Paul D. Camp Community College (Camp) participates in the William D. Ford Federal Direct Loan Program, offered through the Department of Education. Federal Direct loans are monies that a student or borrows to pay for educational expenses. Federal Direct PLUS loans are monies that a parent borrows to assist their undergraduate student. Both loans are financial obligations that must be repaid with interest.
Student-specific loan information
Federal Direct Loans are intended to help students and families offset the rising cost of college tuition. Criteria for eligibility includes:
- Completion of–
- a FAFSA
- a Direct Loan Request form
- appropriate financial counseling (new borrowers)
- a promise to repay the funds (Master Promissory Note – good for 10 years)
- Be enrolled for at least six credits in an eligible certificate or degree program
- Be making Satisfactory Academic Progress (SAP)
Students with unmet financial need can obtain a subsidized Federal Direct Loan. This means the U.S. Department of Education will pay the interest charges on this type of loan as long as the student is enrolled at least half-time (six or more credits) and for a six-month period after graduation or dropping below half-time (grace period), as well as during periods of approved deferment. At the end of the grace period, repayment of the loan will begin and interest begins to accrue to the student borrower. Repayment may extend up to ten years but borrowers must make payments of at least $50 per month.
Students who do not qualify for the subsidized (need-based) Federal Direct Loan can obtain an unsubsidized (non need-based) Federal Direct Loan. Unsubsidized Loan students are responsible for the interest obligation while enrolled. The student, while enrolled on at least a half-time basis (six or more credits), may pay interest only or have the interest capitalized (added to the principal).
All Federal Direct loan borrowers must complete an Exit Loan Counseling Session upon graduation or withdrawal. Repayment begins six months after a student leaves school due to graduation or any other reason; or drops below half-time level. All loan applicants must have completed a Free Application for Federal Student Aid (FAFSA) form and may not have defaulted on prior loans or borrowed their maximum lifetime amounts as determined by the Federal government. Students may not borrow more than the cost of their education minus other financial aid awarded them. The Financial Aid Office must approve all federal loans and reserves the right to refuse loan applications due to academic deficiency or evidence that a student may have difficulty managing loan debt. To apply for a Direct Loan, students must meet basic eligibility criteria.
Federal Direct Loans are not to be used as a mechanism for securing enrollment for a student who files their FAFSA late (June 1st-Priority Filing Date). A student must have a payment method in place to pay for classes at the time tuition is due.
*As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy will be limited for new borrowers effective July 1, 2013. The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student’s current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student’s outstanding subsidized loan.
Parent-specific loan information
The Federal Direct PLUS Loan program is a non-need-based source of loan funds for the parent(s) of dependent students. Federal Direct PLUS Loans may be used in conjunction with Federal Direct Loans for students. Each year, parents of dependent students may borrow an amount not to exceed the cost of attendance less any financial aid (including Federal Direct Loans).
- A Master Promissory Note is required.
- A credit check is required
- Pre-approval is required
The Federal Direct PLUS Loan on the undergraduate level is only available to parents.* Repayment begins 60 days after the final disbursement is made unless the parent borrower makes other arrangements with their lender to defer repayment.
*An eligible parent is defined as the biological or adoptive parent of an undergraduate student. Guardians are ineligible for a Parent Loan. In some cases, a step-parent may be eligible to apply for a PLUS loan. While the custodial parent completes the FAFSA form, a non-custodial parent may be the parent who applies for the PLUS loan. However, the amount eligible to borrow will be based off of the custodial parent’s FAFSA form results. Be prepared to provide proof of the parental relationship, if required.
PLEASE NOTE: This loan is in the parent’s name and the parent will be responsible for repayment of the loan. The loan cannot be transferred to the student. Loan requests are due 30 days prior to the start of the semester. Federal PLUS Loans are not to be used as a mechanism for securing enrollment for a student who files their FAFSA late (June 1st-Priority Filing Date). A student must have a payment method in place to pay for classes at the time tuition is due.
Federal Education loans offer benefits not provided by private/alternative loans, including:
- Lower interest rates
- Longer repayment terms
- Deferment and Forbearance options
- Early loan forgiveness for graduates working in public service
How to Apply:
- Jump to Financial Aid Forms Page for Direct Loan Application (required)
- Entrance Counseling (required)
- Master Promissory Note (required)
- Exit Counseling
Other Helpful Direct Student Loan Program Links:
- Direct Loan Overview
- Repayment Plans for Direct Loans
- Repaying your loans
- What to Expect for Direct Loans
- Code of Conduct
Need Help? – Watch these informative videos
Paul D. Camp Community College partnered with Solutions at ECMC to help you understand student loan repayment—we know students want to repay their student loans but may be unsure how to get started. You can use these free services by contacting an ECMC Student Loan Repayment Advisor at 877-331-3262.
Paul D. Camp Community College’s 3-year Cohort Default Rate is 20.9% as of September 2020.
FSA Student Loan Ombudsman Office
If you have any unresolved loan issues, the FSA Ombudsman Office is dedicated to helping resolve disputes informally and confidentially. Contact information is provided here, for your convenience:
Via on-line assistance: https://studentaid.gov/feedback-ombudsman/disputes/prepare
Via telephone: 877-557-2575
Via fax: 606-396-4821
Via mail: FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633