Common Loan Questions

What does it mean to accept a student loan?

An educational loan is a serious commitment.  Student loans must be paid back with interest and borrowers must make payments until the loan is repaid in full.  The longer you take to pay off a loan, the more interest you will pay.  If you borrow, make sure you do so with your eyes open.

What options should I consider before borrowing a student loan?

1)    Check out scholarships, grants, and work-study programs;

2)    Consider working part-time or full-time to cover your school expenses;

3)    Consider borrowing less student loan money.




What kind of student loans are available?



For student borrowers at Palomar College, the subsidized loan is available through the William D. Ford Federal Direct Loan Program. 


A subsidized loan is certified on the basis of financial need determined by the Financial Aid Office.  If you are eligible and have demonstrated financial need for a subsidized loan, the federal government pays the interest on the loan ("subsidizes" the loan) until you begin repayment and authorized periods of deferment.



How much can I borrow?



Student loan applicants at Palomar College can borrow the amounts listed below based on a full school year (i.e., Fall & Spring).



1st year (under 30 units completed)


2nd year (over 30 units completed)



What is the interest rate on these loans?

For student loan borrowers whose loans were first disbursed on or after July1, 1994, the interest rate is variable, but will never exceed 8.25%. 

Is there a charge for these loans?

You will pay a fee of .005 percent, deducted from each disbursement of your loan.


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