Federal Direct Loans
Federal Direct Loan Program (DL Stafford Subsidized Loans or DL Stafford Unsubsidized Loans)
Unlike grants or work-study, Direct Loans (DL) are borrowed funds that must be repaid with interest. They are a very serious obligation, so think about the amount you will have to repay over the years before you apply for a loan. When applying for a loan, it is important to understand how much your monthly payments will be once your repayment period begins. To estimate your monthly loan repayment amount and for additional information on student loans, please visit
www.studentloans.gov.
Norco College offers both Subsidized and Unsubsidized Federal Direct Stafford loans for the fall and spring semesters. These loans are designed to help you achieve your educational goals. Funds will come from the Department of Education DL program. You will repay these loans to the Department of Education DL program or its servicing agent. Please make sure that you stay in constant contact with Direct Loans in order to avoid delays in student loan payment and to ensure successful repayment.
At Norco College, it is our plan to help students reach their educational goal with the least amount of student loan debt as possible. Norco College does not recommend borrowing more than $10,000 at the community college level (this includes loans from any other institution that you attended). Students who already owe $10,000 or more will be required to meet with a financial assistance representative prior to a loan being approved. If you have loans from other schools and are unsure of how much you have borrowed, you can view your complete loan history at www.nslds.ed.gov (National Student Loan Data System) – your FAFSA PIN is required to access this website (this is the same PIN number that you would use to fill out your FAFSA online and sign you Master Promissory Note (MPN). To obtain a PIN, go to www.pin.ed.gov.)
Subsidized loans are for students who have demonstrated financial need. You may borrow up to
$3500 as a first-year student (completed less than 30 units at Norco College) and $4500 as a second-year student (completed 30 or more units at Norco College) per academic year. The federal government pays the interest during deferment periods, while students are in college at least halftime and during the six month grace period after they graduate, leave school or enroll less than halftime (less than 6 units). To qualify, students must meet all of the requirements for federal student financial assistance and have their eligibility for all other grants determined first. Federal student loans should be a student’s last resource.
Unsubsidized loans are not based on financial need. Students are responsible for paying the interest on these loans. Interest starts accruing as soon as the loan is disbursed and ends when the loan is paid in full. Students may choose to defer the interest payments while they are enrolled in college at least half-time. Norco College recommends that students make interest payments while they are in college.