Purpose:
Applies to all students wanting to obtain a student loan to finance their educational costs while attending 皇家华人.
Scope:
Applies to all students wanting to obtain a student loan to finance their educational costs while attending 皇家华人.
Definitions:
- FAFSA:The Free Application for Federal Student Aid must be completed in order to apply for federal financial aid at 皇家华人. FAFSA results are used to determine eligibility for federal, state, and institutional financial aid.
- Federal Direct Parent Loan for Undergraduate Student (PLUS Loan):a loan in the parent's name used for paying the student's educational expenses.
- William D. Ford Federal Direct Loan: program established by the United States Congress to assist students and parents in financing their educational costs.
- Subsidized loan:a loan in the student's name in which the interest is paid for the student until the student ceases enrollment as a half-time student or loses subsidy through the SULA provision. Loan repayment begins six months after a student ceases half-time enrollment.
- Subsidized Usage Limit Applies (SULA): There is a limit on the maximum period of time (measured in academic years) that a student 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.
- Unsubsidized loan: a loan in the student's name in which a federal interest subsidy is never provided. Loan repayment begins six months after a student ceases half-time enrollment.
Policy:
皇家华人 uses two types of Federal Direct Loans for students, subsidized and unsubsidized.
It also offers the Federal Direct PLUS loan for parents to use in financing their dependent's educational costs.
The U. S. Department of Education is the lender for these loan programs.
Procedure:
- Students wishing to borrow under the Federal Direct Loan program must have a complete financial aid file prior to loan certification. Federal PLUS Loans require a FAFSA and PLUS Loan Worksheet prior to loan certification.
- For a Federal Direct Loan, students can submit a Federal Direct Loan Worksheet, accept their loan award via the financial aid portal, or submit a signed award letter to the financial aid office
- For a Federal Direct Loan, students must complete Entrance Counseling and a Master Promissory Note online prior to receiving funds.
- Students will receive a notification of loan funds each term.
- Students will receive a loan debt letter any time loan indebtedness changes.
- Exit counseling materials are e-mailed to borrower's personal email when they drop below six credit hours and/or leave the college.
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Specific Authority: Federal Regulations
Law Implemented:
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History of Policy or Procedure:
Draft Date: May 22, 2018
Policy and Procedure Adopted: January 6, 2006
Policy and Procedure Revised: February 23rd, 2021
Reviewed By: Director of Financial Aid, Dean of Enrollment and Completion, Student Affairs Leadership Team
Contact: Beth Hawes, Director of Financial Aid, 253.333.4978
Executive Team Sponsor: Dr. Deborah Casey, Vice President of Student Affairs, ext.
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