Federal Student Loan

2023-2024 Federal Direct Student Loan Program

(For Fall 2023/ Spring 2024 Semesters)


APPLICATION DEADLINE for Fall 2023:  Nov 20, 2023

APPLICATION DEADLINE for Spring 2024:  April 29, 2024

APPLICATION DEADLINE for Summer 2024:  July 08, 2024

Check Financial Aid Forms for Loan application.

CORONAVIRUS (COVID-19) – Important Update on Student Loan:

All loans owned by the U.S. Department of Education (ED) will have interest waived. That includes Direct Loans, as well as Federal Perkins Loans and Federal Family Education Loan (FFEL) Program loans held by ED. You may also be able request to temporarily stop making on your loan payments. For more information on the process/QAs, please visit:  https://studentaid.gov/announcements-events/coronavirus#student-questions

Federal Direct Student Loans are low–interest loans originated through the Department of Education for students to help pay for the cost of a student’s education after high school. Accepting a loan means accepting responsibility in a long-term financial obligation for repaying the monies borrowed including interest costs and fees. Before you request a loan, make sure you find out the true costs, interest rates, and how long it will take to repay the loan. GO to http://www.direct.ed.gov/ to get answers to questions regarding federal direct student loans.

It is strongly advised for all perspective BCC loan students to visit the Student Financial Aid Handbook to obtain pertinent financial aid information and BCC’s Student Loan Servicing Policies and Procedures.

Be a Smart Borrower! Peralta District Colleges recommend that students use all other possible resources first and borrow only when it is absolutely necessary. Students should consider their total educational indebtedness before borrowing at a community college.



Subsidized Loans: For students with demonstrated financial need as determined by federal regulations, no interest is charged while you are in school at least half-time (6 or more units) or are in a deferment period.

  • Starting with the 2012-2013 school year, students are responsible for paying the interest during the 6-months grace period.
  • Beginning July 1, 2012, graduate and professional students are no longer eligible to receive Subsidized Loans.

Unsubsidized Loans: Not based on financial need. Interest is charged from the time you receive the loan, even when you are attending school and during deferment periods.


The chart below shows the maximum annual loan limits which are based on the number of college units you’ve completed and your dependency status. You are Dependent if you had to provide parent information on your Free Application for Federal Student Aid (FAFSA). Your FAFSA results and financial aid (including scholarships) are used to determine your loan amount. As a result, not every student qualifies for the maximums shown on the chart. If you enroll for only one semester, you will receive half of your loan eligibility for the academic year. Also, Berkeley City College does not adjust loan amounts for students who advance to the 2nd year level during the academic year.


Academic Level Subsidized + Unsubsidized = Max. Yr. Total Max. Fall
Max. Spring
1st Year
(0-30.0 Units*)
$3,500 + $2,000 = $5,500 $2,750 $2,750
2nd Year
(30.0+ Units*)
$4,500 + $2,000 = $6,500 $3,250 $3,250

*Units = Completed Units

Academic Level Subsidized + Unsubsidized = Max. Yr. Total Max. Fall
Max. Spring
1st Year
(0-30.0 Units*)
$3,500 + $6,000 = $9,500 $4,750 $4,750
2nd Year
(30.0+ Units*)
$4,500 + $6,000 = $10,500 $5,250 $5,250

*Units = Completed Units

Interest Rates for Direct Loans

First Disbursement date of
Your Loan
On or after July 1, 2023 and
prior to June 30, 2024
5.50% 5.50%


  • Your college’s cost of attendance (COA) – Cost of education is an estimated amount that you will need to cover costs related to college attendance,
  • Your expected family’s contribution (EFC) – The amount of money calculated by FAFSA that you and/or family are expected to pay toward your annual college costs,
  • How many course units you have completed with a passing grade.
  • Whether you’re an independent or a dependent student, AND
  • How much other financial aid you receive (inclusive: all Federal & State grants, Private Aid, and Scholarships.)

Your Loan and any other financial aid, including private aid cannot be more than your COA. Therefore, the amount of Loan you can borrow is the “Remaining Amount” of how much is still needed after you have deducted all the Grant Aid and Scholarships you have received from your COA Budget. The formula for how much you can borrow is:



Cost of Attendance (COA) at Berkeley City College for Academic Year:

Expense Away from Home At Home < 1/2 time
Tuition $1,104 $1,104 $1,104
Other Fees 102 102 102
Health Fee 46 46 46
Books & Supplies 1,318 1,318 1,318
Room & Board 21,304 10,874
Transportation 2.568 2,346 1,269
Personal Expense 6,226 5,074
TOTAL BUDGET $32,668 $20,864 $2,839

COA (Total Need) : $19,306

Type of Aid Amount of Aid
Pell Grant Awarded: $5,730
California Promise Grant $1,104
SEOG – Supplemental Grant $400
Osher Scholarship: $4,000
Total Aid Awarded: $11,234

– (Minus) Total Aid Awarded: _ ________________ <$11,234>

= (Equal) Total Remaining Amount Need: _____ $8,072 (Maximum
Loan Amount) 


What Do I Need to do to Get a Federal Direct Student Loan from Berkeley City College?


To apply for a Fall 2023, Spring 2024, and Summer 2024 loan, Please complete ALL actions listed below before the application deadline:

  1. Apply for Admissions at a Peralta Community College at http://web.peralta.edu/enrollment/
  2. Complete a FAFSA Application for Federal Student Aid (FAFSA) and submit all required documents to your Berkeley City College’s Financial Aid Office before the deadline date. This college at which you intend to complete your program of study/educational goal. Berkeley City College school code is 014311.
  3. Enroll in six (6) or more units related to your degree or major. You must be working toward completion of eligible Transfer, Certificate, or Associate Degree granting program.
  4. Turn in all supplemental documents requested by the BCC Financial Aid Office (FAO) (Supplemental paperwork is available for you to pick up from the BCC FAO front counter (or download from our website) 7-10 business days after you have successfully filed your online FAFSA application.) Your BCC financial aid file must be completed before you can be considered eligible for a loan. Please check your PCCD e-mail or your passport account for updated information.
  5. Submit the 2021-2022 Supplemental Loan Request Form/Application, which you can get by visiting the financial aid office.
  6. If you attended another institution/college you may need to meet with a counselor to complete a “Transcript Evaluation Form” and/or a Student Educational Plan (SEP) and submit the Form(s) together with your Loan Request Package to the financial aid office.
  7. If you are on academic dismissal, you must complete and submit an Appeal Form to the FAO (Your appeal must be approved in order to be eligible for a student loan.)
  8. If you have received a Bachelor’s Degree or higher, you must do the following:
    • Complete and submit the “Graduate Appeal Form” (Appeal must be approved in order to be eligible for a student loan.)

    *** Forms also available at the BCC Financial Aid Office ***

  9. Complete an online Master Promissory Note (MPN – a legal binding contract between a lender, federal government and you. The Promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid.) at https://studentloans.gov/myDirectLoan/index.action .
  10. Complete an online Entrance Counseling at https://studentloans.gov/myDirectLoan/index.action . (You must take the loan entrance exam every academic year.) After passing the Entrance Exam, PRINT out the “Proof of Completion” and submit it to the FAO along with your loan application request.
  11. You must complete the “Financial Awareness Counseling” session through www.studentloans.gov. After completing the Financial Awareness Counseling, print out the confirmation and submit it with the rest of your loan documents.
  12. You must complete the online Loan Exit Interview and Exam at https://studentloans.gov/myDirectLoan/index.action prior to leaving Berkeley City College, or if your course load drops below 6 (six) units.
  13. Be sure to submit all other pertinent documents along with your Supplemental Loan Request Form. Student Loan Requests will take anywhere from 4-6 weeks to process.
  14. Check your PCCD e-mail for correspondences and updates from the financial aid office.


Berkeley City College strives to limit student loan defaults. For this reason, loan requests from “higher risk” students may be denied or reduced. The following are factors, but are not limited to in determining whether a student is categorized as “higher risk”:

  • Student has an undeclared major or undecided educational goal.
  • Student is not enrolled in a Title IV eligible program of study (16 or more units in length.)
  • Student is not making steady progress in an eligible program or is not currently meeting PCCD Satisfactory Academic Progress Standards.
  • Student already borrowed to a maximum appropriate for the earning potential of PCCD program. (We suggest $16,000 – including previous student loan debt from other colleges).
  • Have received a baccalaureate degree (B.A or B.S) and have not submitted a petition to be considered for a student loan.
  • Student is or has been in default or delinquency in financial obligations.
  • Student has a change in planned borrowing from a previous year(s).
  • Student appears to be or has been defaulted or delinquent on financial obligations.
  • Student has an incomplete or missing student loan “Worksheet for Student Borrowers” form.


  • After your student loan form “Worksheet for Student Borrowers” has been approved and certified by the Berkeley City College Financial Aid Office, the Federal Loan Department will be notified of your approval status immediately.
  • You will be notified officially by postal mail and/or e-mail within a week from the Federal Loan Service Department that you have been certified and you will receive a complete informational package regarding the amounts, disbursements, terms, and conditions of your student loan.
  • Your loan money will be credited to your selected refund preference with BankMobile Disbursements, a technology solution, powered by BMTX, Inc. (Peralta’s 3rd party funds management servicer). For more information, visit this link: https://bankmobiledisbursements.com/refundchoices/.
  • Your loan will cover a full academic year and will be given to you in two (2) disbursements – the first for Fall and the other for Spring. If your loan covers only one semester, you will receive your funds in two (2) disbursements – 1st approximately four weeks after the start of the semester and the 2nd midpoint of the semester.
  • The earliest date student loan funds will be issued is approximately four weeks after the start of the semester. All first-time borrowers have a mandatory thirty-day (30) waiting period before they receive their first disbursement. The earliest date student loan funds will be issued to first-time borrowers is approximately six weeks after the semester begins.
  • You should not plan to use the loan money to pay registration fees, campus fees, or to buy your textbooks as these funds will arrive after classes begin.

ED Announces Implementation of Repeal of Subsidized Usage Limit Restriction

By Hugh T. Ferguson, NASFAA Staff Reporter

Related Topics in the Ref Desk: Direct Loans

The Department of Education (ED) in a Federal Register notice and Electronic Announcement said it will early implement the repeal of the limitation on lifetime subsidized loan eligibility, known as Subsidized Usage Limit Applies (SULA), which currently bars students from receiving subsidized Direct Loans for more than 150% of the published length of their program. Congress, through the Consolidated Appropriations Act, 2021, required ED to implement the repeal by July 1, 2023.

Moving forward, the repeal will apply to any borrower who receives a Direct Loan first disbursed on or after July 1, 2021, regardless of the award year associated with the loan. In addition, all lost subsidy benefits, if applicable, will be reinstated retroactively to the date on which the loss of subsidy was applied for all Federal Direct Stafford Subsidized Loans with an out


To apply for a 2021-2022 Federal Direct Student Loan, you must have completed the 2023-2024 Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov and have completed a financial aid file at Berkeley City College (FAFSA Code: 014311).  You must follow and complete actions as dictated on the above, Loan Checklist, to be considered and/or eligible for a student loan.

Please keep in mind that obtaining a Student Loan is a serious commitment that requires your careful consideration.  Berkeley City College encourages you to borrow only if absolutely necessary and reminds you that there are lifetime limits for Direct Loans that can affect future borrowing for educational costs.

BCC Cohort Default Rate :

  • 2016 official 3yr default rate as of September 2019:  9.8
  • 2015 official 3yr default rate as of September 2018:  16.6

Other Important Contact Information: 

  • For Direct Loan Application Services:

Phone #: 1-800-557-7394;  Fax #: 1-877-623-5082

Email:  codsupport@acs-inc.com

  • For Electronic Master Promissory Note (eMPN) Services:

Phone #: 1-800-557-7394; Fax #: 1-301-470-1244

Website:  www.studentloans.gov;  Email:  ordrs@fsapubs.org

  • For Repayment Question Services:

Contact your servicer, the contact information can be found from NSLDS,

https://www.nslds.ed.gov/nslds/nslds_SA/ website.

  • For Direct Loan Consolidation Services:

Phone #:  1-800-557-7392;  Website: www.loanconsolidation.ed.gov