Welcome Students!

1
Welcome Students!

• Chaffey College Financial Aid Direct Loan
  Workshop

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RECENT CHANGES TO THE LOAN PROCESS

• The Federal Stafford Loan process at Chaffey has
  been
• streamlined to facilitate awarding and funding
  your
• student loans.
• Chaffey College previously participated in the
  Federal Family Educational Loan Program (FFELP),
  but as of 2008-2009 academic year, Chaffey has
  transitioned into the Direct Loan Program.

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RECENT CHANGES TO THE LOAN PROCESS

• You will not be required to select a lender
  because the Department of Education is the lender
  for Direct Loans.
• You also do not have a choice to select another
  lender or a previous private lender because
  Chaffey participates in the Direct Loan program.
• If you have previously borrowed under the FFELP
  loan program, you may have a lender and/or
  guarantor who manages your loans. If that is the
  case, you will be required to report to your
  previous lender and the Department of Education
  regarding changes, such as enrollment, deferment,
  etc.

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RECENT CHANGES TO THE LOAN PROCESS

• New Loan Request Form
• Annual loan amounts have increased
• Important information has been added to assist
  you in managing your loans.

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Information and Application Process

• To be eligible for a Federal Stafford Loan

? Before you can be considered for a Stafford
Loan, you must be considered for other Title
IV funds.
? Complete the Free Application for Federal
Student Aid (FAFSA)
? Maintain Satisfactory Academic Progress
? Enroll in at least six (6) units per semester
in a program leading to a degree/
certificate at Chaffey College and/or transfer to
a university.
? Not be in default on any student loan or owe a
refund on Title IV Funds
? Not be over your aggregate limits for federal
student loans.
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WHAT IS IN MY LOAN PACKET?

• 1. Loan Check List

Step 1 Complete a FAFSA! (Free Application for
Federal Student Aid)
Direct Loan Check List
Direct Loan Check List
Direct Loan Check List
Direct Loan Check List
Direct Loan Check List
Loan Check List
Complete Loan Application Worksheet .
1. Complete Loan Application Worksheet.
1. Complete Loan Application Worksheet.
1. Complete Loan Application Worksheet.
1. Complete Loan Application Worksheet.
1. Complete Loan Application Worksheet.
Complete online Master Promissory Note (MPN)
at www.dlenote.ed.gov Print confirmation
page after completing MPN.
2. Complete online Master Promissory Note (MPN)
at www.dlenote.ed.gov Print
confirmation page after completing MPN.
2. Complete online Master Promissory Note (MPN)
at www.dlenote.ed.gov Print
confirmation page after completing MPN.
2. Complete online Master Promissory Note (MPN)
at www.dlenote.ed.gov Print
confirmation page after completing MPN.
2. Complete online Master Promissory Note (MPN)
at www.dlenote.ed.gov Print
confirmation page after completing MPN.
2. Complete online Master Promissory Note (MPN)
at www.dlenote.ed.gov Print
confirmation page after completing MPN.
.Complete online Entrance Counseling with
Entrance Test at www.dl.ed.gov
Click on Entrance and Exit counseling logo.
Select "Go" under Entrance counseling. Select
"Tutorial and Quiz (New Session)" under the
Stafford Loan option.Print confirmation
page after completing the entrance counseling.
.Complete online Entrance Counseling with
Entrance Test at www.dl.ed.gov
Click on Entrance and Exit counseling logo.
Select "Go" under Entrance counseling. Select
"Tutorial and Quiz (New Session)" under the
Stafford Loan option.Print confirmation
page after completing the entrance counseling.
.Complete online Entrance Counseling with
Entrance Test at www.dl.ed.gov
Click on Entrance and Exit counseling logo.
Select "Go" under Entrance counseling. Select
"Tutorial and Quiz (New Session)" under the
Stafford Loan option.Print confirmation
page after completing the entrance counseling.
.Complete online Entrance Counseling with
Entrance Test at www.dl.ed.gov
Click on Entrance and Exit counseling logo.
Select "Go" under Entrance counseling. Select
"Tutorial and Quiz (New Session)" under the
Stafford Loan option.Print confirmation
page after completing the entrance counseling.
.Complete online Entrance Counseling with
Entrance Test at www.dl.ed.gov
Click on Entrance and Exit counseling logo.
Select "Go" under Entrance counseling. Select
"Tutorial and Quiz (New Session)" under the
Stafford Loan option.Print confirmation
page after completing the entrance counseling.
Complete online Entrance Counseling with Entrance
Test at www.dl.ed.gov Click on
Entrance and Exit counseling logo. Select
"Go" under Entrance counseling. Select
"Tutorial and Quiz (New Session)" under the
Stafford Loan option. Print confirmation
page after completing the entrance counseling,
.You have 30 days (from the date of your Loan
Workshop) to submit the following documents
together to the FA Office 1. Completed Loan
application worksheet 2. Copy of confirmation
of online MPN. 3. Copy of confirmation of
online entrance counseling.All three documents
must be turned in together in order to be
submitted to FA Office. Incomplete packets or
packets that exceed the 30 days will not be
processed. Unfortunately, there are no
exceptions.
.You have 30 days (from the date of your Loan
Workshop) to submit the following documents
together to the FA Office 1. Completed Loan
application worksheet 2. Copy of confirmation
of online MPN. 3. Copy of confirmation of
online entrance counseling.All three documents
must be turned in together in order to be
submitted to FA Office. Incomplete packets or
packets that exceed the 30 days will not be
processed. Unfortunately, there are no
exceptions.
.You have 30 days (from the date of your Loan
Workshop) to submit the following documents
together to the FA Office 1. Completed Loan
application worksheet 2. Copy of confirmation
of online MPN. 3. Copy of confirmation of
online entrance counseling.All three documents
must be turned in together in order to be
submitted to FA Office. Incomplete packets or
packets that exceed the 30 days will not be
processed. Unfortunately, there are no
exceptions.
.You have 30 days (from the date of your Loan
Workshop) to submit the following documents
together to the FA Office 1. Completed Loan
application worksheet 2. Copy of confirmation
of online MPN. 3. Copy of confirmation of
online entrance counseling.All three documents
must be turned in together in order to be
submitted to FA Office. Incomplete packets or
packets that exceed the 30 days will not be
processed. Unfortunately, there are no
exceptions.
.You have 30 days (from the date of your Loan
Workshop) to submit the following documents
together to the FA Office 1. Completed Loan
application worksheet 2. Copy of confirmation
of online MPN. 3. Copy of confirmation of
online entrance counseling.All three documents
must be turned in together in order to be
submitted to FA Office. Incomplete packets or
packets that exceed the 30 days will not be
processed. Unfortunately, there are no
exceptions.
Submit the completed loan application worksheet,
along with a copy of MPN confirmation , and copy
of entrance counseling confirmation to the
Financial Aid office within 30 days of attending
Loan Workshop or loan will not be processed.
processed.
After receiving your first disbursement of loan
funds, you must complete Online Exit counseling
with Exit Test at
www.dl.ed.gov And Submit copy of exit
test to Financial Aid Office.IMPORTANT NOTICE
Student must complete Exit Test in order to
receive second disbursement of federal student
loan.
.Online Exit counseling complete with Exit Test
completed after student has received first
disbursement. Completed online at
www.dl.ed.gov Once Exit Test is completed,
submit copy of confirmation to FA Office.
IMPORTANT NOTICE Student must complete Exit
Test in order to receive second disbursement of
federal student loan.
.Online Exit counseling complete with Exit Test
completed after student has received first
disbursement. Completed online at
www.dl.ed.gov Once Exit Test is completed,
submit copy of confirmation to FA Office.
IMPORTANT NOTICE Student must complete Exit
Test in order to receive second disbursement of
federal student loan.
.Online Exit counseling complete with Exit Test
completed after student has received first
disbursement. Completed online at
www.dl.ed.gov Once Exit Test is completed,
submit copy of confirmation to FA Office.
IMPORTANT NOTICE Student must complete Exit
Test in order to receive second disbursement of
federal student loan.
.Online Exit counseling complete with Exit Test
completed after student has received first
disbursement. Completed online at
www.dl.ed.gov Once Exit Test is completed,
submit copy of confirmation to FA Office.
IMPORTANT NOTICE Student must complete Exit
Test in order to receive second disbursement of
federal student loan.
.Online Exit counseling complete with Exit Test
completed after student has received first
disbursement. Completed online at
www.dl.ed.gov Once Exit Test is completed,
submit copy of confirmation to FA Office.
IMPORTANT NOTICE Student must complete Exit
Test in order to receive second disbursement of
federal student loan.
Typical processing time for Direct Stafford Loans
is 5-6 weeks after all requested loan
information has been received and your financial
aid file has been reviewed.
Typical processing time for Direct Stafford Loans
is 5-6 weeks after all requested loan
information has been received and your financial
aid file has been reviewed.
Typical processing time for Direct Stafford Loans
is 5-6 weeks after all requested loan
information has been received and your financial
aid file has been reviewed.
Typical processing time for Direct Stafford Loans
is 5-6 weeks after all requested loan
information has been received and your financial
aid file has been reviewed.
Typical processing time for Direct Stafford Loans
is 5-6 weeks after all requested loan
information has been received and your financial
aid file has been reviewed.
Typical processing time for Direct Stafford Loans
is 5-6 weeks after all requested loan
information has been received and your financial
aid file has been reviewed.
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WHAT IS IN MY LOAN PACKET?

• 2. Online Master Promissory Note Process

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WHAT IS IN MY LOAN PACKET?

• Completed online at www.dlenote.ed.gov
• Follow all steps in the MPN Process handout
  given.

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WHAT IS IN MY LOAN PACKET?

• 3. Loan Request Form

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Online Entrance and Exit Counseling

• Both completed online at
  ww.dlenote.ed.gov
• Click on Entrance and Exit counseling logo
• Select Go under Entrance Counseling.
• Select Tutorial and Quiz (New Session) under
  the Stafford Loan option.
• Students must pass entrance counseling to
  receive a federal student loan.

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Where can I find these websites?
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IMPORTANT INFORMATION

• After completing your Loan Request Form, online
  MPN and entrance test, you must submit completed
  Loan Request Form to the Financial Aid Office.

Typical processing time is 5-6 weeks after all
loan information has been received and
your financial aid file has been
reviewed.
Please complete the exit test after you receive
your first disbursement.
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TYPES OF LOANS

• Subsidized Loans
• The government makes the interest payment on
  your student loan while you are in school, your
  grace period or deferment
• Unsubsidized Loans
• You are always responsible for interest
  payments, even while in school.

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Loan Limits and Interest Rate

• The Maximum annual subsidized loan limits
• First Year (0-29.5 completed units)
  3,500
• Second Year (30 or more completed units)
  4,500
• Subsidized Loan Interest Rate is
• 5.6 fixed

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Loan Limits and Interest Rate

• The maximum annual unsubsidized loan amounts
• DEPENDENT STUDENTS
• First Year (0-29.5 completed units)
  2,000
• Second Year (30 or more completed units)
  2,000
• INDEPENDENT STUDENT
• First Year (0-29.5 completed units)
  6,000
• Second Year (30 or more completed units)
  6,000
• Interest Rate is 6.8 fixed

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LIFETIME AGGREGATE AMOUNTS

• Dependent Undergraduate Student
• 31,000 (no more than 23,000 of which may be
  subsidized)
• Independent Undergraduate Student
• 57,500 (no more than 23,000 of which may be
  subsidized)

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LOAN ORIGINATION FEES

• ? Direct loans have an origination fee of
  1.5.
• ? However, your loan funds will be reduced by
• only .5 because Direct Loans offer a rebate
  incentive of 1.0.
• ? If you do not repay your loan funds on time,
  the 1.0 rebate will be added to your loan
  balance.

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REPAYMENT

• During your grace period your lender will send
  you
• repayment and disclosure statement listing your
• Monthly payment
• Payment due dates
• Length of repayment
• Current interest rate

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REPAYMENT

• If you don't hear from your lender, call and
  update them on your address and
• other information, such as new telephone number
  or name change.
• For Stafford Loans, your grace period begins
• the day after you graduate,
• withdraw,
• or drop to less than half-time status.
• The length of your grace period depends on the
  type of loan you have, but
• most are six months. Your first loan payment will
  be due approximately
• 30 to 45 days after your grace period ends. Be
  proactive about loan
• repayment. Even if your lender doesn't notify
  you, you're still responsible
• for making timely loan payments.

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REPAYMENT

• Early Repayment
• You can prepay all or part of your loan at any
  time, without penalty. In fact, it's to your
  advantage to pay off your loans as quickly as
  possible to reduce interest costs.
• Repayment Period
• Generally, you're entitled to a minimum of five
  years and a maximum of 10 years to repay your
  loan (as long as you meet the minimum monthly
  payment of 50). In some cases the minimum
  payment will pay the loan off in less than five
  years

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GRACE PERIOD

• One Grace Period Per Loan
• When you drop below half-time enrollment status
  you have six months before you're required to
  make monthly payments. This payment-free time is
  called a grace period. During this time, no
  principal payments are due. If you have a
  subsidized loan, the government pays the
  interest. If you have an unsubsidized loan,
  you're responsible for interest payments.
• You only receive one grace period per loan. Once
  your grace period expires, you can't get it back.

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grace period renewal

• If, prior to the end of your grace period, you
  re-enroll at an eligible school on at least a
  half-time basis, your Stafford Loan will return
  to its former in-school status and repayment will
  again be postponed. The next time you leave
  school your grace period will start over.
• If you don't re-enroll during your grace period,
  repayment will begin as scheduled. At this point
  in time, you will not be eligible for an
  additional grace period on your loan. However you
  may qualify for loan deferment.

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LOAN STATUS

• You are responsible for notifying your lender
• When you have returned to school.
• You may view your loan and enrollment status by
  accessing NSLDS at www.nslds.ed.gov

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What Is A Student Loan Deferment?

• When you are unable to repay a loan, you may go
  into deferment.
• When you are in deferment, you are not required
  to make payments on your loan.
• Deferment is a temporary postponement of
  payments.

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DEFERMENTS

• During deferment, you don't have to make any
  principal payments on your loan.
• If you have a subsidized Stafford Loan, interest
  payments on the loan will be made for you by the
  federal government.
• If you have an unsubsidized Stafford Loan, you're
  responsible for interest payments during periods
  of deferment.

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How to Qualify for a Deferment?

• Must apply by requesting a deferment from each
  lender.
• Please note If you have loans from different
  lenders, you must apply for a deferment from each
  lender.

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How to Qualify for a Deferment?

• Deferment must be approved by lender. You will
  receive notification from lender of approval or
  denial. If not, follow up by contacting lender
  and submitting additional documents if needed.
• Deferments are offered for a limited time,
• depending on the type of deferment.

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TYPES OF DEFERMENT

• Unemployment
• You may qualify for an unemployment deferment if
  you're looking for but unable to find employment.
  The deferment can last for up to three years. You
  must provide documentation to your lender that
  you are actively seeking employment.

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DEFERMENT OPTIONS

• In-SchoolYou may qualify if you're enrolled at
  least half-time in an eligible school. There is
  no time limit on this deferment.
• RehabilitationYou may qualify if you're
  participating in an approved rehabilitation
  program. There is no time limit on this deferment.

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DEFERMENT OPTIONS

• Economic HardshipYou may qualify if you're
  constrained by severe financial circumstances.
  The deferment is limited to three years.
• If none of the deferment options above match your
  circumstances, contact your lender.

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FORBEARANCE

• If you don't qualify for deferment, you may be
  able
• to work out a special arrangement with your
  lender
• called a forbearance.
• During periods of forbearance you can reduce or
  postpone monthly payments.
• You are responsible for any interest that accrues
  on your subsidized or unsubsidized Stafford Loans
  during this time.
• NOTE Forbearances are granted at the
  lenders discretion.

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DELINQUENT LOANS

• A delinquency period begins on the first day
  after you miss a payment.
• Collection efforts by the lender begin
  immediately.
• If you are having trouble making payments,
  contact your lender

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DELINQUENT LOANS

• If you are delinquent of your student loans, it
  will show up on your credit report.
• Whether or not you receive notice your loans are
  in repayment, you must make a payment by
  scheduled due date.
• If the delinquency goes on for nine months, your
  loan holder may declare you in default.

34
DEFAULT

• If you do not make any payments on your federal
  student loans for 270-360 days and do not make
  special arrangements with your lender to get a
  deferment or forbearance, your loans will be in
  default.
• Defaulting on your student loans has serious
  consequences.

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CONSEQUENCES OF DEFAULT

• You may no longer be eligible for future federal
  or state aid at any institution.
• Your loan may become immediately due and payable.
  
• Your loan default status is reported to all major
  credit agencies.
• Your income tax refunds might be withheld and
  applied to your loan balance.
• Your state-issued professional license or
  certificate may be withdrawn.

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CONSEQUENCES OF DEFAULT

• Your wages could be garnished.
• Legal action may be taken against you to enforce
  repayment (for which you must pay the court costs
  and attorney fees).
• Collectors will continue collection activities
  until your account is paid in full (for which you
  must pay additional interest charges and
  collection costs).
• You could lose access to monthly repayment
  options such as loan consolidation.

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GUIDE TO MANAGE LOANS

• You must let your lender or servicer know if you
  change your address, name, Social Security
  number, telephone number, enrollment status or
  school.
• Keep all important documentation about your
  student loan.
• Make your monthly payments on time and build a
  good credit rating.
• If you're working with several different lenders,
  consider loan consolidation.

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GUIDE TO MANAGE LOANS

• View your loan information at www.nslds.ed.gov
• Name of your current lender
• Outstanding loan balances
• Information on Pell Grants
• Loan and enrollment status
• To access the NSLDS Student Access Web site you
  must have a pin number. If you do not remember
  your pin number, you may acquire a duplicate pin
  at www.pin.ed.gov

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GUIDE TO MANAGE LOANS

• The National Student Clearinghouse offers
  services to assist students to track their
  student loans and obtain verification of their
  in-school status www.studentclearinghouse.org
• Enrollment VerifyOnline service that allows you
  to obtain enrollment verification certificates to
  provide to credit issuers, health insurance
  companies, student housing providers, and others.
  
• Loan Deferment ProcessingThe Clearinghouse
  provides automatic and paper-based deferment
  processing for students of its participating
  schools.

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GUIDE TO MANAGE LOANS

• Access Direct Loans to manage your loan account
  at www.dlservicer.ed.gov

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End of Financial Aid Loan Workshop

• Thank you for attending!

Any Questions?