Federal Loan Application and
Disbursement
Once you have received your award notification
from the Financial Aid Office, initial loan eligibility will be offered on your
award notice if you indicated you were interested in student loans when you
completed your Free Application for Federal Student Aid.Remember loans must be repaid, so borrow only what you need. You may plan a budget here and are encouraged to follow these steps and then calculate the loan repayment. To see the maximum you may borrow, click here. Remember loans MUST be repaid. Only borrow what you will need to complete your education. To be eligible for a Federal Direct Stafford Loan you must:
- Maintain satisfactory academic progress
- Enroll at least half-time (6 credit) in a degree or certificate program
- Be in an eligible degree or certificate program
- Not be in default, overpayment or owe a refund on any Federal Loan or Grant
- Not have reached the Federal aggregate limits for Stafford Loans
Applying for a Federal Direct Student Loan:
Failure to follow the steps below in order may result in a delay in processing and receiving loan funds. Loan offers accepted online without the direct loan entrance counseling and master promissory note will be cancelled. Please read carefully and contact our office if you have any questions. Be sure to have your four-digit PIN available (used when completing the FAFSA) before starting the steps below. www.pin.ed.gov.
- Complete Direct Loan Entrance Counseling and sign a Direct Loan Master
Promissory Note. Both must be completed online at www.studentloans.gov.
You must complete these requirements regardless of whether or not you have
borrowed an FFELP or Direct loan at another institution in the past.
- Accept your Federal Direct Loan through your student account login on The ROCK portal. Click on the Student Finances tab, then on the Financial Aid Awards box, select aid year (11/12) and go to the "Accept Award Offer" tab. You may reduce the loan amount online as well. Your award offer is the maximum loan amount for the fall/spring loan period with an equal disbursement each term.
Step #1 needs only to be completed once at Red Rocks Community College.
Click here to view the Financial Aid Code of Conduct and our relationship with lenders, guarantors and servicers of education loans. Financial Aid Code of Conduct (pdf).
Disbursement of Direct Student Loans
Please check your account online for updates to your loan status. All loan change requests are processed in the order they are received. Effective as of 2009/10 academic year any single term loan periods will have a two disbursement requirement.New direct student loan borrowers will be subject to a 30 day delay in releasing student loan funds (from beginning of term). Click here for more information on disbursement of financial aid funds.
Steps to Apply for a Federal Parent Loan (PLUS)
The Direct PLUS Loan is available to parents of dependent students who wish
to borrow funds to assist with their child's education. Some
undergraduate dependent students require additional funds, especially those who
are paying an out-of-state tuition. Parents please begin here:
2011-2012 Federal
Direct PLUS Loan Application
Avoid Default
Paying off a student loan is a great way to develop a good credit history. Timely loan payments are critical. If you are having difficulty repaying your loan due to unemployment, a temporary financial setback or another problem, contact the servicing department for your loan. You can obtain information 24 hours a day online or request forms. Customer Service Representatives are available to answer borrower phone calls from:
- Monday through Friday 8:00 am E.S.T. to 8:30 pm E.S.T.
- Monday through Friday 5:00 am P.S.T. to 5:30 pm P.S.T.
Telephone numbers: Direct Loan Servicing
- Toll free: 1-800-848-0979
- Overseas/International: 011-315-738-6634
- Hearing Impaired Borrowers with a TDD: 1-800-848-0983
A defaulted loan is serious. If you default, it means the lender has turned your loan over for collection and the entire amount is due and payable. Once you are listed as being in default on a student loan, no financial aid of any form will be available to you. To rectify this, you must contact your lender immediately to determine what steps they will require to resolve this issue. Normally, if a person makes six on-time, non-garnished, monthly payments, they may qualify to apply to have their loans rehabilitated. If this is approved, a student can then reapply for financial aid. With 12 on-time, non-garnished, monthly payments, they may qualify to apply to have their loans then taken out of defaulted status. Consequences of having a loan in default include:
- A damaged credit rating
- Court action or litigation
- Garnishment of state and federal tax refunds and state lottery winnings
- Wage garnishment and attachment of property
- Loss of additional student aid eligibility
- Loss of deferment and monthly repayment options
- Assessment of collection costs
- Possible effect on professional licensing
- Inability to attain federal student financial aid at any institution.
