Loan Program

Federal Direct Student Loan Program

Federal Direct Loan Program

The Federal Direct Loan assists students from both low- and middle-income families. Students who demonstrate need for a portion or all of the annual limit will receive a 'subsidized loan' for which the federal government will pay the interest while the student is eligible for an in-school deferment and for the duration of any grace period. Direct loan payments are deferred while the student maintains half-time or greater enrollment in school. Repayment begins 6 months after the last date of enrollment in 6 units, or graduation.

Students who do not demonstrate need for part or all of the annual borrowing limit may still receive an 'unsubsidized loan' for which they must pay their own interest during the time they are in school.

Federal Student Loans Basics for Students (PDF booklet)

2024-2025 Application period

Fall	September 3 - November 29, 2024
Spring	February 3 - April 30, 2025

 

FSA Contact Information:
Customer Support Center at 1-800-999-8219
Monday through Friday, 8:00 am to 9:00 pm ET or
email https://studentaid.gov/help-center/contact 

To be considered for a Direct Loan, you must:

• Have a completed financial aid file at Las Positas,
• Be academically eligible by meeting satisfactory academic progress (SAP) requirements,
• Be enrolled at least half time at Las Positas College (a minimum of six (6) units) during the loan period in courses which apply to your declared major. You must be working toward completion of an eligible Transfer, Certificate or Associate degree granting program. (English as a Second Language and Remedial Courses are not eligible classes for the loan program)
• Must have a Complete Student Educational Plan (SEP)
• You must be working toward completion of an eligible degree program, e.g. Associate, Transfer, or Certificate degree program.
• A student is ineligible for any federal financial aid, including student loans, if in DEFAULT on a prior student loan(s), or if owes a repayment of Title IV financial aid to any school in the country.

ABOUT DIRECT LOANS

Both Direct Subsidized and Unsubsidized Loans are available at Las Positas.

Interest rate and fees effective July 1, 2024 and prior to July 1, 2025

 

	Interest Rate	Origination Fee 2024-2025
Disbursement Date	7/01/2024 - 7/01/2025	10/01/2024 -10/01/2025
Direct Subsidized	6.53%	1.057%
Direct Unsubsidized Undergraduate	6.53%	1.057%

DETERMINATION OF LOAN ELIGIBILITY

Requesting a certain loan type and amount does not mean you are eligible for that type or amount of loan(s).

Cost of Attendance – Student Aid Index – Financial Aid awarded - Other Resources = Remaining Eligibility for Direct Loans

 

Steps in the Direct Loan Process

Step 1. Submit a 2024-2025 FAFSA

If you haven’t already done so, you must FIRST submit a 2024-2025 FAFSA online at https://studentaid.gov/ and submit any in-school forms requested by the Financial Aid Office (FAO) indicated as requirements on CLASS WEB.
Direct Loans will only be considered AFTER your 2024-2025 financial aid documents have been processed and eligibility for free grant money has been determined.

Step 2. Complete Entrance Counseling & Master Promissory Note (MPN)

LOGIN TO : www.StudentAid.gov

Complete:

1. ENTRANCE LOAN COUNSELING 
2. MASTER PROMISSORY NOTE (MPN)

Step 3. Submit Loan Application and Student Education Plan

Loan Application

*Student Education Plan Required

You must submit a current Student Education Plan (SEP) dated within the last 2 semesters or *12 months. Download a copy of your SEP and attach it to your Loan Application.
*Students in EOPS, DSPS, CalWORKs, and Veterans First Programs should contact their respective program counselor for a Student Education Plan (SEP).

Step 4. Receipt of Awarded Direct Loan refunds

Subsidized and/or Unsubsidized award amounts disburse in two payments. Refer to ‘Direct Loan Refund Schedule’ below for payment (refund) dates.

Your Loan WILL NOT disburse if the Entrance Counseling and MPN are not completed. The origination fee is deducted from the total amount of your loan awarded.

Your second payment will not disburse if you have not completed the EXIT counseling.

CONTINUE Loan Entrance Counseling TUTORIAL Videos

DIRECT LOAN REFUND SCHEDULE

Academic Year Loan Period	Inclusive Dates	First Payment	Second Payment
Fall 2024 & Spring 2025	08/2024-05/2025	10/01/2024	01/28/2024
Fall 2024 Only	08/2024-12/2025	10/01/2024	10/22/2024
Spring 2025 Only	01/2025-05/2025	02/25/2025	03/25/2025

The refund dates shown above are estimates.
The first actual refund date will depend on when your file is completed and your loan is actually processed. Authorized loans are visible on student accounts approximately 1 week prior to the refund date.

Funds are released via your selected refund preference through BankMobile Disbursements, a technology solution, powered by BMTX, Inc.

Step 5. Exit Counseling:

https://studentaid.gov/ 

Las Positas requires that you complete the online Exit Counseling BEFORE your 2nd scheduled loan disbursement.  (Refer to ‘Direct Loan Refund Schedule’ for refund dates). 
Your 2nd disbursement WILL NOT disburse if this requirement is not successfully completed.

GRADE LEVEL FOR LOAN LIMIT DETERMINATION

The FAO must use the grade level as determined by the Las Positas Admissions & Records Office. A student who has completed less than 30 degree-applicable units is considered a first year student (freshman). A student who has completed 30 or more degree-applicable units is considered a second year student (sophomore).  If a student intends to include units earned from a prior school to establish 2nd year loan eligibility, s/he must request official academic transcripts be evaluated by Las Positas Admissions & Records.  Prior college units are counted only if they apply to the current degree and major being pursued.

Subsidized Limits

$3,500 for a first-year student (0-29 earned units which apply to the current degree and major) enrolled in an eligible certificate, associate or transfer degree program. ($3500 is the maximum annual amount allowed for any certificate-seeking student.)

$4,500 for a student who has completed the first year of study (30 or more earned units which apply to the current degree and major) in an eligible associate or transfer degree program. (Maximum amount for a student in an associate degree and/or transfer program.)

Unsubsidized Limits

Dependent students are limited to annual maximum of $5,500 (freshman level) or $6,500 (sophomore level) in combined Subsidized/Unsubsidized Stafford loans.

Independent students may be eligible for up to an additional $6,000 in unsubsidized loans each year.

The maximum aggregate debt you can accumulate for all of your combined student loans is $31,000 as a dependent undergraduate student and $57,500 as independent undergraduate student (through a Bachelors degree). Only $23,000 of this amount may be in subsidized loans.

Please think about how much more you may need to depend on student loans in the future, once you transfer into a four year institution. Don’t mortgage your future by taking on debt unnecessarily at the community college level.

LAS POSITAS COLLEGE LOAN POLICIES

LOAN APPROVAL/DENIAL: The Financial Aid Office may deny, on a case-by-case basis, a loan application for a student who has been in default, who has demonstrated or is demonstrating poor academic progress, and/or if student already has a high cumulative student loan debt. For new students to the college and for students with a history of questionable academic or financial aid progress, the financial aid office reserves the right to verify student’s actual attendance and progress in courses prior to loan approval. Poor attendance or progress may be a basis for denial of a loan or cancellation of a loan disbursement. 
The Financial Aid Office may also limit an individual student’s approved loan amount based on a number of factors, including total cumulative debt, rate of academic progression related to debt incurred, and other considerations.

Important! Please Read.

Loans will be authorized only after the ADD/DROP PERIOD is completed each semester.
New borrowers at Las Positas are required to wait 30 days into their first semester to receive their first loan disbursement.

REQUIREMENT FOR AT LEAST 6 UNITS OF COURSEWORK TO HAVE BEGUN PRIOR TO LOAN DISBURSEMENT: Students in short term courses must have at least 6 units of courses whose start dates have passed before funds can be released.

Enrollment in late-start courses may affect the timing of a student becoming eligible to receive their loan funds depending on the number of units which began prior to the scheduled release date.

(English as a Second Language (ESL) and Remedial Courses are not eligible classes for the loan program)

REQUIREMENT FOR ALL LOANS TO BE AWARDED IN TWO PAYMENTS: All student loans will be awarded equally between fall/spring semesters when students request the maximum annual amount(s). No more than half the annual maximum will be awarded during the fall semester. All student loans, even one-semester loans, must be disbursed in at least two disbursements.

PLEASE REMEMBER, ALL BORROWERS MUST SUCCESSFULLY COMPLETE EXIT COUNSELING (https://studentaid.gov/) PRIOR TO RECEIVING THEIR SECOND DISBURSEMENT.

For information about debt relief, please visit StudentAid.gov/debtrelief

Resources

You can review all of your own loan history at https://studentaid.gov/ by logging in with your FSA ID.

Borrow only what you really need; save your loan eligibility for when you attend a four year school to assist you in covering the increased expenses.

For more information on the Direct Loan Program

• https://studentaid.gov/ 
• Financial Aid Information Page: http://www.finaid.org
• FSA Loan Simulator - what your payments might look like

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