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Posted or edited: 02.08.08 ... PJC Information Services
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Could you tell me something about the student loan program at PJC?

A Federal Subsidized Stafford Loan is a fixed-interest loan made to students enrolled in an eligible program who are attending school at least half-time. This is the only type of loan available at Paris Junior College.

Who makes the loans?

Loans are made by a lender such as a bank, credit union or savings and loan association. These loans are insured by the state guarantee agency and reinsured by the federal government.

How do I get a loan?

First, you must complete your financial aid file. In addition, federal regulations require borrowers undergo entrance loan counseling and loan testing before receiving a loan each academic year. Exit loan counseling and testing is required before the student ceases at least half-time enrollment.

When will I get my loan?

Loan proceeds are released in multiple disbursements. All students loan proceeds will be held for 30 days from the first day of class each semester. Student loans will not be awarded after the last day to receive a “W” for any semester. These dates are published in each semester’s class schedule.

Who is eligible?

A loan recipient must be enrolled at least half-time in a semester and show satisfactory academic progress at Paris Junior College.

When are loans paid back?

Repayment of these loans starts six (6) months after you cease to be enrolled or after you drop below half-time status.

How much can I borrow?

Effective July 1, 2007, loan limits for freshmen (students with less than 23 semester hours (non developmental) completed in their course of study are $3,500, sophomores $4,500 per year. For loan purposes, a student’s classification will be determined by the number of hours completed toward his or her selected degree or certificate at the time of initial certification. A student’s classification will not be reevaluated until the beginning of the next academic year (fall through summer).

Do I have to borrow that much?

No. You should only borrow as much as you need. Remember, these loans do have to be paid back.

What if I transfer to PJC from another school? Will I be eligible for a loan?

A student who transfers in the middle of an academic year and has received his or her annual loan limit while at the transfer institution will not be eligible for a loan at PJC until the beginning of the next academic year.

How often do I have to apply for a loan?

Student loan recipients must apply for financial aid each year. Student loans are packaged for each eligible student and included in his/her award letter. The student will need to accept their loan on their award letter and return it to the financial aid office before certification is made. Students are required to do loan entrance counseling each year.

Which loan programs does PJC participate in?

The Federal Stafford Subsidized Loan for undergraduate students is the only loan available at PJC. PJC does not participate in the following loan programs: Federal Stafford Unsubsidized Loan; Federal Parent Plus Loan; Federal Perkins Loan; National Direct Student Loan; Hinson-Hazlewood Loan.

What is the difference between subsidized and unsubsidized loans?

The Federal Subsidized Loan is need-based, and the government pays the interest during in-school status, grace periods and authorized deferment periods. The Federal Unsubsidized Loan is not need-based, and the borrower is responsible for paying the interest during these loan periods.