• Federal Direct Unsubsidized Stafford Loans. Students can obtain Federal Direct Unsubsidized Stafford Loans regardless of need, but will have to pay all interest charges.
• Federal Direct PLUS Loans. Parents of dependent students can borrow a Federal Direct PLUS Loan to help pay for their child’s education.
Application Procedures. Students must complete the Free Application for Federal Student Aid (FAFSA). Students must submit a Request for a Federal Direct Student Loan form to the Financial Aid Office. Students will be required to sign a master promissory note. Eligibility Criteria. To be eligible for a Federal Direct Stafford Loan a student must: 1. be a U.S. citizen or permanent resident alien; 2. be taking at least six credit hours and be matriculated in a degree program; 3. not owe any refunds on a Federal Pell Grant or other awards received and not be in default of repayment on any type of student loan. Each new student loan recipient will be required to attend an entrance interview before receiving a loan check and an exit interview when graduating or terminating from school.
Maximum Loan Amounts Dependent Student. A first year dependent student (parent information is required on the FAFSA), with less than 30 earned or transfer credits, may borrow up to $5,500 per year with a maximum of $3,500 of that amount being in a subsidized loan. Second year dependent students, with at least 30 earned or transfer credits, may borrow up to a maximum of $6,500 per year with a maximum of $4,500 of that amount in a subsidized loan. A dependent undergraduate student may only borrow up to an aggregate limit of $31,000. Independent Student. Independent students (parent information is not required on the FAFSA), may have up to an additional $4,000 in unsubsidized loans per year. A first year independent student, with less than 30 earned or transfer credits, may be eligible to borrow up to $9,500 per year with a maximum of $3,500 of that amount being in a subsidized loan. Second year independent students, with at least 30 earned or transfer credits, may be eligible to borrow up to $10,500 per year with a maximum of $4,500 in a subsidized loan. An independent undergraduate student may borrow up to an aggregate limit of $57,500. The maximum amount that a student can borrow is the Cost of Attendance minus other financial aid. (See Page 26 for amount.) Repayment Terms. Interest rates for Federal Direct Loan programs and comparable FFELP loans for new borrowers are the same. The fixed interest rate for a Federal Direct Subsidized Stafford Loan is 3.4% in 2011-2012. The fixed interest rate for a Federal Direct Unsubsidized Stafford Loan is 6.8 percent. For a Federal Direct PLUS Loan, the maximum interest rate is 7.9 percent. In addition, all Federal Direct Loan borrowers are charged an origination fee of 1.0 percent for subsidized and unsubsidized loans and 4.0 percent for PLUS. There are several ways to repay a Federal Direct Loan: A standard repayment plan has a fixed monthly repayment amount for a fixed period of time, usually 10 years. An extended repayment plan has a lower fixed monthly payment amount, and loan repayment can be extended beyond the usual 10 years.
A graduated repayment plan usually begins with lower monthly payments, and payment amounts increase at specified times. Payments may be for the usual 10 year period, or they may be extended beyond 10 years. An income-contingent repayment plan sets annual repayment amounts based on the borrower’s income after leaving school. The loan is repaid over an extended period of time, not to exceed 25 years. The Federal Direct Loan Service Center will be responsible for maintaining the loan account and repayments. It is the student’s responsibility to maintain contact with that center. Loan Consolidation. Students who have previously borrowed federal student loans through a lending institution and who are now borrowing a Federal Direct Loan are encouraged to consolidate all of their student loans into one Consolidation Loan. This will help the borrower avoid the situation of a student owing two separate loans to two different lenders.
Institutional Scholarships The Schenectady County Community College Foundation, Inc. raises funds each year to support scholarships for students. A complete list of available scholarships is available online at www.sunysccc.edu/ adm-fin/finschol.htm.
Employment Federal Work-Study Program. This program makes part-time jobs available to students who demonstrate financial need. Work assignments are, for the most part, located on campus. The number of hours a student may work is determined by the amount of financial need and the level of funding. Students are paid at least the minimum wage. A percentage of federal work study funds will be allocated to off-campus community service jobs. Anyone who is interested in a community service job should contact the Financial Aid Office. General Part-Time Employment. The Career and Employment Services Office (Elston Hall, Room 223) maintains an online career management system, Electronic Access for Students and Employers, EASE, that students can access to view various job opportunities, search for local employers, and find on-campus offices that hire students who do not receive Federal Work Study. Students need an Email address to access the system. Visit the office website for additional information at www.sunysccc.edu/ces.
Other Assistance Tuition Deferrals. Students who will be receiving financial assistance from scholarships, grants or loans may be eligible for a tuition deferral or a postponement of payment until the funds have arrived. Contact the Financial Aid Office for more information. Book Deferrals. Students who will be receiving financial assistance from scholarships, grants or loans may be eligible for credit at the College Store for books and supplies after classes begin. Contact the Financial Aid Office for more information. Emergency Loans. The SCCC Foundation sponsors an Emergency Loan Fund through the Financial Aid Office for short-term loans (usually up to $25 for up to 30 days) to assist in an emergency situation. Contact the Financial Aid Office for more information.
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