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 processing 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 base amount of $3,500 (subsidized and/or unsubsidized); Grade level two students may borrow a base amount of $4500 (subsidized and/or unsubsidized) per academic year. Loan amounts for one semester are ½ half the maximum yearly loan amount not to exceed need or cost of attendance.

 Students whose total borrowing is $15,000 or more will be required to complete additional loan counseling with an advisor prior to processing of any additional loans. Students will provide a budget worksheet with documentation of expenses and resources as well as a plan for repayment based on their educational goal. The Financial Aid Director has the discretion to deny a request for a student loan on a case-by-case basis.

https://www.elmselect.com/oll/SchoolLenderList/?schoolId=8496

Use the above link to assist you in selecting a lender for your Federal Student Loan. The link allows you to compare the benefits of each lender.

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.