Published or Revised March 19, 2012
Paris Junior College announces entry into the William D. Ford Federal Direct Loan program effective for the fall 2010 semester.
The Direct Loan program offers students low-interest subsidized and unsubsidized loans to assist in funding the cost of education. To apply for a student loan, the student must first complete the Free Application for Federal Student Aid, or FAFSA.
To apply for aid using the FAFSA, students need to log on to http://www.fafsa.ed.gov. Applications for 2011-2012 are based on 2010 income information.
Loans are borrowed money that you must repay. Some loans will require you to pay interest Maximum loan amounts depend upon your grade level in school. All students will have a 30-day wait on first disbursement each semester. Loans will be disbursed in two equal disbursements each semester. (Excluding summer five-week terms.)
The subsidized loan is awarded on the basis of need. No interest is charged before you begin repayment or during any authorized periods of deferment. The federal government pays the interest until the time of repayment. You must be enrolled at least six hours per semester to receive these funds.
Eligibility:
Please note: It is Paris Junior College’s policy that if a student has a total student loan accumulated outstanding balance of $23,000 either while attending PJC or attending another institution, students will not be eligible for any further loan awards. This is part of the PJC’s default prevention policy.
DEPENDENT/INDEPENDENT students undergraduate loan limits (subsidized loans):
Maximum total debt from Direct Loans: $57,500, but no more than $23,000 of that total may be in subsidized loans.
A federally guaranteed loan that is not based on financial need. Interest will accrue from the time the loan is disbursed to the school. You do not have to make interest or principal payments until six months after graduation, or six months after you drop below a half time status. There is a 30 day wait period on all loan disbursements. Loans will be made in two disbursements each semester.
Loan limits are the same as the subsidized loan per grade level for dependent students. Additional loan limits may apply for independent students.
All students who desire a loan at Paris Junior College must follow these directions, even if you have had student loans in the past at other schools.
Step 1: Complete the FAFSA process and indicate that you want a loan. Complete all verification requirements if selected. After you have been awarded a student loan and have verified the award on Campus Connect, proceed to Step 2. Note: You will NOT be able to accept your loan on Campus Connect. The financial aid office will accept your loan when Steps 2 and 3 below are completed, and at this point your loan will be eligible for disbursement.
Step 2: Complete online entrance counseling. (Must be done every year.)
Step 3: Complete electronic Master Promissory Note (MPN). Must use FAFSA PIN to sign the MPN.