Loans Available for Providence Students
Providence Christian College participates in the Federal Direct Loan Program. This program consists of subsidized and unsubsidized loans. Student loans as well as Parent PLUS loans are available. These loans are called “direct” because the student and/or parent are borrowing directly from the US Department of Education. In order to see if you qualify to receive any of these loans you will need to complete the FAFSA (Free Application for Student Aid) as well as the VFAO (Virtual Financial Aid Office) application. To be eligible for Direct Loans, you must be enrolled in school at least half-time and meet general eligibility requirements for the Federal Student Aid programs.
In addition to the Federal Direct Loan Program, students may also apply for private loans through Sallie Mae or Wells Fargo. More information and loan applications are available on their websites. Please go to the Sallie Mae Smart Option Student Loan Program website or to www.wellsfargo.com/student/
The subsidized loan provides for students with financial need as determined by federal regulations. This subsidized loan will not accrue interest while the student is enrolled in school at least half time, or during the student’s grace and deferment periods.
The unsubsidized loans are disbursed to students without concern for need. These loans accrue interest during all periods.
PLUS loans are offered to parents of dependent college students to help meet college costs. Repayment begins 60 days after the full amount you’ve borrowed for a school year has been disbursed.
How much can I borrow?
The amount you can borrow each year for Subsidized and Unsubsidized Direct Loans depends on your grade level and whether you are a dependent or independent student. The amount you are able to borrow is also limited by your school costs, other financial aid you receive and (in the case of subsidized loans) your expected family contribution. With a PLUS loan, a parent of a dependent undergraduate student may borrow up to the student’s cost of attendance minus other financial aid the student receives.
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What are the benefits of Direct Loans?
Direct Loans provide a single point of contact through the Direct Loan Servicing Center for all student and parent borrowers, even if you receive Direct Loans from different schools. You can check on your Direct Loan account online or you can reach them by phone at 800-848-0979. Direct Loans also offer flexibility, allowing you to choose from several repayment plans designed to meet your needs. PCC will disburse your loan money by crediting it to your school account. Your loan money will usually be disbursed in at least two installments.
Additional Information for Direct Loans
- Direct Loans have a fixed interest rate that is calculated at the time the loan is disbursed.
- Direct Subsidized and Unsubsidized loans have a six-month grace period that starts the day after you graduate, leave school or drop below half-time enrollment. You don’t have to begin making payments until your grace period ends.
- To be eligible for Direct Loans, you must be enrolled in school at least half time and meet general eligibility requirements for the Federal Student Aid program.
- You will need to take at least six units per semester and maintain “satisfactory academic progress” (SAP).
- A Direct Loan requires the completion of the MPN – Master Promissory Note. This document explains the terms and conditions of your loan and is your legally binding agreement to repay the amount you borrow.
- Loan fees are deducted before you receive any loan money. The Department of Education takes a loan fee of 2% of the principal amount of each Direct Subsidized or Unsubsidized loan that you borrow. The loan fee for PLUS loans is 4%. This fee reduces the cost of making these low-interest loans. The loan amount you receive will actually be less than the amount you were awarded. For example, if you borrow a $5500 Direct loan, you will receive $5390 after the loan fee is taken by the Department of Education.
- Entrance counseling is required for any student loan and is completed when you complete the Virtual Financial Aid Office (VFAO) application. Exit Counseling is also required and you will receive instructions regarding it when you leave Providence Christian College.
Please refer to the Direct Loan website for any other questions for you may have.
Code of Conduct
(Adopted from the NASFAA Code of Conduct for Financial Aid Professionals)
- Refrain from taking any action for his or her personal benefit or gain.
- Refrain from taking any action he or she believes is contrary to law, regulation or the best interests of the students and parents he or she serves.
- Ensure that the information he or she provided is accurate, unbiased, and does not reflect any preference arising from actual or potential personal gain.
- Be objective in making decisions and advising his or her institution regarding relationships with any entity involved in any aspect of student financial aid.
- Refrain from soliciting or accepting anything of other than nominal value from any entity (other than an institution of higher education or a governmental entity such as the U.S. Department of Education) involved in the making, holding, consolidating or processing of any student loans, including anything of value (including reimbursement of expenses) for serving on an advisory body or as part of a training activity of or sponsored by any such entity.
- Disclose to his or her institution, in such manner as his or her institution may prescribe, any involvement with or interest in any entity involved in any aspect of student financial aid.
Questions or concerns regarding the loan program may be directed to Tina Bos in the Office of Financial Aid.