Federal loans

Federal Direct Loan

Federal Direct Loans are federal loans that are available to degree-seeking students enrolled on an at least half-time basis (6 credit units). All federal loans are borrowed directly from the U.S. Department of Education as part of the William D. Ford Direct Loan Program. You can be awarded either a Direct Subsidized Loan and/or a Direct Unsubsidized Loan. A student’s eligibility for these loans is determined by information entered on the FAFSA form. Direct Loans are need-based loans and they carry a current origination fee of one-half percent. The origination fee is deducted from the total loan amount prior to being disbursed to the college.

A Subsidized Loan is awarded based on a student's financial need as determined by the FAFSA. This loan does not accrue interest prior to the repayment of the loan or during authorized periods of deferment. Repayment begins six months after a student enrolls less than half time, withdraws from the school or graduates. This period of time during which no repayment is required is called the “grace period.”

An Unsubsidized Loan is not awarded based on financial need so just about all students are eligible. Unlike the Subsidized Loan, this loan will accrue interest immediately from the time the loan is disbursed until paid in full. Students have the option of paying the interest while in school or deferring the interest payments until they enter repayment. The grace period for this loan also ends six months after a student enrolls less than half time, withdraws from the school or graduates.

Depending on a student’s financial need, Direct Loans Loans may be a combination of both Subsidized and Unsubsidized Loans.

Loans

California College of ASU students may apply for Direct Subsidized and Direct Unsubsidized Loans and parents of dependent students may apply for Direct PLUS Loans.

Limits for Direct Subsidized and Unsubsidized Loans are set according to the student’s college grade level. Direct Unsubsidized Loan limits also take the student’s dependency status into consideration. Generally, independent students will be allowed to borrow more Direct Unsubsidized Loan funds than dependent students.

You can learn more about the Federal Direct Loan program from one of our college financial aid officers or on the Federal Direct Loan webpage at studentaid.gov.

Direct loans

California College of ASU participates in the U.S. Department of Education William D. Ford Federal Direct Loan program. Unlike grants, Federal Direct Loans must be repaid. The amount a student qualifies for depends on the grade level of current enrollment. To be eligible to receive Direct and Direct PLUS Loans:

The student must be enrolled at least half time.
The student or parent borrower must meet the basic eligibility requirements for Federal Student Aid funds.

Direct subsidized loans

Direct subsidized loans are need-based loans made available to eligible undergraduate students to help cover the cost of tuition.

There is no interest charged and no payment due during a six-month grace period after the student graduates, withdraws or drops below half-time enrollment status.
The amount a student qualifies for depends on the enrolled grade level.
There is no prepayment penalty.

Direct unsubsidized loans

Direct unsubsidized loans are non-need-based student loans made available to eligible students to help cover the cost of tuition. Loan amounts are determined based on the student’s current enrolled grade level, dependency status, the cost of attendance and the amount of other financial aid received.

Interest is charged to the student on disbursed loan amounts during all periods, including the six-month payment grace period after the student graduates, withdraws or drops below half-time enrollment status.
Unpaid interest will accrue and will be added to the principal amount of the loan.
The student may make full or interest-only payments while in school and during grace and deferment periods.
Repayment of the loan principal begins six months after the student graduates, withdraws or drops below half-time enrollment status.
There is no prepayment penalty.

Direct PLUS Loans

Direct PLUS Loans are credit-based loans for eligible parents of dependent undergraduate students to cover costs not covered by other financial aid funds. Direct PLUS Loans may also be awarded to graduate or professional students. A parent borrower with an adverse credit history may be prohibited from obtaining a Direct PLUS Loan unless additional criteria are met or arrangements are made for a co-signer.

The maximum amount a parent borrower can request is the total cost of attendance minus other aid received.
Interest is charged to the borrower beginning on the date the loan is disbursed and accrues during all periods, including during the student’s enrollment.
The loan enters repayment 60 days after the loan is fully disbursed unless deferment is requested by the borrower.
There is no prepayment penalty.

Private student loans

Private loans are designed to fill the gap after exploring federal student aid options. Unlike federal student loans, private loans are not sponsored or guaranteed by government agencies and may or may not require completion of a federal form to qualify. Private loan eligibility and credit score requirements, interest rates and terms vary from lender to lender. Lenders may offer private loans to help cover up to 100% of the cost of attendance, less other financial aid received.

Financial aid FAQs

How can I manage my federal student aid application online?

Studentaid.gov is the U.S. Department of Education financial aid website.

Studentaid.gov allows you to:

Learn about the financial aid process, loan repayment and loan forgiveness.
Create a Federal Student Aid account with a username and password.
Fill out the Free Application for Federal Student Aid — FAFSA — using California College of ASU school code 014697.
Apply for a Direct PLUS Loan.
Sign a Master Promissory Note.
Complete entrance and exit counseling.
Manage your student aid account.
Identify your loan servicer.
Apply for or recertify an income-driven repayment plan.

What is verification?

Verification is the process by which a school confirms the accuracy of information entered on a FAFSA by a student or parent. Applicants to be verified are selected by the Department of Education Centralized Processing System. Not every student will be required to complete verification; however, if selected by CPS to complete verification, you must take the necessary steps for your financial aid package to be finalized.

The college also reserves the right to select for verification any application that may contain inaccurate or conflicting information. If selected for verification, the student will be notified via email and informed about documents required to complete verification. Because the initial contact attempts will be sent via email, it is critical that all student email addresses provided to the Financial Aid Department are accurate and current.

It is the responsibility of the applicant to ensure all requested verification documents are submitted in a timely manner and with the appropriate signatures. Late verification documents will not be accepted past the published due date.

A California College of ASU financial aid officer can answer questions about the verification process and required documents.

How do I report financial changes on my FAFSA?

You must notify the Financial Aid Department in writing if there is an increase or decrease in the household number, number of family members attending college or other changes to information reported on your FAFSA. You should also notify the Financial Aid Department if you receive scholarships or awards from outside sources.

What is my expected family contribution?

The information you report on your FAFSA is used to determine your expected family contribution, which is calculated by a formula established by law. Your expected family contribution is not the amount of money your family must provide; it is an index that colleges use to determine how much financial aid — grants, loans or work-study — you can receive. If your expected family contribution is below a number determined by the U.S. Department of Education, you may be eligible for specified federal grants assuming you meet all other eligibility requirements.

Grants

Grants are a form of financial aid often called gift aid because they do not require repayment. Grants are generally need-based. In addition to the federal grant programs below, students may research and apply for grant funds from outside private or nonprofit organizations.

Federal Pell Grants

The Federal Pell Grant is awarded to undergraduate students who have exceptional financial need and who have not earned a bachelor’s degree. Unlike a loan, the Pell Grant does not have to be repaid. The amount an individual student may receive is determined by factors including information provided on the FAFSA. A student may receive the Federal Pell Grant for no more than 150% of the average program length. At California College of ASU, a BFA student may receive a Federal Pell Grant for 18 academic quarters or the equivalent — roughly six years.

Federal Supplemental Educational Opportunity Grants

The Federal Supplemental Educational Opportunity Grant is awarded as a supplement to other sources of financial aid to undergraduate students who have exceptional financial need and who have not earned a bachelor’s degree. Students receiving Federal Pell Grants receive priority in FSEOG awards. The FSEOG does not need to be repaid, but funding is limited and based on institutional availability.

Eligible noncitizen students can get detailed information on noncitizen requirements and required documentation from the U.S. Department of Education Federal Student Aid website,

Visit studentaid.gov for more information on grants.