Chattahoochee Valley Community College participates in the Federal Direct Loan Program. Under the Direct Loan Program, all funding comes directly from the U.S. Department of Education rather than a bank or financial institution. The U.S. Department of Education will be the one source for lending and repayment.

Direct Loans are low-interest educational loans administered through the U.S. Department of Education, which consist of the following:

The Federal Direct Loan is a non-credit based student loan for undergraduate and graduate students. There are two basic types of Direct loans: subsidized and unsubsidized. Both have a 6 month grace period (a period of time when a student is no longer enrolled for at least half-time and not required to make payments) and fixed interest rates, which are determined each year on July 1st. For interest rates, please refer to the Direct Requirements page for more information.

Subsidized Loans

Government pays the interest on behalf of the student while the student is in the deferment period and grace period. Once in repayment, the student is responsible for paying the interest on the loan as well as the principal amount borrowed.

The student’s cost of attendance must exceed his/her Expected Family Contribution (EFC) to be eligible for “need-based” aid (such as grants, scholarships and subsidized loans).

The EFC is based on information collected from the Free Application for Federal Student Aid (FAFSA). The total amount of the subsidized loan combined with other “need-based” aid cannot exceed the student’s “financial need.”

Unsubsidized Loans

Government does not pay the interest on behalf of the student. Instead, the borrower is responsible for all the interest that accrues and capitalizes from the time the loan disburses.

Independent students may be eligible for greater unsubsidized amounts than dependent students.

Though it is non-need based aid, the amount of unsubsidized loan combined with other aid cannot exceed the total estimated cost of attendance.

Students Must:

• File the FAFSA.
• Be a U.S. citizen or eligible non-citizen.
• Have a high school diploma or equivalent.
• Be fully admitted and meet CVCC Admission requirements.
• Be classified as degree seeking at CVCC in an eligible program.
• Enroll for at least half-time (6 credit hours) at CVCC at time of disbursement.
• Maintain CVCC’s Standards for Satisfactory Academic Progress (SAP).
• Complete all required To-Do List Items.
• Complete verification (if selected).
• If in receipt of a Federal Direct Loan during this academic year at another institution, make sure that the remainder of that loan is canceled before applying for a loan at CVCC.
• Complete the online Master Promissory Note if this is your first time borrowing a Federal Direct loan.
• Complete the online Entrance Counseling if this is your first time borrowing a Direct Loan at any school.

Students Cannot:

• Default on any educational loan or owe a repayment on a federal grant at this or any other institution.
• Borrow in excess of federal loan limits.

The Federal Parent PLUS Loan is a credit based federal loan for parents (biological, adoptive, or in some cases stepparent) of eligible dependent students. Interest that accrues on the loan is not subsidized by the federal government.

Eligibility Requirements

You must be a parent of a dependent who meets the following requirements:

• Completed the Free Application for Federal Student Aid (FAFSA) and meet federal eligibility requirements of U.S. citizenship or eligible non-citizenship status.
• Be degree-seeking. Be enrolled for at least 6 CVCC credit hours per semester that count toward degree completion as an undergraduate.
• At time of disbursement, student must be attending at least 6 CVCC hours.
• Meet the standards of Satisfactory Academic Progress (SAP).
• Understand that total aid cannot exceed the cost of attendance.
• Other aid (Scholarships, fellowships, waivers, etc.) affects financial aid eligibility.

Private Loans can vary in terms, conditions and eligibility requirements. For these reasons, Private Loans should be considered as a last resort for educational purposes after all other federal aid options have been exhausted.