SA-14 Federal Direct Loan Program

Purpose
Applies to all students wanting to obtain a student loan to finance their educational costs while attending Green River.

Scope
Applies to all students wishing to obtain financial aid at Green River College.

Definitions 

  • William D. Ford Federal Direct Loan: program established by the United States Congress to assist students and parents in financing their educational costs.
  • Subsidized loan: a loan in the student’s name in which the interest is paid for the student until the student ceases enrollment as a half-time student.
  • Unsubsidized loan: a loan in the student’s name in which a federal interest subsidy is never provided. Loan repayment begins six months after a student ceases half-time enrollment.
  • Federal Direct Parent Loan for Undergraduate Student (PLUS Loan): a loan in the parent’s name used for paying the student’s educational expenses.

Policy 
Green River uses two types of Federal Direct Loans for students, subsidized and unsubsidized.

It also offers the Federal Direct PLUS loan for parents to use in financing their dependent’s educational costs.

The U. S. Department of Education is the lender for these loan programs.

Procedure 

  1. Students wishing to borrow under the Federal Direct Loan program must have a complete financial aid file prior to loan certification. Federal PLUS Loans require a FAFSAand PLUS Loan Worksheet prior to loan certification.

  2. For a Federal Direct Loan, students can submit a Federal Direct Loan Worksheet or accept their loan award via the financial aid portal or by submitted a signed award letter to the financial aid office

  3. For a Federal Direct Loan, students must complete Entrance Counseling and a Master Promissory Note online prior to receiving funds.

  4. Students will receive a notification of loan funds each quarter.

  5. Exit counseling materials are e-mailed to borrowers when they drop below six credit hours and/or leave the college.

Specific Authority
Federal Regulations 34 CFR 685

Law Implemented


History of Policy or Procedure

Draft Date: May 22, 2018
Policy Adopted: January 6, 2006
Procedure Adopted: January 6, 2006
Policy Revised: August 22, 2012
Procedure Revised: August 22, 2012
Policy and Procedure Revised: August 22nd, 2018
Reviewed By: Dr. Suzanne Johnson
Sponsor: Teresa Buchmann, Director of Financial Aid, ext. 3326
Executive Team Sponsor: Dr. Deborah Casey, Vice President of Student Affairs, ext. 3328