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Student Loans
FFEL Loans are the major form of self-help aid from the Department of Education. Under the FFEL Program, the funds for your loan are lent to you from a bank or credit union. GWC has a list of its own preferred lenders, but you may borrow from any lender that participates in the FFEL program. There are loan fees associated with this loan, which are charged by the lender.
Be Careful
Student Loans are a legal commitment and must be paid back. Failure to pay a student loan back in a timely manner will result in the same legal action taken to collect the loan as a loan borrowed from any other source. Your credit record will be negatively affected and the loan guarantor may have your wages attached in order to receive the funds still due from you. You can quickly find yourself in financial trouble if you borrow too much-- so if you must borrow, borrow cautiously. The GWC Financial Aid Office recommends that you do not apply for an FFEL Loan unless it is the only financial option left to you in order to continue your college education.
What kinds of FFEL Loans are available?
FFEL Loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period. A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment, or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods. If you feel that you must borrow to stay in college, you should try to stick solely to applying for subsidized loans.
An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized--that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. If you do not start making interest payments immediately, you will owe a much greater amount by the time you finish college and your monthly loan payments will be much larger.
How much may I borrow?
GWC identifies a first-year student as one who has completed less than 30 units toward his or her educational program and a second-year student as one who has completed 30 or more units toward their educational program. First-year students who have unmet need after all other financial aid has been awarded, may borrow a subsidized loan up to the amount of their unmet need or $2,625, whichever is less. Second-year students, may borrow a subsidized loan up to the amount of their unmet need or $3,500, whichever is less.
Students who do not borrow the annual maximum from the subsidized FFEL Loan may replace the expected family contribution with an unsubsidized FFEL Loan. Students who have no calculated need may borrow up to the annual loan limits from the unsubsidized loan.
Any independent student requesting an additional unsubsidized FFEL Loan must submit a statement explaining how much they want to borrow (maximum $4,000 and cannot exceed cost of attendance), why they need to borrow this amount and how they expect to repay the loan (i.e. future earnings).
The recommended aggregate borrowing limit for GWC students is $12,750.
Who can get an FFEL Loan?
You must be a regular student enrolled in at least six units of study in an eligible program at GWC. You must also meet other general eligibility requirements.
How do I apply for a FFEL Stafford Loan?
As with all forms of federal student financial aid, you must complete the Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA. Be sure to indicate Golden West College as one of the recipients of your Student Aid Report (SAR). The Financial Aid Office will review your application on a first-come-first-served basis and will inform you about your general loan eligibility.
Next, you must complete a mandatory loan orientation workshop. Please go to www.edfund.org and complete Edtest. If you do not have access to a computer, the Financial Aid Office has systems available.
Once you have completed a loan orientation, you will be required to sign and complete a promissory note. Remember that the promissory note is a legal document requiring you to repay the loan. Read it carefully before you sign. The promissory note is sent to you by your lender.
Prior to graduation and/or transfer, you will be required to complete an exit interview. Please go to www.edfund.org and complete the exit interview portion of Edtest.
Repayment begins six months after you graduate or cease to be at least a half-time student. You will generally have 10 years to pay back your loan. Your monthly payment will usually be more than, but never less than $50. It is the borrower’s responsibility to maintain contact with the lender and to establish a repayment schedule. The borrower’s failure to inform the lender of changes in enrollment status, anticipated graduation dates, current address, name, deferment eligibility, or college of attendance may result in default on the student loan.
PERKINS LOANS
A Federal Perkins Loan is a low-interest (5%) subsidized loan for students with exceptional financial need. Golden West College is your lender. The loan is made with government funds with a share contributed by GWC. You must repay this loan to the Coast Community College District. There are no lender fees charged for this loan, unlike there would be for an FFEL Loan. Repayment on this loan will not occur until nine months after you graduate or cease to be at least a half-time student. Since the loan is 100% subsidized while you are in college, no interest will accrue until you enter the repayment period.
How much can I borrow?
$3,000 per year with a maximum of $6,000 borrowed while at GWC.
How can I qualify for this loan?
Students with the most need (EFC of 0) who are interested in borrowing money are offered these loans first. There is only a limited amount of Perkins Loan money available for GWC to lend each year. Once the money is lent out, the college will be unable to lend any more until the next year. Priority is given to those qualifying students who complete their files with the Financial Aid Office. To receive a Perkins Loan you must be enrolled in at least 6 units at GWC in a degree transferable program.
Must I attend a loan orientation workshop?
Yes. You must complete what is called an entrance interview before you can receive your loan money and you must attend an exit interview before you leave GWC. Contact the Financial Aid Office for details.
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