Loan Information

What Can You Use Loan Money For?

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.

2018-2019 Federal Student Loan Process

  1. Complete a FAFSA for the 2018-2019 award year at www.fafsa.ed.gov with all required verification completed.
  2. All first time borrowers must complete Entrance Counseling online at www.studentloans.gov.
  3. All first time borrowers must complete Master Promissory Note (MPN) for Subsidized/Unsubsidized Loans online at www.studentloans.gov
  4. All returning student loan borrowers should review your Loan History online at www.nslds.ed.gov in order to “know what you owe”.
  5. If you would like a Federal loan to be processed, please send an email request to:financialaidinfo@colin.edu and indicate if you want your maximum eligibility or a lesser amount to be certified.

We encourage you to borrow as little as possible. A Federal student loan is money YOU borrow and must pay back with interest. You can borrow up to your maximum federal loan eligibility as long as you have an unmet need within your cost of attendance budget.

Eligibility calculation: Cost of Attendance - FAFSA EFC - All Financial Aid Awards = Unmet Need

Other eligibility factors are you must be enrolled in at least 6 hours needed to complete your program of study and you meet the terms of the Satisfactory Academic Progress Policy

The annual loan limits for subsidized/unsubsidized loans are:                                                                                                               

Dependent Undergraduates           Subsidized                    Total (subsidized/unsubsidized)    

First Year...................................................... $ 3,500............................... $ 5,500

Second Year................................................ $ 4,500................................ $ 6,500


Independent Undergraduates & Dependent Students whose parents can’t get PLUS

First Year....................................................... $ 3,500................................. $ 9,500

Second Year................................................. $ 4,500 ..............................$ 10,500

Parent Plus Loans

Parents who want to apply for a Parent Plus loan can go to: www.studentloans.gov and complete the counseling and master promissory note under the Parent Borrowers tab.

Federal Loans vs. Private Loans

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).

Track Your Loan History

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.

For More Information

  1. The federal government offers a lot of detailed information about loans at StudentLoans.gov.
  2. To estimate eligibility to determine if you may qualify for Income-Based Repayment (IBR) visit www.ibrinfo.org.
  3. To gain information on loans before you owe: www.consumerfinance.gov/students/knowbeforeyouowe.
  4. To view the Code of Conduct
  5. Budgeting for College Students