Applying for a Loan

Borrowing a Federal Direct Loan at Southwestern College is a step-by-step process. Borrowing a federal Direct Loan at Southwestern College is a step-by-step process. Steps 1 through 5 must be completed by the cutoff date for the disbursement period you are requesting. Missing a step or missing the cutoff date means your loan will not be processed for that period. Please read this page carefully before you begin.

Step-by-Step Instructions

Before requesting a loan, you are required to read SWC's Direct Loan Policy. This document explains loan limits, types of loans, interest rates, origination fees, eligibility requirements, and strategies to help you avoid defaulting when repayment begins. Reading this policy is not optional — all student loan borrowers are responsible for knowing the information in it.

Before you can request a loan, you must complete the Free Application for Federal Student Aid (FAFSA) and finish any required verification documents. Once your file is complete and your award is ready, you will receive a notification to log in to MySWC and review your award package. Your award package will show whether you are eligible for student loans and what your next steps are.
Before requesting a loan, you are required to read SWC's Direct Loan Policy provided below. This document explains loan limits, types of loans, interest rates, origination fees, eligibility requirements, and strategies to help you avoid defaulting when repayment begins. Reading this policy is not optional — all student loan borrowers are responsible for knowing the information in it.

2025-2026 Direct Loan Policy (PDF)
If you have not borrowed a Direct Loan at Southwestern College before, you must complete Federal Direct Loan Entrance Counseling before your loan can be paid out. Entrance Counseling makes sure you understand the terms and conditions of your loan and your rights and responsibilities as a borrower. Without it, your loan cannot be processed.

You will need a StudentAid.gov account (also called an FSA ID) to log in.

Once you complete Entrance Counseling, make sure Southwestern College is selected as your school so the Financial Aid Office receives electronic confirmation. Printed copies are not accepted.
The Master Promissory Note (MPN) is the legal document in which you promise to repay your loan and any interest and fees to the U.S. Department of Education. It also explains your rights and responsibilities as a borrower. One MPN can cover your loans for up to ten consecutive years.

You will need your StudentAid.gov account (FSA ID) to log in. Complete the MPN at studentaid.gov.
Once you have completed steps 1 through 4, log in to MySWC and activate your loan. You will choose which loan type you want to borrow — subsidized and/or unsubsidized — and how much. A few important things to know:

SWC will not certify a loan without your explicit request. Certification does not happen automatically. Unsubsidized loans are only certified after your subsidized loan eligibility is fully used, or if you are not eligible for a subsidized loan.

Your loan must be activated and all steps completed by the cutoff date for the disbursement period you want. Loans activated after the cutoff date will be processed for the next available disbursement period. Current cutoff dates are listed on the Disbursement Schedules page.
Once your loan is activated, SWC will send a Loan Origination Record (LOR) to the U.S. Department of Education for processing. This takes approximately 2 to 4 weeks. The Department will then assign your loan to a federal Direct Loan servicer. Your servicer acts as your lender until the loan is fully repaid.

You will receive a disclosure notice from your servicer confirming the loan amount, type, and other details. Keep this notice: It contains your servicer's contact information, which you will need when repayment begins. Your servicer will also contact you when you graduate or drop below half-time to discuss repayment.

Please note that disbursement dates listed in the LOR are estimates only. The actual disbursement date may be different. Loans must generally be disbursed within the loan period. Disbursements made after the loan period has ended are rare and subject to additional requirements

Additional Eligibility Requirements

In addition to completing the steps above, you must meet all of the following requirements to receive a Direct Loan at SWC:

You must meet the Satisfactory Academic Progress (SAP) standards as defined by SWC
You must not be in default on any federal loan or owe a repayment on any federal grant
You must be enrolled in at least 6 units that apply to your declared program per semester, including summer. This applies to all students including veterans, EOP students, and students with DSS accommodations. Those 6 units must be added by the semester Freeze Date, which is the date SWC locks in how many units you are enrolled in to calculate your financial aid for the semester.
You must maintain at least 6 units for the entire loan period. Dropping below half-time will result in cancellation of your loan

Loan Amounts and Limits

How much you can borrow depends on your grade level, dependency status, and remaining eligibility. Your grade level is based on the number of units you have completed at SWC, including any official transfer units on file. If you are enrolled in a program shorter than one academic year, your loan may also be prorated.

For a full breakdown of loan types, annual limits, aggregate limits, and current interest rates, visit the Types of Loans, Limits and Interest Rates page.

Step-by-Step Instructions

Additional Eligibility Requirements

Loan Amounts and Limits

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