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).
With Direct Loans, you:
If you receive a federal loan, you can only use the money to pay for educational expenses at CLCC. These include: tuition and fees; books, supplies, and equipment; the rental or purchase of a personal computer; room and board; dependent child care expenses; transportation; and miscellaneous expenses.
Federal loans are a better deal than loans from private lenders. Federal student loans generally have lower interest rates that are fixed, generous repayment plans, no repayment penalties, and no credit checks (except for PLUS loans).
You can track your loan history at the National Student Loan Data System. All your federal loan information is reported to NSLDS, where you, your loan servicer, and other authorized users can access it.
DIRECT LOAN COUNSELING ADDENDUM
Direct Subsidized Loan Time Limitation If you receive your first federal student loan after June 30, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period." In addition, if you continue to be enrolled in any undergraduate program after you have received Direct Subsidized Loans for your maximum eligibility period, we will no longer (with certain exceptions) pay the interest that accrues on your Direct Subsidized Loans for periods when we would normally have done so. This is called losing interest subsidy. Remember: Loss of eligibility for Direct Subsidized Loans due to the time limitation has no impact on your eligibility for Direct Unsubsidized Loans. The periods of time that count against your maximum eligibility period are periods of enrollment (also known as "loan periods") for which you received Direct Subsidized Loans. If you enroll in a new program that is longer than your previous program, you may regain eligibility to receive Direct Subsidized Loans.
Maximum Eligibility Period to Receive Direct Subsidized Loans
There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period". You can usually find the published length of any program of study in CLCC’s catalog. For example, if you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years). Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.
Effect of Borrowing While Enrolled Part-Time
If you receive a Direct Subsidized Loan when you are enrolled less than full-time, the period that is counted against your maximum eligibility period will be reduced. For example, if you are enrolled half-time and receive a Direct Subsidized Loan for a period of enrollment that covers a full academic year, this will count as only one-half of a year against your maximum eligibility period.
Summer Loan Eligibility
Please be aware that if you borrow all of your loan eligibility during Fall and Spring, you will not have any loan eligibility remaining for Summer. If your program requires attendance during the Summer semester, you may want to consider budgeting your annual loan eligibility across 3 semesters.
Student Loan Repayment Assistance — Co-Lin's Partnership with USA Funds®
As you begin your school experience, or as you prepare to leave school, we want to ensure you are well-informed and equipped to repay the loans that helped finance your higher education. We have partnered with USA Funds® — a nonprofit organization with more than 50 years of experience in counseling student loan borrowers — to assist you in understanding your loan repayment commitments and in addressing any issues you may encounter with the repayment of your student loans.
In the coming months, you may receive a call from a USA Funds Borrower Connect InTouchSM representative who will:
• Help you understand your loan obligations and responsibilities
• Discuss available options for an achievable and affordable repayment plan.
• Ensure you are aware of repayment options during financial hardships.
• Promote your long-term repayment success.
These representatives are available to counsel you about your outstanding loans and, when appropriate, work with you and your loan servicer to address any loan payment issues.
To contact a USA Funds representative for assistance, please call (866) 497-8723.