Blue Ridge Community and Technical College

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Loans

The Direct Loan program offers low-interest rate loans to help cover the costs of higher education.

Direct Stafford Loans include the following types of loans:

Federal Direct Subsidized Loans

Direct Subsidized Loans are awarded to students who demonstrate financial need based on the results of the Free Application for Federal Student Aid (FAFSA). The Federal Government pays the interest on this loan while a student is enrolled at least half-time (six credit hours). There is no penalty for early repayment.

In July 2012, President Obama signed the “Moving Ahead for Progress in the 21st Century Act” resulting in two key changes for Subsidized loan borrowers:

  • Limit to Subsidized Loan eligibility
  • Loss of interest subsidy

These changes became effective for Stafford Subsidized loans that were first disbursed after July, 2013. Students must complete their program of study within 150% of the published length of their program of study. Borrowers who exceed the 150% limitation do not qualify for Subsidized loans for future enrollments unless they enroll in a longer program. Borrowers who exceed the 150% limitation lose interest subsidy when they receive subsidized loans and do not complete their program of study within 150% of the published time frame.

Students pursuing a two-year program, will lose Subsidized loan eligibility and interest subsidy if they take longer than three years to complete their program.

Students pursuing a one-year certificate program, will lose Subsidized loan eligibility and interest subsidy if they take longer than 18 months to completer their program.

Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are not based on financial need, but a student must be enrolled at least half-time and fill out the FAFSA each year. Interest begins to accrue when the loan is first disbursed. Students can pay the interest while still in-school; any unpaid interest will be added to the loan principal (capitalized) at the time of repayment. Loan capitalization can substantially increase the amount you repay. You can save money by paying the interest on an Unsubsidized loan while still in-school. There is no penalty for early repayment.

Current Interest Rates

Loans first disbursed from July 1, 2014 through June 30, 2015 – 4.66%

Loans first disbursed from July 1, 2013 through June 30, 2014 – 3.86%

Loan Origination Fees
Loans first disbursed from October 1, 2014 through September 30, 2015 will have an Origination Fee of 1.073% deducted from each disbursement.

How do I apply for a Federal Direct Loan?           

  1. Complete the FAFSA*
  2. Accept all or a portion of the Direct Stafford Loans on your BRIDGE account
  3. Complete the Master Promissory Note (MPN)
  4. Complete the Student Loan Entrance Counseling

*The FAFSA MUST be completed EACH academic year.

Loan Limits

There are limits to how much a student can borrow through the Direct Loan Program.

DEPENDENT STUDENT – Yearly amount

Base Amount (Subsidized/Unsubsidized) Additional Unsubsidized Total
First Year (0-24 credit hours) $3,500 $2,000 $5,500
Second Year (24 + credit hours) $4,500 $2,000 $6,500

Dependent Students can borrow a total of $23,000 Subsidized and Combined Subsidized/Unsubsidized amount of $31,000.

INDEPENDENT STUDENT (and dependent students whose parents cannot borrow PLUS)– Yearly Amount

Base Amount (Subsidized/Unsubsidized) Additional Unsubsidized Total
First Year (0-24 credit hours) $3,500 $4,000 $9,500
Second Year (24 + credit hours) $4,500 $4,000 $10,500

Independent Students (and dependent students whose parent cannot borrow PLUS) can borrow up to a total of $46,000 Subsidized and Combined Subsidized/Unsubsidized amount of $57,500.

Beginning with the 14-15 Academic year, as an on-going effort to address student default issues, BRCTC has adopted the packaging policy of awarding lower loan amounts to Independent Students. We will process loans at the higher loan amount if the student requests that additional amount through the use of our Additional Unsubsidized Loan Request Form (form available summer 2015 for the 15-16 Academic Year).

Direct PLUS Loans

A parent has the option to borrow a Parent Loan for Undergraduate Student (PLUS) for their dependent student. In addition to the student completing the FAFSA, a parent must also apply for the PLUS loan online at www.studentloans.gov or by completing BRCTC’s PLUS Loan Request Form.

If a parent has been denied a PLUS loan, the parent can ask that the loan be Endorsed (adding a co-signer) or can request a credit appeal decision. The parent will be required to complete loan counseling in both instances.

If the PLUS loan is denied, the student can request additional loan funds by completing BRCTC’s Additional Loan Request-PLUS Denial form.

Private Education Loans

BRCTC processes all student and parent loans through the William D. Ford Direct Loan Program. BRCTC will also process alternative education loans from private lending sources up to the cost of attendance minus other financial aid.