Revised May 15, 2020 Page 2 of 3
Disbursement of Funds:
• Federal Loan Regulations prohibit the disbursement of loan funds for first-time borrowers until 30 days following the start of the
semester
.
• L
oans are disbursed in two payments during the loan period. A Fall/Spring loan will have one disbursement during each semester
– one in the Fall and one in the Spring. A one semester loan (Fall, Spring or Summer only) will have two disbursements during the
semester; the second occurring after midterm of the semester
.
• L
oan funds are received by ICC from the federal government and are credited directly to the student account. Charges owed to
the College will be paid first and any excess funds will be refunded to the student.
• Loan refunds are issued no later than two weeks after funds are credited to the student account.
• Students have 14 days to contact the financial aid office after their loan is disbursed to their student account to request
cancellation or reduction of their loan amount.
Interest Rate on Federal Direct Loans:
Federal student loan interest rates are tied to financial markets. Interest rates will be determined each June for new loans being made
for the upcoming award year, which runs from July 1, to the following June 30th. Each loan will have a fixed interest rate for the life of
the loan.
Loan Origination Fees:
Current loan origination fees for loans disbursed prior to October 1, 2020 totals 1.059 percent of the total loan amount.
Annual Loan Limits:
Additional unsubsidized loan amount
Additional unsubsidized loan amount
*These amounts are the annual maximums set by Federal regulations. Students attending Illinois Central College may not qualify for
the total amounts if they are receiving grants, scholarships, work-study, waivers or other educational assistance and/or attending less
than full-tim
e.
Aggregate (lifetime) Loan Limits:
Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized)
Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)
Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers 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. In
general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This means your
maximum eligibility period can change if you change programs.
SITUATIONS THAT MAY DELAY OR CANCEL YOUR LOAN:
• ENROLLMENT IN 12 WEEK and SECOND EIGHT-WEEK COURSES may delay your loan until after these classes start.
• A DECREASE IN YOUR CREDIT HOURS ENROLLED after your loan is certified may require a recalculation of your loan eligibility.
• DROPPING BELOW SIX (6) CREDIT HOURS will result in cancellation of undisbursed loan funds.
Withdrawing from Classes (returning money to the federal government):
If a recipient of financial aid withdraws during a period of enrollment, the college must calculate the amount of aid the student earned
up through the date of last attendance. Unearned aid (including loans) must be returned to the federal financial aid programs (Title IV
programs).
Federal financial aid (Title IV programs) include Pell grant, SEOG, Federal Direct Loan and PLUS loan programs. When a student
withdraws before completing 60% of the semester, a calculation of return of funds will be performed to determine the amount to be
returned. This is called Return to Title IV. When it is necessary to return loan funds, ICC is required to return the money to the federal
government that was disbursed to the student and the student will then be required to reimburse ICC for the returned amount.
Loan Exit Counseling:
Student loan borrowers are required to complete Student Loan Exit Counseling at the completion of enrollment (graduation or
withdrawing). This is done online at studentaid.gov . Student loans enter repayment six months after a student drops below 6 credit
hours of enrollment.
