Student Loans
Federal Direct Loans
Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution.
With Direct Loans, you
- Borrow directly from the federal government and have a single contact-the Direct Loan Servicing Center—for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
- Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on the Web at: www.dl.ed.gov.
- Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
The interest rate on Direct Subsidized Loans for undergraduate students is based on the first disbursement date as listed in the table below. The interest rate for Direct Unsubsidized Loans is fixed at 6.8%.
Direct Loans will be disbursed two times a semester. Typically, loans are disbursed half in the fall and half in the spring. First disbursements for new borrowers cannot be authorized until 30 days into the semester. Students must be actively attending a minimum of 6 units at GWC to receive a Direct Loan. GWC doesn’t offer loans in the summer.
How to Apply for a Direct Loan
- Apply for FAFSA
- Turn in paperwork at GWC
- Must enroll in at least 6 units at GWC
- Attend a FA orientation & receive award letter
- Sign up and attend Direct Loan orientation
- Turn in loan request forms
- Complete entrance counseling and MPN
- If you haven’t done so, set up Direct Deposit
Direct Subsidized Loans
Direct Subsidized Loans are for students with financial need. Your school will review the results of your Free Application for Federal Student Aid (FAFSASM) and determine the amount you can borrow. You are not charged interest while you’re in school at least half-time and during grace periods and deferment periods.
Direct Unsubsidized Loans
You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, your school will determine the amount you can borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
Entrance & Exit Counseling
Entrance and Exit Counseling is a federal requirement for all loan borrowers every academic year. The web site for Entrance and Exit counseling is www.studentloans.gov.
- Entrance Counseling will take approximately 20-30 minutes
- Exit Counseling will take approximately 30 – 40 minutes
Forbearance
Forbearance is an arrangement to postpone or reduce your monthly payment amount for a limited and specific period during which you are charged interest. If you indicate a temporary inability, but willingness to pay the loan(s), you may ask for or be offered a forbearance. For all Direct Loans, interest that accrues during forbearance is the responsibility of the borrower. When you re-enter repayment at the end of the forbearance period, any unpaid interest capitalizes (is added to the principal balance). Our online Interest Capitalization Estimator can provide you an estimate of how much interest might capitalize at the end of your forbearance. There are several forbearance types. You must apply and qualify for forbearance and the U.S. Department of Education must approve the request in order for forbearance to be in effect. If you are not eligible for forbearance you may still be eligible for a deferment.
Deferment
A deferment is a temporary suspension of loan payments for specific situations such as reenrollment in school, unemployment, or economic hardship. For a list of deferments, click here. You don’t have to pay interest on the loan during deferment if you have a subsidized Direct or FFEL, Stafford Loan or a Federal Perkins Loan. If you have an unsubsidized Direct or FFEL Stafford Loan, you’re responsible for the interest during deferment. If you don’t pay the interest as it accrues (accumulates), it will be capitalized (added to the loan principal), and the amount you have to pay in the future will be higher. You have to apply for a deferment to your loan servicer (the organization that handles your loan), and you must continue to make payments until you’ve been notified your deferment has been granted. Otherwise, you could become delinquent or go into default. You must be enrolled at an eligible school at least as a half-time student.