2018-2019 DIRECT LOAN & OBLIGATION APPLICATION College of the Redwoods Financial Aid Office Fall Only Deadline: October 26, 2018 Spring/ Full Year Deadline: March 22, 2019 To apply for a loan, please complete the following steps: Complete the 2018/19 FAFSA application process. Submit any follow-up documents that are requested by the financial aid office. You will receive a student email notice when your Financial Aid file review is complete (the email subject heading will be: Financial Aid Award Notification or Financial Aid Eligibility Notification). Complete a Direct Loan Master Promissory Note online @ www.studentloans.gov (one time only) Complete a Loan Entrance Counseling session online @ www.studentloans.gov (one time only) Meet and maintain Financial Aid Satisfactory Academic Progress (SAP) requirements. Enroll in and maintain 6 or more eligible units. Complete and submit the Direct Loan Application to the Financial Aid Office.* (repeat annually) *Students with prior loan debt greater than or equal to $15,000 (including current requested amount), or students with a previously defaulted loan, may be asked to complete and submit the Direct Loan Appeal Form. (annually) We highly recommend you complete a personal budget/worksheet (found on our financial aid website) to review your current debt level and understand how you are spending your money. Loans are fairly easy to get, but difficult to repay. We want to be sure you are well-informed so you only take out loans if absolutely necessary. Direct Loan Application Page 1 of 6
2018-2019 DIRECT LOAN & OBLIGATION APPLICATION College of the Redwoods Financial Aid Office Fall Only Deadline: October 26, 2018 Spring/ Full Year Deadline: March 22, 2019 Please use black or blue ink only! Applications submitted in pencil will not be processed. Name: Please Print (Last, First, MI) Birthdate: SSN: CR ID#: Phone #: For which types of loan(s) do you wish to be considered? Federal Subsidized loan ONLY Federal Subsidized and/or Unsubsidized loan (you will be charged interest while in school for the unsubsidized loan). For which term(s) will you be attending College of the Redwoods? Fall/Spring 2018-19 Fall 2018 only Spring 2019 only How much do you NEED to borrow? $ You must enter a specific dollar amount. Requests for $200 or less will not be processed. We will calculate the maximum amount you are eligible for up to the amount you request. Your financial aid awards (including loans) cannot exceed your cost of attendance (budget). If additional resources are added after a loan has been approved, and prior to disbursement, your loan will be reduced to accommodate the new award(s), if necessary. You may not be eligible for additional awards (including EOPS, scholarships, additional grants) if you have received all loan proceeds or you may need to repay some awards if an overpayment occurs. DO NOT BORROW MORE THAN YOU NEED! Think about your future debt. What is your current loan debt? $ * Review your loan records on www.nslds.ed.gov and enter your total loan debt, prior to this loan request. Inaccurate or incomplete loan debt information will result in a delay in processing your loan. *If your federal student loan debt (including this current request) is $15,000 or higher, you may be asked to file the Direct Loan Appeal form before your loan application will be considered. If you have current loan debt, indicate the name of your Federal Loan Servicer (s). Review your loan records(s) on www.nslds.ed.gov On a standard 10 year payment plan, my approximate loan payment will be $ per month. A loan repayment calculator may be found @ http://www.finaid.org/calculators/loanpayments.phtml. Direct Loan Application Page 2 of 6
References: In response to College of the Redwoods Default Prevention and Management Plan, we annually collect additional updated reference contact information for all student borrowers. This information is a supplement to what is obtained in the MPN. Enter the requested reference information for two adults who do not share a common address. The first reference should be a parent (if living), legal guardian, or an adult relative who would always be able to reach you. Name Reference A. Reference B. Permanent Address City, State, Zip Code E-mail address Area code/telephone number Area code/cell phone number Relationship to borrower List your permanent physical address (where you physically live when not in school): Address/Street/Apt# City State Zip List your permanent mailing address (where you receive mail when not in school): Address/Street/Apt# PO Box City State Zip List one phone number through which you can always be reached: By completing this form you are certifying that you understand your rights and responsibilities related to accepting a loan and intend to honor your responsibilities as a student loan borrower. Each statement must be initialed, which indicates your understanding of the statement. If you do not understand or have questions about any of the statements, you may make an appointment to meet with the Financial Literacy/Default Prevention Specialist by calling (707) 476-4183. Please read and initial the following statements below. If all statements below are not initialed, your loan application will not be processed. I understand that I am applying for a Federal student loan that must be repaid according to my repayment plan, even if I do not complete my education, drop out, get a job or am dissatisfied with the education I receive or unable to find employment after graduation. I understand that if I submit a Direct Loan & Obligation Application prior to notification from Financial Aid that my file is complete, or prior to completion of the Loan Entrance counseling, and a signature of a Master Promissory Note (MPN), my the Direct Loan Application may be returned and not processed. Direct Loan Application Page 3 of 6
I am requesting a loan for the amount indicated above, or the amount for which I am eligible to borrow. I understand that my total financial aid awards cannot exceed my cost of attendance/budget. I understand my eligibility for other programs may be limited/reduced by my loan amount, or if additional grants, scholarships, or other awards are added after a loan has been awarded, but prior to disbursement, my loan amount may be reduced to accommodate the new awards. I have read and I understand the conditions of borrowing a Federal Direct Stafford Loan for attendance at College of the Redwoods and I have read and I understand the Financial Aid policies available on our website. I acknowledge that loan funds will be used to assist in meeting my educational costs. Loan proceeds may not be used to purchase or lease an automobile, go on vacations, or other non-educational related expenses. I understand that loan funds will not be disbursed until at least 30 days after the start of the new term as part of College of the Redwood s default prevention and management plan and that I must plan accordingly. I understand I must be enrolled in and attending six or more eligible degree applicable units to receive loan funds. I understand that the actual amount of the loan may be less than the amount I have requested due to my loan eligibility and grade level. I understand that I must meet Satisfactory Academic Progress (SAP) each semester to be eligible to receive a loan. I understand that if I do not meet SAP, I will lose loan eligibility for the following semester and any undisbursed portion of my student loan will be canceled. I understand that in response to default prevention and management plan, if I am a first time student loan borrower at College of the Redwoods, I may be required to meet with Financial Aid and/or advising staff to complete financial and academic planning. I understand that College of the Redwoods recommends a total level of loan debt not to exceed $15,000. If my borrowed amount (including the current request) is at or above $15,000, I am required to submit a Direct Loan Appeal. I understand that Financial Aid staff may use professional judgment to decline or reduce the loan requested for students at risk to default on a case-by-case basis per HEA Sec. 479(A)(c), 34 CFR 685.301(a)(8), DCL GEN-11-07. In circumstances when professional judgment is used, a written explanation will be provided to the student. Some reasons federal loans may be denied or reduced include but are not limited to: The student is not making steady progress in a degree, certificate or transfer program. This decision is made independently from the Satisfactory Academic Progress Appeal process. The student has already borrowed the maximum loan amount appropriate for community college programs. The student appears to be or has been in default or delinquent on federal financial aid obligations. The student has a drastic change in requested borrowing amount from previous year(s). The student has valid and applicable education for employment and is choosing to pursue another educational endeavor. This decision is made independently from the Satisfactory Academic Progress Appeal process. The student has met the maximum eligibility for subsidized loans based on the length of the student s academic program. This decision is made independently from the Satisfactory Academic Progress Appeal process. I understand that the decision to deny or reduce aid is appealable to the Director, Enrollment & Financial Aid Services, and that the Director s decision is final. Direct Loan Application Page 4 of 6
I understand that in response to default prevention and management, I may be required to meet with the Financial Literacy Advising Specialist prior to the loan certification, if I have (had) academic performance difficulties, including but not limited to, withdrawing from a course(s) and/or being placed on Warning SAP status for Financial Aid. I understand academic performance from schools other than College of the Redwoods may be taken into consideration when determining if I must meet with the specialist. I understand that College of the Redwoods is committed to default prevention and management and strives to limit loan defaults and the debt of students. A high loan default rate may affect all College of the Redwoods students eligibility for grants, loans, and Federal Work Study. I understand that I may be required to complete enhanced loan entrance and/or exit counseling and financial literacy education on an annual basis as a borrower and/or upon reaching a specific level of total loan debt. I understand that an origination fee will be deducted from each loan disbursement by the Department of Education. I understand if my student account has a balance from tuition charges, on-campus housing or other fees, that this balance will be deducted from my student loan disbursement. If my student loans exceed the total charges, my account will have a credit balance and a disbursement will be made to my CR Access Card. I understand that inaccurate or incomplete loan application information, including but not limited to, budget information or any other forms required for the loan application process, will delay loan processing. I understand it is my responsibility to notify the Financial Aid Office once all required forms and/or processes have been completed. I understand that loans taken out prior to July 1, 2014 or on/after July 1, 2015 may have a 6 month grace period. I understand that interest on Subsidized Loans is paid by the taxpayers while I am enrolled in and complete at least six units each term. I understand that a loan for which the 1 st disbursement is made after July 1, 2014 and before July 1, 2015 that interest will begin to accrue during the grace period. I understand that eligibility for subsidized loans is limited to 150 percent of program if I am a new borrower with a zero balance as of 7/1/2015. I will promptly contact my Direct Loan Servicer (s) and the Financial Literacy/Default Prevention Specialist when I graduate or withdraw from school, carry less than six units per term, or change my name and/or address. I understand that for any students and/or parent applying for a Title IV, HEA loan that the loan(s) will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. I understand that interest on an unsubsidized loan will begin to accrue immediately after the first disbursement. I understand that while I am in college, if I choose not to pay the interest as it accrues, this will increase the total amount that I have to repay. I understand that failure to meet the terms of loan repayment may require the entire amount of the loan, plus collection and legal costs to become repayable immediately. Direct Loan Application Page 5 of 6
Borrower Certification: Under penalty of perjury, I certify that the information I have provided on this request is true and accurate. I understand that if I give false or misleading information, my loan will be denied, I may jeopardize my eligibility to receive other financial aid funds, I may be referred to the Student Conduct Officer, and I may be fined, sentenced to jail, or both. I certify that I am not in default or delinquent on any educational loan and that I do not owe a repayment of federal funds. I understand the College of the Redwoods total loan limit is $15,000.00. If the amount I am requesting to borrow will put me at or above the recommended borrowing limit, or if I have previously defaulted on a student loan, I may be required to submit a Direct Loan Appeal. I understand that an inaccurate or incomplete loan application, including but not limited to, budget information or any other forms required for the loan application process, will delay loan processing. I understand it is my responsibility to notify the Financial Aid Office once all required forms and processes have been completed. I also understand I have the right to cancel all or a portion of my awarded loan amount. I have read and understand the Financial Aid Policies available on the CR website: http://www.redwoods.edu/financial-aid/. I affirm that I have read the above statements and agree to accept my responsibilities. Any false statements may be grounds for refusal to originate a federal loan; may result in referral to the Student Conduct Officer and/or to the Department of Education s Office of Inspector General. I recognize the responsibility and commitment to repay all student loans. I realize that if I have not initialed my understanding of each statement, my application will not be processed, and that I have the right to meet with the Financial Literacy Advising Specialist if I have any questions or need more information. I understand that this is a federal education loan and I must repay this loan. Do not sign if you do not fully understand your rights and responsibilities related to this loan! Student s Signature: Date: More information about financial aid policies and procedures as well as deadlines and other important information is available on our website: http://www.redwoods.edu/financialaid Direct Loan Application Page 6 of 6