Federal Direct Loans At Shasta College
 

2020-21 Direct Loan Requests will be accepted:

July 1, 2020 through April 23, 2021*

*For students who will be transferring, graduating, or not attending after the Fall 2020 semester, the deadline is November 27, 2020.

 
About Federal Student Loans

What is a Federal Student Loan?
A Federal Direct Student Loan is a type of financial aid that incurs debt that must be paid back with interest. Shasta College offers William D. Ford Federal Direct Loans through the Department of Education. Direct loans are low-interest education loans for students to meet any unmet costs associated with attending college. There is no credit check or cosigner required to qualify. The U.S. Department of Education is the loan lender, and each loan is assigned to a contracted loan servicer that handles all aspects of the loan after the school awards and disburses the loan to a student. You can find your loan servicer and their contact information by visiting https://studentaid.gov/manage-loans/repayment/servicers after your first loan disbursement has been made. Your loan servicer will be responsible for any questions you have about your loan after the funds have been disbursed, and it is important to keep your contact information current with them.


Repaying your Student Loans is Necessary
Federal student loans are long-term debt obligations. Accepting a loan means accepting the responsibility for repaying the money you borrow, including interest costs and fees. Before you request a loan, make sure you understand the true cost of repaying the loan, interest rates, and how many years you will spend making a monthly payment. To get answers to these questions, you should visit https://studentaid.gov/understand-aid/types/loans

 

Be a Smart Borrower
You can also find more information regarding interest rates, repayment plans, deferments, forbearance, consequences of default and much more at https://studentaid.gov/h/manage-loansYou can also visit Shasta College’s online financial wellness platform powered by iGRAD to increase your personal financial knowledge in order to plan your financial future, with courses on topics like student borrowing, budgeting monthly expenses, using financial aid wisely, and many more. iGRAD is also where you will complete the required Loan Entrance and Exit Counseling to borrow at Shasta College.


Two Requirements for ALL Borrowers

1. Entrance Counseling – Loan Entrance Counseling is required of ALL first time or returning borrowers and is completed as part of the of the Shasta College Federal Direct Loan request process. Without Entrance Counseling your loan will not be awarded or disbursed. For more information, log in to SC Online and then click on this link: https://shasta.igrad.com/courses/entrance-counseling

2. Exit CounselingExit Counseling is required of borrowers when the borrower drops below 6 units during a semester or stops attending, completes just one semester, or when a student completes their program of study at Shasta College or transfers to another school. For more information, log in to SC Online and then click on this link: https://shasta.igrad.com/courses/exit-counseling


 
​​Required for a Direct Loan at Shasta College
  

You must complete all of the following items before we can process a loan for you:

1) Complete a 2020-21 FAFSA, and FAFSA Verification, if required.

2) Be enrolled in a minimum of 6 payable units at Shasta College, at time of loan awarding AND at time of loan disbursement.

3) Have a Satisfactory Academic Progress (SAP) status. You can view your status in MyFinancialAid.

4) You must be enrolled in an eligible Shasta College Associate Degree, Certificate or Bachelors Degree Program. your eligibility will be determined by providing the following

A current, Complete Educational Plan.
“Current” means that it includes the Fall 2020 and/or Spring 2021 semesters.
“Complete” means that it includes your Shasta College educational goal, all coursework required to complete it, and an evaluation of transcripts from all prior colleges you have attended. The ed plan must name each prior college and show whether or not any units from there apply to your educational goal. Please contact the Counseling Center at (530) 242-7724 for an appointment.

The complete ed plan requirement is waived if, and only if, you are accepted into and currently taking coursework in the ADN program, Dental Hygiene program, or the Bachelors Degree in Health Information Management program. This is because these programs have set admissions requirements​ and follow a series of set coursework for completion. You may be asked to provide proof of acceptance into the program.

5) Complete iGRAD Loan Entrance Counseling by creating and signing in to your iGRAD account through SC Online, and then clicking on this link: https://shasta.igrad.com/courses/entrance-counseling

 6) Complete the Master Promissory Note (MPN) for a Subsidized/Unsubsidized Loan at https://studentaid.gov/mpn/subunsub/landing

7) Submit a Loan Request via your MyFinancialAid portal.
To avoid any delays, all items must be completed prior to submitting a Loan Request in MyFinancialAid. Please note that it can take up to 4-6 weeks from the date you submitted your request to the time it is reviewed. If the above items aren’t complete when we review your request, you will be notified to complete any missing items and then submit another request!

 
Undergraduate direct Loan Limits
 


​​​Direct Loan Interest Rates and Fees​

Interest Rate for Subsidized and Unsubsidized Direct Loans

The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. the table below provides interest rates for Direct Subsidized and Direct Unsubsidized Loan first disbursed on or after July 1, 2020 and before July 1, 2021.


 

Loan Fees for Direct Subsidized Loan and Direct Unsubsidized Loans

Most federal student loans also have loan fees that are a percentage of the total loan amount. the loan fee is deducted proportionately from each loan disbursement while enrolled in school. this means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received. The chart below shows the loan fees for Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after Oct. 1, 2018.


 

For more information on interest and loan origination fees, please visit https://studentaid.gov/understand-aid/types/loans/interest-rates


​​Important Federal Direct Loan Reminders 
  
  • Loan processing can take up to 4-6 weeks. Please be sure that you have completed all of the requirements above so your loan can be processed when it’s your turn.

  • Communication will be via email, via your MyShasta-MyFinancialAid portal or via U.S. mail. 

  • From the date that the first disbursement is made, you have 14 days to cancel your entire loan, and must return all disbursed loan funds at the time of cancellation. You have the right to cancel all or a portion of any undisbursed loan amounts at any time by emailing studentloans@shastacollege.edu

  • The earliest loan disbursement is 30 days after the semester begins.

  • You must be actively enrolled in six or more units both at the time of loan awarding and at the time of every disbursement. If you drop below six units, all undisbursed loan amounts will be cancelled.

  • A high risk borrower is defined as someone who has ever defaulted on a prior student loan or who has over $25,000 in total outstanding student loan debt. A high risk borrower will be required to complete
    ​the iGRAD “Repaying your student loans” course:
    https://shasta.igrad.com/courses/repaying-your-student-loans

  • Under 34 CFR § 685.301, on a case-by-case basis, the financial aid office may refuse to originate a student loan or may reduce the borrower’s determination of need for the loan. Should this determination be made the Financial Aid Office must document the determination and provide the reason for determination to the borrower in writing.

  • You must continue to meet all Satisfactory Academic Progress​ (SAP) requirements to be eligible for a Direct Loan. If you become Ineligible, any undisbursed loan amounts will be cancelled.