2018-2019 Federal Direct Student Loan Program
(For Fall 2018 / Spring 2019 Semesters)
APPLICATION START DATE: August 20, 2018
APPLICATION DEADLINE for Fall 2018: Dec 07, 2018
APPLICATION DEADLINE for Spring 2019: May 03, 2018
APPLICATION DEADLINE for Summer 2019: July 05, 2018
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.
Students are advised to attend a Berkeley City College Student Loan Information Workshop in order to be considered for a loan. It is strongly advised for all perspective BCC loan students to visit the 2016-2017 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.
WHAT TYPES OF LOANS ARE OFFERED AT BERKELEY CITY 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 2012-13 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.
Loan Limitations (limit of how many years a student may receive subsidized loans)
» Applies to “new borrowers” on or after July 1, 2013
» Students not eligible to receive additional subsidized loans if they have already received subsidized loans for 150% of the published length of their academic program.
|Program Length||Limitations on Subsidized Loan Eligibility|
|4- year Bachelor’s Degree||6 years of subsidized loan eligibility|
|2 – year Associate’s Degree||3 years of subsidized loan eligibility|
|1 – year of Certificate Program||1 ½ years of subsidized loan eligibility|
|10 weeks Certificate Program||15 weeks of subsidized loan eligibility|
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.
HOW MUCH CAN I BORROW?
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.
ANNUAL FEDERAL DIRECT STUDENT LOAN LIMITS
|Academic Level||Subsidized + Unsubsidized||=||Max. Yr. Total||Max. Fall
|$3,500 + $2,000||=||$5,500||$2,750||$2,750|
|$4,500 + $2,000||=||$6,500||$3,250||$3,250|
*Units = Completed Units
|Academic Level||Subsidized + Unsubsidized||=||Max. Yr. Total||Max. Fall
|$3,500 + $6,000||=||$9,500||$4,750||$4,750|
|$4,500 + $6,000||=||$10,500||$5,250||$5,250|
*Units = Completed Units
Interest Rates for Direct Loans
|First Disbursement date of
|SUBSIDIZED Rate||UNSUBSIDIZED Rate|
|On or after July 1, 2018 and
prior to June 30, 2019
IT DEPENDS ON:
- 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:
REMAINING AMOUNT = COA – TOTAL AID AWARDED
Cost of Attendance (COA) at Berkeley City College for Academic Year:
|Expense||Away from Home||At Home||< 1/2 time|
|Books & Supplies||1,746||1,746||1,746|
|Room & Board||11,970||4,770||—|
COA (Total Need) : $19,306
|Type of Aid||Amount of Aid|
|Pell Grant Awarded:||$5,730|
|BOGG – Governor’s Fee Waiver||$1,104|
|SEOG – Supplemental Grant||$400|
|Total Aid Awarded:||$11,234|
– (Minus) Total Aid Awarded: _ ________________ <$11,234>
= (Equal) Total Remaining Amount Need: _____ $8,072 (Maximum
What Do I Need to do to Get a Federal Direct Student Loan from Berkeley City College?
2018-2019 LOAN CHECKLIST
To apply for a Fall 2018, Spring 2019, and Summer 2019 loan, Please complete ALL actions listed below before the application deadline:
- Apply for Admissions at a Peralta Community College at http://web.peralta.edu/enrollment/
- Complete a 2018-2019 Free 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.
- Enroll in six (6) or more units related your degree or major. You must be working toward completion of eligible Transfer, Certificate, or Associate Degree granting program.
- 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.
- Complete an online loan counseling workshop section by visiting: http://berkeleycitycollege.get-counseling.com/flag-session/1061+902+929+6255+6254+938
- If/After you complete the online loan counseling workshop section, submit the 2018-19 Supplemental Loan Request Form/Application, which you can get by visiting the financial aid office.
- 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.
- 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.)
- If you have received a Bachelor’s Degree or higher, you must do the following:
- Complete and submit the “Graduate Student Educational Objective Statement Form” (Your objective must be approved in order to proceed in the student loan application process.)
- If APPROVED, 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 Front Counter***
- 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 .
- 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.
- 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.
- 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.
- Be sure to submit all other pertinent documents along with you Supplemental Loan Request Form. Student Loan Requests will take anywhere from 4-6 weeks to process.
- 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.
WHEN AND HOW WILL I GET MY LOAN MONEY?
- 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 BankMobile Account (Peralta’s 3rd party funds management servicer – 1-877-327-9515, www.PeraltaCard.com/easyhelp.) Funds are available to you within 3-10 business days depending on the method of disbursement you have chosen with BankMobile (BankMobile Debit Card, Direct Deposit ACH, or Paper Check.)
- 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.
To apply for a 2018-2019 Federal Direct Student Loan, you must have completed the 2018-2019 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. Make sure to attend the Loan Information Workshop to gain a better understanding of Loan Interests, Repayment, Delinquency, Deferment, Default, Forbearance and college’s Loan Servicing Policies and Procedures.
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.
Other Important Contact Information:
- For Direct Loan Application Services:
Phone #: 1-800-557-7394; Fax #: 1-877-623-5082
- For Electronic Master Promissory Note (eMPN) Services:
Phone #: 1-800-557-7394; Fax #: 1-301-470-1244
- For Repayment Question Services:
Contact your servicer, the contact information can be found from NSLDS,
- For Direct Loan Consolidation Services:
Phone #: 1-800-557-7392; Website: www.loanconsolidation.ed.gov