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Loans

Steps to Consider

1. You must have a FAFSA record with Sacramento City College to apply for a loan.
2. You may contact the Financial Aid Office to sign-up for a mandatory Loan Counseling and Debt Management Workshop. The workshop will explain your responsibility to repay the loan and the loan process. You will receive a loan application at the workshop. You may call the Financial Aid Office for an appointment.
3. You may submit the completed loan application ONLY when you received a Financial Aid Award letter, which details your financial aid eligibility.

Federal Stafford Loan

Subsidized Stafford Loans
Eligibility for subsidized Stafford loans is based on need. The interest rate for new loans is variable, not to exceed 8.25%. Interest is paid by the federal government while you're in school at least half-time, during the grace period, and during periods of deferment. No payments are required while you're in school, but you must begin making regular monthly payments six months after leaving school, dropping below half-time, or graduated.

Unsubsidized Stafford Loans
Unsubsidized loans are available to all qualified students at participating schools, regardless of their income. The interest rate on unsubsidized Stafford loans is variable as with subsidized Stafford loans, capped at 8.25%. Interest payments begin immediately. Although the interest can be deferred and "capitalized," regular loan payments start six months after the borrower ceases to be enrolled at least half-time.

Federal Stafford Loan Annual Limits

ACADEMIC YEAR

AGGREGATE LIMITS

	MAXIMUM SUBSIDIZED & UNSUBSIDIZED	ESTIMATED MONTHLY PAYMENT ON MAXIMUM	ESTIMATED TOTAL PAYMENT AMOUNT (OVER 10 YEARS)
Dependent Undergraduate	$23,000	$265	$31,762
Independent Undergraduate	$46,000	$529	$63,524

Borrower Rights and Responsibilities

When you accept a loan, you accept legal and financial responsibilities that last until the loan is repaid. Here is a check list of your responsibilities in the loan process, as well as your rights as a borrower.

When you accept a student loan, you are agreeing to:

• Repay your loan(s), including accrued interest and fees, whether or not you complete your education, obtain employment, or are satisfied with your education.
• Attend exit counseling before you leave school or drop below half-time enrollment. Loan exit counseling session.
• Notify your lender or current holder of your loan within 10 days if you change your name, address, or phone number; drop below half-time status, withdraw from school or transfer; or change your graduation date.
• Direct all correspondence to the current holder of your loan, which could change during the life of the loan.
• Make monthly payments on your loan after leaving school, unless you are granted a deferment or forbearance.
• Notify your lender or the current holder of your loan of anything that might change your eligibility for an existing deferment.

You also have inherent rights as a student borrower. You have the right to:

• Receive a copy of your promissory note either before or at the time the loan is made.
• Receive a disclosure statement before the repayment term on your loan begins, including information about interest rates, fees, balance and the size and number of payments.
• A grace period after you leave school or drop below half-time enrollment and before your loan payments begins.
• Prepay all or part of your loans without a prepayment penalty.
• Written notification if your loan is sold to a new holder.
• Apply for deferment of your loan payments for certain specified periods, as long as you are eligible.
• Request forbearance from the holder of your loan if you are unable to make payments and do not qualify for deferment. You must qualify according to the loan holders requirements.
• Receive a proof of discharge when your loan is paid in full.

If you fail to repay your student loan, you will be considered to be in default and the following may result:

• Loss of deferment and forbearance options.
• Loss of further federal or state student financial aid (grants or loans).
• A negative credit notation to national credit reporting bureaus.
• Possible seizure of federal/state income tax refunds and lottery winnings.
• Possible wage garnishment.
• Loss of eligibility for certain state or federal jobs.
• Collection charges may be assessed.
• The entire unpaid balance of loan(s) including accrued interest immediately become due and payable in full.

Lender List

Loan Workshops 

For Spring Loan Workshops call 916-558-2546 to schedule.

Reminder:

• Sorry, no children are allowed at the loan workshop
• Don't be late or you'll need to reschedule for another loan workshop
• You must be able to stay for the full two hours.

For 2007-2008 school year only