If you are a first-year student AND a first-time federal
student loan borrower, your first quarter loan disbursement
amount must be held for 30 days from the first day of the
quarter, so please plan accordingly. For all other quarters
and for non first-year first-time borrowers the 30 day wait
period does not apply.
Your loan will be issued in multiple disbursements. If you
are funded for one quarter only, then ED requires us to
separate your loan into two equal payments; one at the
beginning of the quarter (unless you have a 30 day hold)
and one half-way through. If you check two or more
quarters, the loan will be divided among all checked
quarters for which you are eligible. We can divide your
loan between prior quarters in the same academic year IF
you were eligible during the prior quarters. If you are
finishing a degree prior to the end of the school year, your
loan will be prorated for the appropriate quarters.
The loan funds will be sent to the college first and be
applied to any outstanding tuition and any related fee
charges. Remaining funds will not be disbursed before the
quarter begins. Funds are disbursed via BankMobile.
Remember, this is a federal student loan and it MUST BE
REPAID. Do not borrow more than you need. Student
loans cannot exceed a student’s “Cost of Attendance”.
Year in college, length of program, credit level,
dependency status, EFC & all other aid is taken into
consideration when determining your eligibility; therefore
you may not be eligible for the annual loan limits or the
amount that you request.
Year in college is determined by the number of
COMPLETED credits applied toward the degree you are
CURRENTLY seeking at WVC. For instance, a student in
the first quarter of the nursing program would be a first-
year student, as any prerequisite credits will not be
considered as part of the currently enrolled degree for loan
purposes.
There is an exception for students who are not in a
degree or certificate program and are only taking
prerequisites. These students would only be eligible for
loans and only for a 12 consecutive month period, during
which they must be taking at least 6 credits of the required
prerequisites each quarter in order to receive federal loans.
All federal Direct loans are subject to fees. The fees are
paid to the ED to offset administrative costs and to
guarantee loans. This loan origination fee is deducted
before you receive any loan money, your net loan amount
will be the amount you were funded minus the origination
fee. The fee is 1.062%. Interest rate for loans is 2.75%
and is set by the federal government each year.
When you repay your loan, you will be repaying the gross
amount of the loan, not the net disbursed amount. The
loan fees are part of your loan repayment.
You have the right to cancel your student loan at any time.
If you want to cancel a future disbursement, you should
notify our office two weeks before the expected
disbursement date. If your loan has disbursed, you are
committed to repaying the loan(s). You can send the funds
directly back to your loan servicer as a payment. You can
make repayments to your loan at anytime without penalty.
You can also increase or decrease a future disbursement.
Again, you will need to notify our office at least two weeks
before the scheduled disbursement date. To make any
adjustments or cancellations to your loans you will need to
complete and submit a Loan Adjustment Request form.
All loan recipients are required to complete exit counsleing
when they graduate, leave school, or drop below half-time
status. Exit counseling should be done one quarter before
your expected graduation date or within two weeks of when
you stop attending classes or withdraw from the college.
Loan exit counseling can be done at www.studentaid.gov .
For your Direct loan servicer information and account
balance contact:
US Department of Education
Phone: 1-800-433-3243
Website: www.studentaid.gov
RIGHTS AND RESPONSIBILITIES
