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.
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 http://www.dvc.edu/org/departments/career-employment 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 http://www.dvc.edu/org/departments/foundation/scholarship 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
1st Year students (Less than 30 units completed) $3500 Max subsidized
1st Year students (Less than 30 units completed) $2000 Max unsubsidized
2nd Year students (30 units or more completed) $4500 Max subsidized
2nd Year students (30 units or more completed) $2000 Max unsubsidized
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 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: