Type of Program: Loan (must be re-paid)
Federal Direct Student Loan is financial aid that must be repaid back. Direct loans are low-interest education loans for students to help pay for college costs. There is no credit check or cosigner required to qualify. The lender is the U.S. Department of Education, which assigns loans to one of its contracted loan servicers throughout the country after a loan is originated by a school for a student.
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.
Please review our Loan Eligibility Information for answers to frequently asked questions.
TYPES OF DIRECT LOANS AVAILABLE
Subsidized Loan: This type of loan is awarded on the basis of financial need, as determined by the information reported on the FAFSA. The federal government pays the interest while the student is in school at least half-time (6 units).
Unsubsidized Loan: This type of loan is not awarded based on need and is available regardless of income. However, interest will accrue from the time the loan is disbursed until it is paid in full. Students will have the option to pay the interest or defer the payment until after graduation.
ANNUAL LOAN LIMITS
First-year: (0-29 Credits earned) up to $5,500 ($3,500 Subsidized and $2,000 Unsubsidized)
Second-year: (29.5+ Credits earned) up to $6,500 ($4,500 Subsidized and $2,000 Unsubsidized)
First-year: (0-29 Credits earned) up to $9,500 ($3,500 Subsidized and $6,000 Unsubsidized)
Second-year: (29.5+ Credits earned) up to $10,500 ($4,500 Subsidized and $6,000 Unsubsidized)
UNSUBSIDIZED LOAN REQUEST FOR DEPENDENT STUDENTS WITHOUT PARENTAL DATA
Federal Regulation under the Higher Education Opportunity Act, Section 472 (HEA section 479 (a)) gives a dependent student the right to borrow a Federal Unsubsidized Loan when the student’s parents have ended financial support and refuse to file the Free Application for Federal Student Aid (FAFSA). Students under this circumstance interested in applying for a Federal Unsubsidized Loan should refer to the Financial Aid Forms page to complete the Parent FAFSA Refusal Form for the corresponding aid year.
However, if the student’s inability to obtain parental information is due to unusual circumstances (parental incarceration, abuse, abandonment, etc.), the student should refer to our Appeals page and submit a Dependency Override request, which will allow a dependent student to apply as an independent student.
WHAT IS A COHORT DEFAULT RATE?
A school’s cohort default rate (CDR) is the percentage of a school’s students who had certain federal student loans enter repayment in a federal fiscal year and then default before the end of the cohort default rate period.
Cohort default rates are based on federal fiscal years. Federal fiscal years begin October 1 of a calendar year and end on September 30th of the following calendar year. Each federal fiscal year refers to the calendar year in which it ends.
In the event Palomar College rises above the national average CDR (Cohort Default Rate), identified Service Members will be notified via email of the CDR status.
Palomar College most recent CDRs:
FY 2019: 5.3%
FY 2018: 14.5%
FY 2017: 11.2%
Please refer to the Cohort Default Rate Guide for a more in-depth description of cohort default rates and how the rates are calculated.
- Complete the current year Free Application for Federal Student Aid (FAFSA) https://studentaid.gov
- You must have completed the financial aid process by either receiving a Loan Only notification email (J52) or a General Award notification email (J50).
- If you received a Loan Only notification email (J52), please complete the survey that is linked in the communication.
- If you received a General Award notification email (J50) and would like to request a student loan, please send us an email to email@example.com from your Palomar Student email address and we will add the loan application to your Student Forms portal.
*Please note: Loan Request Forms are only available through your Palomar College Student Forms portal. There is no longer a paper copy of the form. Please click here to submit a Loan Request using our new mobile site from your desktop, tablet, or smartphone.
- If this is your first time logging in, you will be asked to create an account.
- Use your Palomar College email address and ID number when creating your account.
- You will also be asked to verify data from your financial aid application. The data you provide must match your financial aid application.
- Contact the Financial Aid Office if you have any issues creating your account.
- Check your MyPalomar account for updates on loan processing.
- View the Disbursement Schedule for future disbursement dates. Please note-loans are disbursed after the first 30 days of the semester.
- Direct Loan Servicer Account Setup
- Exit Counseling is required for those who drop below halftime or graduating/transferring students. If we determine we need any of these, we will request you upload the proof in your Student Forms portal.
- Palomar College has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with free assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s friendly customer representatives may reach out to you if your loan(s) become delinquent. Inceptia is NOT a collection agency. We’ve partnered with them to help you explore a wide variety of possibilities (options) such as: alternative repayment plans, deferment, consolidation, discharge, forgiveness, forbearance. Inceptia will stay in touch with you via phone calls, letters, and/or emails to help you find answers to your questions and solutions to your issues. For additional resources including information on repayment options, please visit Inceptia’s Federal Student Loan Overview website at Inceptia.org/FAQ.
- Palomar College does not certify alternative education bank loans. The U.S. Department of Education (ED) does not have regulatory authority over an institution’s decision to certify private education loans for lenders. However, under 34 CFR 601.11(d), an institution must provide any enrolled or admitted student with the Private Education Loan Applicant Self-Certification form and the information required to complete the form (i.e., the student’s cost of attendance, estimated financial assistance, and the difference between the two) if the student requests a private education loan. This requirement is not conditioned on the borrower’s satisfactory academic progress (SAP), enrollment status, or any other student eligibility criteria.
- You can also find more information regarding interest rates , how to apply for a loan, repayment plans, deferments, forbearance, consequences of default and much more, go to https://studentaid.gov