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Student Loans

Federal Direct Loans

Federal Direct Loans are available to Davidson-Davie students who complete the FAFSA and are enrolled at least half-time in an eligible academic program. Half-time at Davidson-Davie is defined as six credit hours each semester. Federal Direct Loans can be subsidized and/or unsubsidized. These loans do not require a credit check and currently carry an origination fee of 1.057%. The origination fee is deducted from the loan amount prior to its disbursal to the college. The Federal Direct Loan is borrowed directly from the U.S. Department of Education as part of the William D. Ford Direct Loan Program.

Repayment

Repayment begins six months after a student graduates, leaves school, or drops below half-time enrollment. This period of time is called a grace period. Students are granted one grace period. Students may have longer than six months if they are on active duty in the military.

There are two types of Federal Direct Loans, subsidized and unsubsidized.

Direct Subsidized Loans are awarded on the basis of financial need as determined by the FAFSA and Davidson-Davie. For students who are enrolled half-time or more, any interest that accrues while they are in school and during their six-month grace period is paid for them by the federal government. Interest will begin to accrue once the loans enter repayment.

Direct Unsubsidized Loans are not awarded on the basis of financial need. Unlike a subsidized loan, interest will begin to accrue immediately from the time the loan is disbursed to Davidson-Davie until it is repaid in full. Students are permitted the option of paying the interest typically once every three months or deferring interest payments until they enter repayment. If the student allows the interest to accrue while they are in school or during other periods of nonpayment, the interest that has accumulated during that time will be added to their loan when they enter repayment. This is also known as capitalization. 

Depending on a student’s financial need, their Federal Direct Loan could be a combination of both subsidized and unsubsidized, or completely unsubsidized.

Federal Direct Loan Annual Borrowing Limits

Dependent Undergraduate Chart
Dependent Student Loan annual Maximums*

("Dependent", as defined by the federal FAFSA Application Process)

Independent Undergraduate Chart
Independent Student Loan Annual Maximums*

("Independent", as defined by the federal FAFSA Application Process)

*Loan amounts available for each student vary depending upon Expected Family Contribution (from the FAFSA), Cost of Attendance and other available resources. Loan amounts may not exceed the cost of attendance or the annual and aggregate limits set by the Dept. of Ed.

Federal Direct Loan Interest Rate

The interest rate for all Federal Direct Loans for the 2020 – 2021 academic year (July 1, 2020 – June 30, 2021) is fixed at 2.75% for the life of the loan. The interest rate for any loans borrowed for the 2021 – 2022 academic year (July 1, 2021 – June 30, 2022) is fixed at 3.73% for the life of the loan.

Eligibility Requirements for Federal Direct Loans

  • Complete the FAFSA and submit any requested documentation to the Office of Financial Aid
  • Have received your Davidson-Davie Financial Aid Award Notice
  • Currently enrolled in at least six credit hours (half-time) in an eligible program of study
  • Meet the Satisfactory Academic Progress (SAP) standards
    • Earn/maintain a cumulative GPA of 2.00 or higher
    • Earn/maintain a cumulative completion rate of 67% of all attempted credit hours
    • Not exceed 150% of the standard length of your academic program
  • Not exceed the aggregate Federal Direct Loan borrowing limits
    • Dependent students: $31,000
    • Independent students: $57,500
  • Complete the required loan acceptance steps listed below; missing steps will prevent your loan from being processed and delay your funds

Student Loan Acceptance Steps for Summer 2021

www.studentloans.gov

  • Sign in with your secure login (same as FAFSA).
  • Select “Complete Counseling” in the center of the page
  • Select “Entrance Counseling”
    • You may refer to the table above plus any other award amounts and college costs to help with budgeting during the loan entrance counseling.
  • Select DAVIDSON COUNTY COMMUNITY COLLEGE to notify.
  • You are an UNDERGRADUATE student.

* Take your time and read carefully to know how much you’ll OWE.  You must personally complete loan counseling because you will be responsible for repayment. You can change your mind at any time and NOT borrow.

https://studentaid.gov/mpn/

  • Sign in with your secure login (same as FAFSA).
  • Select “Subsidized/Unsubsidized” as the type of loan.
    • You’ll need your Driver’s License and all of your current contact information, phone numbers and emails and contact information for two loan references as well.
  • Select DAVIDSON COUNTY COMMUNITY COLLEGE as school.
  • You are an UNDERGRADUATE student.

* Take your time reading the conditions of the loan. You must personally complete the Master Promissory Note because you will be responsible for repayment and consequences. You can change your mind and NOT borrow.

Fall 2020/Spring 2021/Summer 2021 Davidson-Davie Loan Acceptance Form (2020-2021AY)

  • You must use your Davidson-Davie student e-mail AND a completed financial aid decision before you can complete the loan acceptance form.
  • Steps 1 & 2 must be completed BEFORE acceptance.
    • You’ll need current contact information, phone numbers and emails for you and your loan references to complete the form.

* Take your time completing the loan acceptance form. Incomplete forms will prevent timely processing. You can change your mind and NOT borrow.

Federal Direct Loan Acceptance Steps for Fall 2021, Spring 2022 and Summer 2022

For students borrowing a Federal Direct Loan at Davidson-Davie for the first time:

Student Loan Entrance Counseling

  • Sign in with the same username and password you use to complete the FAFSA

Master Promissory Note 

  • Sign in with the same username and password you use to complete the FAFSA
  • Log into StormTrac and select Financial Aid
  • Select the 2021 – 2022 Academic Year for Fall 2021, Spring 2022, and Summer 2022
  • Accept, modify, or decline your loans by clicking on the link to “Review and accept your Financial Aid Award Package

For students who have previously borrowed a Federal Direct Loan at Davidson-Davie:

Annual Student Loan Acknowledgment

  • Sign in with the same username and password you use to complete the FAFSA
  • Log into StormTrac and select Financial Aid
  • Select the 2021 – 2022 Academic Year for Fall 2021, Spring 2022, and Summer 2022
  • Accept, modify, or decline your loans by clicking on the link to “Review and accept your Financial Aid Award Package

Federal Direct Parent Plus Loans

Federal Direct Parent PLUS Loans are loans parents can borrow to pay for their dependent student’s educational expenses. Students must be considered a dependent by the FAFSA, enrolled in a qualifying academic program, and be enrolled at least half-time. Eligible parents who can borrow a Parent PLUS Loan include a student’s biological parents, whether they were listed on the FAFSA or not, and stepparents whose income was reported on the FAFSA. Parents must also pass a credit check in order to be approved for this loan.

Federal Direct Parent PLUS Loans currently carry an origination fee of 4.228%. The origination fee is deducted from the loan amount prior to its disbursal to the college. The Parent PLUS Loan is borrowed directly from the U.S. Department of Education as part of the William D. Ford Direct Loan Program. Parents may borrow for each year of their student’s undergraduate career, though subsequent credit checks will be required. Credit checks are valid for up to ninety days.

Parents are given two options in repaying the Parent PLUS Loan. Typically, repayment begins within sixty days after the final loan disbursement for the academic year the loan was borrowed. Alternatively, parents can choose instead to defer loan repayment until after their student graduates or drops below half-time enrollment. Interest will still accrue and parents will be given the option of paying or capitalizing the interest. Regardless of the repayment option the parent selects, interest begins to accumulate at the time the first disbursement is made.

Federal Direct Parent PLUS Loan Interest Rate

The interest rate for all Federal Direct Loans for the 2020 – 2021 academic year (July 1, 2020 – June 30, 2021) is fixed at 4.30% for the life of the loan. The interest rate for any loan borrowed for the 2021 – 2022 academic year (July 1, 2021 – June 30, 2022) is fixed at 6.28% for the life of the loan.

Federal Direct Parent Plus Loan Acceptance Steps

2020-2021 Federal Direct Loan Interest Rates

Interest rates for all Federal Direct Loans disbursed between July 1, 2020 and June 30, 2021
Loan TypeBorrowerInterest Rate
Direct Subsidized Loans and Direct Unsubsidized LoansStudent2.75%
Direct Parent PLUS LoansParent4.30%

2021-2022 Federal Direct Loan Interest Rates

Interest rates for all Federal Direct Loans disbursed between July 1, 2021 and June 30, 2022
Loan TypeBorrowerInterest Rate
Direct Subsidized Loans and Direct Unsubsidized LoansStudent3.73%
Direct Parent PLUS LoansParent6.28%

Loan Changes or Cancellations

All changes, corrections or cancellations of accepted student loans must be communicated directly to FA_Loans@DavidsonDavie.edu for review and processing. In the message include your full name and the specific changes requested. All messages should be sent using your Davidson-Davie assigned email account for message security and to confirm student identity.

FEDERAL DIRECT LOAN EXIT COUNSELING

Davidson-Davie student borrowers are required to complete Exit Loan Counseling when they:

  • Graduate from Davidson-Davie 
  • Transfer to another college
  • Drop below half-time enrollment
  • Withdraw from all classes

Loan Processing Timelines

Summer-Only 2021 Student Loans


*disbursed in 2 separate payments
Processing of Summer-only loans begins after January 30, 2021. Summer-only amounts may NOT exceed a single term loan amount.
If all loan acceptance steps are complete before:Anticipated Loan Disbursement Dates: 
May 15, 2021 (Summer tuition may be held for loan students)Summer (1st half)Summer (2nd half)
May 30, 2021June 18July 14

Fall 2021 & Spring 2022 Student Loans



*disbursed in two payments; one fall and one spring
Loan processing for 2021-22 Fall & Spring Loans begins after June 15, 2021
If all loan acceptance steps are complete before:Anticipated Loan Disbursement Dates
August 1, 2021 (Fall tuition may be held for loan only studentsFall (1st half)Spring (2nd half)
September 1, 2021Sept. 13 (*Sept. 24 for first time borrowers)TBD
October 1, 2021Oct. 15TBD
November 1, 2021Nov. 12TBD
December, 1 2021Dec. 10TBD
Fall/Spring loan acceptances end on December 1 to allow time for disbursement, but may be considered for Spring/Summer loans.

Spring & Summer 2022 Student Loans


*Disbursed in two payments; one spring and one summer
Loan processing for 2021 Spring & Summer Loans begins after August 1, 2021
If all loans acceptance steps are complete before:Anticipated Loan Release Dates:
December 15, 2020 (Spring tuition may be held for loan students)Spring (1st half)Summer (2nd half)
February 1, 2021TBDTBD
Loan processing for Summer-only loans begins after February 1, 2022. Summer-only loan amounts may NOT exceed a standard single term loan amount.
Loans are divided into two equal disbursements and presume required enrollment.
If all loan acceptance steps are complete before:Anticipated Loan Release Dates
Spring (1st half)Summer (2nd half)
TBDTBDTBD

Summer-Only 2022 Student Loans

*Disbursed in two separate payments
Loan processing for Summer-only loans begins after February 1, 2022.
Summer-only loan amounts may NOT exceed a standard single term loan amount.
If all loan acceptance steps are complete before:Anticipated Loan Release Dates
Summer (1st half)Summer (2nd half)
TBDTBDTBD

PRIVATE STUDENT LOANS

Private student loans are funds borrowed from a private bank or lending institution and are not part of the Federal Student Aid Program.  It is not necessary to file a FAFSA in order to receive these loans. Many students and parents opt for these loans when they are looking for more flexible repayment options than those available with the Federal Direct Parent PLUS Loan, such as placing the loan in the student’s name. Though these are non-federal loans, most lenders will require the Office of Financial Aid to certify the student’s enrollment and eligibility. Accordingly, we will not certify a private loan that exceeds our estimate for the student’s educational expenses. Federal financial aid regulations also require Davidson-Davie to include private educational loans as part of a student’s financial aid package. As a result, a private loan may reduce the amount a student or parent could receive in other forms of financial aid, regardless if Davidson-Davie certified the loan or not. Conversely, the amount Davidson-Davie could certify for a private loan could be limited by the other aid the student is receiving. 

The student is often responsible for repayment of a private student loan, as opposed to the Federal Direct Parent PLUS Loan, where it is the parent’s responsibility to repay the loan. However, lenders of private loans will often require a parent or another party to cosign the loan for their student, making that individual responsible for repayment if the student defaults on the loan. Cosigning also means the loan will appear on the cosigner’s credit history in addition to that of the student.

The interest rates on private loans are typically based on the current prime/LIBOR rates and can be either fixed or variable. Often the lender will base the interest rate upon the credit score and history of the borrower or cosigner.  

View information about potential lenders

STUDENT LENDING CODE OF CONDUCT

The Higher Education Opportunity Act of August 14, 2008, includes provisions that campuses participating in Federal Student Aid loan programs publish a code of conduct that describes prohibited practices related to loan programs. To avoid any conflict of interest with the responsibilities of a Davidson-Davie Community College employee with respect to student loans, the Davidson-Davie Code of Conduct prohibits the following:

  • Revenue sharing arrangements with any lender.
  • The solicitation or acceptance of gifts from a lender, guarantor or servicer by anyone with responsibilities with respect to loans at the institution.
    • A gift is defined as any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount.
    • A gift is NOT: A brochure used for default aversion or financial literacy; food, training, or informational material provided as part of training to improve service; entrance or exit counseling assistance that does not promote a lender; philanthropic contributions unrelated to loans; state education grants or scholarships.
  • Receipt of any fees, payments or other financial benefits (including a stock purchase option) by anyone with responsibilities with respect to loans from a lender as compensation for any type of consulting arrangement or contract to provide services to a lender, or on behalf of a lender relating to education loans.
  • The assignment of a first-time borrower’s loan to a particular lender or refusing to certify or otherwise delay certification of any loan regardless of the lender or guaranty agency the borrower selects.
  • The acceptance of any funds to be used for private education loans in exchange for the institution providing concessions to the private lender.
  • Requesting or accepting assistance with call center staffing or financial aid office staffing from any lender.
  • Any employee with responsibilities with respect to financial assistance at the institution who serves on an advisory board or commission of a lender or guarantor may not accept anything of value from the lender or guarantor except reimbursement for the reasonable expenses of serving on the board or commission.