Skip to Site Navigation | Skip to Local Navigation | Skip to Content

journalism students

Student Loans

Loans must be repaid!

Cabrillo recommends that students borrow only when it is absolutely necessary. Students who are planning to transfer should be aware that loans are generally the largest portion of a financial aid package at four year colleges and should consider total educational indebtedness before borrowing at Cabrillo.

Allow additional 5-8 weeks for the loan application process.

Note: Loans are also affected by the Federal Repeat Policy.

To take out a student loan, you must complete the Loan Application process EVERY school year.


2012-13 Loan Application Deadlines:

FALL 2012: Friday, November 2, 2012

SPRING 2013: Friday, April 26, 2013

The Fall Loan deadline has passed. Loan application processing for Spring will begin late January.



Types of Loans Available at Cabrillo

William D. Ford Federal Direct Loans

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education. The lender is the U.S. Department of Education rather than a bank or other financial institution. Direct Loans are a form of financial aid and must be repaid with interest.

Subsidized Direct Loan
While you are enrolled in at least 6 units and during any approved deferment periods, the federal government will pay the interest on your Subsidized Loans.  After you graduate, withdraw from school, or drop below 6 units enrollment, there is a 6 month grace period before repayment of the loans begins.  When you enter repayment, you are responsible to begin repaying the amount you borrowed as well as the interest that accrued and will accrue during the repayment period.  Subsidized Loans with a first disbursement from July 1, 2012 to June 30, 2013 will have a fixed interest rate of 3.4%. Any loans disbursed on or after July 1, 2012 and before July 1, 2014, will not be eligible for interest subsidy during the 6 month grace period.
Unsubsidized Direct Loan

The federal government DOES NOT PAY THE INTEREST ON UNSUBSIDIZED LOANS!—This should be a loan of last resort!

Interest accrues immediately after disbursement.  If you borrow Unsubsidized Loans, we strongly recommend that you begin making interest payments right after you receive your loan.  If you do not make interest payments while you are in school, the interest continues to accrue and is added (capitalized) to your principal loan balance at repayment.  When interest capitalization occurs, you will then be paying interest on top of interest which greatly increases the amount of your loan and the total amount you will be repaying.  Unsubsidized Loans with a first disbursement on or after July 1, 2006 will have a fixed interest rate of 6.8%. 


Cabrillo College does NOT participate in Direct PLUS Loan or Private Alternative Loan programs.


How Much You Can Borrow

It is your responsibility to know what your total student loan debt is!  Find out at www.nslds.ed.gov.

There is an aggregate (maximum) limit. If you plan to transfer, you will most likely need to take out more loans!

Direct Loan Annual Limits

The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent or an independent student. The following tables show the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans

Dependent Students
Dependent Student
Direct Loan Annual Limits

DEPENDENT STUDENTS

Base Amount
Subsidized/Unsubsidized
Combined

Additional
Unsubsidized

Yearly Maximum

Grade Level 1
0-29.9 completed units

$3,500

$2,000

$5,500

Grade Level 2
30+ completed units

$4,500

$2,000

$6,500

 

Independent Students
 Independent Student
Direct Loan Annual Limits 

INDEPENDENT STUDENTS

Base Amount
Subsidized/Unsubsidized
Combined

Additional
Unsubsidized

Yearly Maximum

Grade Level 1
0-29.9 completed units

$3,500

$6,000

$9,500

Grade Level 2
30+ completed units

$4,500

$6,000

$10,500

Loan Fees

The origination fee is 1.0 % for all Direct Subsidized and Unsubsidized Loans that are first disbursed on or after July 1, 2012 and before July 1, 2013 .

Undergraduate Aggregate Loan Limits 

Aggregate limits are the maximum total outstanding loan debt. These aggregate limits include both Direct Subsidized and Unsubsidized Loans and any subsidized and unsubsidized Federal Stafford Loans received through the Federal Family Education Loan (FFEL) Program.

Dependent Students
$31,000 (maximum $23,000 subsidized)
Independent Students
$57,500 (maximum $23,000 subsidized)

The recommended maximum aggregate loan debt for your entire time at Cabrillo College is $17,000. Plan accordingly.

Proration

Students attending Cabrillo College for one term ONLY are subject to prorated loan amounts.  This calculation is the number of units enrolled in divided by 24 and multiplied by grade level loan amounts.

 

 

Direct Loan Application Process

To take out a student loan at Cabrillo, you must complete these required steps EVERY school year:
1. Complete your financial aid file and receive a Final Review Done email

You will receive a Final Review Done email when the above steps are completed (you will also see this posted as 'Received' in WebAdvisor on the 'My Documents' page). Please refer to Financial Aid Processing Timelines.

Note: All students with Bachelors degree or beyond have exceeded the Maximum timeframe for any program at Cabrillo College and MUST complete the Maximum Time Frame appeal process (refer to our SAP Policy for more details). Bachelor students taking preparatory courses necessary for their enrollment in an eligible program at another institution are only eligible for loans for a period of up to one year.

 


2. Complete Entrance Counseling online at www.studentloans.gov
  • Complete online at www.studentloans.gov
  • Cabrillo College requires that you complete Entrance Counseling EVERY school year when you apply for a Direct Loan. Note: If you have completed Entrance Counseling for a previous school year, you will need to click continue button in message box after you login.
  • Your U.S. Department of Education PIN is required to complete this step. This is the same PIN you used for your FAFSA. If you don't remember your PIN, you can retrieve it at www.pin.ed.gov.
  • Individualized instructions are included with each step, so read carefully before moving on to the next step.
  • We will receive notice of the completed Entrance Counseling electronically from the US Department of Education.
  • Once we receive notice that you have completed the Entrance Counseling, you will receive an email. You should receive this email within a week of completing your Entrance Counseling.

3. Sign a Master Promissory Note (MPN) online at www.studentloans.gov
  • Complete online at www.studentloans.gov
  • Cabrillo College requires that you complete a new MPN EVERY school year that you apply for a Direct Loan. Note: If you have completed an MPN for a previous school year, you will need to click continue button in message box after you login.
  • Your U.S. Department of Education PIN is required to complete this step. This is the same PIN you used for your FAFSA. If you don't remember your PIN, you can retrieve it at www.pin.ed.gov.
  • Once you open the online MPN web page, click on the “Complete new MPN for Student Loans” link. Follow the directions carefully. Your PIN acts as your electronic signature and your promise to repay the loan. After you complete your MPN and submit it to the Department of Education, you will be able to print a copy for your records.
  • We will receive notice of the completed MPN electronically from the US Department of Education.
  • Once we receive notice that you have completed an MPN, you will receive an email. You should receive this email within a week of completing your MPN.

4. Complete loan forms

Required Loan Forms

Do NOT submit the loan forms until Final Review has been done. Loan forms submitted before Final Review has been done or after the loan deadline for the term will be returned as denied.

Allow 5-8 weeks after you submit your loan forms to receive your loan funds.

The Direct Student Loan Application and Loan Obligation form are located in your eforms library.

paper icon Direct Student Loan Application (eform)- REQUIRED

    • Think twice about borrowing before submitting.
    • Incomplete forms and forms received after loan deadline will not be processed.

NOTE: Only one application is accepted per school year. If you are attending Fall and Spring you must request the full year loan amount now. You will NOT be able to request additional funds in the Spring. Plan ahead.


paper icon Loan Obligation form (eform) - REQUIRED

    • Please read carefully initial and sign.


    paper icon Educational Plan - REQUIRED

      • You will be required to be enrolled in 6 or more degree applicable units from your Educational Plan (Ed Plan) in order for your loan to be processed.

      • You obtain an Ed Plan by making an appointment with an Academic Counselor.
        Ed Plans are done BY APPOINTMENT ONLY. They will NOT be done during Express counseling sessions.

        BEFORE your appointment, Counseling requests that you:

        • Complete your online orientation. This is a requirement for all incoming students. It takes about one hour.
          https://sirena.cabrillo.edu/
        • Complete your Math and English assessments at the Cabrillo Assessment Office. Schedules and practice tests are listed at their website.
          http://www.cabrillo.edu/services/assessment/
               -OR-
          If you have completed college level math, English, or any other college course work, please have official transcripts sent to Cabrillo College Admissions and Records. These will become part of your official record and help a counselor determine what classes you have already completed.
        • Come to your appointment with an academic goal in mind.

        To schedule a Counseling appointment, or for questions regarding appointment requirements, contact Counseling at 831.479.5051, 831.479.6385, or for Watsonville, 831.786.4734.


      paper icon Academic Progress Report - ONLY IF REQUESTED

  • If your SAP status is Warning or Probation, a progress report may be requested. This form will be used to determine eligibility for loan funds.
  • This form will only be available and accepted after the 4th week of the term.

 

    Remember, you must also complete the online Entrance Counseling and sign an MPN before we can process your loan application. These are done online at www.studentloans.gov. See specific steps for more information.


    Optional Loan Documents

 

paper icon Budget Planning Worksheet -OPTIONAL (pdf) – Provided for your use.  Do NOT submit.

    • Use realistic estimates - We are not judging how much you spend. We want you to get an accurate idea of how much you actually need to borrow.
paper icon Computer cost printout - OPTIONAL
    • Must submit an itemized estimate from vendor at the same time you submit your Loan Application. This results in a budget adjustment in case you are not eligible for the full loan amount you requested.
    • Personal computer is a one time only budget adjustment at Cabrillo College.

5. Be enrolled in and attending 6 or more degree applicable units from your Ed Plan.
  • All loan students are required to be enrolled in and attending 6 or more degree applicable units from the current Educational Plan (Ed Plan) they have on file with the Financial Aid Office.
  • Units from late starting or short term classes will not be counted unless you are currently attending the class.

6. Complete Exit Counseling online.
  • Complete online at www.nslds.ed.gov
  • Individualized instructions are included with each step, so read carefully before moving on to the next step.

Loan EXIT Counseling is REQUIRED:

  • Before receiving your 2nd Loan Disbursement
  • If you drop below half-time enrollment (6.0 units)
  • Within 30 days PRIOR to graduating or leaving Cabrillo
    30 Day Periods for Exit or Graduation
    Fall 2012 11/16/12-12/15/12
    Spring 2013 05/10/13-06/07/13

7. Loan Disbursements
  • Loan funds are disbursed in two disbursements for both full year and one term loans. 
    • Full year loans are disbursed, once during the Fall term and the second during the Spring term. 
    • One term loans second disbursement will be after you have completed half of the term.
  • Second disbursements are released ONLY AFTER you have completed Loan Exit Counseling. You must complete Exit Counseling to receive the second disbursement of your loan. You can complete this requirement online at www.nslds.ed.gov. Cabrillo will be notified electronically once you complete your Exit Counseling. Your 2nd disbursement will be CANCELED if you do not complete the Exit Counseling requirement.
  • Subsidized and Unsubsidized funds may come together in one disbursement.
  • Any outstanding charges owed to the college will be deducted from your loan.
  • By law, a loan fee will be subtracted from each loan you receive. This fee will be subtracted proportionally from each disbursement of your loan. The loan fee will be on your loan disclosure statement that is sent to you by the Department of Education. This is also available under My Loan Documents at www.studentloans.gov.
  • If you want to decrease or cancel your loan, please notify the Financial Aid Office by completing a Student Correspondence eform.
  • Keep your address current. You can verify/update your address on WebAdvisor.
  • If you do not maintain Satisfactory Academic Progress or if you drop below 6 degree applicable units, you will not be eligible to receive your disbursement and your loan will be canceled.
  • If your SAP status is Probation or Warning, you may be required to submit a Progress Report from all your Instructors to determine eligibility for loan funds.
  • You must be enrolled in and attending 6 degree applicable units listed on your Educational Plan or the loan will be canceled.  Classes enrolled in but not listed on an Educational Plan will not be counted.
    • Remedial units are not degree applicable.
    • Units from late starting or short-term classes will not be counted unless you are currently attending the class.

Allow 5-8 weeks after you submit your loan forms to receive your loan funds.


Loan Processing Timeline

Step 1: Entrance Counseling and signed MPN completed by loan deadline. Entrance and MPN Received Notice emails sent.
Step 2:

Loan application forms submitted by loan deadline AFTER Entrance Counseling, MPN and Final Review Done are completed.

Note: Loan forms submitted prior to the Entrance, MPN, and Final Review Done steps being completed, will be returned as denied and a Returned Loan Notice email will be sent.

During peak processing periods, timelines could be doubled for steps 3-6
Step 3: Loan forms are reviewed, loan is originated and sent to Department of Education. Loan Originated email sent.
2-3 weeks
Step 4: Department of Education processes loan and sends you a disclosure statement with disbursement dates. Allow approximately two weeks from the disbursement dates for processing.
1-2 weeks
Step 5:

Enrollment and academic progress is verified, loan(s) is processed. Disbursement Notice email sent.
1 week

Note: For 2nd disbursement, if SAP, Exit Counseling, and enrollment requirements are not met, your loan will be canceled within 3 weeks of the disbursement date.

Step 6: Loan(s) are disbursed through College Bank and Higher One to student's Cabrillo Access Card.
1-2 weeks

Note: Loans are not disbursed until after the 4th week of term unless you are in an Allied Health program (RN, RT, DH).

 


    Was this page helpful?    
Blackboard Online Learning System WebAdvisor  iTunes Cabrillo Library Facebook Icon Twitter Icon YouTube

© 2013 Cabrillo Community College District

Campus Safety | Accessibility

Main Campus, 6500 Soquel Drive Aptos CA 95003, 831.479.6100