Student Loans

Financial Aid – Federal Direct Student Loans

DVC is dedicated to student success. The Financial Aid Office understands that students need to borrow money to help with school related expenses. Typically, a student who needs to borrow is making a good investment in their future. However, many students enter into debt without a clear picture of how it will affect them in the long run.

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We encourage students to consider part-time employment as a way to help pay for their expenses. Please visit the DVC Career and Employment Services on the Pleasant Hill Campus in the Student Service Building or online at www.dvc.edu/career to explore job opportunities both on and off campus. We also encourage students to actively search for scholarships. A little bit of effort in this area has the potential to save students hundreds or even thousands of dollars in student loan debt. Visit the Diablo Valley College Scholarship office located on the first floor of the Student Service Center, or online at www.dvc.edu/scholarships for more information. To plan accordingly, it is important to understand how much it costs to live and go to school. Here is a link to the Student Cost of Attendance, which defines a reasonable expectation of cost – note that many students living away from their parents may experience higher costs due to housing and transportation. Also it is important to remember that Financial Aid will not be able to cover the entire cost of attendance for Diablo Valley College.

 

DVC participates in the Federal Direct Loan program. Funds for the Direct Loans are provided by the U.S. Government. These loans have low interest rates and do not require credit checks or collateral. Direct loans also provide a variety of deferment options and extended repayment terms.

All Direct Loans are either subsidized or unsubsidized. Under the subsidized loans, the government pays the interest while the students are in school. To apply for a subsidized Direct Loan, you must be able to demonstrate financial need.

With unsubsidized loans, students pay all the interest, although they can have the interest payments deferred until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and the cost of the loan.

Federal Direct Loan Limits

Loan limits will be discussed in the required Loan workshop.

 

Interest rate, Loan fees, and Repayment

The interest rate for Federal Direct Student Loans depends on when the loan was first disbursed. Visit the Direct Loans website for more information. Repayment for these loans begins six months after a student leaves school or drops below half-time enrollment.

The loan origination fee is an expense of borrowing Direct Subsidized/Unsubsidized Loans. The Direct Loan origination fee effective March 1, 2013 will be 1.051%. By law, these fees will be subtracted proportionately from each loan disbursement.

When repaying your Federal Direct Student Loan, you may want to consider loan consolidation. Loan consolidation is one of the most important financial decisions that you will make in your lifetime. The Diablo Valley College Office of Financial Aid recommends that you research your options carefully. Visit Direct Consolidation Loans for more information.

Recommended Loan Limits

Diablo Valley College strongly recommends that students keep their loan borrowing below $10,000 during their time at a community college. It is in the students best interest to borrow responsibly. Students applying will be asked to provide a thorough and accurate budget reflecting income and expenses for the current academic year.

How to Apply

To apply for either the subsidized or unsubsidized Federal Direct Loan, you must:

  1. Apply for Financial Aid by completing the FAFSA.
     
  2. Attend a Loan Workshop. Online registration for attendance at the Loan Workshop is mandatory. You may access registration at the following link:

 

Loan Program is now closed for Spring 2014

 

Basic Federal Loan Requirements

Be a U.S. Citizen or Eligible Non Citizen

Have a valid Social Security Number

Register with Selective Service (If Male)

Main Satisfactory Academic Progress

Enroll in an eligible degree or certificate program

Enroll in at least 6 units for half time status

Not have any defaulted Student Loans

 

 

 

Loan Exit Requirement line Loan Exit Counseling at least once per academic year in which you receive a student loan. The link to complete the Loan Exit can be found here: WWW.NSLDS.ED.GOV

 

Parent PLUS Loans

DVC participates in the Federal Direct Parent PLUS Loan program. The Direct Parent PLUS Loans are funded by the U.S. government and eligibility is determined based on credit. If approved, funds are disbursed by the Diablo Valley College Financial Aid Office.

 

Deferment and Forbearance

If you are unable to make your loan payments, visit the following websites for additional options:

Federal Direct Student Loans

 

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