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Cuyamaca College:Federal Direct Loan Program

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William D. Ford Federal Direct Loan Program
Cuyamaca College participates in the William D. Ford Federal Direct Loan Program by offering subsidized and unsubsidized Direct Student Loans (Direct Loans).  Direct Loans – subsidized or unsubsidized, are low-interest rate loans made to students by the federal government.

Direct Subsidized Loan:
These loans are available to students who demonstrate financial need. The federal government pays the interest on this loan while you are in college and during deferment periods.

Direct Unsubsidized Loan: These loans are available to all eligible students and are not based on financial need. You are responsible for all interest payments (or capitalization of interest) from the date the loan is disbursed.

The interest rate:
The interest rate for a subsidized or unsubsidized loan is fixed at 4.66% for loans disbursed from July 1, 2014 to June 30, 2015. For more information on interest rates, click here.

The loan amounts: Grade level one students (freshman) may borrow a base amount of $3,500 (subsidized and/or unsubsidized); Grade level two students (sophomores) may borrow a base amount of $4,500 (subsidized and/or unsubsidized) per academic year. Loan amounts for one semester only are one-half (1/2) the maximum yearly loan amount not to exceed need or cost of attendance.

To apply for a subsidized or unsubsidized loan, you must first apply for federal financial aid via the FAFSA. All students applying for a loan must complete “Entrance Counseling” before the processing of the loan application and “Exit Counseling” when you cease to be enrolled, graduate or drop below 1/2 time enrollment. Entrance and Exit counseling are required on a yearly basis.

The deadline to submit a Federal Direct Student Loan application is December 2 , 2014 for the Fall 2014 semester, and May 19, 2015 for the Spring 2014 semester. Tuition payments will not be deferred for Federal Direct Student Loans. Loan funds will not be disbursed during the first 30 days of each semester for first year, first-time borrowers.

Time Limitation on Direct Subsidized Loan Eligibility: for First Time Borrowers on or after July 1, 2013, click here for more information.

If your total borrowing is $15,000 or more, in addition to your student loan application, you will be required to provide a budget worksheet with documentation of expenses and resources as well as an educational plan based on your educational goal. The Financial Aid Director has the discretion to deny a request for a student loan on a case-by-case basis.

If you wish to borrow additional unsubsidized loan amounts above the base amount, you will need to make an appointment with the Financial Aid Supervisor to discuss your request.

Payment of principal (the amount borrowed) will not be required while you are enrolled at least half-time. Regular monthly payments on the principal (the amount borrowed)  will begin six months after you leave school, drop below half-time status, or graduate. The 6-month Grace Period no longer applies to the interest rate for Subsidized Stafford Direct loans. Interest on Subsidized Direct Loans begins accruing immediately when the student is no longer enrolled at least -time.  It may take up to ten years to repay the loan(s).

Deferment is available while enrolled at least half-time (6 or more units). Once the initial grace period ends and repayment begins, deferment for resumption of study requires half-time enrollment. Units cannot be combined between two colleges for deferment purposes.

The following examples show typical monthly payments and total interest charges for 6.80% loans of varying amounts, with typical repayment periods:

Typical Repayment Plan
Total Loan Deb Number of Payments Monthly Payment Interest Charges Total Repaid
  $3,500  $90   $50  $971   $4,471
  $6,500 $120   $75 $2,467   $8,967
$10,500 $120 $121 $4,000 $14,500
$20,000 $120 $230 $7,619 $27,619

Loan Default
If you have defaulted on a student loan, you have some options. Depending on which one you chose you may regain your eligibility for financial aid, improve your credit and in some cases remove the default status from your credit report.

For more detailed information on all of your student loan options, including repayment and consolidation, please visit Department of Education at

*Cuyamaca College Financial Aid Office does not guarantee the accuracy of translated text through Google Translate. If the information you are translating is not clear, please return to the home page of Cuyamaca College Financial Aid & Scholarships, click "Contact Us," and call for assistance, or email your question to the appropriate Advisor. Cuyamaca College Financial Aid Office disclaims and will not accept any liability for any problems caused by the use of the Google Translate feature. Back to top

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