Paying for college is an investment that requires planning and money. Wayne Community College participates in the William D. Ford Direct Loan (Direct Loan) program through the U.S. Department of Education. The Direct Loan program offers low-interest loans to eligible students to help cover the cost of college. Loans are considered financial aid and are subject to the same rules and regulations as the Federal Pell Grant and other federal and state aid
Beginning with the 2012-2013 academic year, loans are included in a student’s award offer. These loans are only being OFFERED to you. Students are eligible to receive a loan offer after they have completed the Free Application for Federal Student Aid (FAFSA) and have turned in all requested paperwork to the Financial Aid Office.
Videos and Playlist – Types of Loan Programs
TYPES OF LOANS FOR STUDENTS
Direct Subsidized Loans – the student must have unmet financial need to receive a subsidized loan. The U.S. Department of Education pays the interest that accrues on the Direct Subsidized loan while the student is enrolled at least half-time in an eligible program and during grace and deferment periods.
Direct Unsubsidized Loans- the student may not have financial need to obtain an unsubsidized loan. Interest accrues on this loan while the student is enrolled in school and the U.S. Department of Education does not pay the interest.
WHERE DO I BEGIN?
BEFORE REQUESTING A DIRECT LOAN, YOU MUST DO THE FOLLOWING:
APPLY FOR ADMISSION – you must be admitted in an approved degree, diploma or certificate program.
COMPLETE THE FREE APPLICATION FOR FEDEARL STUDENT AID (FAFSA) – you must have a current FAFSA on file.
HOW DO I APPLY?
- ALL BORROWERS MUST:
Complete and return a WCC William D. Ford Direct Loan Request Form.
- IF YOU ARE A NEW BORROWERS (New Borrower is – a student who has NEVER borrowed from the Direct Loan program while enrolled at Wayne Community College.) YOU MUST ALSO:
Complete Direct Loan Entrance Counceling. This entrance interview is required for all WCC borrowers. The student must complete the entrance counseling online at www.studentloans.gov.
Complete and sign (using your PIN) The Electronic Master Promissory Note (MPN) online at www.studentloans.gov. The MPN is good for one or more academic years (up to 10 years). You should allow three to five business days for the Financial Aid office to receive confirmation of your MPN. You should have a PIN; if not, you can apply for one at www.pin.ed.gov.
- ALL NEW AND RETURNING BORROWERS MUST:
Complete Loan Reference form. All new and returning borrowers must complete a Direct Loan Reference Form. The form must be filled out to its completion. Failure to do so will result in a delay in the processing of your loan request. The is also available in our office.Complete Advance Money Management Course. All new and returning borrowers must complete an advanced money management course at www.cfnc.org. This course will help you learn about money management, college financing and more. Once you have completed the course CFNC will enter you in a drawing to receive a $500 scholarship. At the end of each section you will be quizzed on the information you have just learned. You must correctly answer 80% of the questions to be considered passing the course and be eligible for a Direct Loan. Failure to complete or failure of the quiz will result in a delayed processing of your Direct Loan request.
FOR YOUR CONVENIENCE, BELOW IS A CHART THE MAY HELP YOU DETERMINE THE AMOUNT YOU WISH TO CONSIDER BORROWING BASED ON YOUR GRADE LEVEL AND DEPENDENCY STATUS.
ANNUAL AND AGGREGATE LOAN LIMITS: The chart provides maximum annual land aggregate loan limits for subsidized and unsubsidized Direct Stafford Loans.
|Credit Hours Completed||Subsidized Loan
(Need – Based)
|Annual Maximum Amount Sub/Unsub(Combo)|
|Dependent – 1st yr.||Less than 30||$3500||$2000||$5500|
|Dependent – 2nd yr.||30 or more||$4500||$2000||$6500|
|Independent – 1st yr.||Less than 30||$3500||$6000||$9500|
|Independent – 2nd yr.||30 or more||$4500||$6000||$10,500|
|Maximum Total Debt from loans when you graduate (aggregate loan limits||$57,500 – No more than $23,000 of this amount may be in subsidized loans.||$57,500 – No more than $23,000 of this amount may be in subsidized loans.||$57,500 – No more than $23,000 of this amount may be in subsidized loans.||$57,500 – No more than $23,000 of this amount may be in subsidized loans.|
I HAVE COMPLETED THESE STEPS. WHAT IS NEXT?
NOTE: Loan proceeds are sent directly to the Business/Cashier’s Office at WCC through electronic funds transfer (EFT) and applied to the student’s account. After all charges including tuition, fees, books, supplies and other educational related expenses incurred at the college have been paid, any remaining credit balance is mailed to the student at the address on file (as reported to the Office of Admission and Records).
Refund of credit balances will be mailed within 14 days after the funds are applied to the student’s account. YOU SHOULD REVIEW THE LOAN DISCLOSURE STATEMENT TO FIND THE ANTICIPATED DISBURSEMENT DATE OF YOUR LOAN FUNDS (THIS IS THE DATE THE FUNDS ARE SCHEDULED TO BE SENT TO THE SCHOOL – THIS IS NOT THE DATE THE FUNDS WILL BE RELEASED AS A REFUND TO THE STUDENT.
MY PARENT WANTS TO GET A LOAN FOR ME TO ATTEND SCHOOL. WHAT CAN I DO?
LOAN FOR PARENTS OF DEPENDENT STUDENTS
Federal Direct PLUS Loan for Parents
For parents of dependent students, as an option to assist in paying for your student’s educational expenses, WCC participates in the Federal Direct PLUS Loan program. The PLUS loan is a low interest loan to parents of dependent students. A qualifying parent may borrow up to the college’s cost of attendance minus other financial aid awarded. Repayment begins approximately 60 days after the second disbursement of the loan.
Parent must complete the PLUS Loan Data Sheet.
Please watch the above video for eligibility requirements and more information.
IMPORTANT POINTS TO REMEMBER ABOUT LOANS
- Loans must be repaid with interest.
- All loans come to the college in 2 disbursements. Example: if you request $3500 for the academic year, you will receive $1750 minus loan fees in the fall semester and $1750 minus loan fees in the spring semester.
- Loan funds will not be released prior to 30 days after the semester begins. You are encouraged to manage your money and your finances accordingly.
- You should attend and finish all your classes. If you drop below 6 credit hours before the loan is disbursed, the funds will be returned to the Direct loan program.
- Refunds (credit balance after tuition, books and supplies are deducted) will be mailed to you no later than 14 days after the funds post to your student account. Refund dates will be posted on the Financial Aid website and on Cam Net.
- You may review your student loan balance and total loan debt on the National Student Loan Data System (NSLDS) online at www.nslds.ed.gov.
- If you have questions about your loan (current or previous), including your rights, responsibilities, regulations, payment options, complaints, etc., you may contact the U.S. Department of Education’s Loan Ombudsman at 877-557-2575 or online at www.ombudsman.ed.gov.
- The U.S Department of Education is your LENDER. To find out who services your student loans or how to contact your servicer, call the U.S. Department of Education’s customer service at 800-433-3243.
- If you have questions about financial aid at WCC, please contact the office at 919-739-6735 or send an email to firstname.lastname@example.org.
OTHER LOAN PROGRAMS (THESE LOANS ARE NOT GUARANTEED BY THE FEDERAL GOVERNMENT)
Private Education Student Loan: Private Education, also known as Alternative Education loans may need used to fill the gap between the federal aid awarded and the school’s cost of attendance. These loans are based on credit. Private loans offer a variable interest rate that is based on the credit score in comparison to the federal loan program. Students may check with their bank or research private loan on the web. WCC does not have a preferred Private Loan Lender list. We encourage students to borrow federal loans first as they offer better benefits and overall better interest rates.
COMBINE YOUR EXISTING FEDERAL EDUCATION LOANS INTO ONE
Loan Consolidation: When you graduate or leave WCC, you may be able to combine your Federal education loans into one new consolidated loan. Explore this option to manage your educational debt. A federal consolidation loan may lower your monthly payments or combine multiple loan payments into one bill with one lender. For more information on loan consolidation, click here: www.loanconsolidation.ed.gov.