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San Juan College  Direct  Student  Loan  
 Requirements  - Application Request Process

2015-2016 Student Loan


(Fall 2015/Spring 2016 & Summer 2016)

Please read ALL information about student loans on this webpage

All student borrowers must have a successfully completed FAFSA ( on file with the San Juan College Financial Aid Office. Student borrowers will need their FSA ID# to assist in completing the student loan process for the fall 2015 – spring 2016 semester terms.

San Juan College (SJC) offers Federal Direct Loans as required by federal guidelines. Student borrowers interested in applying for a student loan at SJC, will need to complete the following requirements:


All completed loan request application forms will be reviewed by SJC Financial Aid in accordance with U.S. Department of Education regulations and an eligible award split between Fall and Spring semesters, similar to how other financial aid is packaged (PELL, SSIG, etc.)


Loans are AWARDED based on student completing eligibility requirements.
Students must be registered in at least 6 credit hours for each term
they require a loan. Students are eligible to RECEIVE their loan payment once they have
STARTED the course that totals up to their 6th credit hour.


Only Special Circumstances or a justifiable emergency will be considered on an individual basis for additional loan request increases for any semester term except summer. Students must contact the Loan Advisor and schedule an appointment.






Must schedule and attend

2 hr. Loan Financial Literacy Seminar conducted by Financial Aid staff on the San Juan College campus by scheduled appointment only.


 Click the ‘ SCHEDULE’ button  below to view the Loan Financial Literacy Seminar Schedule for Fall and Spring terms 2015-2016:


  • To schedule your seminar date call:  (505) 566-3420 or (505) 566-3564


The SJC Fall 2015-Spring 2016 Direct Loan Request Application form will be provided to the student borrower upon successful completion of the Loan Financial Literacy seminar.


Single Semester/Term Student Loan
(Spring only or Summer only –
there are NO Fall only loans) Single term loans require two disbursements:
Spring: 1st half of loan after
census date; 2nd half one month later
Summer:  1st half of loan after
census date; 2nd half one week later



Loan Application Request form will be available November 2015
Spring Semester New Local/On Campus student borrowers who plan their first or returning semester at SJC during spring semester will
attend a scheduled on campus loan financial literacy seminar. The Loan Financial Literacy seminars for spring
term are scheduled beginning
November. Direct Loan request form applications will be available upon completion of the Seminar.



(Pell/Scholarships/Loans) Will be available February or March of 2016


To review your student loan and Pell Grant history, go to:





(be sure to return to the SJC Student Loan 2015-2016 webpage and complete the form below)

    • Direct Loan Entrance Counseling


REGARDLESS of having completed Entrance Counseling for a previous academic year at SJC, ALL students must complete Entrance Counseling at San Juan College for the 2015-2016 academic year as new information has become available. Please update your Entrance Counseling:

Master Promissory Note (MPN).  Which is located at

  • San Juan College Distance/Online Program Student Direct Loan Request Application Form (Do not email form until above #1 & #2 are complete.)


Fall 2015 –  Spring 2016 Student Loan Request Application Form (WRD)

Open the Form by clicking on the above URL; select FILE and click on SAVE AS; select your desktop and save the document to your computer; read Instructions and type in ALL required information; Type your student ID on the signature line; type the date; SAVE and close. (By following the above instructions, students do not need to print and rescan the form into their computer.)
Attach your completed loan application request to an email and send to:


Loan Application Request form Submission Priority Deadlines: Fall/Spring:         October 30
Spring only:     March 18
Summer only: Varies with enrollment
Complete loan application requests submitted past the priority date for Fall or Spring semester terms may not be in award status prior to semester end. Thus, if the student is still eligible for that semester aid, the loan funds will be included in the next disbursement scheduled which could fall into the next semester.



Please continue to read ALL information about student loans on this webpage


    • SJC participates with the William D. Ford Direct Lending Program.  This is a Stafford Student Loan but is delivered directly from the federal government through San Juan College to student borrowers instead of through various banks and lending institutions


Federal student loans are not generally eliminated as part of personal bankruptcy. Contact your federal loan servicer to discuss federal student loan repayment options.

As of July 1, 2013,  first-time borrowers will be limited to receiving Subsidized Loans up to 150% of their declared programs (example: 2 year AA degree- 3 years Subsidized Loan eligibility.)


Loan Disbursements

Federal loan funds are disbursed in at least two installments; no installment will be greater than half the amount of your loan. A fee is automatically deducted as the funds transmit electronically from the Origination department (U.S. Department of Education)

Alternative loan funds are disbursed one installment per semester the same time other aid is disbursed.

Whatever loan type, the financial aid funds must first be used to pay for tuition and fees or other charges on the student borrowers’ school account.  If loan funds remain, check will be process and mailed through the postal service to the student borrower, unless the student provides the school a written request to hold the funds until later in the enrollment period.

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Who may receive this loan?
Undergraduate students with financial need
Undergraduate students and graduate or professional students
Graduate or professional students and parents of dependent undergraduate students.
An adverse credit history might affect your eligibility.
Undergraduate student
  • May require an established credit record which will influence the cost of the loan depending on your credit score and other factors
  • Cosigner may be required
  • Cannot be consolidated into a Direct Consolidation Loan
  • Loan forgiveness options are unlikely

What is the Current Interest Rate?

4.66% for loans with a first disbursement date after June 30, 2014 and before
July 1, 2015

Undergraduate Students
for loans with a first disbursement date after June 30, 2014 and before
July 1, 2015

Graduate/Professional Students
6.21% for loans with a first
disbursement date after June 30, 2014 and before
July 1, 2015

7.21% for loans with a first disbursement date after June 30, 2014 and before
July 1, 2015
Variable interest rates can exceed 18%
The government pays your interest...
While you are enrolled at least half-time.
During the grace period. During deferment periods.
During certain periods of
repayment under the Income-Based and Pay As You Earn Repayment Plans.


Note: For Direct Subsidized Loans with a first disbursement date after June 30, 2012 and before
July 1, 2015, you are
responsible for paying the interest that accrues during the grace period.

You pay all interest during all periods.
You pay all interest during all periods.


What are the loan fees?
1.073% for loans with a first disbursement date on or after October 1, 2015 and before October, 2016
1.073% for loans with a first disbursement date on or after October 1, 2015 and before October, 2016
4.292% for loans with a first disbursement date on or after October 1, 2015 and before October, 2016
Varies with Alternative loan entities
When am I required to begin making payments?
6 months after you graduate or drop below half-time enrollment
6 months after you graduate or drop below half-time enrollment
Direct PLUS loans enter repayment when they are fully disbursed (paid out), but your loan will be placed into deferment while you are in school at least half-time and for an additional 6 months after you graduate or drop below half-time status.
Payments may be required while you're still in school. Varies with Alternative loan entities


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Loan Amounts

A student's loan amount will depend on the student's budget (Cost of Attendance) and remaining financial need after subtracting grant assistance and other sources of aid. A student who has completed less than 30 credit hours may qualify to borrow up to first year student levels. A student who has completed 30 credit hours or more may qualify to borrow up to second year student levels.



Dependent Undergraduate Student

Independent Undergraduate Student

1st Year Student-less than 30 completed credit hours

$5,500- No more than $3,500 of this amount may be in subsidized loans.

$9,500 - No more than $3,500 of this amount may be in subsidized loans.


2nd Year Student-30 or more completed credit hours


$6,500- No more than $4,500 of this amount may be in subsidized loans.

$10,500 - No more than $4,500 of this amount may be in subsidized loans.

Maximum Total of Debt From Stafford Loans When You Graduate

$31,000 - No more than $23,000 of this amount may be in subsidized loans.

$57,500 - No more than $23,000 of this amount may be in subsidized loans.



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Master Promissory Note (MPN)

A Master Promissory Note (MPN) is the binding legal document you sign when you apply for a student loan. It lists the conditions under which you are borrowing and the terms under which you agree to pay back the loan. It will include information on how interest is calculated and what the deferment and cancellation provisions are. It is very important to read and save this document because you will need to refer to it later when you begin repaying your loan.

Loan applications and master promissory notes can be completed on-line at the sites listed below. You will need to have your FSA ID# to electronically sign your MPN.

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Stafford Entrance & Exit Counseling

ENTRANCE COUNSELING - All Stafford Loan borrowers at San Juan College must complete entrance counseling before you're given your first disbursement of the loan. During entrance counseling the borrower is reminded of the seriousness of taking out a loan, the terms and conditions, the repayment obligations, and the consequences of defaulting on a loan. Students taking a loan through Direct Lending must go to You will need your FSA ID# to log into the site and complete the information.

EXIT COUNSELING - When a loan borrower graduates, withdraws, or drops below half-time status, he/she must complete exit counseling. During exit counseling the terms and conditions of the repayment of the loan are reviewed, along with debt management strategies. Exit counseling can be completed at  You will need your FSA ID# to log into the site and complete the information.

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Loan Repayment

Your repayment amount will depend on the size of your debt and the length of your repayment period. More comprehensive information on repayment of student loans can be reviewed at the Federal Student Loans Repayment Page. The repayment periods for Stafford Loans vary from 10 to 30 years depending on whether the loan is a FFEL or a Direct Stafford Loan and depending on which repayment plan you choose. When it comes time to repay, you can pick a repayment plan that's right for you:

  • A 10-year Standard Plan with a minimum monthly payment
  • An Extended Plan that allows you to repay your loan over a longer period of time
  • A Graduated Plan with a monthly payment that starts out low and then increases gradually during the repayment period
  • Income-Based Repayment (IBR) is designed to reduce monthly payments to assist with making your student loan debt manageable. If you need to make lower monthly payments, this plan may be for you.
  • If you have a low income but do not qualify for the Income-Based Repayment (IBR) Plan or the Pay As You Earn Repayment Plan, you may want to consider the Income-Contingent Repayment (ICR) Plan. This plan is based on your adjusted gross income, family size, and the total amount of your Direct Loans.
  • The Income-Sensitive Repayment Plan is available to low-income borrowers who have Federal Family Education Loan (FFEL) Program loans. The payments under this plan increase or decrease based on your annual income.
  • If your student loan debt is high relative to your income, you may qualify for the Pay As You Earn Repayment Plan. The Pay As You Earn Repayment Plan helps keep your monthly student loan payments affordable, and usually has the lowest monthly payment amount of the repayment plans that are based on your income. If you need to make lower monthly payments, this plan may be for you.

Calculating examples may help you in estimating how much you will be expected to repay when your Federal Loan becomes due. The repayment schedule for a specific student's loan(s) may be different from the examples used.

Your lender will send you information about repayment, and you'll be notified of the date repayment begins. However, you are responsible for beginning repayment on time, even if you don't receive this information. It is important to remember that failing to make payments on your loan can lead to default.


Delinquency and Default

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Falling behind on your federal student loan payments can have major consequences:

  • Your federal student loan becomes delinquent the first day after you miss a payment.
  • If a federal student loan is delinquent for 270 days, it goes into default and will have serious consequences on eligibility for future federal student loans.

Allowing your federal student loan to go into default can instantly increase the amount you have to pay back due to the fees and penalties. Your loan will enter into default when you fail to repay the loan according to the terms agreed when you signed the Master Promissory Note (MPN).

The school, the lender or agency that holds your loan, the state, and the federal government may all take action to recover the money, including notifying national credit bureaus of your default. This notice affects your credit rating for a long time. For example, you might find it very difficult to borrow money from a bank to buy a car or a house.

In addition, the IRS can withhold your U.S. income tax refund and apply it to the amount you owe, or the agency holding your loan might ask your employer to deduct payments from your paycheck. If you return to school, you are not entitled to receive additional federal student aid. In many cases, default can be avoided by submitting a request for a deferment, forbearance, or discharge and by providing the required documentation.




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Deferment allows you to temporarily stop making payments on your federal student loans. You are not charged interest on Direct Subsidized Loans during deferment.  Interest will continue to be charged on your Direct Unsubsidized and Direct PLUS Loans. If you do not pay this interest during the deferment, it will be capitalized at the end of the deferment

You may qualify for a deferment if you are:

  • Enrolled at least half-time at an eligible postsecondary school
  • In a full-time course of study in a graduate fellowship program
  • In an approved full-time rehabilitation program for individuals with disabilities
  • Unemployed or unable to find full-time employment (for a maximum of three years)
  • Experiencing an economic hardship (including Peace Corps service) as defined by federal regulations
  • Serving on active duty during a war or other military operation or national emergency and, if you were serving on or after October 1, 2007, for an additional 180-day period following the demobilization date for your qualifying service
  • Performing qualifying National Guard duty during a war or other military operation or national emergency and, if you were serving on or after October 1, 2007, for an additional 180-day period following the demobilization date for your qualifying service
  • A member of the National Guard or other reserve component of the U.S. Armed Forces (current or retired) and you are called or ordered to active duty while you are enrolled at least half-time at an eligible school or within 6 months of having been enrolled at least half-time, during the 13 months following the conclusion of your active duty service, or until you return to enrolled student status on at least a half-time basis, whichever is earlier.

Except for periods of Economic Hardship Deferment under the income-driven repayment plans, periods of deferment or forbearance do not count toward the maximum length of time you have to repay your federal student loans. Deferment Form



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You may be able to temporarily stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to be charged. If you do not pay this interest during the forbearance, it will be capitalized at the end of the forbearance.

Forbearance is another option for temporarily postponing or reducing loan payments if you do not qualify for a deferment. A forbearance may be granted if you meet one of the following requirements:

  • You are unable to make your scheduled loan payments for reasons including, but not limited to, financial hardship and illness
  • You are serving in a medical or dental internship or residency program, and you meet specific requirements
  • The total amount you owe each month for all of the student loans you received under Title IV of the Act is 20% or more of your total monthly gross income (for a maximum of three years)
  • You are serving in an approved AmeriCorps position
  • You are performing teaching service that would qualify for loan forgiveness under the requirements of the Teacher Loan Forgiveness program
  • You qualify for partial repayment of your loans under the Student Loan Repayment Program, as administered by the Department of Defense
  • You are called to active duty in the U.S. Armed Forces.

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A loan discharge (cancellation) releases you from all obligation of having to repay a student loan. However, it is only under specific circumstances that this is possible. Two examples are your death or your total and permanent disability. Also, your loan might be discharged because of the type of work you do: teaching in a designated low-income school, for example. In order to qualify for a loan discharge, you must contact the lending institution or serving agent that holds the loan.

It is important to remember that your loan cannot be cancelled because you didn't complete the program of study at your school (unless you couldn't complete the program for a valid reason - because the school closed, for example). Also, cancellation is not possible because you didn't like the school or program of study, or you didn't obtain employment afterwards.

Forgive, Cancel, or Discharge Your Debts


Teacher Loan Forgiveness

If you teach full-time at certain elementary or secondary schools or educational service agencies that serve low-income students.

Forgives up to $5,000 (up to $17,500 for teachers in certain subject areas) of your FFEL or Direct Loans, except for PLUS loans, provided you teach for five consecutive years as a highly-qualified teacher or as a highly-qualified teacher in certain subjects.

Public Service Loan Forgiveness (Direct Loans Only)

If you work full-time for a qualifying public service organization while making 120 qualifying monthly payments under certain repayment plans.

Forgives all of your remaining Direct Loan debt after you have made the 120 qualifying payments.

School Related




Total and Permanent Disability



If your school

  • Closed before you could complete your program
  • Falsely certified your loan eligibility
  • Did not have your authorized signature
  • Failed to refund all or a portion of your federal student loans to the loan servicer, when it was required by law to do so

Or if:

  • Your federal student loan was falsely certified as a result of identity theft
  • If you become totally and permanently disabled as defined in federal regulations and meet certain other requirements

  • If you are a parent borrower of a PLUS loan and the student for whom you obtained the loan dies.
  • If you die.



Loan Consolidation

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If you have multiple federal student loans, you can consolidate them into a single Direct Consolidation Loan.
A Direct Consolidation Loan may simplify repayment if you are making separate loan payments to different loan servicers, as you'll only have one monthly payment to make.

There may be tradeoffs, however, so you'll want to learn about the advantages and possible disadvantages of consolidation before you consolidate.


To learn more, visit the Direct Consolidation Loan Website.




Other Information

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It is important to keep in touch with your lending institution or Direct Loan servicing office. You must notify your lender or loan servicing office when you:

  • graduate
  • withdraw from school
  • drop below half time status (6 credits-half time)
  • change your name, address, or Social Security number
  • transfer to another school

Failure to keep updated information with your direct loan servicing office could cause your loan to go into default or to be sent to a collection agency.

More detailed Federal Financial Aid information can be found at

If you have additional questions you may also contact Student Loan Advisor, (505) 566-3420 / (505) 566-3564 or

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