help students finance their educational expenses. You must meet all federal eligibility requirements including be enrolled at least half-time (6 or more credits) and be pursuing a certificate or degree program. We urge you to borrow conservatively. Don’t borrow more than you need!
finance their educational expenses. You must meet all federal eligibility requirements including be enrolled at least half-time (6 or more credits) and be pursuing a certificate or degree program. We urge you to borrow conservatively. Don’t borrow more than you need!
Federal Loans
Loans are borrowed funds that must be repaid, with interest. As college costs climb, many students and/or families find that supplemental borrowing by the student, or parent, becomes an important resource for financing educational expenses.
Your financial need and grade level determine the types and amounts of loans you are eligible to receive. The Direct Stafford Subsidized loans are need-based, the Direct Stafford Unsubsidized Loan and the Direct PLUS Loan are non-need based.
The difference between the Subsidized and Unsubsidized Direct Loan is that students borrowing the Subsidized Loan do not have interest accruing on the loan while they are enrolled at least half-time; conversely, students borrowing the Unsubsidized Loan have interest accruing while they are enrolled in school. The Unsubsidized Loan does allow you to defer the interest payments until you graduate; however, this will result in a higher loan payment over the life of the loan.
Cancellation Provisions:
- All loans are cancelled in case of death or disability of the loan maker.
- To decrease or cancel a loan disbursement, please submit a Loan Change Request on your myGOCC student portal.
- Loan disbursement will be cancelled by the Financial Aid Office if the student is enrolled in less than 6 credit hours at the time of disbursement, has not completed entrance counseling or completed a Master Promissory Note.
Federal Direct Loan Program types:
Applying for a Direct Loan
- As with all federal student aid, you start by filling out the Free Application for Federal Student Aid (FAFSA).
- Request a student loan by logging into your myGOCC student portal, clicking on the Financial Aid tile, and selecting Request a New Loan from the Financial Aid drop down menu.
- Entrance Counseling: If you are a first-time loan borrower, you must complete entrance counseling before your school can make the first disbursement of your loan. This helps you to understand your responsibilities regarding your loan. Entrance Counseling should be completed at studentaid.gov.
- Master Promissory Note: If you are a first-time loan borrower, you must complete a Master Promissory Note (MPN) before your school can make the first disbursement of your loan. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s). A student can borrow additional Direct Loans on a single MPN. It is not required that you complete a new MPN each academic year. You can complete the MPN on-line.
Loan Counseling
Student borrowers are not required to begin making payments until six (6) months (grace period) after they drop below half-time attendance. 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 will include a paper copy of the Exit Counseling information and a link to the Federal Direct Loan website for exit counseling.
Direct Loan “Exit” Counseling is REQUIRED for Direct Loan borrowers (Subsidized and Unsubsidized) who are graduating or are enrolled less than half-time. This counseling session, which is on the U.S. Department of Education’s Direct Loan Servicing site, helps borrowers understand their rights and responsibilities in repayment. You must use your Department of Education FSA ID to access this counseling session.
Loan Limits
The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. Grants, work-study and scholarships may also impact on your loan eligibility. The tables on the Loan Limits page show the federal limits for an academic year in Direct Subsidized and Unsubsidized Loans as well as the total, or aggregate, amount you may borrow.
Loan Repayment & Plans
No matter which loan program you choose, remember to borrow only what you absolutely need–what you borrow today you will need to pay back (with interest) later! You may not need to borrow as much, if at all, if you are able to work or cut costs (such as personal/miscellaneous costs). Many students wisely maintain a lower-cost student lifestyle in order to borrow the least amount necessary to cover their college costs. The result is lower debt and loan payments that will be easier to manage after graduation.
Use the Repayment Calculator to determine the estimated amount of your monthly payments.
When it comes time to start repaying your student loan(s), you can select a repayment plan that is right for your financial situation. Generally, you’ll have from 10 to 25 years to repay your loan, depending on which repayment plan you choose. Access more information about your repayment options on the Federal Student Aid website.
Loan Disbursement
Loans will be disbursed in two installments. All loans will be split in two equal payments within the semester. One half will be disbursed on the 1st credit balance refund payment date and the other half will be disbursed on the 2nd credit balance refund payment date. Disbursement dates are posted on the Financial Aid home page, and in the financial aid area of your myGOCC student portal. Direct loan funds will be sent from the Department of Education to Glen Oaks and applied directly to your student account.
Direct Loan Interest Rates & Fees
You can view information about interests rates on the Federal Student Aid website.
The origination fee will be deducted proportionately from each of your loan disbursements.
| First Disbursement Date | Loan Fee |
|---|---|
| On or after 10/1/23 and before 10/1/24 | 1.057% |
| First Disbursement Date | Loan Fee |
|---|---|
| On or after 10/1/23 and before 10/1/24 | 4.228% |
Postponing Repayment
If you have trouble making your education loan payments, contact immediately the organization that services your loan. You might qualify for a deferment, forbearance, or other form of payment relief. It’s important to take action before you are charged late fees. For Direct and FFEL Stafford Loans, contact your loan servicer. If you do not know who your servicer is, you can find instructions to look it up on the Federal Student Aid site’s Who’s My Student Loan Servicer? page.
Note to PLUS Loan borrowers: Generally, the eligibility requirements and procedures for requesting a deferment or forbearance for Stafford Loan borrowers also apply to you. However, since all PLUS Loans are unsubsidized, you’ll be charged interest during periods of deferment or forbearance. If you don’t pay the interest as it accrues, it will be capitalized (added to the principal balance of the loan), thereby increasing the amount you’ll have to repay.
Know What You Owe
Students and/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. The National Student Loan Data System (NSLDS) has information about your federal student loans. To review your loan information visit your account dashboard on the Federal Student Aid website. You will need:
- Social Security Number & First two letters of your last name
- Your date of birth
- Your Federal Student Aid ID (FSA ID). This is the FSA ID used to submit the FAFSA.
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 pursuant to the Higher Education Opportunity Act of 2008.
Private Loans Information
Private Education Loans
Private student loans are offered through a variety of banks and other lenders. Students wanting private loan must apply separately through an individual lender. The best rates on these loans are generally offered to borrowers with good credit and/or who have a cosigner with good credit.