Direct Loan Information

Palomar College believes that is is the responsibility of the Financial Aid Office to provide students complete information regarding their financial assistance options to help minimize the cost of attending college.

While we neither promote nor advocate student loans, we do provide information on the process and the rights & responsibilities that accompany obtaining both subsidized and unsubsidized student loans to interested students.

It is our hope that the information on this site will help you make an informed decision about borrowing student loans.

The following are key points about Direct Loans:

• Students do not borrow from banks.  Direct Loans are loans made with federal capital and are owned by the federal government.

• Direct Loans are never sold.  Borrowers make loan payments to the Department of Education for the life of their loans.

• Students do not wait in lines to endorse bank checks because schools receive loan funds electronically from the federal government and disburses them to students directly.

• Borrowers have flexible repayment options with a Direct Loan, including Income Contingent Repayment, and they can change options when they need to without a fee at any time during the life of the loan.