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How to Apply for a Stafford Loan at ARC 2016-2017

How To Apply for Federal Direct Loans

(William D. Ford Federal Direct Student Loans) 

at American River College

2016 - 2017

American River College (ARC) strongly encourages students to 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 student loan, you must complete all of the steps indicated below.

NOTICE:  ARC, at the direction of the US Department of Education, has enacted a robust default prevention plan to help students make intelligent decisions about student loans and to become fully aware of repayment requirements.  As an institution with significant default rate among student borrowers, the loan initiation and certification process at ARC has been enhanced to ensure students enter borrowing only with full knowledge of repayment options, connection to loan servicing agencies, and a solid educational plan leading to program completion.

Once again, you must complete ALL of the steps listed below to request a Federal Direct student loan at ARC.



Complete the Free Application for Federal Student Aid (FAFSA) for the 2016-2017 school year at List American River College on your FAFSA. Our federal school code is 001232.  To obtain a FAFSA ID (username and password) and complete federally required documents, visit one of the following U.S. Department of Education websites: or

  • Master Promissory Note (MPN)
  • Loan Entrance Counseling (EC)



Complete your 2016-2017 financial aid file with the ARC Financial Aid Office. You must maintain access to your Los Rios email account at all times.  This email address is provided to you at the time that your college application was approved and you received a student ID number.  This email address is our primary method of communication with students.



You must be enrolled in at least half-time status and actively attending.  Wait-listed classes do not count.  Active half-time status refers to units that are in session, which is 6 units for fall, 6 units for spring, and 3 units for summer.



Wait for our office to evaluate your Satisfactory Academic Progress (SAP). Only students who have met SAP requirements are eligible for a Federal Direct Loan.  If your SAP status is has resulted in an appeal, then a loan cannot be initiated until after the appeal has been approved.  If an SAP appeal is denied (or if the student is no longer eligible for appeal based upon SAP standards) then the student is not eligible for a Federal Direct Loan for the full award year. When SAP has been determined to be eligible, then the student's file will be packaged for any available grant aid.  After packaging for grant aid has occurred, then the Federal Direct Loan Request link will become available in your eServices portal.



Submit your loan request online through your eServices financial aid portal by following the diretions below: 

a. Log in to eServices and select the Financial Aid link.  If you have been awarded grant aid, then a link will be available at the bottom of the Award Summary information. 

b. Click the Federal Direct Loan Request link, review the terms and conditions information, and then complete the loan request indication. 

c. Your request will now be active with the ARC Financial Aid Office.  You will receive an email within a few business days that will give you directions to complete the final steps (below) after the financial aid system has processed your request.



First time borrowers MUST complete the Student Direct Loan Entrance Counseling (EC) at  It is recommended that all students complete Student Direct Loan Entrance Counseling each year. 



After completing the loan request and agreeing to the terms and conditions of loans, then you be sent an email with directions to accept/decline the full loan amount available, or you can input a lesser loan amount (reduce the loan amount).  It is HIGHLY recommended that students borrow the minimum amount required to cover educational expenses.  All students are required to complete the Master Promissory Note (MPN) each year at  Loan EC for first time borrowers and the MPN are required annually at ARC!  You will need your FAFSA ID from step #1



It is recommended that all interested borrowers complete the CashCourse module, "Paying Back Student Loans" online at and be advised regarding repayment options:

  • create a user account as a student by selecting "Register now."  (this is a free service to ARC students)
  • click on the "Financial Tools" tab at the top of the window to access the modules  
  • click on the "Coursework" link
  • click on the coursework topic:  "Paying Back Student Loans"
  • follow the prompt to proceed, which includes pre-test questions; read the information slides, and then answer the post-test questions (total of 10 questions)  

Paper instruction to complete the Cash Course "Paying Back Student Loans" is available upon  request at the ARC Financial Aid Office or Financial Aid Lab.   To access these instructions, click here.

 Here are some resources you can use to better understand your loan and repayment options:

  • Repayment Basics: Borrowers should visit for details about loan repayment. Borrowers can learn how to make payments on their loans; find the right repayment plan; figure out what to do if they can't afford their payments; and see what circumstances might result in a loan being forgiven, canceled, or discharged.
  • My Federal Student Aid: Borrowers can log in at to view their federal student loan information, including loan balances, interest rates, and loan servicer contact information.
  • Repayment Calculator: Borrowers can use this tool at to compare different monthly payment options based on their loan debt, income, and family size.
  • Repayment Options (NEW): Borrowers can use this interactive tool at to get help choosing a student loan repayment option in five steps or fewer.



Disclaimer Notice


Once we receive your loan request and determine that you meet eligibility requirements, we will process your loan and send the information to the US Department of Education.  To remain eligible for Federal Direct Student Loans, you must remain enrolled in half-time status, at all times, during the loan period in your program of study (enrollment in units that do not directly apply to your eligible program of study will not count toward enrollment status) to maintain half-time status enrollment or half time in your program of study, failure to successfully complete half-time status during any semester of the loan period, or failure to meet satisfactory academic progress policy standards will disqualify a student from loan eligibility.  After your loan request is approved by the US Department of Education, you will receive a notification of a student loan award by email from ARC Financial Aid Office and a Disclosure Statement from the US Department of Education.  The loan award email will contain the anticipated loan disbursement date - you must have selected a payment method with BankMobile Financial Services to receive all financial aid funds. To learn more about BankMobile Financial Services, go to

  Additional Federal Direct Loan Request

To request additional Federal Direct Loan funds during any term within the award loan period, you must complete a separate 2016-2017 Direct Loan Request form available at the ARC Financial Aid Office.


  Loan Disbursement and Loan Fee(s) Information

You must be actively enrolled in half-time status and maintain eligibility requirements before any loan disbursements can be made.  Only units directly required for your program of study will be considered in the determination of applicable units toward your enrollment status. 

In general, loan funds will be disbursed in one payment each semester.  For example, you will receive two disbursements during the award year if you choose to obtain loan funds in the fall and spring semesters (an award period is generally from August to May).  However, if you are awarded for one semester only, then American River College is required to make two disbursements during the semester. 

First-time borrowers (borrowers owing zero dollars in current Direct Loan debt) are required to wait 30 days from the date of origination before funds can be disbursed. 

Per federal requirement, if you are a first-year undergraduate student and first-time borrower, your first loan payment will not be released until 30 days after the first day of half-time enrollment (6 units for fall/spring and 3 units for summer).  All subsequent disbursements depend on meeting satisfactory academic progress and the successful completion of at least half-time status in the prior semester.

The US Department of Education will charge a 1.068% origination fee for direct loans before October 1, 2016.  On October 1, 2016, and until October 1, 2017, the origination fee will be 1.069%.  This will be $58.79 on a $5,500.00 loan.  ARC does not obtain these fees; the fees are charged and received by the US Department of Education. 

Loan payment(s) will be deposited to the account you have selected with Higher One Financial Services.  See the "Disclaimer Notice" above for details.

  Loan Request Deadline

November 10, 2016  - you must complete STEPS #1 - #7 above by this date for a Fall semester loan.  April 13, 2017 - you must complete STEPS #1 - #7 above by this date to be considered for a Spring semester loan.  July 13th, 2017 - you must complete STEPS #1 - #7 above by this date for consideration for a Summer term loan or before your last date of enrollment which ever date occurs first for the Summer 2017 semester. 

To be in compliance with federal requirements and to avoid overpayment issues, you must be actively enrolled in at least half-time status into courses that begin by the ARC Financial Aid deadlines and priority date listed here: 

  • July 6th, 2017 for the Summer 2017 term


  • your last date of enrollment, which ever date occurs first for the Summer 2017 term


No enrollment adjustments to financial aid awards, including Federal Direct Loans, will be made after this date.  No waitlist or non-consortium approved units will be calculated in loan awards after the date(s) listed above.



  Loan Interest Rates
  Grace Period Interest Subsidy Elimination Effective July 1, 2012

The Department of Education eliminated the interest subsidy provided during the six-month grace period when a student is no longer enrolled in at least a half-time (6 units) basis for which the first Direct Subsidized Loan disbursement is made on or after July 1, 2012, and before July 1, 2014. Students receiving a subsidized loan during this timeframe will be responsible for the interest that accrues on the loan during the grace period. If a student does not pay the interest accrued, the interest will be added (capitalized) to the principal amount of their loan when the grace period ends.

 Updated 07/21/2016