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Student Loans

Student loans are available to most students and have low interest rates.

On this page:

• Student loans quick facts
• Important information for student loan applicants
• Things to consider before taking out loans
• Direct loan application process
• Parent PLUS Loan
• Exit counseling
• Non-federal, alternative, or private education loans

Student loan quick facts

Name	Direct student loans (subsidized and unsubsidized) Parent PLUS Federal Loan
Type and source	Need-based and non-need based, provided by the federal government
Financial aid amount	Varies
How to apply	FAFSA Master Promissory Note Entrance Counseling Submit Loan Request via InSite (see instructions below)
Renewal	Annually

Important information for student loan applicants

• Funds for Direct Loans are provided by the U.S. government. These loans have low interest rates and do not require credit checks or collateral. Unlike grants, loans must be repaid with interest.
• The interest rate for Federal Direct Student Loans depends on when the loan was first disbursed.
• All Direct Loans are either subsidized or unsubsidized. Under the subsidized loans, the government pays the interest while the student is in school. With unsubsidized loans, students pay all the interest.
• Repayment for these loans begins six months after a student leaves school or drops below half-time enrollment.
• There is a required loan origination fee for Direct Loans. This fee is subtracted proportionately from each loan disbursement. The Direct Loan origination fee for loans first disbursed before October 1, 2019 is 1.062 percent and on or after October 1, 2019 is 1.059 percent.
• Direct loans provide a variety of deferment options and extended repayment terms.
• Loan recipients must be enrolled in at least six degree-applicable units and meet Satisfactory Academic Progress.
• Student loan applicants must complete a Direct Loan Master Promissory Note and Entrance Counseling requirements.
• Completion of Exit Loan Counseling is required of student borrowers that graduate, transfer, withdraw, or attend less than half-time.
• More information about the Federal Direct Loan Program.

Things to consider before taking out loans

The Financial Aid Office understands that students often need to borrow money to help with school related expenses. Typically, a student who takes out a loan 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. DVC is dedicated to student success and encourages students to borrow wisely.

Before applying for student loans, 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 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.

To plan accordingly, it is important to understand how much it costs to live and go to school. Review college costs and money management to get a better understanding of expenses. Please note that students living away from their parents may experience higher costs due to housing and transportation.

We also recommend that students keep their loan borrowing below $20,000 during their time at a community college. It is in the student's 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.

Direct loan application process

You must meet the following requirement to be considered for a student loan:

• Submission of a valid FAFSA for the appropriate academic year
• Submission of required financial aid documents and financial aid file completion
• Enrollment in at least six degree-applicable units
• Adhere to the Satisfactory Academic Progress Policy with a status of Satisfactory, Warning, or Probation

To apply, complete the following steps:

1. Submit a 2019-2020 FAFSA and include Diablo Valley College's school code (001191).
2. Complete an undergraduate Master Promissory Note (MPN). If you have completed an MPN in the last ten years for a Direct Student Loan you may skip this step.
3. Complete Loan Entrance Counseling.
4. Log into InSite and submit all documents requested on the Financial Aid Checklist.
5. Submit your loan request online by following these steps: log into Insite, select the Financial Aid Tile, select Financial Aid Home, click Financial Aid from the toolbar menu, and select Request a New Loan.
   Note: Amount requested may not represent amount you are eligible to receive.
6. Select how to receive your funds by selecting My FA Disbursements from the Financial Aid tile menu.

After completing this process:

• You will be notified by email of your application status within two-four weeks after your loan request is submitted.  Student loan requests may take four to six weeks to process based on whether or not all the requirements above have been completed.
• If you are offered student loan(s), your will be notified via email that your loan request has been Accepted, your loans will appear under My Awards on InSite, and you will be required to actively accept your awards from your award letter in order for the loan funding to be released.
• If you request a loan change, your loan will take an additional two weeks to process and you will be notified via email if you loan change will be rejected or accepted. Please note that requests to increase your loan amount beyond what has been offered may require additional follow-up from the Financial Aid Office to determine if the request can be accommodated.
• There are limits in the amount of student loans you may borrow based on your dependency status, number of units completed, cost of attendance, unmet need, and annual and aggregate loan limits.  Please note that community college students are subject to first year and second year undergraduate borrowing limits.
• Please note that the Financial Aid Office has the authority to reduce or deny any loan request on a case-by-case basis.

Parent PLUS Loan

The Parent PLUS Federal Loan is for the biological parent, custodial stepparent (if information was reported on the FAFSA), or adoptive parent of a dependent undergraduate student. A parent can borrow the total estimated cost of attendance (minus the student's total financial aid). If more than one parent wishes to borrow a Parent PLUS Loan for the same student, each must complete a separate Federal Direct Parent PLUS Loan Request Form and Master Promissory Note (MPN).

Parent PLUS Loan process

1. The student must have a current FAFSA completed on file.
• If the student hasn't already done so, they can apply online for the FAFSA. The Federal Direct Parent PLUS Request Form cannot be processed without a completed FAFSA on file.
2. Complete and return a Federal Direct Parent PLUS Loan Request Form.
• Complete and return the Parent PLUS Loan Request Form to the DVC Financial Aid Office. Be sure to print clearly and answer all questions. This form collects the information necessary for DVC to electronically transmit loan data to the Department of Education. It also authorizes the Department of Education to send the loan funds to DVC using Electronic Funds Transfer (EFT) and for DVC to release the check in the name of the student via parent authorization.
3. Complete Department of Education Online Requirements.
• Parent borrowers must complete the Parent PLUS Loan requirements.
4. Drop in to the Financial Aid Office and submit Parent PLUS Loan Request form
• Check financial aid office hours for drop in times.

Exit counseling

DVC requires all federal student loan borrowers to complete exit loan counseling if they are not enrolled at least half-time. Student loan exit counseling can be completed by logging into your student loans account.

Exit counseling provides borrowers with important information about:

• monthly repayment amounts,
• repayment plan options,
• terms and conditions forbearance and deferment,
• terms and conditions for forgiveness or cancellation,
• consequences for delinquency and default,
• options and consequences of loan consolidation,
• strategies for managing student debt,
• other information.

Non-federal, alternative, or private education loans

Educational loans are available from a variety of non-federal, private, or alternative lenders. However, Diablo Valley College does not maintain or promote any specific private education loan lenders. DVC recommends that you apply for Federal grants and other assistance under the Title IV HEA programs before you consider private educational loans as the terms and conditions may be more favorable under these programs.

DVC does not provide information regarding borrowing funds from private lenders or have preferred lender arrangements with any private financial institutions. Some private educational loan lenders require school certification however, effective spring 2016, DVC does not certify private education loans. Upon request, Diablo Valley College will provide the self-certification form for private education loans required under Sec. 128(e)(3) of the Truth in Lending Act (15 U.S.C. 1638(e)(3) and the information required to complete the form, to the extent that Diablo Valley College possesses the information.

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All financial aid students are required to check their DVC student email account through InSite on a regular basis in order to receive notifications, file status updates, announcements, and further instructions from the Financial Aid Office. Follow the link for instructions on how to check your financial aid status through InSite.

Financial Aid school codes:

• DVC FAFSA Federal School Code: 001191
• DVC CA DREAM Act Application School Code: 00119100

Contact Financial Aid

• Pleasant Hill
• San Ramon