Federal Student Loan Application Procedures

How to Apply for a Federal Stafford Student Loan

1. Complete the Free Application for Federal Student Aid (FAFSA) 
2. Apply to the College and be admitted into an approved Plan and be making Satisfactory Academic Progress.
3. Comply with any information requests from the Financial Aid Office.
4. Complete the loan application process each year. The loan application process includes the completion of an Entrance Loan Counseling Session, the Master Promissory Note, and a Federal Stafford Loan Request Form. The Master Promissory Note is only required of first-time loan borrowers. The Entrance Counseling Session and the Master Promissory Note will be completed online. Please complete and submit the Federal Stafford Loan Request Form to the Student Financial Aid Office at Blue Ridge.
5.  Enroll, attend and maintain at least SIX credit hours To keep and maintain loan eligibility, students must stay active in at least SIX credit hours (half time.) each semester. Students who drop below half time may have their loans cancelled, and will start using their grace period. Please watch your hours and avoid withdrawing.
6. Finally, allow 1-2 weeks for College processing, depending on the time of the year
   

How to Apply for Federal PLUS Loans

The Federal PLUS Loan program is a non-need-based source of loan funds for the parent(s) of dependent students. Federal PLUS Loans may be used in conjunction with Federal 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 Stafford Loans). Repayment begins 60 days after the final disbursement is made unless the parent borrower makes other arrangements with their lender to defer repayment. The interest rate is currently fixed at 8.5%. The Federal 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.

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

1. Ensure that your dependent has applied for admission to the College, been placed into an eligible academic curriculum, and is making Satisfactory Academic Progress (SAP).
2. Submit the Free Application for Federal Student Aid. You may apply on-line.
3. Complete the loan application process each year. The loan application process includes the completion of the Master Promissory Note and a Federal Stafford Loan Request Form. Please complete and submit the Federal Stafford Loan Request Form to the Student Financial Aid Office at Blue Ridge.
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 below half-time status risk having Federal PLUS Loans canceled.
5. Finally, allow 1-2 weeks for College processing, depending on the time of the year.

Information Requests

Sometimes the FAFSA data is incomplete or a student has been selected (by the US Dept of Education) for Verification. If the BRCC Financial Aid Office needs additional information before determining your loan eligibility, please comply as quickly as possible.

Loan Entrance Counseling

Student Loans are financial aid that you must repay. All first time borrowers at BRCC are required to complete Loan Entrance Counseling. You can complete this online. We monitor this site daily for our student borrowers.

Choosing a Lender

We encourage you to select a lender from our list of commonly used lenders. These lenders provide great customer service, and we have arrangements with them through Education Credit Management Corporation to process the loans electronically. Note the lender code and use it when completing your Promissory Note. If you would like to select another participating lender please feel free to do so. You may visit the ECMC web site to look up other participating lenders.

E-Promissory Note

Our guarantee agency, Education Credit Management Corporation uses an electronic version of the Master Promissory Note on their secure site. You can do the form electronically and it shortens the process for all of us. ECMC also provides a downloadable Promissory Note for those who prefer paper.

Following is a brief list of steps involved with the E-Promissory Note

1.  Click on this link: https://webapp.ecmc.org/esign/default.htm, or type it into your web browser, OR
   1. Go to www.ecmc.org
   2. Click on Student Borrower
   3. Click on Electronically Sign Your Stafford Master Promissory Note (MPN)
2. Scroll to the bottom and click where it says “I Agree.”
3. There are eight pages you must complete. The final steps are to print your MPN (all eight pages) and to get your confirmation number. Keep these documents for your records. You do not need to submit your printed copy to the BRCC Financial Aid Office

Things to keep in mind

1. If you already have outstanding loans, it is always best to continue borrowing from the same lender. If you borrow from different lenders you will have to send separate payments to each lender.
2. If you or your family already have a customer relationship with a lending institution feel free to borrow from that same lender.
3. To borrow from a credit union, you must be eligible for membership at that credit union.
4. The federal government requires credit checks on all PLUS Loan Applications.
5. If you don’t see a specific lender you can view the entire list at www.ecmc.org.

Do only once!

You only have to do one MPN (Master Promissory Note) during your borrowing "career" at BRCC. Improvements in the federal regulations allow the MPN to roll forward each year. The only thing you have to do each time you wish to borrow is complete the loan request form. The only time you would have to redo with MPN is if you transfer to another college and borrow there. You would do a new MPN at that college, and upon your return to BRCC, you would do another MPN. You will also need to complete a new MPN if you decide to change lending institutions. If you have questions, please contact the BRCC Financial Aid Office.

How much can I borrow?

Make a Budget!

Plan your finances and then borrow enough loan money to cover the amount of tuition, fees, books, and education related living expenses that your budget requires. Student loans should not be used to purchase a car, pay for a vacation, used for investments.

Plan your Loan Period

Most students make their loan request for the academic year which runs from August to May. If you are planning to transfer or graduate after one semester, then borrow for just one semester. All loans are disbursed in 2 payments within the loan period.

Max Loan Amount

The US Department of Education sets the maximum awards a student can borrow in an academic year (Fall + Spring) based on their year in college and dependency status. At BRCC, you are a level 01 student until you have completed 30 credits. The chart below lists the annual maximums. If you only plan to borrow for one semester you may not be eligible to borrow these annual amounts.

The absolute maximum aggregate limits for BRCC students are

• Dependents: $31,000 (maximum of $23,000 subsidized)
• Independent: $57,500 (maximum of $23,000 subsidized)

Students who have exceeded these limits may not borrow additional money while at Blue Ridge Community College.

Complete the Loan Request Form

Download, print, complete and submit the loan request form. The Loan Request Form is the only mandatory paper part of the process. Turn in this loan request form to the BRCC Financial Aid Office, or mail to:

BRCC Financial Aid Office
P.O. Box 80
Weyers Cave, Va. 24486

Contact Information:

Office of Student Financial Aid & Scholarships
Houff Student Center
Box 80
Weyers Cave, VA 24486
E-mail: finaid@brcc.edu
Local Exchanges: (540) 453-2241/213-7027/941-3747
Other areas in VA: 8888-750-2722, ext. 2241
FAX: (540) 453-2437

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