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financialaid@rcbc.edu
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Information about student loans
Federal Direct Loans
If you filled out your FAFSA, you may be eligible to receive loans to fund your education. Federal Direct Loans are loans a student can receive directly from the U.S. Department of Education. More information about the Federal Direct Loan program can be found here. There are two types of Direct loans made to students:
Direct Subsidized Loan
Loans are made to eligible undergraduate students based on financial need. With a subsidized loan, the Department of Education pays your loan interest while you’re enrolled in school.
Direct Unsubsidized Loan
Loans are made to eligible undergraduate, graduate, and professional students. Unsubsidized loans are not based on need, but you are responsible for interest that accumulates while you’re in school.
If you are an undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans depends on your school year and your dependency status.
Students can submit loan requests through the Financial Aid section of the self-service portal.
Students requesting a Federal Direct Loan are also required to complete Entrance Counseling and a Master Promissory Note on the FAFSA website. Students will need their FAFSA username and password to log in and complete these forms.
More information about Federal Direct Loans, and how much you can borrow, can be found here.
Direct PLUS Loan
Direct PLUS Loans are made to parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. More information about the Federal PLUS Loan program can be found here.
Parents can apply for a PLUS loan through the FAFSA website. Parents requesting a PLUS loan are also required to complete a Master Promissory Note on the FAFSA website. Your FAFSA username and password are required to log in and complete these forms.
The Federal Government requires you to complete entrance counseling to ensure that you understand the responsibilities and obligations you are assuming.
If you are completing entrance counseling to borrow a loan as an undergraduate student, then the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans and Direct Unsubsidized Loans.
To learn more, click here.
The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s), along with any interest and fees, to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
To learn more, click here.
The Annual Student Loan Acknowledgement is an online session designed to help students and parents understand their student loan debt. It provides a clear picture of how much has been borrowed, estimates potential monthly payments, and explains key terms like capitalization and the distinction between federal and private loans.
Every year, anyone who has borrowed a Federal Subsidized, Unsubsidized, or PLUS loan is required to complete the Informed Borrowing Confirmation process before receiving their loan.
You can complete the Annual Student Loan Acknowledgement on the FAFSA website. You will need your FAFSA username and password to log in and complete this session.
Parent PLUS loan borrowers must also complete this requirement.
Students who drop below half-time enrollment (6 credits), leave school, or graduate are required by The US Department of Education to complete Exit Loan Counseling. Exit Counseling helps you understand your student loans. You'll learn about how much you owe, when you need to start paying it back, and what your repayment options are.
You can complete your Exit Loan Counselling on the FAFSA website. You will need your FAFSA username and password to log in and complete this session.
You must begin repaying your loans six months after you graduate or drop below half-time enrollment (six credits). Please keep in mind that if you withdraw from school, you may owe part of your loan funds back immediately.
In some cases, you can receive a deferment or forbearance. This will allow you to temporarily postpone making loan repayments. You can learn more about deferments and forbearances through the FAFSA temporary dept relief website.
Students are able to track the amount they owe, their student loan servicers, and interest rates by logging into the FAFSA website. You will need your FAFSA username and password to log in.
New Jersey CLASS Loan Repayment
The CLASS loan program is for students and supplements the Federal Direct Loan program. The annual loan limit is the student’s cost of attendance, minus any financial aid received. There are three repayment options:
- Defer all payments until after graduation
- Pay interest only
- Pay interest and principal.
Students must use all Federal aid they are eligible for before receiving a NJ CLASS loan.
More information about NJ CLASS loans can be found on the NJ State student aid website.