Fill - Free fillable Form 2.: Direct Loan Program Packet Contents (San Diego Mesa College) PDF form

Direct Loan Program Packet Contents

1. Federal Student Aid – Time limitation on Direct Subsidized Loan eligibility for First-Time

Borrowers on or after July1, 2013

Direct Loan Program Master Promissory Note instructions

2020-2021 Subsidized Direct Loan Application form

Required Loan Steps:

Federal Direct Loan Entrance Counseling on the Web: https://studentloans.gov

Complete and sign the electronic Master Promissory Note (eMPN):

https://studentloans.gov

See an Academic Counselor for an official Academic Plan. Your stated Program of Study

and Degree Objectives listed on the Loan Request form must match those indicated on

your official Academic Plan.

Fill in and submit the Federal Direct Subsidized Student Loan Request form to the

Financial Aid office at San Diego Mesa College.

Effective with the 2017-2018 school year, San Diego Mesa College (along with Miramar College and City College) have been

approved by the U.S. Department of Education to participate in a Direct Loan Experimental Site Initiative regarding "Over-

borrowing" that allows our college to hold the loan disbursement until an additional loan counseling session is completed by

the students included in the Treatment Group.

As part of the Experimental Site Initiative, loan applicant students will be randomly selected

to be part of either the Treatment Group or the Controlled Group. You will receive an email

notification with the information if any additional steps are required from you.

REASONS FOR PARTICIPATION IN EXPERIMENTAL SITE INITIATIVE :

• To help student borrower understand the full extent of their responsibilities and consequences.

• To help students understand and access resources available when facing repayment difficulties.

• To help students avoid defaulting on their federal student loans.

•

To help students succeed in the achievement of their educational goal.

All Direct Loan information is current as of the printing of each individual publication.

Please check the Department of Education’s Direct Student Loan information on line regularly:

www.studentloans.gov

San Diego Mesa College

2020 2021 FEDERAL DIRECT SUBSIDIZED STUDENT LOAN

REQUEST

1 of 3

Time Limitation on Direct Subsidized Loan Eligibility for First-

Time Borrowers on or after July 1, 2013

Maximum eligibility period to receive Direct Subsidized Loans

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 is called your “maximum eligibility period”. You can usually find

the published length of any program of study in your school’s catalog.

For example, if you are enrolled in a 4-year bachelor’s degree program, the maximum period

for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years). If you

are enrolled in a 2-year associate degree program, the maximum period for which you can

receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years).

Your maximum eligibility period is based on the published length of your current program. This means

that your maximum eligibility period can change if you change programs. Also, if you receive Direct

Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you

received for the earlier program will generally count against your new maximum eligibility period.

Click here to see some examples that show how your

maximum eligibility period can change if you change

programs.

Periods that count against your maximum eligibility period

The periods of time that count against your

maximum eligibility period are periods of

enrollment (also known as “loan periods”) for

which you received Direct Subsidized Loans.

For example, if you are a full-time student

and you receive a Direct Subsidized Loan

that covers the fall and spring semesters

(a full academic year), this will count as

one year against your maximum

eligibility period.

If you receive a Direct Subsidized Loan for a period

of enrollment that is shorter than a full academic

year, the period that counts against your maximum

usage period will generally be reduced accordingly.

For example, if you are a full-time student

and you receive a Direct Subsidized Loan

that covers the fall semester but not the

spring semester, this will count as one-

half of a year against your maximum

eligibility period.

With one exception, the amount of a Direct

Subsidized Loan you receive for a period of

enrollment does not affect how much of your

maximum eligibility period you have used. That is,

even if you receive a Direct Subsidized Loan in an

amount that is less than the full annual loan limit,

that lesser amount does not reduce the amount of

your maximum eligibility period you have used. The

one exception applies if you receive the full annual

loan limit for a loan period that does not cover the

whole academic year. In that case, the loan will

count as one year against your maximum eligibility

period regardless of your enrollment status (half-

time, three-quarter time, or full-time).

Click here to see an example.

2 of 3

Effect of borrowing while enrolled part-time

If you receive a Direct Subsidized Loan when you are enrolled less than full-time, the period that is

counted against your maximum eligibility period will be reduced.

For example, if you are enrolled half-time and receive a Direct Subsidized Loan for a period of

enrollment that covers a full academic year, this will count as only one-half of a year against

your maximum eligibility period.

Loss of eligibility for additional Direct Subsidized Loans and becoming responsible for

paying interest on Direct Subsidized Loans

After you have received Direct Subsidized Loans

for your maximum eligibility period, you are no

longer eligible to receive additional Direct

Subsidized Loans. However, you may continue

to receive Direct Unsubsidized Loans.

In addition, if you continue to be enrolled in any

undergraduate program after you have received

Direct Subsidized Loans for your maximum

eligibility period, we will no longer (with certain

exceptions) pay the interest that accrues on

your Direct Subsidized Loans for periods when

we would normally would have done so. The

chart below provides examples of these

circumstances.

Do I become responsible for paying the interest that accrues on my Direct Subsidized Loans

because . . .

Yes No

I am no longer eligible for Direct Subsidized Loans and I stay enrolled in my current program? X

I am no longer eligible for Direct Subsidized Loans, did not graduate from my prior program, and

am enrolled in an undergraduate program that is the same length or shorter than my prior

program?

I transferred into the shorter program and lost eligibility for Direct Subsidized Loans because I have

received Direct Subsidized loans for a period that equals or exceeds my new, lower maximum

eligibility period, which is based on the length of the new program?

I was no longer eligible for Direct Subsidized Loans, did not graduate from my prior program, and

am enrolled in an undergraduate program that is longer than my prior program?

I lose eligibility for Direct Subsidized Loans and immediately withdraw from my program?

I graduated from my prior program prior to or upon meeting the 150% limit, and enroll in an

undergraduate program that is the same length or shorter than my prior program?

I enroll in a graduate or professional program?

I enroll in preparatory coursework that I am required to complete to enroll in a graduate or

professional program?

I enroll in a teacher certification program (where my school does not award an academic

credential)?

Remember, your maximum eligibility period can

change if you enroll in a different program. So, if

you received Direct Subsidized Loans for your

maximum eligibility period for one program and

then enroll in a longer program, you will not

become responsible for interest that accrues on

your Direct Subsidized Loans.

If you meet any of the conditions on the prior

page, you will become responsible for the interest

that accrues on your Direct Subsidized Loans,

from the date of your enrollment after meeting

the 150% limit, during periods when we would

have normally paid the interest for you. Below is

a chart that summarizes the periods when we

normally pay the interest on your Direct

Subsidized Loans, and an explanation and what

happens after you become responsible for the

interest.

Click here to see an example.

3 of 3

During what period am I responsible for paying the interest on

my Direct Subsidized Loans . . .

Before meeting the

150% limit?

After meeting the

150% limit?

While enrolled in school at least half-time No Yes

During my grace period on loans first disbursed (paid out) July

1, 2013 through June 30, 2014

Yes Yes

During my grace period on loans first disbursed (paid out) July

1, 2014 or after

No Yes

During deferment periods No Yes

During certain periods of repayment under the Income-Based

Repayment or Pay As You Earn Plan

No Yes

During forbearance periods Yes Yes

During all other periods of repayment Yes Yes

If you become responsible for the interest that

accrues on your Direct Subsidized Loans, any

interest that you do not pay will be capitalized

(added to your loan principal balance) at the

end of the grace, deferment, or other periods.

Capitalized interest increases your loan

principal, increases your monthly payment

amount under most Direct Loan repayment

plans, and causes you to pay more interest over

the life of your loan.

Your federal loan servicer will notify you if you

become responsible for paying the interest on

your Direct Subsidized Loans.

Regaining eligibility for Direct Subsidized Loans

If you become ineligible for Direct Subsidized Loans because you have received Direct Subsidized Loans

for your maximum eligibility period, you may again become eligible to receive Direct Subsidized Loans if

you enroll in a new program that is longer than your previous program.

Click here to see an example.

If y

ou regain eligibility to receive additional Direct Subsidized Loans because you enrolled a program that

is longer than your prior program and you previously became responsible for paying all of the interest

that accrues on your Direct Subsidized Loans, we will pay the interest that accrues on your new loans

during the periods described in the chart above.

Direct Loan Program

eMPN

Dear Borrower:

You have made a decision to apply for a Federal Student Loan. You have completed the

Entrance Counseling Session for student borrowers OR you are a parent applying for a

PLUS loan.

Student borrowers as well as a parent borrower are able to:

1. Use the multi-year functionality of the Master Promissory Note.

a. This means that you will only need to sign one promissory note for all the Federal

Direct student loans that you take while a student at SD Mesa College. Students

applying for a direct loan are subject to the restrictions under Experimental Site

Initiative on Additional Loan Counseling.

b. That you will bear a greater level of awareness, responsibility and accountability on

your total cumulative loan level.

c. The total cumulative amount that a student can borrow on a subsidized loan is

$23,000. There is no PLUS loan cumulative limit.

2. You can complete and sign the electronic Master Promissory Note (eMPN) on- line at

https://studentloans.gov

. You must use your PIN number to access the Entrance Counseling

Session and to complete the Master Promissory Note.

a. The eMPN can be signed at any time. However, you will not have a student loan

until you have completed the on-line Entrance Counseling, the “Student Loan

Request” form, as well as signed the Promissory Note and any other requirements.

For those

notified that you have been randomly selected for the “Treatment

Group”, you will also need to provide confirmation of completion of the required

additional loan counseling.

b. The process to complete an eMPN is easy and user friendly. You will have to

complete 9 Steps. If, you stop the process before finishing all 9 steps, you will have

to start from the beginning with Step 1.

3. Once you have completed all 9 steps and printed your MPN, the U.S. Department of

Education will up-date their database and sends an acknowledgement notification to our

school.

a. If you choose to request a paper MPN, the US Department of Education will print

and send you a copy of your MPN which you will return to them via the U.S. Postal

Service.

4. The loan request must be processed and accepted by the Department of Education.

5. Provided that you meet all other conditions, time frames, loan eligibility requirements and

if needed, having your appeal petition approved by the Appeal’s Committee, your loan funds

will be disbursed as scheduled.

Sincerely,

The Financial Aid Office Staff

San Diego Mesa College

2020-2021 SUBSIDIZED DIRECT LOAN APPLICATION (MDLRQS-14)

Name:

LAST FIRST MIDDLE INITIAL

Student ID: Current Program of Study **:

** as of July 1, 2013 All borrowers with a $0 loan balance are required to get an official Academic Plan matching the selected Program of Study

listed above, unless otherwise instructed by the Financial Aid Office.

Degree Objective:



Cert



AA/AS



Complete my general education to then Transfer for a BA/BS

When is your expected final semester attending Mesa College? : Semester: Year:

Did you receive a loan at any other institution during Summer or Fall 2020?  YES  NO

The William D. Ford Federal Direct Student Loan program involves borrowing directly from the Federal Government.

 Although borrowing is not encouraged at a community college, you may borrow up to $3,500 as a first year student and

up to $4,500 as a sophomore student (with a valid educational program plan).

 YOU MUST REPAY ALL LOANS AND ACCRUED INTEREST (see brochure for more information). The interest rate on a Federal

Direct Stafford Loan is currently (as of the date of this printing) 2.75 percent for undergraduate students.

What Subsidized Loan amount do you want to borrow in 2020 – 2021? $

Initial – Please read and initial each statement

I have completed the required Entrance Counseling session at https://studentloans.gov and I understand that I must complete

an Electronic Promissory Note [EMPN] online at https://studentloans.gov to have this loan request process completed.

I understand that my loan request will not be processed until after my academic progress has been determined for

the 2020- 2021 academic

year.

I am required to pay an origination fee of 1.059% thru September 30, 2020. This fee will be deducted from the proceeds of my loan

(Disclosure statement will be provided by the Loan Origination Center.) I am required to pay an origination fee of 1.057% for

each loan disbursed on or after October 1, 2020 and before October 1, 2021.

I must be actively enrolled in and attending at least 6 units to receive loan funds within the San Diego Community College

District. Late start classes may delay disbursement of funds. If I drop below 6 units,

my future loan eligibility for 2019-2020

may be recalculated. (I may not be eligible for the second disbursement.) I may not receive loan funds at any other

institution during the period of my loan at Mesa College.

I understand that I must have at least 30 units of course work completed and applicable towards my current Program of Study

and Degree Objective AND I must have a current official Academic Plan accessible by the Financial Aid Office that matches my

stated

Program of Study and Degree Objective listed above ** in order to qualify for a sophomore level student loan (2

year).

The Financial Aid Office will determine the actual loan amount for which I am eligible.

I must have verified financial need resulting from the federal formula to qualify for a subsidized loan.

I understand that I should decide on an appropriate loan amount per academic year. Any request for additional loan funds

after the initial loan was originated and disbursed may be subject to delay.

First year, first time borrowers, with less than 30 units towards their stated program of study, per Academic Plan, are subject

to a 30 day

delay in the disbursement of their first loan check. As of July 1, 2013 all new loan borrowers (All borrowers with a $0

loan balance)

are subject to the 150% rules. Please follow the following link to go directly to Direct Loan Counseling

information:

http://ifap.ed.gov/eannouncements/attachments/051613DirectSubsidizedLoanLimit150PercentAnnounce1Attach.pdf.

 November 20, 2020 by noon is the last day to submit a loan request for the Fall 2019 semester. May 14, 2021 by

noon is

the last day to submit a loan request for the Spring 2020 semester. July 23, 2021 by noon for Summer 2021. 

[Your deadline will be your last day of attendance if it is prior to the dates shown for the semesters listed above].

I understand that I am required to attend a loan Exit Interview or complete an on-line exit counseling session

https://studentloans.gov , if I drop below half-time (6 units), or before I transfer to another college.

I have reviewed the Examples of Debt Levels, Monthly Payments, and Total Amount Repaid for All Direct Loan Repayment Plans

in;

Your Federal Student Loans – Learn the Basics and Manage Your Debt publication enclosed in the Student Loan Packet.

I understand that San Diego Mesa College may disclose information to third parties that the school district has authorized

to assist the Financial Aid Office in administering the loan program.

• Can Educational Credit Management Corporation (ECMC) and its representatives as part of our Student Loan

Default Prevention call or text you at your current or future cell phone number(s) using an automated dialer?

 YES  NO

I understand that if randomly selected for the Treatment Group (see page 1), my loan will not be processed until the San Diego

Mesa College Financial Aid Office has received confirmation that I have completed the additional loan counseling session.

Student Signature __________________________________________________________________________________________ Date____________________________________________

Actual Wet Signature in Blue Ink – No JPG, PDF or Electronic Signature Permitted (Except Official DocuSign)

click to sign

signature

click to edit

Student N

ame: ______________________________________________ Student ID ____________________________

Last, First MI (10 digits)

Personal & Family References

Must provide two different references with at least one family member (including two different complete addresses (eg., name, address, city, state

NAME RELATIONSHIP TO BORROW

STREET ADDRESS

CITY, STATE ZIP CODE

PHONE EMAIL

NAME RELATIONSHIP TO BORROW

STREET ADDRESS

CITY, STATE ZIP CODE

PHONE EMAIL

---------------------------------------- FOR OFFICE USE ONLY ----------------------------------------

Date Loan Workshop Attended: ____________________.  Independent  Dependent

The Student is:  Resident  Non-Resident

SULA Provisions prevent loan borrowing:  YES  NO

Term NSLDS Screen Print: Program of Study (Major) Listed: ._______________________.

COD Screen Checklist:  YES  Prior year  On-Line CIP code _______________

**Grade Level: __________ Subsidized Loan Certified: $____________________.

(If the student does not have a prior student loan and has less than 30 units completed they are an 01.)

Loan Period:  Fall (08/17/20 – 12/14/20)  Fall & Spring (08/17/20 – 05/29/21)  Spring (02/01/21 – 05/29/21)

 Summer Only (06/07/2021 – 08/14/2021)

Cum: Sub Total $_____________. Unsub. Total $____________.

Prior Loan Period ._______________.

Loan Received elsewhere 2019-2020?  Yes $

.00. Semester(s) (________________)  No

Consolidated Loan total $______________.

TECH Initials: ______________. DATE of Determination: ______________.

and zip code), and phone number. [Please print]

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