Loans

Community College of Aurora is committed to providing the best possible customer service to our students and their families. Keeping within the federal requirements, it is our goal to provide information and advice, determined solely by consideration of the best interests of our students and their parents or guardians. For more information, see the Financial Aid Code of Conduct.

To apply for a student loan you must have a completed financial aid file at CCA and be in compliance with the CCA Satisfactory Progress Policy. http://www.ccaurora.edu/students/financialaid/academicmenu.shtml

Beginning in the spring 2009 semester, Community College of Aurora has joined the Federal Direct Loan Program. See the  Direct Lending Announcement. This is a decision that was made by the Colorado Community College System in response to the ongoing volatility of the nation’s credit markets. In the Direct Loan Program, students borrow their federal loans directly from the government rather than from banks or lenders.

You WILL NOT be required to convert your current spring 2009 loans to Direct Lending if you have loans completed with a FFELP lender (CollegeInvest, Sallie Mae, US Bank, etc). 

All CCA federal loan borrowers both student and parent plus borrowers will need to sign a new Master Promissory Note (MPN) directly with the federal government. To sign a Direct MPN, students should go to http://www.dlenote.ed.gov select "complete new MPN for student loans," and sign it using their Federal Student Aid PIN -- the one they use to sign their FAFSA on the Web. 

Student Borrowers will also be required to complete Entrance Counseling before loan funds will be approved.  Go to www.dl.ed.gov to complete the Entrance Counseling step.

Student borrowers will need to complete a Loan Request Form, this form will be used to determine the amount of loan borrower wishes to borrow and the loan period. Please complete this form and send it to the CCA Financial Aid Office. The loan will not be certified until all the documents are completed.

 To be eligible for these loans you must:

• Have a completed Financial Aid file including determination of Pell Grant eligibility.

• Complete and return a valid Master Promissory note at  www.dlenote.ed.gov

• Be enrolled in a degree program or certificate program.

• Be attending at least half-time (six credit hours minimum) for the entire loan period.

• Not be in default on any type of student loan.

• Not owe a repayment on a federal student grant

• Be in compliance with the CCA Financial Aid Satisfactory Progress Policy.

• Borrowers at CCA must have completed the Entrance Loan Counseling at www.dl.ed.gov

• Complete the Loan Request Form (MS Word version)

Loans are an effective and reliable method of funding higher education. However, there are a few things that you should consider before borrowing a loan.

When you borrow a loan, you are accepting the responsibility of repaying the loan plus the interest. The specific amount of money you borrow is called the principal. Interest is a percentage of the principal, which you pay as a fee for borrowing. When it comes time to pay back the principal and interest you usually pay in monthly installments. If you fail to repay (or default) the government may penalize you.

It is your responsibility to know all of the terms and conditions.

Students without parent support - Although students whose parents refuse support are not eligible for a dependency override, the Higher Education Opportunity Act of 2008 (HEOA) granted that such students may receive unsubsidized Stafford loans only. For a student to be eligible for this provision, the student must provide documentation (1) that his parents refuse to provide information for his FAFSA and (2) that they do not and will not provide any financial support to him. Include the date support ended. If the parents refuse to sign and date a statement to this effect, student must provide documentation from a third party (the student himself is not sufficient), such as a teacher, counselor, cleric, or court.

ALTERNATIVE LOANS

Alternative loans are, simply put, private loans offered by banks or other lending institutions. These loans are dependent on enrollment status but are not offered or subsidized by the federal government. The loans are subject to the terms of the bank or lending institution from whom the loan is from.

Alternative loans should only be considered after applying for federal student aid. An alternative student loan is for students for whom federal student loans and/or grants did not provide enough funds to help pay for their college expenses, have reached the maximum loan amounts they can receive for a Stafford loan, or are on financial aid suspension.  Each bank or lending institution has their own requirements and procedures for applying for a loan. In general, the student must be enrolled at least half-time and go through a credit check to qualify for a loan.

When selecting a loan, choose one that offers you the lowest costs without sacrificing quality customer service. Determine what your monthly payments will be before you take out a loan. To get an idea of what those payments might be, use the repayment calculator on that bank’s web site or try one at www.finaid.org. Also be sure to ask each lender what the total cost of the loan will be.

We encourage students to review the different alternative student loan programs before making any decisions.  We also encourage students to read and understand all the policies and requirements before signing any papers.