Student Loans

William D. Ford Federal Direct Loans are educational loans with fixed low interest rates which must be repaid. This program offers three types of student loans: Subsidized Loan, Unsubsidized Loan, and Parent PLUS Loan (obtain Parent PLUS Loan application from the Financial Aid Office). Students are required to complete the FAFSA along with the loan application to be considered for a student loan. Applications are available under forms on the JCJC financial aid website or students can request an application from the JCJC FAO.

Three Types of Loans:

  • Subsidized Direct Loan – To qualify for these loans, the student must demonstrate financial need as a result of filing a FAFSA. The annual amount that may be borrowed per year is set by the federal government and is based upon the student's grade level. The interest on this loan is paid by the government while the student is enrolled at least half-time. The student becomes responsible for interest and principal payments six months after graduation or dropping below half-time enrollment.
  • Unsubsidized Direct Loan – The only difference between this loan and a Subsidized Loan is that the Unsubsidized Loan is not need-based and the student is charged interest on these loans from the date of first receipt of loan funds. Although the student must complete a FAFSA to qualify for an Unsubsidized Loan, eligibility is not determined based on need, but based on the student's cost of attendance minus other financial aid the student expects to receive. Repayment provisions are the same as Subsidized Loans.
  • Parent PLUS Loan – Parents of a dependent student may apply for a PLUS Loan to help meet the student's cost of attendance not covered by other financial aid. Interest rates and repayment provisions on PLUS loans are generally more favorable than other consumer loans available for educational expenses. Repayment starts as soon as funds are disbursed. For PLUS loans first disbursed after July 1, 2008, parents have the option to defer repayment until six months after the dependent student is no longer enrolled at least half-time. The student must apply for the FAFSA, submit a student loan application, and submit the PLUS loan application. PLUS applications may be obtained from the JCJC FAO.


ANNUAL LOAN LIMITS

Dependent Student Subsidized/Unsubsidized (Combined)

Grade Level 1
Grade Level 2

 $3,500
$4,500		 $2,000
$2,000
Independent Student Subsidized/Unsubsidized (Combined)
Grade Level 1
Grade Level 2

$3,500
$4,500

 $6,000
$6,000


  • Master Promissory Note
    First-time Direct Loan applicants at JCJC are required to complete the Master Promissory Note (MPN) on the Federal Website (www.studentloans.gov). You will need your Federal PIN. You must read all sections of the MPN.

Entrance Counseling
All first-time borrowers of Federal Direct Subsidized and Federal Direct Unsubsidized Loans are required to complete an entrance interview. The JCJC FAO cannot process a student's loan until counseling has been completed. Access the entrance counseling online at studentloans.gov.

Exit Counseling
U.S. Department of Education regulations require Federal Subsidized and Federal Unsubsidized Loan recipients to complete an exit interview when graduating from or when leaving JCJC. Access the exit counseling online at www.studentloans.gov.
The stipulations below apply before a loan is processed:

  • First-time borrowers, students who have never attended college, must have a 1.5 at mid- term.
  • If a suspension appeal has been approved, and the student's GPA is below a 2.0, the student must have at least a 2.0 GPA at mid-term in order for the loan to be processed.
  • If the student is a transfer student with unsatisfactory grades, at mid-term the student must comply with JCJC's satisfactory academic progress policy.
  • If a student applies for a loan after midterm or if the loan is processed after midterm, the student must comply with the satisfactory academic progress policy.
  • If the student is on probation because of unsatisfactory grades, the mid-term grade point average must be at least a 2.0.
  • If the student has withdrawn from classes, the loan application will be evaluated by the FAO.

After loan is processed:

  • In order for a student loan check to be mailed, all fees must be paid or covered by financial aid.
  • A student must be enrolled in at least six (6) hours in order to be eligible for a student loan.
  • Loan amounts may be adjusted for any of the reasons listed below:
    • Change in enrollment
    • Increase or decrease in aid or additional aid not previously reported
    • Withdrawals
  • In order for a student's loan check to be mailed, the student may be required to obtain satisfactory progress in class and attendance verification from instructors.
  • If a student is on financial aid suspension, the student is not eligible to receive a student loan.