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Loans

Loans are funds that are borrowed directly from the U.S. Department of Education that the student must pay back. There are eligibility requirements that a student must meet in addition to completing a FAFSA before federal loans can be offered. All laons must be accepted withing 30 days of their offer. After 30 days, the college may cancel the loan offer.  

Taking out a loan is an important financial decision. Understanding the types of federal loans available and the associated responsibilities is key to making good borrowing decisions. 

Important Steps for First-Time Borrowers

There are two important steps that first-time borrowers must be aware of:

  1. All first-time borrowers must receive loan counseling before loan funds can be disbursed. Students must complete a Master Promissory Note and Entrance Loan Counseling at StudentAid.gov.
  2. Federal regulations require that the College delay delivering the proceeds of educational loans to first-time borrowers until 30 days after the start of classes.

"Know Your Loans" Video Resources

Direct Subsidized Loan

The Federal Subsidized Loan is a loan that must be repaid upon completion of school or interruption of studies.  All borrowers are required to complete an Entrance Counseling Interview online at StudentAid.gov.

Here are some facts about Direct Subsidized Loans.

  • Awarded to students who have a financial need.
  • Students must be enrolled in school at least half-time (6 credits fall, spring and summer).
  • This is a loan and must be repaid. The payments start 6 months after student exits, graduates from program, or drops below part-time (less than 6 hours).
  • Fixed interest rate not to exceed 6.8%.
  • A loan origination fee is deducted from each loan disbursement.
  • Students are required to be actively enrolled for at least six credit hours each semester to maintain loan eligibility.
  • The amount that is offered to a student by Delgado Community College is determined by grade level and are as follows: 

Direct Unsubsidized Loan

Loan Direct Unsubsidized Loans enable students to borrow regardless of need. A Direct Unsubsidized Loan is not based on need. Interest will accrue on this loan while the student is enrolled and may be paid or capitalized as agreed by the borrower and the lender. If a student elects to pay the interest payments during school, the student can complete a Master Promissory Note (MPN) electing to pay. If a student elects to not pay the interest payments during school, the interest will be added or capitalized onto the principal balance at repayment, which means the interest will be added to your principle balance.

Here are some facts about Direct Unsubsidized Loans.

  • Financial need not required to receive this loan.
  • Interest begins to accrue once the first disbursement is made.
  • Payments on the principal may be deferred while students are enrolled at least half-time, during authorized periods of deferment and through the grace period. Students may choose to capitalize the interest (have it added to the principal). Capitalization increases the total cost of the loan.
  • Payments on total amount of loan start 6 months after student leaves, graduates from program, or drops below part-time (less than 6 hours).
  • Fixed interest rate not to exceed 6.8%.
  • A loan origination fee is deducted from each loan disbursement.
  • Amount offered is determined by dependency status.
  • Review the annual loan limits set by the Department of Education

Plus Loans for Parents

The Direct Plus Loan for Parents allows parents of dependent students to borrow per year up to the cost of education less any other aid. The repayment period begins on the day the loan is disbursed, and the first installment to the Department of Education is due within 60 days of that date. This loan is not based on need.

The student must meet the eligible student definition according to Federal Regulations and Delgado Community College criterion; he/she must be meeting Satisfactory Academic Progress and enrolled at least half-time in credit hour courses.

The parent applying for the loan is responsible for repaying the loan. In this case, parent means your parent, adoptive parent, or step-parent.

A PLUS loan is available without regard to financial need and may include the full cost of education minus other forms of financial aid. The lender is required, however, to verify that the parent borrower does not have an adverse credit history.

Here are some facts about Direct Plus Loans for Parents.

  • Must be repaid.
  • Available only to parents of dependent undergraduate students.
  • Fixed interest rate of 7.9%, interest begins to accrue when the funds are disbursed.
  • 4% Loan Origination fee does apply.
  • Borrower has the option to start repayment 60 days after the loan is fully disbursed or 6 months after student leaves school, graduates from program, or drops below part-time (less than 6 hours).
  • Subject to a credit check.

Please be advised, when requesting a Plus loan the minimum amount is $500.00 and maximum amount is $10,000.00 minus any Financial Aid the student has been awarded and/or is eligible to receive.  Can not exceed the cost of attendance budget.

  1. Parent applies for Plus loan on StudentAid.gov and completes and Master Promissory Note.
  2. Loan will need to be accepted through LoLA using Student Banner Self-Service portal.
  3. After acceptance, Loan will be originated and will take 5-7 business days to authorize.

Right to Cancel Loan Disbursements

Federal student and parent loans may be canceled prior to disbursement or within 14 days of notification that funds have been credited.

Funds from federal student and parent loans may begin crediting to student accounts as outlined in the student handbook. Disbursements continue throughout the entire payment period. You may view your loan disbursement amounts and dates of credit through Lola (Log-on Louisiana), Delgado’s Self Service Portal.

As a student or parent borrower, you have the right to cancel an entire loan or any portion or specific disbursement of any federal Stafford or PLUS loan. You may submit a request to cancel a specific loan disbursement prior to the date of crediting to your account or within 14 days of notification. Complete a financial aid revision request form to request cancellation of a loan disbursement.

 If a refund has been generated, you may not request to cancel a disbursement that has been credited to your account. If a refund has been generated, you must repay the funds to the U.S. Department of Education. You can request to cancel future disbursements.

Mandatory Exit Counseling

Each loan recipient is required by federal regulations to participate in an exit interview. Students should complete Exit Counseling online at StudentAid.gov.. Exit counseling must be completed each time a student:

  • Drops below 6 credit hours
  • Graduates
  • Leaves school

More Information