Loans
Do students need to fill out the FAFSA to receive a student loan?
Yes, these are federal loans and a type of financial aid. The FAFSA determines how much and what kind of loan students will qualify for.
How do students let the FAO know they want a loan?
The JCJC FAO requires students to complete a loan application. If students indicate, "interested in student loans" on the FAFSA, a loan will not automatically be processed. A loan application may be obtained by: (1) printing out the loan application under “Forms” or (2) requesting an application from the FAO.
What is the difference between a Subsidized and an Unsubsidized Federal Stafford Loan?
Subsidized Stafford Loan is a federal loan awarded to students who demonstrate financial need as a result of filing the FAFSA. Maximum amounts available per student are set by the federal government and are based on the student's grade level classification at the institution. The government pays the interest on the Subsidized Stafford Loan while the student is in school, and the student begins repaying the principal interest of the loan 6 months after graduation or ceasing at least half-time enrollment.
Unsubsidized Stafford Loan is identical to the Subsidized Stafford in terms of interest rates and application process. The only difference is that interest on the Unsubsidized Stafford is not paid by the government while the student is enrolled. The student has the choice to either make interest payments while enrolled or defer the interest until repayment of the principal begins.
When do students start repaying student loan(s)?
Students are responsible for repaying the principal balance of student loans after completion of degree or when enrollment is ceased on at least a half-time basis (half-time enrollment for most undergraduates is defined as 6 credit hours per semester). Federal loans allow students a six-month grace period after enrollment is ceased on at least a half-time basis before repayment. The lender will notify students when repayment is scheduled to begin.
If a student is in default because of a previous student loan, can they receive financial aid?
Yes, if the lender sends a letter stating that the student is in satisfactory repayment and eligible for Title IV aid. However, a loan in the future will not be processed by the JCJC FAO for students who previously defaulted on a student loan.
How much can students borrow in Stafford loans?
A number of factors determine how much students may borrow such as: grants, cost of attendance, etc…. The FAO will determine how much students qualify for based on students’ budgets.
Why is the maximum amount of loan money limited?
Students applying for the Federal Stafford Loan are subject to annual and aggregate loan limits that are based on current major, academic level, dependency status, and length of the academic program. The Federal Family Education Loan Program (FFELP) presets the Stafford Loan limits.
