Federal Family Educational Loan Program (FFELP)

     Cuyamaca College participates in the Federal Family Educational Loan Program (FFELP) by offering subsidized and unsubsidized Federal Stafford Student Loans (FSSL). All students applying for a loan must have an “Entrance Interview” prior to the receipt of the loan application and an “Exit Interview” prior to the receipt of the second check. Exit interviews are required each academic year.

     Federal Stafford Student Loans are low-interest rate loans made to students by lenders such as banks or credit unions to help students pay for educational expenses. These loans are insured by the guarantee agency in the student’s state and reinsured by the federal government. As of July 1, 2006 the interest rate is fixed 6.8% for the life of the loan. The interest rate may adjust every July 1st of each calendar year. Grade level one students may borrow a maximum of $3,500 (subsidized and/or unsubsidized); Grade level two students may borrow a maximum of $4,500 (subsidized and/or unsubsidized) per academic year.

Students whose total borrowing is between $8,750 and $12,249 will be required to go through additional loan counseling with a financial aid advisor prior to certification of any additional loans. Students whose total borrowing is $12,249 or greater must petition to the Director of Financial Aid and provide a budget worksheet with documentation of expenses and resources as well as a plan for repayment based on the student’s educational goal showing the need to cover direct educational expenses.  (i.e. students paying out of state tuition fees)  

To apply for a subsidized or unsubsidized FSSL a student must:

• complete the Free Application for Federal Student Aid (FAFSA).

• complete the verification process with the financial aid office.

• complete a supplementary application requesting a FSSL.

• complete an "Entrance Interview " prior to the processing of a student loan.

• complete an "Exit Interview" prior to receiving second disbursement.

Subsidized Federal Stafford Student Loan: This loan is available for students who demonstrate financial need. Students who are eligible to apply for a FSSL based upon need qualify to have the federal government pay the interest on their loan while they are in school and during deferment periods.

Unsubsidized Federal Stafford Student Loan: This loan is available to students whether or not they qualify for need-based financial aid. Students are responsible for monthly interest payments (or capitalization of interest) from the date the loan is disbursed.  Availability for unsubsidized student loan may be determined based on direct educational expense based on cost of attendance.