Financial Aid - Loans

Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education (the Department) at participating schools.

Direct Stafford Loans include the following types of loans:

• Direct Subsidized Loans—Direct Subsidized Loans are for students with financial need. Your school will review the results of your Free Application for Federal Student Aid (FAFSASM) and determine the amount you can borrow. You are not charged interest while you’re in school at least half-time and during grace periods and deferment periods.
• Direct Unsubsidized Loans—You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, your school will determine the amount you can borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.

Additional loan types provided under the Direct Loan Program include Direct PLUS Loans (for parents and graduate and professional degree students) and Direct Consolidation Loans (to combine federal education loan debts into a single loan).

How do I apply for a Stafford Loan?

As with all federal student aid, you must complete the Free Application for Federal Student Aid (FAFSA). Most students use FAFSA on the Web to complete their application. Schools use the information from your FAFSA to determine how much student aid you will receive. Stafford Loans are generally included as part of your award package, which may contain other types of aid to help meet the costs of going to college or career school.

(studentaid.ed.gov 10/25/10)

Loan Limits

The Award Chart below describes the loan limits and you may apply for the additional amount by completing an additional unsubsidized loan form (available online or from the Financial Aid Office) or by sending an email with your Student ID to finaid@blueridgectc.edu.  Actual awarding of the loan will depend on your Satisfactory Academic Progress (SAP), total loan debt and number of enrolled hours for the spring semester.

Award Chart

Blue Ridge CTC processes all student and parent loans under the William D. Ford Direct Loan Program.  If you need more financial assistance than this program provides, you may apply for an alternative loan.

If you are accepting loans for the first time, you will need to complete two additional steps required by the Department of Education:

• Entrance Counseling must be completed before your loan will be disbursed to your student account.  This is available online at studentloans.gov and takes about 20 minutes to complete.
• Sign a Master Promissory Note (MPN) at studentloans.gov.  You will need your FAFSA Pin Number to sign electronically and the names, addresses and phone numbers of two references.