Understanding student loans
Student loans are borrowed money to help pay for college. Just like car loans and mortgages, you have to repay a student loan after you leave college (even if you don’t have a lot of money or you don’t complete your program).
Loans through the federal government include Direct Student and Parent PLUS loans, and eligibility is based on your FAFSA. Private education loans are loans that companies provide. These loans are generally pricier in the long run than federal education loans, so we recommend you take federal education loans first!
Your federal student loan information is available in the National Student Loan Data System (NSLDS). Federal regulations require that information regarding your federal loans, including amounts be submitted to the NSLDS and made accessible to guaranty agencies, lenders, and institutions determined to be autorized users of the data system. You can access your NSLDS information with your FSA ID.
Always apply for federal and state grants and college and private or community scholarships before considering a student loan. Once you've exhausted these alternatives, federal student loans may be an appropriate solution to help with your expenses. Although you must repay a student loan, it’s considered a form of financial aid because it provides the funds necessary to pay for college expenses, and you will have to maintain your eligibility.
|Federal Direct Student loans|
The U.S. Department of Education provides Direct Student Loans (also called Direct Stafford Loans or William D. Ford Direct Loans) to eligible college students based on financial need and other specific eligibility requirements. There are two types of Direct Loans. You will learn more about each type during entrance counseling.
How to apply
Do I need a student loan?
The JCC Direct Student Loan Request form will help you determine how much to borrow. Borrowing for college is an important decision in planning for your future. A student loan can be a very powerful tool to help you reach your educational goals; however, it will become a permanent part of your personal financial record and MUST be repaid. We encourage you to first consider all other available resources and caution you to be a conservative borrower. You can read more about the Direct Student Loan program in Funding Education Beyond High School: The Guide to Federal Student Aid available online at www.studentaid.ed.gov.
I completed the FAFSA, why do I need to submit the JCC Direct Student Loan Request form?
One of the benefits of attending our community college is that you can receive an affordable and outstanding education. Completing the loan request form will help you determine your actual borrowing needs, and in turn can help reduce your overall level of debt, preserve your lifetime loan eligibility for future educational needs, and help prevent difficulties in meeting your minimum repayment obligations. Consider this element of financial literacy as an important part of your education.
Am I eligible for a loan?
How will I receive my loan money?
What else should I do?
|Federal Direct Parent PLUS loans|
A parent borrowing on behalf of a JCC student has access to Federal Parent PLUS loans from the U.S. Department of Education’s William D. Ford Direct Loan Program. PLUS loans can help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
How to apply
How will I receive this money?
After approval, loan funds will be temporarily applied to your student's college bill. Funds will be disbursed and applied toward your student’s bill in two equal installments, one at the beginning of the loan term and one at the midpoint of the loan term (typically the beginning of each semester). Your student can view his/her student account at https://banner.sunyjcc.edu. You will be notified in writing when the college receives your loan funds, after classes begin. After funds are received, the JCC business office will issue any refund in excess of student charges within 14 days via U.S. mail. This refund will be issued in the name of the parent borrower unless otherwise indicated on the online application.
What if I’m denied?
If your loan is denied due to adverse credit, you will receive further instructions from the Department of Education. You may choose to rehabilitate your credit standing or re-apply with an endorser (co-signer). Your student may be eligible for up to $4,000 additional unsubsidized Stafford loan funds if your PLUS loan is denied.
|Private education loans|
Private education loans, also known as alternative education loans, are loans offered by private lenders. These loans can help cover costs not provided by scholarships, grants, and federal loans. We recommend that you check with Financial Aid to confirm that you have received all available federal, state, and institutional funds before pursuing private educational loans.
Some students may not be financially or academically eligible to receive the benefit of federal, state, or institutional grants and loans, or may have educational expenses that exceed available sources of financial aid. A private or alternative education loan may be an option to consider for college funding. These loans should only be pursued after all other financial aid resources have been exhausted. Unlike federal loans, private loans can have different lenders and variable (often higher) interest rates, fees, and other additional costs. JCC does not support, endorse, or otherwise recommend any private loan providers or products. Read the fine print!
JCC cautions all students to be conservative in their borrowing and to thoroughly research and learn the borrower’s rights and responsibilities prior to applying for any loan. Eligibility is generally based on income and credit history and most students are required to have a cosigner. For more information on the differences between the Federal Student Loan programs and private education loans, visit the Department of Education’s Federal Aid First web site. Check out the private education loan section on FinAid: The SmartStudent Guide to Financial Aid that provides helpful information about loan comparison services and charts that may be useful if you are considering a private education loan.
The College does, upon student request, certify student eligibility for private alternative loans. Since these loans may be issued by various lending institutions, the College abides by the Code of Conduct for Processing Student Loans to ensure that its employees avoid conflicts of interest, or the perception thereof, in connection with their responsibilities relating to providing and administering student loans.
Before committing to a private loan, ask these questions:
A lender must obtain a self-certification form (also available from most lenders) signed by the applicant before disbursing a private education loan. The school is required to provide this form or the required information for students admitted or enrolled at the school.
Code of conduct
|Code of conduct for processing student loan applications|
JCC does not provide a preferred lender list for private education loans. The College does, upon student request, certify student eligibility for private alternative loans. Since these loans may be issued by various lending institutions, the College abides by the following Code of Conduct for Processing Student Loans to ensure that its employees avoid conflicts of interest, or the perception thereof, in connection with their responsibilities relating to providing and administering student loans.
- File your 2016-17 FAFSA now
- JCC federal school code: 002869
- JCC New York state TAP code: 2085