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How To Apply for Federal Direct Stafford Loans
(William D. Ford Federal Direct Student Loans)
at American River College
2011 - 2012
American River College encourages students to first apply for grants or scholarships before borrowing a student loan. A student loan is a serious and long-term obligation that should be used only as a last resort. If it is necessary for you to apply for a loan, you must complete the following steps below.
|Loan Disbursement Information|
In general, loan fund will be issued in two disbursements depending on your loan award period.
Effective July 1, 2011, interest rate for Direct Stafford Subsidized Loan is 3.4% and Direct Stafford Unsubsidized Loan is 6.8%.
You will be charged an origination fee of 1.0% and received an up-front 0.5% rebate interest on the Direct Stafford Subsidized & Unsubsidized Loans you borrowed in the 2011-2012 award year. Rebate interest is based on the borrower making the first 12 monthly payments on time. If the borrower does not make the 12 monthly payments on time, the rebate is cancelled and the borrower owes the 0.5%.
Loan payment(s) will be deposited to the account you have selected with Higher One Financial Services. Learn more about Higher One Financial Services and its LRCCD OneCard at https://lrccdonecard.higheroneaccount.com/.
Per federal requirement, if you are a first-year undergraduate student and first-time borrower, your first loan payment will not be processed until 30 days after the first day of half-time enrollment. The second disbursement depends on successfully completion of at least half-time status (6 units) in the previous semester and if you continue to meet satisfactory academic progress.
|Loan request deadline|
Fall 2011 October 27, 2011 - you must also complete steps 4 and 6 above by this date.
To be in compliance with federal requirements and to avoid overpayment issues, you must be enrolled in at least half-time (6 units) status in courses that begin by the loan request deadline. No enrollment adjustments to financial aid awards, including Direct Stafford Loans, will be made after this date.