Stafford Student Loan Program

College of the Canyons participates in the Stafford Student Loan Program funded by the federal government. Your financial aid award letter may include one or more student loans. Federal law requires that a student borrower must be enrolled at least half-time, defined as 6 + units per semester. A student loan is borrowed money, which must be repaid with interest, to help you pay for your college expenses. Remember, you must complete a Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov before you can receive a Stafford student loan.

Stafford Subsidized and Unsubsidized Loans

There are two types of Stafford Loans: a Subsidized Stafford Loan and an Unsubsidized Stafford Loan. You may have received one or both types of these Stafford loans. Your unmet financial need, calculated by your cost of attendance (COA) minus your estimated family contribution (EFC), determines which type of Stafford Loan you qualify for.

The Stafford Loan interest rate for Subsidized Stafford Loans first disbursed between July 1, 2011 and June 30, 2012 is fixed at 3.4%. Stafford Loan interest rate for Unsubsidized Stafford Loans first disbursed between July 1, 2010 and June 30, 2012 is fixed at 6.8%.

The federal government charges a 1% origination fee, with an up-front interest rebate of 0.5%, for each Stafford Loan. This fee is automatically deducted from each disbursement of your loan. Repayment of your loan generally begins six months after you are no longer enrolled in 6 or more units, which is considered as half-time enrollment status.

The federal government pays the interest on your Subsidized Stafford Loan while you are in school and during the six-month grace period after you leave school.

Unsubsidized Stafford Loans are not need-based; therefore the loan amount cannot exceed your cost of attendance minus your EFC, including any subsidized loan amount awarded. Unsubsidized loans have no interest subsidy, which means that you are responsible for paying the loan interest while you are in school. You may choose to postpone your interest payments, but any accrued interest will be added to your original loan amount. This is called capitalization. Independent students, those not required to report parental income and benefits, have Unsubsidized Stafford Loan borrowing limits in addition to the Subsidized loan limits for each academic year.

Stafford Loan Packaging Policy and Application Process

For any student loan, your Federal Pell Grant eligibility must be determined first before we will determine your loan eligibility or before we will originate your Stafford Loan application. This is to ensure that you get all the free money you are entitled to before choosing to borrow through the Direct Stafford Loan Program.

To apply for the Stafford loan, you must follow the instructions in the section of this website called How to Apply for A Stafford Loan.

Borrowing Limits

You may borrow a loan amount equal to or less than the amount indicated on your Award Notification Letter, and within the loan limits specified. You have the right to accept or deny any student loans or amounts offered. College of the Canyons recommends that students not exceed $20,000 as a maximum loan limit while attending our two-year college, including all Stafford Subsidized and Unsubsidized loans. It is our goal that you leave COC with minimal loan indebtedness, especially if you plan to transfer to a four-year college or university in the future. The minimum loan amount is $500.

Direct Loan Servicing Center and Borrower Services Department

For information on your Direct Loan account, to consolidate, make a payment, and more. Login to Direct Loan Servicing Online www.dl.ed.gov.

Annual Loan Limits

Dependent Student

Grade Level

Subsidized & Unsubsidized

(base amount)

Additional Unsubsidized

Total Loans

1st Year Student

(0 - 29 units completed)

$3,500

$2,000

$5,500

2nd Year Student

(30 + units completed)

$4,500

$2,000

$6,500

Independent Student

Grade Level

Subsidized & Unsubsidized

(base amount)

Additional Unsubsidized

Total Loans

1st Year Student

(0 - 29 units completed)

$3,500

$6,000

$9,500

2nd Year Student

(30 + units completed)

$4,500

$6,000

$10,500

Total Undergraduate Loan Limits

Dependent Undergraduate

$23,000

$8,000

$31,000

Independent Undergraduate

$23,000

$34,500

$57,500

Student Loan Application Deadlines

Fall 2011 Only

November 17, 2011

Fall 2011 and Spring 2012

May 3, 2012

Spring 2012 Only