Loans

 

Federal Direct Loans

The Federal Direct Loan Program provides students Subsidized, Unsubsidized, or Parent Plus loans from the Department of Education. Awards are determined using information provided on the FAFSA and your Cost of Attendance. There are yearly and lifetime limits on Subsidized and Unsubsidized loans that also determine the amounts awarded to you.

 

  • Eligibility

    • Must have financial need as determined by the FAFSA
    • Must be enrolled in at least 6 credit hours within their degree plan.
    • Must maintain Satisfactory Academic Progress (SAP)
    • Must complete any outstanding financial aid requirements including verification
    • Must not exceed annual or lifetime aggregate loan limits

     

    The interest on a Subsidized loan is covered by The Department of Education as long as a student maintains at least half-time enrollment. Repayment on the Subsidized loan is completed by the student and does not begin until after the first six months you leave school or drop below half-time enrollment (known as a grace period).

  • Eligibility

    • Does not require financial need as determined by the FAFSA
    • Must be enrolled in at least 6 credit hours within their degree plan.
    • Must maintain Satisfactory Academic Progress (SAP)
    • Must complete any outstanding financial aid requirements including verification
    • Must not exceed annual or lifetime aggregate loan limits

     

    The interest on an Unsubsidized loan will begin to accrue once it has been disbursed. Repayment on the Unsubsidized loan is completed by the student and does not begin until after the first six months you leave school or drop below half-time enrollment (known as a grace period). Although it is not required to make early payments on interest, any unpaid interest that accumulates will be added to the total principal balance owed at the time of repayment.

  • Eligibility

    • Does not require financial need as determined by the FAFSA
    • Must be enrolled in at least 6 credit hours within their degree plan
    • Must maintain Satisfactory Academic Progress (SAP)
    • Must complete any outstanding financial aid requirements including verification
    • Parents must be biological, adoptive, or a stepparent. 
    • Parents must have good credit history, no defaulted student or Plus loans

     

    Parent Plus loans are available to help parents pay the remaining cost of their dependent undergrad child's education. The money goes directly towards the student's balance and any loan amount remaining will then be sent to the parent or student as a refund (per the request of the parent on the application). The interest on an Parent Plus loan will begin to accumulate once it has been disbursed. Repayment on the Parent Plus loan is completed by the parent, and they can request for repayment to be deferred as long as their student remains enrolled. 

Select each tab for instructions on completing the application process and the necessary requirements.

  • Process

     

    Requirements

     
  • Process

     

    Requirements

     

    Credit Requirements

    • If the credit check was initially denied on the Parent Plus Loan Application and later approved based on a endorser's credit, the parent must complete PLUS Credit Counseling on studentaid.gov. 
    • If the credit check was denied on the Parent Plus Loan Application and the parent is unable to find an endorser (co-signer), the student may be eligible to borrow additional Unsubsidized loans. A Co-signer Statement from the parent and student must be submitted before the student is awarded additional Unsubsidized loans.
What if I fail to repay my Direct Loan?

Students who fail to repay their loans are considered to be in default of their loan payments and are not eligible to receive future aid until the default status is either rehabilitated or paid in full. For more information regarding the consequences of defaulting on a Direct Loan visit the FSA Collections website.

Students who are determined to have defaulted on loan payments obtained while at Alamo Colleges will be contacted by the Cennate i3Group. Cennate i3 is the only organization affiliated with Alamo Colleges for loan default purposes.

Who is the i3 Group?

The Alamo Colleges District has partnered with the i3 Group to assist current and former students with questions regarding Federal Student Loans. The i3 Group helps students stay informed of the status of their loan, provides alternative repayment options, and promotes solutions to every student to avoid default. 

The i3 Group contacts students by both phone and email. Any inquiries from students placed with the i3 Group for servicing can be directed to 866-296-7955. Hours are: Mon-Thurs 8am - 8 pm, and Fri 8am - 5pm CST. 

Additional information is available at www.i-3group.com

What is Ion Tuition?

Ion Tuition is a resource available through the i3 Group. Each current and former student will have the ability to register for their own account at www.iontuition.com

Ion Tuition is a self-help web tool that allows students to review loan status, payment amounts, due dates, and servicers in one location. Budgeting and repayment calculators are also available to assist with repayment options. 

 

Alternative Loans

Alternative student loans are funded by private lending institutions. It is highly recommend that you seek available Federal Direct Loan options from a FAFSA before you apply for an Alternative loan as they offer more benefits such as lower interest rates and they don't rely on a student's credit.

 

    • Each private lender will have their own set of eligibility criteria, interest rates, and repayment requirements. 
    • Alternative loans are based on a student’s credit history and often require a co-signer.
    • Alternative loans are primarily used when federal aid and scholarships do not cover a student's Cost of Attendance (COA).
    • The loan amount requested cannot exceed your Cost of Attendance (COA) minus other financial aid.
    • Due to Federal Lending Laws, private lenders are required to provide multiple disclosures to the student borrower and to collect a Self-Certification Form.
    • The lender will also request eligibility certification from the Alamo Colleges District. Please plan ahead as this process will take several weeks to complete.

     

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