Pay for College

Pay for College

Direct Federal Stafford Loans

Loans, unlike grants, are a financial resources that must be paid back. South Puget Sound Community College (SPSCC) participates in the Direct Loan: Federal Stafford Loan Program. There are two types of Stafford Loans.

  • The Subsidized Stafford Loan is based upon financial need. The government subsidizes (or pays) the interest for you while you are enrolled in at least half time (six credits) and are in an eligible degree-seeking program. Interest begins accruing at a fixed 6.8% rate. You will have six months once you graduate or cease half time attendance before you must begin repayment.
  • The Unsubsidized Stafford Loan is available if you are not eligible for the Subsidized Loan. This loan is not need-based, but it accrues interest at a fixed 6.8% rate as soon as you receive the loan funds. You also have six months once you graduate or cease half time attendance before you must begin repayment.

Before Applying

You must receive a financial aid determination letter before you can begin the loan process. Once you have received your financial aid letter and have determined that you need additional assistance with your educational costs you can begin the loan application process. If you are unsure if you have received your letter please check your status on our student portal or contact the financial aid office.

5 Easy Steps to Applying for a Direct Stafford Loan:

  1. Receive Financial Aid Determination Letter
  2. Attend Mandatory Entrance Counseling Session
  3. Complete MPN & Submit Loan Request Form
  4. Recieve Revised Loan Award Letter
  5. Loan Disbursement

Step 1: Receive your financial aid determination letter

  • Check Your Status on Our Financial Aid Managment Portal
  • Once your completed financial aid file has been reviewed you will be sent a financial aid determination letter outlining your eligibility.
  • Please Note: Completed files include a Datasheet, FAFSA, Verification (only if selected) and any other documentation requested.
  • There are several different types of financial aid determination letters:
  • Financial Aid Award Letter
  • No Need Letter
  • Out of Funds Letter
  • You should use this letter to help you determine if you need additional assistance to meet your educational costs.
  • If you are unsure if you have received one of these letters please visit the student portal and check your status.

Step 2: Attend a MANDATORY Stafford Loan Entrance Counseling Session

  • View the Stafford Loan Entrance Counseling Sessions Schedule
  • See the Fall 2014 Direct Loan Entrance Counseling Schedule
  • This is a federal requirement that is designed to educate you on the loan process, as well as, your rights and responsibilities as a borrower.
  • All new and returning students must attend a session each academic year that they are requesting a loan.
  • Loan sessions are generally held once per week with the exception of the first week of the quarter.
  • The loan request form is available at the end of the session and you must attend the entire session before you may receive your form.

Step 3: Complete Master Promissory Note (MPN) and submit completed loan request form

  • Master Promissory Note (MPN)
  • If you have not had a loan disbursement here at SPSCC after July 1, 2009 you WILL need to complete an MPN before you can submit your loan request form.
  • Students that have had a loan disbursement here at SPSCC after July 1, 2009 are NOT required to do a new MPN. They are valid for 10 years.
  • Completed loan request forms should be submitted to the Financial Aid Office located in Building 25.

Step 4: Receive Revised Loan Award Letter

  • Processing time for loan request forms is about 10 business days. Please note that during peak processing times it can take up to 14 business days to process your request.
  • Once your application has been processed you will receive a revised award letter that shows how much and what type of loan has been awarded.
  • You must sign and return that award letter to the Financial Aid Office before your loan funds can be released.

Step 5: Loan Disbursement and Check Process

  • View the Disbursement Schedule for Stafford Loans
  • Beginning of the quarter balance checks are mailed the last business day before the quarter officially starts.
  • Once the quarter begins it takes approximately 4 business days to process your signed award letter and a check to be printed and mailed.
  • One exception is any student that is considered a “30 day delay student”. In those cases money cannot be released until the 30th day of the quarter. Please refer to your loan award letter to see if you are in the 30 day delay requirement.
  • ALL checks must be mailed.
  • Published disbursement dates refer to the day that money is released, not the day that checks are mailed.

 


 

Important Loan Facts

  • You may cancel future disbursements of your loan at any time.
  • You must complete and pass a minimum of 6 credits to remain eligible for the Stafford Loan.
  • First-time college students borrowing a Stafford Loan will have their loan funds held for the first 30 days of the quarter before funds can be disbursed.
  • One-quarter loans are disbursed in two payments, one at the beginning of the quarter and one at the midpoint.

Loan Deferment and Forbearance

While you are at least half time (6 cr +) you can receive an in-school deferment on your existing Stafford loans. You will not be required to make any principal or interest payments while at least half time in school. South Puget Sound Community College will automatically report your enrollment information on the 10th day of the quarter to the National Student Clearinghouse.
For other deferment and forbearance options please visit www.dl.ed.gov.

Private Educational Loans

South Puget Sound Community College chooses not to participate in any school certified Private Education Loan program. Stafford loans through the Direct Loan Program are available to students. In order to receive a Stafford Loan, students must complete the financial aid process before attending the mandatory Entrance Counseling Session.

When You Leave the College

When you graduate or cease to be enrolled at least half time (6 or more credits) at SPSCC, you must complete Stafford Loan Exit Counseling. This will review the terms and conditions of your loan, provide an overview of the repayment process and give details about the repayment options that are available. You can fulfill this requirement by visiting www.studentloans.gov and following the links to Exit Counseling.

Annual Borrowing Limits 2012/2013

Dependent Students

(you were required to list your parent's financial information on your FAFSA)

Grade Level Annual Subsidized and Unsubsidized Loan Limits Annual Additional Unsubsidized Loan Limits Total Annual Loan Limits (Combined)
1st Year of Program $3,500 $2,000 $5,500
2nd Year of Program $4,500 $2,000 $6,500

 

Independent Students

Grade Level Annual Subsidized and Unsubsidized Loan Limits Annual Additional Unsubsidized Loan Limits Total Annual Loan Limits (Combined)
1st Year of Program $3,500 $6,000 $9,500
2nd Year of Program $4,500 $6,000 $10,500

 

Lifetime/Aggregate Limits

Academic Year Maximum Subsidized & Unsubsidized
Dependent Students $31,000 (no more than $23,000 Subsidized)
Independent Students $57,500 (no more than $23,000 Subsidized)