Loans
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 5.60% 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 complete the Free Application for Federal Student Aid (FAFSA), submit the SPSCC Data Sheet (see Forms) to the Financial Aid Office, and turn in any other documentation required by the Financial Aid Office. Once your file is complete a review of all documentation is performed by the Financial Aid Office to determine your eligibility. You will be notified of your eligibility in writing, this document is called your Award Letter. After you receive your Award Letter you may pursue a Stafford loan if you need additional assistance with your educational costs. You cannot apply for a loan at SPSCC until after the initial notification from our Office.
How to Apply for and Receive the Loan
Step 1. MANDATORY Stafford Loan Entrance Counseling is a federally required information session designed to educate you about the loan process and your rights and responsibilities pertaining to Federal Stafford Loans. All students interested in borrowing through the Stafford Loan program-even previous SPSCC loan borrowers-must complete MANDATORY Stafford Loan Entrance Counseling by attending an inperson session on campus. During the MANDATORY Stafford Loan Entrance Counseling, you will receive the Loan Request Form which you will submit to our office to officially request the Stafford Loan.
Step 2. After submitting the Stafford Loan Request Form the Financial Aid Office will determine your eligibility for the amount you requested. An Award Letter is then sent to you (usually within five to seven business days), indicating the amount of the loan you will receive and for which quarters of enrollment. You must sign and return the Award Letter to the Financial Aid Office if you accept the loan as specified in the letter.
Step 3. Within three to five business days after submitting your signed Award Letter you may go online and complete your Master Promissory Note (MPN). Students who do not want to do their MPN over the internet may complete a paper MPN which is available in the Financial Aid Office. Please note that completing a paper MPN will slow down the processing of your loan by as much as a month.
To complete your MPN online visit this site then select "Complete New MPN for Student Loans", select "Subsidized/Unsubsidized" and then Continue.
Step 4. After submitting your electronic MPN, allow at least seven to ten business days for your loan to be processed and disbursed. If you are requesting loan funds beyond the cost of your tuition and fees, you will be able to pick up a balance check no earlier than the first day of the quarter for which you are receiving the loan. If you are requesting a loan in the middle of a quarter, you will need to add another three to four days for your balance check to be printed after your loan is disbursed.
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 attending at least half time at SPSCC, you must complete Stafford Loan Exit Counseling. The Exit Counseling session reviews the terms and conditions of your loan, provides an overview of the repayment process, and gives details about the different repayment options available with your loan. You must fulfill this requirement by attending an in person Stafford Loan Exit Counseling session-see the Financial Aid Office for dates and times.
Annual Borrowing Limits 2009/2010
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) |
Contact
Loan Manager
Amy Ybarra
(360) 596-5232
Resources
www.fafsa.ed.gov
(apply for financial aid)
www.pin.ed.gov
(get your FAFSA PIN #)
Track your loan history
Direct Loan Servicing Online
Loan Repayment Options
Exit Counseling
Master Promissory Note
Federal Ombudsman