A student loan is designed to help students pay for tuition, books, supplies, and living expenses. Student loans require repayment. Federal Direct Loans are low interest loans for students from the U.S. Department of Education that must be repaid. Direct loans are classified as Title IV funds and are under the same regulations as the Pell Grant. Loans are restricted to an annual loan limit, and a student is not allowed to borrow more than their cost of attendance would allow. There are two types of Direct Loans: Subsidized and Unsubsidized.
Federal Direct Subsidized Loan
Based on financial need. Interest is paid by government while you are enrolled at least half-time and during grace periods of deferment.
First-time borrowers taking out a Direct subsidized loan on or after July 1, 2013 are subject to the 150% Direct Subsidized Loan Limit, which limits the amount of time a student is eligible to borrow subsidized loans to 150% of their published program length
Federal Direct Unsubsidized Loan
Not based on financial need. Interest begins to accrue within 60 days of disbursement
*Visit the National Student Loan Data System (NSLDS) to access and monitor all of your federal loan information, including contact information for your loan servicers.
To receive a Direct Loan, students must do the following:
- Complete a FAFSA each year
- Enroll and attend a minimum of 6 credit hours required for program of study
- Maintain satisfactory academic progress
- Not be in default on a federal student loan
- Complete Entrance Counseling and Master Promissory Note (MPN) online at www.studentloans.gov
- Complete the Loan Request form located at http://www.cv.edu/student-forms/
Note: The FAFSA and its process must be completed before any student loan may be awarded.
As long as a student remains enrolled and is attending at least six credit hours, their loans are put under deferment. Once a student stops attending school or stops attending at least six credit hours, the student is allowed a six month grace period before they must begin repayment.
Note: The elements included in the Cost of Attendance are tuition & fees, books, housing & meals, transportation, and other educational costs. Based on 15 credit hours per term.
Federal Direct Parent PLUS Loans are loans that parents of dependent undergraduate students can use to help pay educational expenses. Parents can borrow up to the difference between CVVC’s cost of attendance and other aid or resources received.
Private loans, also known as Alternative Student loans should be explored after all other options have been exhausted. Private loans are offered by private lenders and eligibility often depends on your credit score. The student must contact their lender for the application and terms of the loans.
Workforce Innovation and Opportunity Act (WIOA) is a resource for students looking for educational training to receive employment. A satellite Career Center office is located on CVCC campus in Brassell Hall.
Alabama National Guard Education Assistance Program (ANGEAP) is a resource to provide financial assistance beyond tuition and fees to Alabama National Guard members. Application forms must be completed by the student and submitted to the VA School Certifying Official in the Financial Aid Office for any applicable reimbursement.
Alabama GI Dependent Scholarship Program is for students who are the dependent of an Alabama disabled veteran. Applications may be obtained from any county veterans’ service officer (usually located in the courthouse) or by contacting Alabama State Department of Veterans Affairs.
Federal VA Educational Benefits
Post 9/11 or Chapter 33 offers education benefits for active duty or veteran service members. Education benefits can also be transferred to a dependent. Tuition and fees benefit percentage is paid directly to the school. The monthly housing allowance (MHA) and book stipend benefits are paid directly to the student.
Service members can apply for education benefits online at www.va.gov or by completing VA Form 22-1990 and submitting it to the VA Regional Processing Office. Transferred education benefits can be using by applying online at www.va.gov or by completing VA Form 22-1990e. Once the VA office has processed the application a certificate of eligibility is mailed to the student to present to the college.
Montgomery GI Bill or Chapter 30; Montgomery GI Selected Reserve (MGIB-SR) or Chapter 1606 or the Reserve Educational Assistance Program (REAP) or Chapter 1607 offers education benefits for active duty members who have completed a minimum service obligation; for reservists with a six-year obligation in the Selected Reserves who are actively drilling; for members of the Reserve components called or ordered to active duty in response to a war or national emergency declared by the president or Congress. These benefits are paid directly to the student.
Service members can apply for education benefits online at www.va.gov or by completing VA Form 22-1990 and submitting it to the VA Regional Processing Office. Once the VA office has processed the application a certificate of eligibility is mailed to the student to present to the college.
Vocational Rehabilitation and Education (VR&E) or Chapter 31 offers education benefits for veteran students who have a service connected disability. Tuition, fees, books and supplies are paid directly to the school. The monthly housing allowance (MHA) is paid directly to the student.
Application information can be found online at www.benefits.va.gov or by calling 1-800-8271000. An authorization or 1905 form from the student’s VA counselor is required to be submitted to the college.
Survivors and Dependents Educational Assistance (DEA) or Chapter 35 offers education benefits to eligible depends of Veterans who are permanently and totally disabled due to a service-related condition or of Veterans who died while on active duty or as a result of a service-related condition. These benefits are paid directly to the student.
Dependent student can apply for education benefits online at www.va.gov or by completing VA Form 22-5490 and submitting it to the VA Regional Processing Office. Once the VA office has processed the application a certificate of eligibility is mailed to the student to present to the college.
Tuition Assistance offers education benefits to active duty military service members. Each service branch determines eligibility criteria. All active duty service members must contact their Education Service Officer (ESO) within your branch of service prior to enrolling. Click Tuition Assistance for additional information.