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Home >  Student Services >  Student Aid >  Financial Aid >  Direct Loans

Direct Loans

Important Notification 

  • On March 30, 2010, President Obama signed the Health Care and Education Reconciliation Act of 2010 (HCERA)  (Public Law 111-152) that makes significant changes to the Federal student aid programs authorized by Title IV of the Higher Education Act (HEA) of 1965. The HCERA eliminates the authority for lenders to make new loans under the Federal Family Education Loan (FFEL) Program after June 30, 2010. Therefore, beginning July 1, 2010, all new subsidized and unsubsidized Stafford Loans made to Folsom Lake College student borrowers can only be made under the William D. Ford Federal Direct Loan Program.  This means that students will no longer select a bank lender for their Stafford Loan, as the federal government will be the lender instead of a bank. This change will have minimal impact on the loan process.  As in the past, all students requesting a student loan will be required to attend a Loan Entrance Counseling Workshop for 2010-2011 for detailed instructions on completing the loan application.
  • On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21) (Public Law 112-141) was enacted. MAP-21 added a new provision to the Direct Loan statutory requirements (see HEA section 455(q)) that limits a first-time borrower's eligibility for Direct Subsidized Loans to a period not to exceed 150 percent of the length of the borrower's educational program. Under certain conditions, the provision also causes first-time borrowers who have exceeded the 150 percent limit to lose the interest subsidy on their Direct Subsidized Loans. Note: Only first-time borrowers on or after July 1, 2013 are subject to the new provision. Generally, a first-time borrower is one who did not have an outstanding balance of principal or interest on a Direct Loan or on a FFEL Program Loan on July 1, 2013.

If you have any questions regarding these regulations, please contact Folsom Lake College Financial Aid office at (916) 608-6646.

Direct Loans

The Direct Loan Program offers the following types of loans:

Subsidized: Subsidized Direct Loans are available for students with demonstrated financial need, as determined by federal regulations. The federal government pays the interest on the loan while you are enrolled in school at least half-time (6 units) and during the grace period before repayment begins. Regular monthly payments begin six months after you graduate, drop below half-time (6 units) or withdraw from school.

Unsubsidized: Unsubsidized Direct Loans are available to all qualified students at participating schools, regardless of their income. You must meet the same requirements as those for subsidized loans, except you don't have to demonstrate financial need. The Unsubsidized Direct loan plus all other financial aid cannot exceed the cost of attendance. Interest accrues from the time the loan is disbursed, and interest payments begin immediately but can be deferred. It is to your advantage, of course, to pay the interest while in school. This way, the debt will be the principal amount only when repayment begins. Regular monthly payments begin six months after you graduate, drop below half-time (6 units) or withdraw from school.

To be eligible for a Direct Loan at Folsom Lake College (FLC), you must meet all the eligibility requirements for federal student aid. In addition, you must:

  1. Be in good standing and maintain a cumulative 2.0 FLC GPA
  2. Ensure your financial aid file is complete
  3. Complete the online Loan Entrance Counseling Workshop at www.studentloans.gov  
  4. Submit your completed Loan Request Form to the Financial Aid office.
  5. Complete a Debt Management form if you have borrowed more than $10,000 in student loans.
  6. Be enrolled in six units during the entire school year for which loan has been borrowed.
    Note: If you drop below six units, your second loan disbursement check will be canceled.
  7. Complete a mandatory loan exit counseling session at www.studentloans.gov upon withdrawing, dropping to less than half-time, or transferring from Folsom Lake College.

Loan Application Process
Step 1:

Applicants must be admitted for enrollment at Folsom Lake College and be enrolled at least half-time (6 units). You must have completed the Free Application for Federal Student Aid (FAFSA), and are encouraged to attend the Direct Loan Informational Workshop.

Step 2:

Instructions for completing the Loan Request Form:

Loan Period:
Select Fall & Spring for a loan to be certified for an entire award year.
Select Fall if you plan to transfer or graduate by the end of the fall semester.
Select Spring if you were enrolled for the fall, but have not completed six units or do not have a 2.0 GPA in the fall OR spring is your 1st semester of attendance at FLC.

Loan Type:
Select the Loan Type you wish to borrow.

Loan Amount Requested:
- Must indicate $ amount and NOT “max”
- To be eligible for a 2nd Year Grade Level loan, you must have completed 30+ transferable/degree applicable units.

Note: The Loan Amount Request will not be increased once you have submitted your loan application and your loan(s) are certified.

Total Loan Amount Borrowed to Date:
If you have borrowed $10,000 or more in student loans, please complete a Debt Management Form. The Debt Management form must be submitted with the Loan Request forms.

Expected Grad date form FLC:
Must indicate Semester and Year (ex: Fall 2013)

Step 3:
After you have received your Award Letter for the current award year, submit your completed LOAN REQUEST FORM to the Financial Aid Office.

Instructions for completing the Debt Management form:
If you have borrowed $10,000 or more in student loans, you are encouraged to complete the Debt Management form before your loan request will be considered.

Step 1:  Complete the Budget Planning Worksheet.

Step 2:   Review and print out two copies of your loan history summary at http://www.nslds.ed.gov/ (this is the page you will see immediately upon logging into website).  Keep one copy for your records and submit a copy with this form to the Financial Aid Office.  You will need your FAFSA pin to complete this step. 

Step 3:  Review the Repaying federal student loans handout.  Understand your repayment options, interest payment deferrment, and loan consolidation for the loan you borrow.

What is National Student Loan Data System (NSLDS)?
NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.  Please refer to the NSLDS flyer for details.

What is a Master Promissory Note?
When you apply for a loan, you must sign a Master Promissory Note (MPN). The MPN is quite simply, a legally binding promise to repay your loan.

Certified Loan Procedure:
Once your loan has been certified, you will receive an email to sign your MPN (if you have not already signed one in the prior award year.  Upon receipt of an electronically signed MPN, your loan will be disbursed and you will receive a loan award letter from Folsom Lake College. 

Disbursement Procedure:
Your loan award letter will indicate the date your loan(s) will be disbursed.  Disbursements will be made using the refund preference you selected when you activated your Higher one Debit card.

Exit Counseling Guide:
Click here for the Exit Counseling Guide that will help you understand your rights and responsibilities under the Federal Student Loan program, track your federal student loans on the web, and understand the importance of repaying your student loan on time.

Note: You are required to complete a mandatory loan exit counseling session at www.studentloans.gov upon withdrawing, dropping to less than half-time, or transferring from Folsom Lake College.

Other Financial Aid Programs:

BOG Fee Waiver
CA Dream Act
Cal Grants
Pell Grants
FSEO Grant