Student Loans

How do I receive a Direct Loan at Moorpark College?

  1. Complete a Free Application for Federal Student Aid (FAFSA) online at www.FAFSA.gov for the school year you intend to enroll.
  2. Complete and/or submit all requested financial aid requirements as listed on your my.vcccd.edu portal.
  3. Receive an award notification email indicating that your financial aid file review is complete.
  4. Continue to meet the minimum Satisfactory Academic Progress (SAP) standards to ensure eligibility.
  5. Enroll in 6 or more degree-applicable units for an eligible Moorpark College program of study during the desired loan application period. 
  6. Complete Direct Loan Entrance Counseling online at StudentLoans.gov and print the confirmation page.
  7. Complete a Direct Loan Promissory Note online at StudentLoans.gov.

Are there any other eligibility requirements?

Eligibility is not guaranteed. Applicants must meet all federal aid eligibility requirements.

MC reserves the right to refuse to certify a loan under conditions established by 34.CFR 685.301. Borrowing the low-interest, Federal Direct Loan is a privilege. Some conditions for refusing to certify a loan to high risk borrowers include but are not limited to:

  • The student is not making progress or enrolled in an eligible degree, certificate or transfer program at Moorpark College. This decision is made independently from the (SAP) Appeal process.
  • The student has already borrowed the maximum loan amount appropriate for community college programs.
  • The student appears to be or has been in default or delinquent on federal financial aid obligations.
  • Notification of previously discharged federal student loans due to disability or bankruptcy.
  • Instances of inconsistent, fraudulent FAFSA, or admissions application information.
  • The student has a drastic change in requested borrowing amount from previous year(s).
  • The student has valid and applicable education for employment and is choosing to pursue another educational endeavor. This decision is made independently from the SAP Appeal process.

FEDERAL DIRECT LOAN INFORMATION

Moorpark College participates in the William D. Ford Federal Direct Loan Program. The U.S. Department of Education is the lender for the William D. Ford Federal Direct Loan Program.

Direct Loans include Subsidized and Unsubsidized Student Loans and Parent Loans for Undergraduate Students (PLUS).

Loans must be repaid with interest so it is important to understand your rights and responsibilities as a borrower. All borrowers are required to complete Loan Entrance Counseling before we may originate a loan. Online at www.studentloans.gov

There are two types of Direct Loans:

Subsidized Loans

Subsidized Loans are available to students who meet certain financial need criteria. If you qualify, the federal government will pay the interest on the loan while you are in school and during periods when you are authorized to defer your loan payments.

Unsubsidized Loans

Unsubsidized Loans are available to students regardless of financial need. You are responsible for the interest that accumulates on an unsubsidized loan while you attend school, during the grace period and during any periods when you are authorized to defer your loan payments. You have the option to pay the interest during school or pay it later. If you delay payment, the interest will be added to your principal balance. This addition of interest to your principal balance is known as capitalization.

Maximum Loan Limits 

Federal law specifies annual loan limits on Federal Direct Loans based on your year in college and your dependency status. At Moorpark College, you must have completed 30 college level units toward your program of study to be considered a second year student.

Dependent Student

Grade Level

Base Annual Amount

Additional Unsubsidized

Total Annual

1st Year

$3,500

$2,000

$5,500

2nd Year

$4,500

$2,000

$6,500

Undergraduate Aggregate Loan Limit $31,000 (no more than $23,000 may be Subsidized)

Independent Student

Grade Level

Base Annual Amount

Additional Unsubsidized

Total Annual

1st Year

$3,500

$6,000

$9,500

2nd Year

$4,500

$6,000

$10,500

Undergraduate Aggregate Loan Limit $57,500 (no more than $23,000 may be Subsidized)

Annual Interest Rates:

Annual Interest Rates are set each July 1st.

**Please notify FA office if you are applying for Plus Loan.**

Plus Eligibility is contingent on approved credit which is only valid for 90 days. Do not apply prior to July 1st.  The interest rate for Direct PLUS Loans is set on July 1st. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement.  There is an origination fee.

Dependent students whose parents have applied for but were unable to get a PLUS Loan may be eligible to receive additional Direct Unsubsidized Loan funds. Students must provide a copy of the PLUS credit denial to the Financial Aid Office.

Loan Exit Counseling

Federal regulations require that all student borrowers who graduate, withdraw, or drop below half time enrollment complete Loan Exit Counseling. Always notify your servicer of your current address, phone number and contact information in a timely manner.  The National Student Loan Data System (NSLDS) website has the most current contact information for the Holder/Servicer of your loan(s).

Federal Subsidized Student Loan Borrowing Limitations

Here are a few facts that you need to know:

  1. Students may receive Direct Subsidized loans for no more than 150% of the length of the current academic program. For example, a student enrolled in a two-year 60 unit program will have (2 years x 150%)  three years or (60 units x 150%)  90 units of subsidized loan eligibility. A student enrolled in a four-year program will have six years' worth of subsidized loan eligibility.
  2. Once a student reaches the 150% mark in a particular program, their future subsidized loan eligibility in that program will end. They may, however, be eligible for unsubsidized loans.
  3. A student who reaches the 150% limitation will have their interest subsidy end for all outstanding subsidized loans if the student does not graduate and continues to be enrolled in the same or a shorter undergraduate program. Repayment does not begin, but like unsubsidized loans, the student (rather than the government) would become responsible for interest that accrues from this point forward.
  4. Program Completion = permanent protection of interest subsidy.
  5. Unlike other measures in determining continued aid eligibility, this provision is not affected by the total dollar amount borrowed. Any and all periods of subsidized loan borrowing will count against the 150% time limit.
  6. This policy is in addition to, and not in place of, the lifetime aggregate loan limits that are currently in place.

For more information view the FACT Sheet from the U.S. Department of Education.

References                                                                                                                                      

Payment Vs Income