Federal Family Education Loan Program (FFELP) - Policy and Procedures

Santa Monica College is committed to assisting students with attaining their educational goals.  For many students, financial assistance is critical.  In addition to the BOG fee waiver, federal and state grants, and work-study programs offered at SMC, the college also participates in the Federal Family Education Loan Program (FFELP).   Santa Monica College's student loan policy and loan application procedures are explained below:

Student Loan Policy:

Federal Stafford Loans are not part of a student's initial financial aid award package.  Loans should be the last alternative for financing a student's education at a California community college.  To the extent that a student is eligible, every effort is made to meet a student's financial need with BOG fee waivers, Cal Grants, Federal Pell Grants, Federal Supplemental Educational Opportunity Grants and Federal Work-Study.  Students who have financial need greater than that met by these programs may be eligible for either a subsidized or an unsubsidized Stafford Loan.  The amount a student may borrow is based on a variety of factors, including the student's:

  1. Year in school
  2. Dependency status
  3. Cost of attendance
  4. Remaining financial need

Federal Annual Loan Limits

If you're a dependent student, you can borrow up to:

If you're an independent student, you can borrow up to:

According to Federal regulations, loan amounts must be prorated for students with only one semester remaining to complete their educational objective.

Loan Application Procedures and Counseling for Student Borrowers

Loans for students attending SMC are the exception, not the norm.  It is important that all students carefully review their educational objectives prior to applying for a student loan.  According to Federal regulations, all students borrowing a loan MUST be enrolled in at least six units and attend an entrance interview (loan counseling workshop).

In order to receive a Federal Stafford Loan, students must complete a FAFSA and receive their initial SMC Financial Aid Award Notification Letter.  After a student receives his/her initial award letter and determines that he/she still needs additional funds - in order to apply for a student loan, students must do the following: submit a Loan Request Form, and Educational Plan (completed by a SMC Academic Counselor), and copies of his/her driver license and social security card to the Financial Aid Office.  All four documents must be submitted together at the same time.  After these forms have been reviewed by the Financial Aid Office, the student will receive one of the following: a notification of eligibility for a loan in the form of a revised SMC Financial Aid Award Notification Letter, a loan denial letter, or a letter requesting missing documents (Document Tracking Letter).

After the receipt of a revised Financial Aid Award Notification Letter, students must attend an entrance loan counseling workshop within the next two weeks.  These workshops are scheduled throughout the academic year.  Students must sign-up for the workshop at the Financial Aid Office.  The seminars are designed to increase the student's knowledge of the terms and conditions of borrowing a Federal Stafford Loan.  Students will need to pass an exam given at the end of each workshop (this exam must be passed within two attempts).  Failure on the student's part to demonstrate a satisfactory level of knowledge about borrowing a loan could result in the denial of the student's loan.

After the student attends an entrance interview and successfully passes the exam, the loan application will be mailed by the Financial Aid Office to the lender listed on the application.  The lender will then notify the student by mail that the check has been sent to the SMC Auxiliary Services Office for disbursement.  Approximately 7 to 10 days after the student receives the lender's notification letter, the student will receive a letter from the Financial Aid Office indicating that the loan check is available.  Be advised that due to federal regulations, for a student who is a first-year undergraduate and a first-time borrower, loan funds cannot be disbursed until 30 days after the first day of the student's enrollment period.  Students will need to come to the Financial Aid Office to get a Check Release Form.  The Financial Aid Office will verify that the student is still enrolled in at least six units.  Students will then take the form to the Auxiliary Services Office to receive their loan check.  Photo identification will be required at both offices.  Please note that the Auxiliary Services Office will only honor Check Release Forms dated the same day the check is to be released.

Loan Denial:

In accordance with the Federal Higher Education Act, as amended, the Financial Aid Office has the authority to refuse to certify an otherwise eligible borrower's loan application or reduce the loan amount.  When this occurs, the decision, along with the reason for the denial or the reduction of the loan amount, will be provided to the student in writing.  The Financial Aid Office will review all loan applications and final eligibility will be determined based on the following:

Academic Standing - Loan applicants must have a clear educational objective, demonstrate a record of academic progress toward that objective and have a grade point average (GPA) or 2.0 or better.

Lack of Satisfactory Academic Progress - The student must be making satisfactory academic progress.  If a student is on academi or financial aid probation, suspension or dismissal, then a loan may be denied.

Excessive Debt - A student should not have a loan debt of greater than $10,000 when leaving a community college.  This includes loans obtained at other institutions prior to attending SMC.

Unmet Need - The student's cost of attendance less the student's (or family's) expected family contribution and the amount of financial aid already received.

Exit Loan Counseling Interviews:

All student borrowers during their final term at SMC, must attend an exit loan counseling interview prior to the release of the final disbursement of the student's loan.  This interview will cover all of the information required by Federal regulations.  Students needing to attend an exit interview will be notified by mail.  The dates and times of the exit interview sessions will be included in the notification letter and students will need to sign-up for an exit interview at the Financial Aid Office.

Student Loan Ombudsman

The U.S. Department of Education has created the Student Loan Ombudsman to assist student loan borrowers with resolving student loan issues and problems.  Borrowers may contact the Student Loan Ombudsman's Office through any of the following three ways:

1. Via the Internet: http://ombudsman.ed.gov OR http://sfahelp.ed.gov

2. Toll-free telephone number 1-877-557-2575

3.  By Mail:

     U.S. Department of Education
     FSA Ombudsman
     830 First Street, NE
     Fourth Floor
     Washington, DC 20202-5144

 

Federal Parent Loan for Undergraduate Students

In certain cases, the parents of dependent students may be eligible to borrow a Federal PLUS Loan to help pay for the student's education.  For more information, please contact the Financial Aid Office.