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Applying for Federal Direct Stafford Student Loans

for 2009-2010

Important Information About Direct Student Loans

(You must be enrolled in 6 credit hours which count toward your degree at VCC)

Federal Direct Subsidized Stafford Loan
A Federal Direct Subsidized Loan is available to help meet financial need after other resources are subtracted or to the annual maximum loan limit, whichever is lower. It is the U.S. Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program. Loan Limits

Federal Direct Unsubsidized Stafford Loans
A Federal Direct Unsubsidized Loan is not based on your financial need. It is available to you through the William D. Ford Federal Direct Loan Program, if your estimated Cost of Attendance (COA) is greater than your financial aid and you have not reached your annual maximum loan limit through the Federal Direct Subsidized Loan. Loan Limits

Interest & Fees

Beginning July 1, 2009, Federal Direct Subsidized loans for undergraduate students only will have a fixed interest rate of 5.6%. The federal government pays interest on the loan until you begin repayment.  

The interest rate for Federal Direct Unsubsidized loans disbursed on or after July 1, 2006 is fixed at 6.8%. You are charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, the interest will be added to the principal amount of the loan and increase the amount to be repaid.

0.5% fees will be deducted from the gross amount of loan borrowed, so students need to take that into consideration when determining the amount to borrow. By law, the total origination fee is 1.5%; however, Direct Loans currently offer a 1.0% rebate on this origination fee. If you fail to make 12 on-time monthly payments, a charge for the difference between the 0.5% origination fee and the 1.5% origination fee will be added to the outstanding balance of the loan.

Steps to Apply for a Federal Student Loan at Valencia

  1. Apply for a Federal Direct Stafford (Subsidized and/or Unsubsidized) Loan
    To apply for a Federal Direct Stafford (Subsidized or Unsubsidized) Loan, you must complete the FAFSA using our School Code of 006750. To be eligible, you must be enrolled for at least six credit hours which count toward your current degree and be maintaining Valencia’s Standards of Satisfactory Academic Progress. If you are eligible for a Federal Direct Stafford (Subsidized or Unsubsidized) Loan, it will be included on your financial aid award notification.

  2. Accept, Reduce or Decline a Federal Direct Stafford (Subsidized or Unsubsidized) Loan
    You will have the option to Accept or Decline your Federal Direct Stafford Loan on your award notification you receive through ATLAS email. To Reduce your loan from what you were awarded, complete the Online Loan Reinstatement and Change Form.

  3. E-sign Your Federal Direct Stafford Loan Master Promissory Note
    If you are a first time borrower of the Federal Direct Stafford Loan, you will be required to complete a Master Promissory Note (MPN) before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN during your college career at Valencia, provided you are borrowing a Direct Stafford Loan. You sign your Federal Direct Stafford Loan MPN using your Federal Student Aid PIN by selecting the Complete New MPN for Student Loans option.

  4. Loan Entrance Counseling
    Before the Office of Student Aid can disburse your loan funds you are required to complete Loan Entrance Counseling. This counseling session provides you with information that will help you understand your rights and responsibilities as a loan borrower, as well as other tools to assist you with managing your loans. In most cases, you will only be required to complete Loan Entrance Counseling once during your college career at Valencia.

  5. Receiving Federal Direct Stafford Loan Funds
    It is important to know that loan funds will automatically credit to your student account, if the Direct Loan Processor has a valid MPN on file for you and you have completed Loan Entrance Counseling, on the disbursement date noted on your Atlas Account. Your loan funds cannot be disbursed until you begin 6 credit hours during the semester and must be paid in two equal disbursements for each payment period (e.g. ½ of the loan in Fall and ½ in Spring).

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Applying for a Parent Loan for Undergraduate Students (PLUS) Federal Direct Loans for 2009-2010

The Parent, not the student, must complete all Parent Loan forms.

Steps to Apply for a Federal Parent Loan at Valencia

(Students must be enrolled in 6 credit hours which count toward their degree at VCC)

  1. Direct Parent Loans for Undergraduate Students (PLUS)
    Visit the U.S. Department of Education for Information on a PLUS Loan

  2. Complete Financial Aid File
    Your son or daughter must have a completed financial aid file, including the FAFSA, at Valencia Community College using our School Code of 006750.

  3. You must complete a Parent Loan Certification Request Form
    This Certification Request Form will ask for the requested amount and allow you to certify who to send any excess refunds to (the student or parent)

  4. E-sign your Federal Direct Master Promissory Note (MPN)
    You are required to complete a PLUS MPN before loan funds can be disbursed. By signing the MPN you authorize the Department of Education to perform a credit check to determine your eligibility for the PLUS loan.

  5. Receiving Federal Direct Parent Loan funds
    It is important to know PLUS loan funds will automatically credit the students account if the Direct Loan Processor has a valid MPN on file and your son or daughter has began at least 6 credit hours. Your loan funds must be paid in two equal disbursements for each payment period (e.g. 1/2 the loan in the Fall and 1/2 in the Spring).

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Applying for a Private Education Student Loan

  1. Review Federal Aid First
    U.S. Department of Education Federal Aid First explains the difference between Federal and Private loans.

  2. We Encourage you to have a Completed Financial Aid File
    We encourage you to have a completed financial aid file, including the FAFSA, at Valencia Community College using our School Code of 006750. This will provide us with information to review your file for State, Federal, and Institutional funds before you borrow a Private Loan.

  3. Apply
    Choose a lender or Bank to apply for a Private Education Loan. Valencia does not offer a preferred lender list for private loans. Students can check with their bank or research private loans on the Web. We strongly encourage students to borrow federal loans first as they offer better benefits and interest rates.

  4. School Certification
    Our office will certify the loan once we receive a certification request from your lending institution. Private loan limits are set by federal regulations and cannot exceed the cost of attendance minus any financial aid received. We are not responsible for the timeliness of private loans and students should address all customer service issues with their lender.

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