William D. Ford Federal Direct Stafford Subsidized Loan
The William D. Ford Federal Direct Stafford Subsidized Loan program allows students to borrow money from the federal government at a low interest rate. Interest rates are fixed based on current Federal Stafford loan rates. No repayments are due and no interest accrues until six months after the student graduates, leaves the College, or ceases to be a half-time student. Listed below is the maximum amount a student may borrow each academic year of college.
- Freshmen (up to 29 earned hours): $3,500
- Sophomores (30-59 earned hours): $4,500
- Juniors and seniors (60 or more earned hours): $5,500
Eligible students are also able to borrow an additional $2,000 per academic year in the Stafford Unsubsidized Loan program.
An independent student or a dependent student whose parents are unable to obtain a PLUS loan may borrow the following amounts from the unsubsidized loan in addition to the Stafford Loan limits.
- Freshman/sophomore: up to $4,000 a year
- Junior/senior: up to $5,000 a year
PLEASE NOTE: Students who are first-time borrowers and are in the first-year of their undergraduate study can not receive the first installment of a Stafford Loan disbursement until 30 calendar days after the student’s program of study began.
Aggregate Loan Limits
- Dependent undergraduate student: $31,000 (no more than $23,000 of which may be subsidized)
- Independent undergraduate student or dependent student whose parent is ineligible for PLUS: $57,500 (no more than $23,000 of which may be subsidized)
Visit the Department of Education for more information about interest rates.
To receive a Federal Direct Stafford Loan you must complete the following steps:
- Accept your loans in your Grizzly Den within Banner account
- Have a completed master promissory note (MPN) on file at www.studentloans.gov
- Have a completed Loan Entrance Counseling session on file at www.studentloans.gov
William D. Ford Federal Direct Stafford Unsubsidized Loan
Any student, regardless of need, may borrow from the William D. Ford Federal Direct Unsubsidized Stafford Loan Program. The procedures to receive a loan are the same as for the William D. Ford Federal Direct Subsidized Stafford Loan. The annual loan limits are the same and include any funds borrowed through the guaranteed program. Repayment of the loan is deferred as long as the student is enrolled at least half-time; however, interest on the loan starts accruing from the initial disbursement date and is recommended to be paid while the student is in school. The interest can also be deferred but would be compounded to the principal of the loan.
Visit the Department of Education for more information about subsidized and unsubsidized loans.
William D. Ford Federal Direct Parent Loan for Undergraduate Students (PLUS)
This program is available to parents of dependent students. Parent borrowers may borrow from the federal government up to the cost of attendance at GGC minus other aid. The interest rate is fixed based on the current PLUS loan rates. Parents are allowed to select their loan amount. However, a credit check is required. The student will be allowed to borrow under the William D. Ford Federal Direct Unsubsidized Stafford Loan Program if the parents cannot borrow under the PLUS Loan Program.
Visit the Department of Education for more information about the PLUS Loan Program.
Private (Alternative) Student Loans
Private (alternative) student loans are funded by private lenders and are not based on need.
Important facts about alternative loans to keep in mind include the following:
- The amount borrowed cannot exceed your cost of attendance minus other financial aid.
- These loans are primarily used to supplement the federal programs when federal aid and scholarships do not meet the cost of attendance.
- Private (alternative) student loans are based on a student’s credit history and often require a cosigner.
- These loans cannot be certified across academic years. (Summer is the last term of any academic year at GGC.)
- GGC will not certify a private loan for you unless you have already completed a current year FAFSA except in cases where otherwise ineligible for federal aid due to Satisfactory Academic Progress or not meeting federal citizenship requirements.
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