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Federal Student Loan Application Procedures
How to Apply for a Federal Stafford Student Loan
- Complete the Free Application for Federal
Student Aid (FAFSA)
- Apply to the College and be admitted into an approved Plan and
be making Satisfactory Academic Progress.
- Comply with any information
requests from the Financial Aid Office.
- 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.
- 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.
- 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:
- 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).
- Submit the Free Application
for Federal Student Aid. You may apply on-line.
- 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.
- 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.
- Finally, allow 1-2 weeks for College processing, depending on
the time of the year.
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.
Student Loans are financial aid that you must repay. All first time
borrowers at BRCC are required to complete
Loan Entrance Counseling. You
can compdo this online.
We monitor this site daily for our student borrowers.
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.
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.
The follow is a brief list of steps involved with the E-Promissory
Note
- Click on this link:
https://webapp.ecmc.org/esign/default.htm, or type it into your
web browser, OR
- Go to www.ecmc.org
- Click on Student Borrower
- Click on Electronically Sign Your Stafford Master Promissory
Note (MPN)
- Scroll to the bottom and click where it says “I Agree.”
- 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
- 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.
- If you or your family already have a customer relationship with
a lending institution feel free to borrow from that same lender.
- To borrow from a credit union, you must be eligible for
membership at that credit union.
- The federal government requires credit checks on all PLUS Loan
Applications.
- 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.
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. Note: New
Loan Limits for 2007-2008.
| Student Type |
Subsidized |
Maximum
(Sub + Unsub) |
| Dependent with less than 30 credits completed |
$3,500.00 |
$3,500.00 |
| Dependent with 30 or more credit hours completed |
$4,500.00 |
$4,500.00 |
| Independent with less than 30 credits completed |
$3,500.00 |
$7,500.00 |
| Independent with 30 or more credit hours
completed |
$4,500.00 |
$8,500.00 |
The absolute maximum aggregate limits for BRCC students are
- Dependents: $23,000 (sub & unsub combined)
- Independent: $23,000 subsidized $46,000 total (sub + unsub)
Students who have exceeded these limits may not borrow more 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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