Loan Fact-List

In order to receive a loan, students:

Must have financial aid file completed and meet the following federal requirements:
1. have a high school diploma, GED or pass the ATB
2. be a U.S. citizen or eligible non-citizen
3. be enrolled in at least 6 eligible/degree applicable units
4. make satisfactory academic progress
5. possess a valid Social Security number f. register with Selective Service if applicable (male only)
6. not be in default on a student loan or owe a refund on state or federal educational grant
Must pass a loan pre-test regarding the rights and responsibilities of accepting a loan.
Must receive an award letter first from CRC Financial Aid Office before submitting the Loan Request.
Must know that a student cannot request additional loans if Federal Work Study has been cancelled, or any federal or state grants have been pro-rated to a lower amount or reduced.
Must accept all federal and state educational grants and/or scholarships (such as EOPS, CARE and Federal Work Study) before requesting a loan.
Must understand that loan amounts are based on school budget (cost of education) minus grants and scholarships; federal loan limits; and/or if the requested amount is less.
Must submit copies of academic transcripts from all colleges attended (to CRC Financial Aid Office). Annual subsidized loan limits are $3,500 for first year students (below 30 units in major) and $4,500 for second year students (over 30 units in major); Note: counselors evaluate all transcripts.
First time borrowers must wait 30 days after the first day of instruction (including the start of second 9 week classes) to receive the first loan disbursement.
Must understand that payments are disbursed in two installments - one each semester or two in one-semester-only awards (second disbursement made after 2nd 9-week classes begin).
Must repay the full amount borrowed, even though origination and insurance fees are deducted prior to issuing each disbursement.
Must attend a mandatory loan exit counseling in the month of May to discuss the responsibilities of the loan, repayment options, and techniques to keep out of default.
Must begin monthly loan repayment 6 months after graduation, or if units have dropped below half-time (6 units), or withdrawn from school; interest rates on Stafford loans disbursed after July 1, 2006 are fixed at 6.8%
Must keep lender informed of name, address, phone number, and school changes.
Must have your lender approve any deferment or forbearance requests.
Must apply for a loan at least 30 days before the last day of instruction. Apply again with a FAFSA and attend a loan entrance counseling workshop for next school year
Must understand unsubsidized loans have the same requirements as subsidized loans, but they are not need based. Interest on unsubsidized loans accrues when the loan is disbursed. Interest payments begin immediately but can be deferred.
Student must maintain good academic standing at all times in order to receive a loan. Subsequent add/drop of any classes may result in cancellation of loan.