Additional Stafford Direct Loan Information

Stafford Direct Loan Information at WCC that you are REQUIRED to know and understand:

  • You MUST have a complete financial aid file at WCC—this means you have completed your FAFSA, submitted requested forms and/or documents to our office, and received an alert with an Award Notice or Stafford Direct Loan eligibility letter.  You must be enrolled in an eligible degree or certificate program and taking a minimum of 6 credits (half-time) which apply to your program in each quarter you wish to receive a loan.
  • Your student loan eligibility is determined using your FAFSA information, WCC’s cost of attendance, other financial aid and scholarship awards, your grade level, dependency status and annual maximum loan limits.  This loan eligibility may be a combination of subsidized and unsubsidized Stafford loan amounts.
  • Grade or borrower level is based upon your earned credits for your CURRENT degree or certificate at WCC, it is NOT based on number of calendar years or quarters you have attended school.   To be considered a level two or second year borrower you must have 46 or more college level credits that apply to your program of study.  You may be required to complete a Program Completion Plan with an enrollment planner to document this.
  • Your student loan will be disbursed equally over your requested enrollment period, typically this is all the quarter(s) you plan to attend WCC for at least 6 credits, between Summer 2013 and Spring 2014.
  • Outstanding tuition and fees will be deducted from loan disbursements as allowed by federal regulations.  Any remaining amount will be disbursed to the student via Higher One, WCC's Electronic Funds Funds Distribution partner.
  • Like all other financial aid, no loan funds will be disbursed to the student before the quarter begins.
  • Generally loan processing time and disbursement of funds is 1 1/2 to 2 weeks, however for future quarters, no loan funds will be disbursed to the student before the quarter begins.
  • If you are a first year student AND a first time borrower, your first loan disbursement cannot be released any earlier than 30 days after the start of your first quarter.  If this applies to you, you will be notified.  This is a federal regulation and cannot be waived.  Please plan accordingly.
  • Student loans must be disbursed in a minimum of 2 disbursements.  If your loan is for one quarter only, you will receive half of the loan at the beginning of the quarter and the second half at the mid-point of the quarter.  If this applies to you, you will be notified.  This is a federal regulation and cannot be waived.  Please plan accordingly.
  • Subsidized loans are loans for which the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six-month grace period after the student is no longer enrolled at least half-time, or if the loan is in a deferment status. This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. If you receive a subsidized loan during this timeframe, you are responsible for the interest that accrues while your loan is in the grace period. You do not have to make payments during the grace period (unless you choose to), but the interest will be capitalized (added to the principal amount of your loan) when the grace period ends. This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.
  • NEW - Effective July 1, 2013, a new law, the Moving Ahead for Progress in the 21st Century Act, limits the benefits of the Direct Loan subsidy to an aggregated period of no more than 150% of program length for new borrowers*.  Once that limit has been exceeded, a student may borrow only unsubsidized loans, and will begin to incur interest charges on outstanding subsidized loans.  Additional information is available in this Department of Ed publication.   *Please note for this new law, a new borrower is defined as one who did not have an outstanding balance of principal or interest on a Direct or FFEL Program Loan on July 1, 2013.
  • Currently there is a 1.051% origination fee charged by the Department of Education. There is no longer a rebate (reduction) to this origination fee. This fee is deducted, by the Department of Education, from each loan disbursement you receive. (Parent PLUS loans have an origination fee of 4.204%.)
  • This is a student loan and must be repaid.
  • You have the right to cancel your student loan at any time.  If your loan funds have been disbursed to you, you have 14 business days to the return the funds to WCC to be refunded back to the loan program on your behalf.  Contact the Financial Aid Office if you have any questions.
  • ALL loan recipients are required to complete the Stafford Loan Exit Counseling when they graduate, leave WCC, or drop below 6 credits (half-time) enrollment.  Loan Exit Counseling is completed at StudentLoans.gov (the US Department of Education's loan website).
  • The average loan debt for a student attending 2 years at WCC is $7960.
Annual Maximum Loan Limits

Dependent Student (students that were required to use parent(s) information on their FAFSA)

  • Level 1 borrower $5,500 of which no more than $3,500 can be subsidized
  • Level 2 borrower $6,500 of which no more than $4,500 can be subsidized

Independent Student

  • Level 1 borrower $9,500 of which no more than $3,500 can be subsidized
  • Level 2 borrower $10,500 of which no more than $4,500 can be subsidized
Lifetime Maximum (Aggregate) Loan Limits

Dependent Undergraduate Students

  • $31,000—no more than $23,000 of this amount may be in subsidized loans

Independent Undergraduate Students

  • $57,500—no more than $23,000 of this amount may be in subsidized loans.

 

 

 

YES, I have read and understand the Stafford Loan Information above. Continue with loan application process. NO, I have not read or I do not understand the Stafford Loan Information above. I will not continue with loan application process at this time.






Whatcom Community College

237 W. Kellogg Road, Bellingham, WA 98226

(360) 383-3000

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