Loans
The Federal Direct Loan program 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 halftime 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.
A Direct Student loan is a long-term financial obligation which can limit your cash flow and your purchasing ability for many years into the future. We hope you will seriously evaluate whether taking on loan debt is truly necessary to make ends meet. We strongly recommend you look at other ways to meet your current financial needs by careful budgeting, taking on a part-time job, etc. If you decide a loan is a necessity to meet your educational expenses, borrow only what you need.
Think Before Borrowing!
A Stafford Student loan is a long-term financial obligation. We have provided this brief to help you make an informed decision about borrowing a student loan, to understand Merritt College’s loan process and loan policies. We hope you will seriously evaluate whether taking on loan debt is truly necessary to make ends meet. We strongly recommend you look at other ways to meet your current financial needs by careful budgeting, taking on a part-time job, etc. If you decide a loan is a necessity to meet your educational expenses, borrow only what you need. Please read this description carefully and the Direct Loan Basics & Entrance Counseling Guide. We would be happy to answer any additional questions you may have.
| To be considered for a Direct Loan, a student must: |
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Contact Information for Students and Borrowers
The Merritt College Financial aid office is partnered with ECMC Solutions to provide student loan counseling and support to borrowers as they navigate federal student loan repayment. Contact ECMC Solutions by phone at 1-877-331-3262, or visit their website to make an appointment, connect through email, or webchat with a student loan counselor. The team at ECMC also offers a free webinar series to support borrowers as they navigate repayment.
| Direct Loan Application Services: Phone Number: 1-800-557-7394 Fax Number: 1-877-623-5082 Email: codsupport@acs-inc.com |
Electronic Master Promissory Note Services: Phone Number: 1-800-557-7394 Fax Number: 1-301-470-1244 Website: www.studentloans.gov |
| Repayment Questions and Services: Phone Number: 1-800-848-0979 Website: www.myedaccount.com |
Direct Loan Consolidation Services: Phone Number: 1-800.557.7392 Website: www.loanconsolidation.ed.gov |
Additional Information
- Loan applicants must complete all steps from the Step-by-Step Application Process to be considered for a federal student loan.
- Student Loan Requests will take anywhere from 4-6 weeks to process.
- Students may be required to submit academic transcripts from prior schools for evaluation upon request.
- Once all steps have been completed and you have been determined eligible, the loan will be guaranteed and approved for disbursement.
- Loan applicants must complete and pass an online exit counseling session and quiz once a year through studentloans.gov.
- Students must notify the lender or current loan holder within ten (10) days of a leave of absence from school; dropping below half-time status; or a change in name, address, or phone number.
- Remember! Student Loans must be repaid with interest.
- Students must meet and continue to maintain Satisfactory Academic Progress.
- A student who defaults on a Federal Student Loan loses eligibility for all Federal Student Aid.
- New! Students will be notified of their Loan approval status via their Peralta e-mail address and can also be viewed on their Passport account. Students must log on to Peralta Passport account to accept Direct Loan offer. Failure to do so will delay loan disbursement.
PCCD Financial Aid Office will determine your academic program year (i.e. 1st Year – Freshman or 2nd Year – Sophomore) for maximum loan eligibility.
Understand that Peralta CCD has the responsibility to:
- evaluate all loan requests case-by-case; and
- reduce or deny loan requests for students that, in our professional judgment, are at serious risk for default.
High levels of indebtedness (including loans from other colleges), coupled with a small amount of progress in an academic program, is a common indicator of high risk for default.
| Therefore, your loan request may be denied or reduced if you: |
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Obligations and Responsibilities of Student Borrowers
- Federal Loans are not grants and must be repaid.
- Interest rate is 4.99% for new loans taken out between July 1, 2022 through June 30th, 2023.
- Origination fee: 1.057% will be deducted from each loan disbursed prior October 1, 2022, and on or after October 1, 2022, and before October 1, 2023.
- Interest on Subsidized Loans is paid by the taxpayers while students are in college
- Students must pay the interest on Unsubsidized Loans while in college, or may have it added to the principal (this increases the amount students must repay later).
- Students must begin repaying the loan six months after graduation, withdraw, or drop below half-time status.
- Students do not have a disability that will prevent from obtaining gainful employment in program of study.
- Students do not have a criminal conviction that will prevent from obtaining gainful employment in program of study.
- The awards cannot exceed cost of attendance (budget). If additional grants, awards or scholarships are added after a loan has been approved, loan amounts will be reduced to accommodate the new awards (for example: EOPS grants and vouchers, PCCD Foundation scholarships, Federal Work Study and/or CalWORKS Work Study, etc).
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).
| Eligibility Equation |
| Cost of Attendance – Expected Family Contribution – Financial Aid Awarded – Other Resources =Remaining Eligibility for Direct Loans |
To begin review of a student loan request, the FAO reviews student’s total annual and aggregate loan debt, grade level, program level (Certificate, Associate, Transfer), academic eligibility (SAP), and current enrollment. We ensure the student is not in default of prior loan nor owes a financial aid repayment using NSLDS, a national database showing all student loans and Pell Grants received by a student at any college or university across the country. We review your academic and financial aid history, and if you are new to PCCD, we verify attendance and progress with your instructors.
If our review results in approval, the FAO calculates loan eligibility by taking the student’s cost of attendance minus expected family contribution minus all financial aid awarded and other financial resources available to the student.
