Student Loan

Federal Direct Stafford Loans

Reynolds Community College takes part in the William D. Ford Federal Direct Loan Program, offered through the Department of Education. Federal Stafford loans are low-interest, long-term loans.

Students with financial need can obtain a subsidized Federal Direct Stafford Loan. This means the U.S. Department of Education will pay the interest charges to the student's lender as long as the student is enrolled on at least a half-time basis (6 or more credits) and during a six-month period following enrollment (grace period). At the end of the grace period, repayment of the loan will begin and interest begins to accrue to the student borrower. Students who do not qualify for the subsidized (need-based) Federal Direct Stafford Loan can obtain an unsubsidized (non-need-based) Federal Direct Stafford Loan. Unlike the subsidized Loan, the interest will accrue while the student is enrolled. While enrolled on at least a half-time basis (6 or more credits), the student may pay interest only or have the interest capitalized (added to the principal). See the current interest rates at studentaid.gov.

The Office of Financial Aid must approve all federal loans and reserves the right to refuse loan applications due to academic deficiency or evidence that a student may have difficulty managing loan debt.

If you are a graduating senior and only attending one semester, your Federal Direct Subsidized and/or Unsubsidized Loans may be prorated based on the number of credits for which you are enrolled. This means that you may not be eligible to receive your maximum annual loan limit at Reynolds Community College.

This affects students enrolled for only one final semester in an academic year: either fall-only, spring-only, or summer-only. This will not affect students who are enrolled in fall and spring semesters and graduate at the end of the spring semester.


How to Apply for a Federal Direct Student Loan
If you are a student interested in applying for a Federal Student Loan, you will need to follow these steps:

  1. Complete the FAFSA each year at studentaid.gov.
  2. Apply to Reynolds and be admitted into an approved Program or Plan of Study and be making Satisfactory Academic Progress (SAP).
  3. Comply with any information requests from the Office of Financial Aid, such as verification items and tax information.
  4. Complete the Reynolds Community College Federal Direct Loan Request form available at the Financial Aid forms page.
  5. Complete Loan Entrance counseling. All first time borrowers at Reynolds are required to complete Loan Entrance Counseling. You can do this online at studentaid.gov.
  6. Complete your Master e-Promissory Note (MPN) at studentaid.gov. Be sure to choose the "Complete New MPN for Student Loans" link. Please Note: You only have to do one Master Promissory Note during your borrowing "career" at Reynolds. Each time you wish to borrow, you must complete the Reynolds Community College Federal Direct Loan Request form available at the Financial Aid forms page. A new MPN must be submitted if you transfer to another college and borrow there. You would do a new MPN at that college, and upon your return to Reynolds, you would do another MPN.
  7. Allow 7 business days for the loan request form to be reviewed and posted as part of your award package. If additional information is needed that prevents a loan to be awarded you will be notified via your Message Center.
  8. Enroll, attend, and maintain at least six credit hours to retain loan eligibility. Students must stay active in at least six credit hours each semester for which they apply for a loan. Students who drop below half-time status risk having their loans canceled and will enter their grace period for repayment.

For information on estimated disbursement dates please go to https://www.reynolds.edu/pay_for_college/financial_aid/disbursements-and-refunds.aspx

Exit Counseling

As a student, you are required to complete Exit Counseling if:

  • you drop or withdraw classes to less than half-time or begin to attend as a less than half-time student.
  • you withdraw fully from the college.
  • you do not begin classes in a subsequent semester.
  • you complete and graduate from a program.

You will be notified by email to your Reynolds email account, or, if you are no longer attending, via a mailed letter to the address on file. Exit Counseling is completed online at studentaid.gov.

ALL Federal Direct Stafford loan borrowers must complete an Exit Loan Counseling Session upon graduation or withdraw. Repayment begins six months after a student leaves school because of graduation, other reasons, or drops below half-time level. All loan applicants must not have defaulted on prior student loans or borrowed their maximum lifetime amounts as determined by the Federal government. Students may not borrow more than the annual cost of their education minus other financial aid awarded them. To find out your loan service and keep track of your student loan borrowing, please check the National Student Loan Data System at nsldsfap.ed.gov.

Parent Loan

Federal Direct PLUS Loans
The Federal Direct PLUS Loan program is a non-need-based source of loan funds for the parent(s) of
dependent students. Federal Direct PLUS Loans may be used in conjunction with Federal Direct
Stafford Loans. Each year, parents of dependent students may borrow an amount not to exceed the
cost of attendance less any financial aid (including Federal Direct Stafford Loans). See the current interest rates at studentaid.gov. The Federal Direct PLUS Loan on the undergraduate level is only available to parents. Guardians are ineligible. A credit check is performed on all parental borrowers, and pre-approval is required.

PLEASE NOTE: This loan is in the parent's name and the parent will be responsible for repayment of the loan.

How to Apply for a Federal PLUS Loan
If you are an eligible parent interested in applying for a Federal Direct PLUS Loan, you will need to complete the following steps:

1. Ensure that your student has applied for admission to Reynolds, has been placed into an eligible academic curriculum, and is making Satisfactory Academic Progress (SAP).

2. Complete the Reynolds Community College Federal Direct PLUS Loan Request form available at the Financial Aid forms page, or an online application can be completed at studentaid.gov.

3. Complete your Master e-Promissory Note (MPN) at studentaid.gov. Be sure to choose the "Complete New MPN for Parent PLUS Loans" link.

4. Ensure that the student enrolls for, attends, and maintains at least six credit hours to maintain loan eligibility. Students must stay active in at least six credit hours each semester. Students who drop or withdraw below half-time status risk having Federal Direct PLUS Loans canceled.

5. Finally, allow 4-6 weeks for processing, depending on the time of the year.

Repayment Options

The repayment period for a Direct PLUS Loan begins immediately after the last disbursement of the loan, while the student is still in school. Parents may be able to deter making payments while the student is enrolled at least half-time, and for an additional six months after the student graduates or drops below half-time enrollment status.

There are various repayment options available. You can learn more information about the repayment plans and use the Repayment Estimator to estimate monthly payments at https://studentaid.gov/loan-simulator/.