Loans

Federal Direct Loan Changes Effective 2026-2027

Full-Time Academic Year Definition: To be considered full-time for the academic year the student must take 24 credit hours in an academic year.

Half-time Enrollment: Students must be enrolled for at least a half-time load of financial aid-eligible classes to receive a Federal Direct Loan in any given semester. The minimum number of credits per semester to be considered half-time is: 6 credit hours

  • Less than Full-Time Enrollment: Starting with the 2026-2027 award year, Direct Loan amounts for students who are not full-time for the full academic year will need to be adjusted based on enrollment.
  • Less than Full-Time Formula for Loan Reduction:

    Less Than Full-Time Loan Adjustments - Office of Scholarships and Student Aid

  • Loan Reduction at the time of Disbursement:
    At the time of loan reduction, the student’s loan will be reduced based on the number of credits enrolled, even though they may have been awarded as a full-time student.

Loans Subject to Reduction: The loan reduction rule applies to all undergraduate, graduate, and doctoral student Federal Direct Loan borrowers, utilizing Direct Subsidized Loans, Direct Unsubsidized Loans, and Graduate PLUS Loans. Even those considered legacy borrowers who have borrowed from any of these loan programs prior to July 1, 2026 are subject to this rule.

Parent PLUS Borrowers: Since this rule only impacts student borrowing, the Federal Direct Parent PLUS Loan is not subject to these adjustments for less-than-full-time enrollment.

Loan Reduction Calculation Example

A dependent first-year student can borrow up to $5,500 in federal student loans for the school year. Student plans to take 12 credit hours in the Fall and 12 credit hours in the Spring, which makes them a full-time student.

  • Full-time for the year = 24 credits (12 Fall + 12 Spring)
  • Loan is disbursed in two equal payments:
    • Fall: $2,750
    • Spring: $2,750
    • Total: $5,500

The student was enrolled in 12 credits in the Fall and dropped to 6 credits. The recalculation will be as follows:

  • Fall: 6 credits
  • Spring: 12 credits (expected)
  • Total: 18 credits

Percent of credits completed: (18 / 24) x 100 = 75%

Reduced Loan Eligibility
Academic Year Eligibility x Percent Credits Completed
$5,500 x 75% = $4,125 (maximum loan eligibility for the academic year)

Loans Available at Chattahoochee Valley

Loans are a form of financial aid that must be paid back with interest. Student loans can come from the federal government, private banks or other organizations. Before you decide to take out a loan, make sure you understand who is offering the loan and the terms and conditions to accept.

Along with completing the FAFSA application, students must also be admitted as degree-seeking undergraduate students and be meeting all aspects of Satisfactory Academic Progress (SAP).

Chattahoochee Valley Community College participates in the Federal Direct Loan Program. Under the Direct Loan Program, all funding comes directly from the U.S. Department of Education rather than a bank or financial institution. The U.S. Department of Education will be the one source for lending and repayment.

Direct Loans are low-interest educational loans administered through the U.S. Department of Education, which consist of the following:

The Federal Direct Loan is a non-credit based student loan for undergraduate and graduate students. There are two basic types of Direct loans: subsidized and unsubsidized. Both have a 6 month grace period (a period of time when a student is no longer enrolled for at least half-time and not required to make payments) and fixed interest rates, which are determined each year on July 1st. For interest rates, please refer to the Direct Requirements page for more information.

Subsidized Loans

Government pays the interest on behalf of the student while the student is in the deferment period and grace period. Once in repayment, the student is responsible for paying the interest on the loan as well as the principal amount borrowed.

The student’s cost of attendance must exceed his/her SAI or Student Aid Index.

The SAI is based on information collected from the Free Application for Federal Student Aid (FAFSA). The total amount of the subsidized loan combined with other “need-based” aid cannot exceed the student’s “financial need.”

Unsubsidized Loans

Government does not pay the interest on behalf of the student. Instead, the borrower is responsible for all the interest that accrues and capitalizes from the time the loan disburses.

Independent students may be eligible for greater unsubsidized amounts than dependent students.

Though it is non-need based aid, the amount of unsubsidized loan combined with other aid cannot exceed the total estimated cost of attendance.

Students Must:

  • File the FAFSA.
  • Be a U.S. citizen or eligible non-citizen.
  • Have a high school diploma or equivalent.
  • Be fully admitted and meet CVCC Admission requirements.
  • Be classified as degree seeking at CVCC in an eligible program.
  • Enroll for at least half-time (6 credit hours) in their program of study at CVCC at time of disbursement.
  • Maintain CVCC’s Standards for Satisfactory Academic Progress (SAP).
  • Complete all required To-Do List Items.
  • Complete verification (if selected).
  • If in receipt of a Federal Direct Loan during this academic year at another institution, make sure that the remainder of that loan is canceled before applying for a loan at CVCC.
  • Complete the online Master Promissory Note if this is your first time borrowing a Federal Direct loan.
  • Complete the online Entrance Counseling if this is your first time borrowing a Direct Loan at any school.

Students Cannot:

  • Default on any educational loan or owe a repayment on a federal grant at this or any other institution.
  • Borrow in excess of federal loan limits.

The Federal Parent PLUS Loan is a credit based federal loan for parents (biological, adoptive, or in some cases stepparent) of eligible dependent students. Interest that accrues on the loan is not subsidized by the federal government.

Eligibility Requirements

You must be a parent of a dependent who meets the following requirements:

  • Completed the Free Application for Federal Student Aid (FAFSA) and meet federal eligibility requirements of U.S. citizenship or eligible non-citizenship status.
  • Be degree-seeking. Be enrolled for at least 6 CVCC credit hours per semester that count toward degree completion as an undergraduate.
  • At time of disbursement, student must be attending at least 6 CVCC hours.
  • Meet the standards of Satisfactory Academic Progress (SAP).
  • Understand that total aid cannot exceed the cost of attendance.
  • Other aid (Scholarships, fellowships, waivers, etc.) affects financial aid eligibility.

Private Loans can vary in terms, conditions and eligibility requirements. For these reasons, Private Loans should be considered as a last resort for educational purposes after all other federal aid options have been exhausted. To make this process simpler, CVCC has partnered with ScholarNet.

Simplifying Private Loan Processing, Today and Every Day.

Our college uses ScholarNet, a secure online system that helps us process private education loans quickly and accurately. If you choose to apply for a private loan through your lender, ScholarNet allows your lender and our Financial Aid Office to share the information safely so your funds can be certified and disbursed without delay. Please click the link below in order to access the ScholarNet portal.

https://choice.fastproducts.org/FastChoice/home/1218200

 

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