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SMC|Enrollment Development|Financial Aid and Scholarships|Loans

Loans

Theatre Arts building w/ students walking  
 LOAN DOCUMENTS for 2014-15

  Stafford Loan Request Form

   RELATED LINKS
   EFund EdTest
   
NSLDS

   PUBLIC SERVICE LOAN FORGIVENESS
   PSLF
   
  LOAN INFORMATION
  
Loan Counseling

  ENTRANCE/EXIT WORKSHOPS
   Fall 2014 Schedule
 * Note: No appointment is 
   necessary, but you
must have
   already 
been awarded a Stafford 
   Loan to attend the workshop.  
      


Federal Stafford Loans

Stafford Loans are federal student loans made available to college and university students to supplement personal and family resources, scholarships, grants and work-study. Stafford loans may be subsidized by the U.S. Government or unsubsidized depending on the student's need.

Federal PLUS Loans

The PLUS loan is for the parents of dependent students. The interest rates are fixed at 7.1%. Repayment on PLUS     loans begins 60 days after the second disbursement of the loan.

Please note: Students must be enrolled in at least 6 units in order to qualify for a government loan.  

Guidance for applying for a PLUS LOAN

TOP TEN SMC STUDENT LOAN QUESTIONS

1. How do I apply for a Stafford Loan at SMC?

Complete and submit the Free Application for Federal Student Aid (FAFSA) to the federal processor.

* After SMC receives the information regarding your federal aid application, you will be sent an electronic 
  tracking letter requesting certain documents.

* While submitting all of the initial requested financial aid documents, download the Loan Documents (Stafford 
   Loan Request Form, Loan Reference Form and Loan Budget Worksheet) from this website.

* The completed Loan Documents can then be submitted along with the Student Ed Plan obtained through the Self- 
   Service Ed Plan site through Corsair Connect www.smc.edu/EP.

   Please Note:
Your loan request documents go to a committee for assessment. Students awarded a Stafford Loan 
   will be notified with and guidance for completing an Entrance Loan Workshop and a Master Promissory Note   
   through their Corsair Connect financial aid portal.


2. How long will it take to process a loan application?

Loan requests are reviewed on a case-by-case basis. Once the Loan Committee has made a determination,
the actual processing of the loan takes 3 to 4 weeks before SMC receives a check.

3. How much can I borrow for attendance at SMC?

Basic Stafford Loan Levels are as follows:

Grade Level Degree Applicable Units Completed Loan Limits
Students in Year 1: $3,500 0 - 29 $3,500
Students in Year 2: $4,500 30 - 59 $4,500

SMC's Loan Debt Management Plan recommends a cumulative loan threshold of $15,000.

Annual Additional Unsubsidized Stafford Loan limits are:
Dependent Students in Year 1 or Year 2 $2,000
Independent Students in Year 1 or Year 2       $6,000


4. What happens if I transfer to another college during the same academic year?

You must cancel any pending loans at SMC and contact the new college to find out how to be awarded financial
aid there including loans.

5. What is the difference between subsidized and unsubsidized Stafford Loans?

For subsidized Stafford Loans, the Federal Government pays the interest while the borrower is in school,
during the 6 month grace period and deferment periods.

6. What is the interest rate on Federal Loans?

The interest rates are as follows:

Loan First Disbursed Subsidized Unsubsidized PLUS
7/1/2014 - 6/30/2015 4.66% 4.66% 7.21%​


7. When do I have to begin repaying a Stafford Loan?

Repayment begins 6 months after graduating, withdrawing, or dropping to less than half-time enrollment status.

8. I've heard information on the news about the Direct Loan Program. What is that?

Effective July 1, 2010 - All Stafford Loans will be processed by the DIRECT LOAN PROGRAM which is an agency
within the Federal Government. Loans will no longer be processed by banks or credit unions.

9. What are the consequences of not repaying a student loan?

* You will be reported to a credit bureau having a negative effect on your credit rating.
* You can be referred to a collection agency and have to pay collection costs.
* Your employer may garnish your wages.
* The Internal Revenue Service may withhold your state and federal income tax returns.
* The entire unpaid amount of your loan, including interest may become due and payable immediately.
* You will lose your rights to deferments.
* You will be ineligible to receive any additional federal or state financial aid.

10. Do I have to attend any "entrance" or "exit" loan workshops or meetings?

As part of SMC's Default Management Plan, loan recipients are required to participate in a Loan Entrance
Workshop each year that they request a student loan.

In addition, all student loan recipients are required to attend an Exit Interview each year that they are a
loan recipient while attending SMC.