9:13 PM Student Loans - Financial Aid - Cabrillo College | ||||
#college loans # Student LoansCabrillo recommends that students borrow only when it is absolutely necessary. Students who are planning to transfer should be aware that loans are generally the largest portion of a financial aid package at four year colleges, you should consider your total educational indebtedness before borrowing at Cabrillo. Allow additional 5-8 weeks for the loan request process.Types of Loans Available at CabrilloUnsubsidized Direct Loan (Click here for more information) The federal government DOES NOT PAY THE INTEREST ON UNSUBSIDIZED LOANS! This should be a loan of last resort ! Interest accrues immediately after disbursement. If you borrow Unsubsidized Loans, we strongly recommend that you begin making interest payments right after you receive your loan. Call your servicer for more information. If you do not make interest payments while you are in school, the interest continues to accrue and is added (capitalized) to your principal loan balance at repayment. When interest capitalization occurs, you will then be paying interest on top of interest which greatly increases the amount of your loan and the total amount you will be repaying. Unsubsidized Loans with a first disbursement on or after July 1, 2015 to June 30, 2016 will have a fixed interest rate of 4.29%. Cabrillo College does NOT participate in Direct PLUS Loan or Private Alternative Loan programs. Is there a time limit on how long I can receive loans?First Time Borrowers (Click here for more information) If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your maximum eligibility period. Your maximum eligibility period is based on the published length of your current program. You can usually find the published length of any program of study in your school s catalog. Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period. Certain types of enrollment may cause you to become responsible for the interest that accrues on your Direct Subsidized Loans when the U.S. Department of Education usually would have paid it. These enrollment patterns are described below:
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