Loans
Federal Direct Loans
The William D. Ford 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
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- 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 rate for an Subsidized Loan is published annually on studentaid.gov. 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).
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- 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 rate for an Unsubsidized Loan is published annually on studentaid.gov. Interest 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.
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- 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 rate for a Parent Plus loan is published annually on studentaid.gov. Interest 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.
Requesting Loans
Select each tab for instructions on completing the application process and the necessary requirements.
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Process
Submit the Federal Direct Loan Request through your ACES account.
Processing may take up to 6 weeks to award your loans. Review our Priority Dates and Deadlines page for the submission timeframes of fall, spring, and summer loans.
Submit Loan Request - ACES Tutorial
Steps
- Complete the Federal Direct Loan Request through your ACES account
- Complete Entrance Counseling on studentaid.gov. This is counseling to ensure you understand your obligation to repay the loan.
- Complete a Master Promissory Note (MPN) agreeing to the terms of the loan on studentaid.gov.
- Review our Direct Loan Eligibility page for all terms and conditions.
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Process
The parent must complete the Parent Plus Loan Application, with a credit check performed during the application process, on studentaid.gov.
During the application, the parent will make their selections on the loan amount requested, whether a refund amount will go to the student or parent, and the period that the loan will be paid such as fall only, fall/spring, etc.
Steps
- The parent must complete the Parent Plus Loan Application on studentaid.gov
- The parent must complete a Master Promissory Note (MPN) agreeing to the terms of the loan on studentaid.gov.
Credit Requirements for Adverse Credit History
- If the credit check was initially denied on the Parent Plus Loan Application, there are options for it to be approved with an endorsers credit or with an appeal on studentaid.gov.
- If either of these options are approved, the parent must also complete PLUS Credit Counseling on studentaid.gov.
- If the credit check was denied on the Parent Plus Loan Application, the student may be eligible to borrow additional Unsubsidized loans upon request and a review of eligibility. A Co-signer Statement from the parent and student must be submitted before the student is awarded additional Unsubsidized loans.
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.
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.
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.
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- 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.
