Financial Aid
Federal Direct Loan – Getting Started
This Direct Loan Application is for the 2024-2025 Academic Year.
If you have questions regarding the loan application or terms and conditions of Federal Direct Student Loans, please contact our office at financial.aid@skagit.edu
Because of the FAFSA delays caused by the Dept. of Ed.’s FAFSA Simplification changes, the financial aid office is delayed in processing files and student loans for fall 2024. As of 9/2/24, our focus is FAFSA file review for those students who met our June 1st FAFSA processing date. Fall student loan applications may not be tracked or processed until a few weeks into the quarter. We thank you for your patience as the financial aid office staff works hard to catch up with all processing for 24/25.
- The Federal Direct Loan Program
- Borrowing Limits
- Repayment
- Loan Processing Timelines
- 2024-2025 Application Process
The Federal Direct Loan Program
The Federal Direct Loan is a student loan through Skagit Valley College where the Federal Government is your lender. These loans are low interest, low fee loans to help pay for the cost of your education. If you decide to borrow, please understand this is a debt that must be repaid after you stop attending school or drop below half-time enrollment status. After you read the following information, you will have the opportunity to apply for a Federal Direct Loan.
The Direct Loan Program offers two types of low fee (currently 1.057%), low interest (6.53%, effective July 1, 2024) loans for student borrowers. These are called Direct Subsidized Loans and Direct Unsubsidized Loans. Interest rates will vary slightly each year you apply for student loans, but the Federal Direct Loans are not variable. The loans you borrow each academic year will keep their interest rates throughout the life of each loan unless you make the decision to consolidate your loans at a later date.
The average loan debt for Skagit Valley College (SVC) students is $13,233. The current default rate of student loans at SVC is 0% as of 2020, due to student loan payments being paused during the Covid-19 Public Health Emergency. In 2019, our loan default rate was 2.9%.
Important: Subsidized and Unsubsidized Direct Loans both require the student:
- Be enrolled in (and attending) at least six degree-required credits per quarter
- Submit a FAFSA and fully complete a financial aid file with the college
- Adhere to the SVC Satisfactory Progress Policy
- Understand that first-time borrowers who are first-time students at SVC cannot have loans disbursed until 30 days into their first quarter. If all file/loan documents are complete, we can hold your tuition. You must be able to purchase your own books to start classes. Contact Financial Aid if you need tuition held.
Direct Subsidized Loans
Direct Subsidized Loans are interest-free while you are attending school. To qualify for a Direct Subsidized Loan, you must demonstrate financial need. Your FAFSA results reveal how much you and your family should be able to contribute toward your education costs. Your SVC Cost of Attendance (established by the Financial Aid Office) minus your Expected Family Contribution (derived from your FAFSA) establishes your financial need. Any grants for which you may qualify are taken into consideration before Subsidized Loan eligibility is determined.
Direct Unsubsidized Loans
Direct Unsubsidized Loans are loans where you are responsible for interest payments, even while you are in school. You can choose to make interest payments or postpone them. If you postpone interest payments, interest will be added to your principal balance. This is known as capitalization. Capitalization increases the total amount you will repay. You will save money by making your interest payments. Financial need is not required to qualify for a Direct Unsubsidized Loan, but you still must complete a FAFSA and complete your financial aid file with SVC. The Cost of Education must exceed any other financial aid you have been awarded in order to qualify for this loan.
Borrowing Limits
The Direct Loan Program has limits on the amount you can borrow each year. Your Financial Aid Office will determine how much you are eligible to borrow based on the following chart, as well as your Cost of Attendance, Expected Family Contribution, grade level in college, and any other aid you have been awarded. With this in mind, it is a possibility that you may not qualify for the loan maximums. If you have questions once you receive your Direct Loan Award Notification, please contact us for an explanation of your eligibility.
Please keep in mind that you may be repaying your Direct Loan for 10 years or longer. The more you borrow, the higher your monthly payment will be. Borrow only what you need. The size of your monthly payments may make the difference between manageable and unmanageable debt in your future.
|
Academic Grade Level/Loan Type |
Maximum Loan Amount |
|
|---|---|---|
|
First-Year |
Dependent |
Independent |
| Base Direct Loan eligibility (Subsidized and Unsubsidized) |
$3,500.00 |
$3,500.00 |
| Additional Unsubsidized Direct Loan eligibility |
$2,000.00 |
$6,000.00 |
| Maximum First-Year Total |
$5,500.00 |
$9,500.00 |
| Second-Year Undergraduates | ||
| Base Direct Loan eligibility (Subsidized and Unsubsidized) |
$4,500.00 |
$4,500.00 |
| Additional Unsubsidized Direct Loan eligibility |
$2,000.00 |
$6,000.00 |
| Maximum Second-Year Total |
$6,500.00 |
$10,500.00 |
| Aggregate (total) Undergraduate |
$31,000.00 |
$57,500.00 |
Bachelor in Applied Science (BAS)
3rd and 4th year Borrowing Limits
(Totals listed below are strictly for students accepted into a Bachelor in Applied Science (BAS) program.)
|
Dependent |
Independent |
|
|---|---|---|
| Base Direct Loan eligibility (Subsidized and Unsubsidized) |
$5,500.00 |
$5,500.00 |
| Additional Unsubsidized Direct Loan eligibility |
$2,000.00 |
$7,000.00 |
| Maximum BAS Yearly Total |
7,500.00 |
$12,500.00 |
| Aggregate (total) Undergraduate |
$31,000.00 |
$57,500.00 |
Repayment
When you graduate, leave school, or drop to less than half-time status, you will have a six-month grace period before repayment begins. Once your grace period ends, you must begin repaying your loan(s). Skagit Valley College asks that you visit StudentAid.gov to log in and complete Direct Loan Exit Counseling once you drop below 6 credits.
Please go to StudentAid.gov for information on repayment options available to you. You may prepay all or part of your loan at any time without penalty. You will save money by paying off your loans early.
For information on available repayment options: Visit StudentAid.gov
Expected Loan Processing Timelines
Please allow 7-14 business days to receive and track your Direct Loan application steps. You can login to ctcLink for any outstanding Direct Loan to-do items. Once you see the “Received” status indicating your application is complete, you will know your application is in the queue for processing.
Assuming your loan application is received, and your financial aid file has been fully processed by our office, you can expect to receive a loan award notice as per the schedule listed:
- Summer: Students who met our June 1st financial aid file priority completion date and who are enrolled in 6+ program-required
credits can expect to receive loan notification by July 29th 2024, assuming you fully
completed your loan application by June 15th 2024. If you submitted your application
later, expect a notice 4 – 6 weeks from your submittal date.
- Important Note: Summer students must be able to buy their own books to begin classes, as loans are not disbursed until well into the quarter.
- Fall Start: Students enrolled in 6+ program-required credits can expect to receive notification by August 15th 2024, assuming you fully completed your loan application by July 29th 2024. If you submitted your application later, expect a notice 4 – 8 weeks from your submittal date.
- Winter Start: Students enrolled in 6+ program-required credits can expect to receive notification by December 1st 2024, assuming you fully completed your loan application by October 15th 2024. If you submitted your application later, expect a notice 4 – 8 weeks from your submittal date.
- Spring Start: Students enrolled in 6+ program-required credits can expect to receive notification by March 15th 2025, assuming you fully completed your loan application by February 1st 2025. If you submitted your application later, expect a notice 4 – 8 weeks from your submittal date.
Please also note the following:
- Important: Funds are generally disbursed via BankMobile disbursement services. Have you set up your funds preference with BankMobile yet? You should receive an email with instructions after you have been awarded. If not, please contact us right away at 360.416.7666.
- If it appears your application will not be processed by the SVC tuition due date, you can contact our SVC Cashier’s office to inquire about a Tuition Payment Plan. Visit www.skagit.edu/student-resources/enrollment-services/tuition-fees/ for more information regarding payment plans.
- First-time student loan borrowers who are new students at SVC will be subject to a federally-mandated 30 day disbursal delay. For these students, funds cannot be disbursed until 30 days into the first quarter of enrollment. SVC can hold classes for unpaid tuition, but students must be able to purchase their own books to begin the quarter. Please contact us if you need a hold placed on your tuition at 360.416.7666.
2024–2025 Direct Loan Application Process
Includes Summer 2024, Fall 2024, Winter 2025, and Spring 2025
You can begin the Direct Loan application process by selecting the appropriate link below:
Did you receive a Direct Loan from SVC for the 2023-2024 Award Year?