Applying for a Loan
Steps to Borrow a Federal Direct Student Loan- PLEASE READ CAREFULLY
Students are required to complete the Free Application for Federal Student Aid (FAFSA) prior to requesting a loan. Upon completion of the verification process, and award notification, students are informed on the award if they are eligible for student loans and are instructed on next steps. You will receive a notice that your award package is ready to view. It will be available on MySWC.
Upon completion of the verification process and award notification, students are informed of potential eligibility for student loans.
Please review the Direct Loan Policy prior to requesting a student loan. This policy includes important information which borrowers are responsible for knowing, including limits on borrowing, different types of student loans, interest rates and origination fees, eligibility requirements, and strategies to avoid defaulting when you go into repayment status. Student loan borrowers are required to read this document.
Students who have not previously borrowed Direct Loans at Southwestern College are required to complete Loan Entrance Counseling prior to receiving any student loan. Loan Entrance Counseling helps ensure that the borrower understands the terms and conditions of the loan as well as their rights and responsibilities, before receiving the loan proceeds. Borrowers who do not complete Loan Entrance Counseling will be unable to receive their Direct Loan(s). Students will need their Federal Student Aid (FSA) ID to log in.
Access the Loan Entrance Counseling website
Access the website to apply for a new FSA ID, or for questions about an existing FSA IDThe Master Promissory Note (MPN) is the legal document through which you promise to repay your Direct Loans and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loans, provides consumer information and your rights and responsibilities as a student borrower. A Direct Loan MPN can be used to make loans for up to ten (10) consecutive years. Students will need their Federal Student Aid (FSA) ID to log in.
Access the website to complete the Direct Loan Master Promissory Note
Access the website to apply for a new FSA ID, or for questions about an existing FSA IDLoans must be activated on MySWC to indicate which loan(s) the student wants to borrow (subsidized and/or unsubsidized) and how much for each. Unsubsidized loans are not certified unless subsidized loan is exhausted first, or the student is ineligible. Loan certification is NOT completed automatically - Southwestern College will not certify a loan for a student without their explicit request.
Loans must be activated and all other steps completed by the Direct Loan award cutoff date for the desired disbursement period or term as specified in the Disbursements Schedule. Loans activated or completed after this date may be processed for the following disbursement period or term.
Once the loan is activated, a Loan Origination Record (LOR) will be sent to the Department of Education for processing within 2-4 weeks. Once the Department receives the LOR, they will assign your loan to a federal Direct Loan servicer. This servicer will act as your lender until the loan is repaid. They will send you a disclosure notice, verifying the loan amount, type, and other information. Keep this disclosure for your records - it contains important information including contact information for your servicer. You will be contacted by your Direct Loan servicer when you graduate or drop below half-time regarding loan repayment information.
Disbursements are made once a month during the fall and spring terms, and once during summer. Be advised that the stated “Disbursement Dates” cited in the LOR are estimates only, as the LOR is prepared prior to disbursement, and the actual dates of disbursement may be different.- Students must maintain Satisfactory Academic Progress (SAP) as defined by Southwestern College.
- Students must not be in default on any Title IV Federal loan or owe an overpayment or repayment on any Federal Grant.
- Students must be enrolled at least half time to be eligible for Direct Loans. Half time for loan purposes at Southwestern College is defined as 6 or more Title IV units per semester, including summer, and including veteran students, EOP students, and students with DSS accommodations.
- Students must maintain continuous half-time enrollment for the entire loan period. Dropping or withdrawing below half time will result in cancellation of award/check.
- Previous college coursework at Southwestern College is counted towards units completed in determining grade level.
- Loans may be prorated if the student is enrolled in a program that is shorter than one academic year.
- Loans must be activated and completed by the specified deadlines or they will not be processed.
- Loans must generally be disbursed within the loan period. Disbursements made after the loan period has ended are rare and subject to additional requirements.