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. Students are considered to be in default if they don’t make their scheduled student loan
payments for at least 270 days. There are several consequences to being in default. Please visit: https://studentaid.gov/manage-loans/default. Below, CVCC’s most recent cohort default number is listed.
Disclaimer: The FY2017 national cohort default rate is 9.7 percent.
Note: These loan limits are merely the maximum amount that a student may borrow within one year. A student’s loan may be lower due to their Cost of Attendance.
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. For more information, please visit or call your local Career Center. The number for the Career Center here on campus is 334-214-4828 and 334-214-4829.