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Student Loan Repayment 

When it comes to your federal student loan, there's a lot to consider.  Having a thorough understanding of the details of repayment can save you time and money.  If you don't make your student loan payment or make your payment late, your loan may eventually go into default.  If you default on your student loan, that status will be reported to credit bureaus and your credit rating and future borrowing ability will be affected.  In addition, legal action can be taken to require payment through garnishment of wages and withholding of tax refunds.  

Remember, you must repay a student loan even if your financial circumstances become difficult. Loans can't be canceled because you didn't get the education or job you expected and they can't be canceled because you didn't complete your education unless you couldn't complete your education because your school closed.

For Direct Subsidized and Direct Unsubsidized loans, repayment generally starts after a 6-month grace period that begins the day after you graduate, leave school or drop below half-time status. Unless otherwise notified by your loan servicer, your first monthly payment will be due after your grace period ends. For PLUS loans, repayment begins once the loan has fully disbursed.

You will be making your loan payments to your federal loan servicer, the company that handles the billing and other services on your federal student loan.  You can find out who your servicer is and locate their contact information by logging in the National Student Loan Database System (NSLDS) at https://www.nslds.ed.gov/npas/index.htm 

 

Federal Direct Subsidized Loan

A Federal Direct Subsidized loan is a low interest need-based loan made to students enrolled at least half-time who have completed the FAFSA for the appropriate academic year.  The student must be meeting Satisfactory Academic Progress requirements in order to be eligible for the loan.  The federal government pays loan interest while the student is in school and loan repayment begins six months after the student graduates or drops below half-time enrollment.  Due to Federal legislation enacted in July 2012, eligibility for the subsidized loan is limited for new borrowers on or after July 1, 2013.  The law limits the period of time for which a borrower may receive subsidized loans to 150 percent of the published length of the student's program of study.   

Federal Direct Unsubsidized Loan

A Federal Direct Unsubsidized loan is a low interest non need-based loan made to students enrolled at least half-time who completed the FAFSA for the appropriate academic year.  The student must be meeting Satisfactory Academic Progress requirements in order to be eligible for the loan.  Direct Unsubsidized loans accrue interest while you are enrolled.  You can choose to pay the interest each month while in school or allow the interest to accumulate. Loan repayment begins six months after the student graduates or drops below half-time enrollment.   

Federal Parent Plus Loan

The Federal Direct PLUS loan is available to parents of dependent undergraduate students who have completed the FAFSA for the appropriate academic year. Interest is charged during all periods.  The U.S. Department of Education will evaluate the borrower's credit history to determine eligibility and if approved will be valid for 180 days.  Basic eligibility requirements are you must be a U.S. citizen or eligible noncitizen, not if default on any federal loans and the student must be enrolled at least half-time and be meeting satisfactory academic progress.  The loans are available to parents (natural, adoptive or step parent whose information is on the FAFSA) of dependent students.  

Private Educational Loan

Private education loans should only be considered after students and parents have explored federal loan options which often have lower interest rates. Students, who have not applied for federal aid, including federal loan programs, may do so by completing the FAFSA online.  Interest rates and terms vary by lender, students may borrow up to the cost of attendance minus any other financial aid and do not have to be making satisfactory academic progress in order to be eligible for the loan.  Once you have been approved for a private student loan, please contact the loan coordinator at Collin College at amchavez@collin.edu so that the college can certify your loan.  

Apply here: https://choice.fastproducts.org/FastChoice/home/2361400  

 

Annual and Aggregate Loan Limits 

Academic Level Loan Limit
Dependent Students
Loan Limit
Independent Students
Freshman Annual Limit $5,500
No more than $3,500 in Subsidized Loans
$9,500
No more than $3,500 in Subsidized Loans  
Sophomore Annual Limit $6,500
No more than $4,500 in Subsidized Loans
$10,500
No more than $4,500 in Subsidized Loans
Aggregate Loan Limits
Undergraduate
$31,000
No more than $23,000 in Subsidized Loans 
$57,500
No more than $23,000 in Subsidized Loans

 

Interest Rates for Student Loans

The Subsidized loan interest rate for the 2017-2018 year is 4.45% for loans disbursed on or 

after 07/01/2016.

The Unsubsidized loan interest rate for the 2017-2018 year is 4.45% for loans disbursed on or

after 07/01/2016.  

The PLUS loan interest rate for the 2017-2018 year is 7.00% for loans disbursed on or

after 07/01/2016.  
 

Applying for Student Loans

1. Complete the 2016-2017 FAFSA (Free Application for Federal Student Aid) at http://www.fafsa.gov 

2. Turn in all documents requested by the Financial Aid Office.  After we receive your FAFSA results
     from the federal processor, any required documents will be
 listed on your CougarWeb account
     under the Financial Aid tab.  

3. Complete an on-line Master Promissory Note (MPN) must be completed by all students receiving
    federal student loans one time while attending Collin College and can be found at: 

    https://studentloans.gov/myDirectLoan/index.action
     

4. Complete on-line Entrance Counseling:https://studentloans.gov/myDirectLoan/index.action 


       

College Access Loan (CAL) Program

Apply for a CAL loan by clicking on this link:
CAL  
 

Cohort Default Rate for Federal Student Loans

15.1%