Federal Direct Student Loan Guide
Students applying for a Loan must complete the following steps.
-
If you are a first time borrower, complete your loan entrance counseling and sign a Master Promissory Note (MPN) at www.studentaid.gov
. - Complete the loan request form and return it to the Financial Aid Office.
Loan Eligibility
- You must be enrolled in a minimum of 6 credits for the quarter in which you are requesting the loan.
- Meet satisfactory academic progress requirements.
- Students who have never attended college before are required to have their loan disbursed no earlier than 30 calendar days from the first day of class.
- If you are requesting a one-quarter loan, the loan will be disbursed in two equal payments.
Annual Loan Maximums
-
Dependent students - required to provide parent information on the FAFSA
- First year (5 - 44 credits) $5,500 per year, ($3,500 subsidized, $2,000 unsubsidized)
- Second year (45 plus credits) $6,500 per year, ($4,500 subsidized, $2,000 unsubsidized)
-
Independent students
- First year (0 - 44 credits) $3,500 plus an additional $6,000
- Second year (45 plus credits) $4,500 plus an additional $6,000
Deadline to Apply
The deadline to apply for the Federal Direct Loan is 10 days prior to the last date of the loan period. Per the Federal Student Aid Handbook and 34 CFR 668.164(j), schools cannot originate loans after the last date of the loan period. The loan deadline is 10 days prior to the last date of the loan period in order to account for processing times. If, however, a student is attending the following term and requesting loans for that following term (in the same academic year), a loan can be processed after the term-loan application deadline.
Entrance Counseling
Provides you with your rights and responsibilities as a student loan borrower. First time Federal Direct Loan borrowers are required to complete Entrance Counseling at www.studentaid.gov
Direct Loan Entrance Counseling Guide for Borrowers of Direct Loans pdf
Exit Counseling
FSA's How to Complete Exit Counseling
Exit Counseling provides your rights and responsibilities in repayment of your student loans. Students that participate in the Direct Loan Program must complete Exit Counseling when:
- Enrollment Level drops below 6 credits OR
- Terminated from financial aid eligibility OR
- Program has been completed (graduated).
For more information, please visit www.studentaid.gov .
Student Loan Advocacy and Resources
Washington Student Achievement Council Student Loan Advocate https://wsac.wa.gov/loan-advocacy
The student loan advocate supports current and future student loan borrowers in Washington State.
Coordinating with other state agencies, Washington's loan advocate:
- Addresses student borrower complaints.
- Provides information and resources about student loan repayment.
- Educates the public about the rights and responsibilities of student loan borrowers.
Loan Repayment
FSA's How to Prep For Student Loan Repayment
Visit National Student Loan Data System (NSLDS) to view information about all of the federal student loans you have received and to find contact information for the loan servicer or lender for your loans. You will need your Federal Student Aid PIN to access your information.
Difficulty repaying your loans? To make payments more affordable, repayment plans can be based on your income. You may also enter into a repayment plan that will allow more time to repay your loans. Work with your loan servicer to choose a federal student loan repayment plan that is best for you.
Everett Community College 3 Year Default Rates (CDRs)
The Fiscal Year 2019’s 3 Year Cohort Default Rate (CDR) for Everett Community College is 2.6%. This includes 410 borrowers in repayment during the 2017 Fiscal Year. Those students were tracked over a three year period and 11 of them defaulted on their student loans.
|
FISCAL YEAR |
2020 |
2019 |
2018 |
|
Default rate |
0.0% |
2.6% |
7.1% |
|
Number in default |
0 |
11 |
32 |
|
Number in repayment |
353 |
410 |
449 |
The percentage of a school's borrowers who enter repayment on federal student loans during a federal fiscal year (October 1 to September 30) and default within the cohort default period.
Cohort Fiscal Year or Cohort Year
The fiscal year for which the cohort default rate is calculated. For example, when calculating the 2017 cohort default rate, the cohort fiscal year is FY 2017 (October 1, 2016 to September 30, 2017).
Failure to repay a debt. Loans must be repaid. Making no payments on student loans, that are in repayment status, for 270 days will cause loans to go in a default status. Defaulting on student loans is very detrimental to your credit.
October 1 to September 30 - Cohort default rates are based on federal fiscal years. Federal fiscal years begin October 1st of a calendar year and end on September 30th of the following calendar year. Each federal fiscal year refers to the calendar year in which it ends.
When your federal and state income tax refunds are intercepted and applied toward the repayment of your defaulted loan.
When your employer is required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan.
Consequences of federal student loan default:
The consequences of defaulting can not only impact your ability to borrow but can impact your finances as well. Consequences may include the following:
- The entire unpaid balance of your loan and any interest you owe becomes immediately due.
- Your loans may be turned over to a collection agency.
- You can be sued for the entire amount of your loan.
- You will be liable for the costs associated with collecting your loan, including costs and attorney fees
- Your wages may be garnished.
- Your federal and state income tax refunds may be taken for treasury offset.
- The federal government may withhold part of your Social Security benefit payments.
- Your defaulted loans will appear on your credit history for up to 7 years after the default claim is paid.
- It may take years to reestablish a good credit record.
- You may not be able to purchase or sell assets, such as real estate.
- You will not receive additional federal financial aid until you repay the loan in full or make arrangements to repay what you already owe and make at least six consecutive, on-time, monthly payments.
- You may be ineligible for assistance under most federal benefits programs.
- You can no longer receive deferment or forbearance, and you lose eligibility for other loan repayment benefits, such as the ability to choose a specific repayment plan.
- Subsidized interest benefits will be denied.
- You may not be able to renew a professional licenses.
- You may be prohibited from enlisting in the Armed Forces.