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Financial Aid Office:

Federal Direct Loan Update

Beginning with the Spring 2016 term, students submitting new loan request will need to have completed 24 units of college level coursework at IVC and have a Satisfactory academic progress status to borrow a Federal Direct Unsubsidized Loan.

Federal Student Financial Aid Programs

You must complete the Free Application for Federal Student Aid (FAFSA) to apply for any of the programs discussed below. You must be a U.S citizen or an eligible noncitizen to qualify for aid. If you are in default on a student loan or owe a refund on a federal grant, you are not eligible for federal student financial aid.

Federal Direct Loans

You must complete the Free Application for Federal Student Aid (FAFSA) to apply for any of the programs discussed below. You must be a U.S citizen or an eligible noncitizen to qualify for aid. If you are in default on a student loan or owe a refund on a federal grant, you are not eligible for federal student financial aid.

Federal Direct Subsidized and Unsubsidized Stafford Loans are long-term, low-interest loans from the U.S. Department of Education.

To apply for a Federal Direct Loan, you must complete a Free Application For Federal Student Aid (FAFSA). Please note that there are other required steps in this process other than completing a FAFSA form. (Please see Federal Direct Loan Processing.)

The Subsidized Federal Direct Loan is need-based. The federal government pays the interest on the loan during: (1) your enrollment as at least a half-time student; and (2) a deferment, which is a temporary, authorized time when your payments may be postponed.

The Unsubsidized Federal Direct Loan is non-need-based. "Unsubsidized" means the federal government does not pay the interest on your behalf. You are responsible for paying all interest on the loan. Interest is charged beginning the day the loan is paid to you until the day the loan is repaid in full. You can choose to pay the accumulated interest while you are in school, or have the unpaid interest capitalized, i.e., added to the principal balance of the loan. Note: If your loan interest is capitalized, it will increase the amount you have to repay.

Irvine Valley College Does NOT participate in the Federal Direct PLUS Loan Program.

Borrowing can be costly. We recommend that you consider borrowing only if you have exhausted all other options. Only borrow what you need. Make a budget for yourself to keep your debt within manageable limits.

Federal Direct Loan Process

If you are interested in applying for a Federal Direct Loan, please note the following:

  1. You must have a completed financial aid file at IVC before the Financial Aid Office can process your request for a Federal Direct Loan. This means you must have completed a FAFSA and turned in required documents requested by the Financial Aid Office. Your file is complete once you have been sent an Award Letter from the Financial Aid Office.
  2. You must be enrolled in six (6) units of standard semester coursework (eight week classes are subject to a later disbursement).
  3. You must complete Entrance Loan Counseling online at www.studentloans.gov. Click on Sign In; then click on Complete Entrance Counseling. Once this has been completed the Financial Aid office will be notified.
  4. If you are a new borrower at IVC you must complete a Master Promissory Note online at www.studentloans.gov. Click on Complete Master Promissory Note. After your Master Promissory Note has been electronically signed, the Financial Aid office will be notified.
  5. You must complete a Federal Direct Loan Request Form and return it to the Financial Aid Office. Forms are available online, under Financial Aid Forms.

You will receive a Revised Award letter once the loan has been processed. Processing your loan takes approximately four to six weeks from the time that you are sent your Revised Award Letter.

Your loan funds are disbursed once each semester (Fall and Spring). These disbursements ARE NOT on the same dates as the Federal Pell Grant disbursements. Your loan funds will be issued on the Higher One Card.

Please make sure that the Financial Aid Office has your correct address. The IVC Cash Card is mailed to the address that you have provided on the 2016-2017 FAFSA. If this address is not correct, you may complete a Change of Address form in the Financial Aid Office. Please note that you MUST have a photo I.D. to make an inquiry in the Financial Aid Office.

Annual Loan Amounts

The amount in Federal Direct Loan funds that you are eligible to borrow each academic year (Fall, Spring and Summer) is limited by: (1) your grade level; (2) whether you are a dependent or an independent student; (3) your financial need; and (4) your costs. You cannot borrow more than your financial need or the cost of your attendance at IVC (your budget).

​Dependent
Students
​Base Amount
(Subsidized or
Unsubsidized)
​Additional Unsubsidized Loan effective July 1, 2008 Total Annual Combined Maximum Amount of Subsidized & Unsubsidized Loans
​Freshman
1st Year
​$3,500 ​$2,000* $5,500​
​Sophomore 2nd year ​$4,500 $2,000​* ​$6,500


*Students must have a 'Satisfactory' academic progress status and have completed 24 units of college level coursework at IVC in order to borrow the Federal Direct Unsubsidized Loan.

Independent
Students
​Base Amount
(Subsidized or
Unsubsidized)
​Additional Unsubsidized Loan effective July 1, 2008 Total Annual Combined Maximum Amount of Subsidized & Unsubsidized Loans
​Freshman
1st Year
​$3,500 ​$6,000* $9,500​
​Sophomore 2nd year ​$4,500 $6,000​* ​$10,500

*Students must have a 'Satisfactory' academic progress status and have completed 24 units of college level coursework at IVC in order to borrow the Federal Direct Unsubsidized Loan.

Lifetime Aggregate Loan Limits

Undergraduate Dependent Students can borrow a maximum total of $31,000 (of which no more than $23,000 can be subsidized loans).

Undergraduate Independent Students can borrow a maximum total of $57,500 (of which no more than $23,000 can be subsidized loans).

For all new borrowers who receive a loan on or after July 1, 2013, a 150% limitation is in effect. This means that a student who is eligible for a subsidized loan will reach their subsidized limit at 150% of a program's length of study. Once a student has reached their 150% limitation, their interest subsidy loan limit will end on all outstanding loans that were disbursed after July 1, 2013, and interest will begin to accrue. Students are therefore encouraged to complete their undergraduate study on a timely basis.

Interest Rates:

For the Federal Direct Subsidized Student Loan, the federal government will pay the interest until you enter your grace period. Repayment begins six months after you cease to be enrolled as a student with at least half-time status. The interest rate for Federal Direct Subsidized Loans for undergraduate students for which the first disbursement is made on or after July 1, 2014 and before July 1, 2015 will be 4.66%.

For the Federal Direct Unsubsidized Student Loan, the government will not pay interest while a student is in school. Interest accrues and must be paid or capitalized during periods of enrollment in school and /or deferment. The interest rate for Federal Direct Unsubsidized Loans for undergraduate students disbursed on or after July 1, 2014 and before July 1, 2015, is 4.66%.

Loan Fees

For student loans, an origination fee of 1.072% of the total loan will be assessed and deducted automatically. The net disbursement will reflect these fees; therefore, the amount credited to the student's account will be less than the loan amount. This fee is determined by the U.S. Department of Education.

Loan Entrance Counseling

Entrance loan counseling is REQUIRED for all student borrowers applying for a Federal Direct Loan at IVC. Counseling can be completed online and will help you understand your rights and obligations as a student loan borrower. Loan counseling must be completed before we will process your Federal Direct Loan. Other required steps are needed before we can process a Federal Direct Loan (please see Federal Direct Loan Processing). You can complete both your loan entrance counseling and Master Promissory Note at www.studentloans.gov.

You will need a PIN number to complete the loan process on line. This PIN number is the same PIN number used to complete a FAFSA application. If you do not have your PIN, see www.pin.ed.gov to apply for a PIN number.

The Financial Aid Office will receive correspondence that a Loan Entrance Counseling test was completed as well as the Master Promissory Note. You should print copies for your personal records.

Student Loan Repayment

After you graduate, leave school, or drop below half-time enrollment, you have a six-month “grace period” before you have to begin repayment. For more information on loan repayment please see www.studentloans.gov.

Federal regulations require that all student loan borrowers must have an exit interview/exit counseling during their final semester at the College. During the exit counseling, you are reminded of your rights and responsibilities as a student loan borrower. Topics include: when repayment starts, various repayment plans, deferments, loan consolidation, and consequences of default.

You'll receive information about repayment, and your loan provider will notify you of the date loan repayment begins. We can't emphasize enough the importance of making your full loan payment on time either monthly (which is usually when you'll pay) or according to your repayment schedule. If you don't, you could end up in default, which has serious consequences. Student loans are real loans—just as real as car loans or mortgages. You have to pay back your student loans. Exit Counseling can be completed online at www.studentloans.gov.

Get Your Loan Information

The U.S. Department of Education's National Student Loan Data System (NSLDS) allows you to access information on loan and/or federal grant amounts, your loan status (including outstanding balances), and disbursements made. Go to www.nslds.ed.gov.

Paying Back Your Loan(s)

You have a choice of repayment plans. How much you pay and how long you take to repay your loans will vary depending on the repayment plan you choose. There are several repayment plans available: Standard: Extended; Graduated; Income Based Repayment (IBR); and Income Contingent Repayment (ICR). For more information see www.studentloans.gov.

Default

If you default, it means you failed to make payments on your student loan according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan. In other words, you failed to make your loan payments as scheduled. Your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government all can take action to recover the money you owe.

Here are some consequences of default:

  • National credit bureaus can be notified of your default, which will harm your credit rating, making it hard to buy a car or a house.
  • You would be ineligible for additional federal student aid if you decided to return school.
  • Loan payments can be deducted from your paycheck.
  • State and federal income tax refunds can be withheld and applied toward the amount you owe.
  • You will have to pay late fees and collection costs on top of what you already owe.
  • You can be sued.

If you are interested in applying for a Federal Direct Loan, you will need to click on Direct Loan Processing on our Financial Aid Office homepage.

How Much May I Borrow?

The maximum you may borrow depends upon your grade level and dependency status.

​Grade Level Dependent Subsidized and Unsubsidized* Independent Subsidized and Unsubsidized*
First-year undergraduate (less than thirty units completed successfully) ​$5,500 ​$9,500
Second-year undergraduate (thirty or more units completed successfully) ​$6,500 ​$10,500

Since IVC is a two-year institution, you may not borrow more than the second-year amount, even if you are enrolled for a "third year."

*Students must have a 'Satisfactory' academic progress status and have completed 24 units of college level coursework at IVC in order to borrow the Federal Direct Unsubsidized Loan.

Contact

T: 949-451-5287
F: 949-451-5459
E: ivcfinancialaid@ivc.edu
Student Services Center
Room SSC 130

Dept of Education (DOE) 
IVC School Code:
025395

Department Hours

Please call ahead to confirm.
Hours are subject to change.

Mon:​   9:00 am - 6:00 pm ​
​Tues: ​  9:00 am - 6:00 pm 
​Wed: ​  9:00 am - 6:00 pm 
​Thurs:   9:00 am - 6:00 pm
​Fri: ​  9:00 am - 12:00 pm

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