To learn the steps for applying for a Federal Direct Student Loan, please visit our
.
Subsidized: for undergraduate students with demonstrated financial need, as determined by federal methodology. The U.S. Department of Education pays the interest while you are enrolled in school at least half-time, during the grace period, and
during deferment periods.
Unsubsidized: not based on financial need; interest is charged during all periods, even during
the time you are in school, during the grace period and deferment periods.To be eligible for loans, students must be enrolled in an eligible program at least
half time. If you fail to complete the minimum 6 unit requirement with at least a
2.0 GPA, your subsequent disbursement is subject to cancellation.Loan Applications Accepted- through November 15 for fall term; through May 15 for
spring term; through July 15 for summer term
Entrance Counseling
First-time student loan borrowers are required by federal law to complete student
loan counseling prior to receiving their first Direct Stafford Loan. This counseling
is conducted online and normally takes less than 30 minutes to complete. To complete
Entrance Counseling for Subsidized/Unsubsidized Loans, go to
StudentLoans.gov. You will need:
- Your Federal Student Aid ID (FSAID). If you have not applied for one or have forgotten
your FSAID, go to the Federal Student Aid website and create your ID.
- Master Promissory Note (MPN). If you have never borrowed a Direct Stafford Loan from Cañada, you are required
to complete a Master Promissory Note and can do so through the online process at StudentLoans.gov.
Once you are no longer enrolled at least half time in an eligible program, you will
receive a 6-month grace period on your Direct Subsidized and Unsubsidized Loans during
which time you are not required to make loan payments. You must begin repayment at the end of your grace period.
If you have an in-school deferment on a Direct Subsidized or Unsubsidized Loan that entered repayment at an earlier
date (before you returned to school) and you graduate, drop below half-time enrollment,
or withdraw from school, you will be required to immediately begin making payments
on the loan. The 6-month grace period has already been used and there is no second
grace period. Make sure that both your school and loan servicer know that you are
no longer enrolled.
**If you don't begin making payments when required, there is the possibility that
you will lose repayment incentives you may have received or even go into default.
Exit Counseling
Cañada College is required to ensure that you receive exit counseling before you graduate
or withdraw. If you have federal student loans disbursed through Cañada College, you
will be asked to complete exit counseling each year while enrolled at least half-time
and then again once you graduate, drop below half-time enrollment, or withdraw from
school. Please complete exit counseling through the National Student Loan Data System for Students (NSLDS) website.
For complete loan Exit Counseling information, please download and read the Direct Loan Exit Counseling Guide. Refer to this resource often.
There are time limits on Direct Subsidized loan eligibility for first time borrowers
on or after July 1, 2013. Refer to the Department of Education’s Fact Sheet.
