Loan information
General Loan Eligibility
All loans have general eligibility criteria that must be certified by the school. Whether you are borrowing as a parent or student, from the Federal or State government, or from a private lender, all loans have the following general criteria:
• The student must be enrolled in a degree or certificate program;
• The student must be taking 6 or more credits each semester
• The student must be making Satisfactory Academic Progress
Student Loans
Student loans are borrowed by the student while they are enrolled in college to help pay for tuition, fees, books, and certain living costs associated with attending college. Federal and state loans allow students to defer repaying the principal balance of their loans until after their last date of attendance. Some loans also allow for a six (6) month grace period after the last date of attendance before the first payment is required. For more information on repayment please see the section describing Repayment Information and Resources.
Stafford Student Loans
Stafford loans are established and supported by the federal government, but a participating commercial lender, such as a bank or credit union, actually makes the loan. Stafford loans are available to all students who meet the financial aid eligibility requirements and are enrolled in a minimum of six credits (half-time).
All student borrowers must complete a Loan Request Form. First time borrowers at RVCC must complete federally mandated Entrance Counseling and a Master Promissory Note (MPN). Stafford loan interest rates loans disbursed for new loans are fixed at 6.8%.
To apply for a Stafford Loan the student will need to complete the following:
• Loan Request Form - click here to download a
Loan Request Form. The form is also available in our office.
• Entrance Counseling - Entrance counseling must be completed the first time a
student borrows at RVCC. Entrance can be completed on line at Mapping Your Future or on a paper form from our office.
• Master Promissory Note (MPN) - An MPN must be completed the first time a student borrows from a specific lender while at RVCC. An MPN can be completed in our office or you can complete an MPN on line with the lender of your choice.
Subsidized Stafford Student Loan
Subsidized (the government pays the interest while you're in school) Stafford Loans are available to students who are able to demonstrate financial need. Subsidized annual loan limits are $3500 for freshman and $4500 for sophomore students.
Unsubsidized Stafford Student Loan
Students who do not do not demonstrate financial need are eligible for an Unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation) Stafford Loan. Unsubsidized annual loan limits are $3500 for freshman and $4500 for sophomore students. Independent students and students whose parents were denied a PLUS loan are eligible for an additional $4000 per year.
Undergraduate dependent students can borrow a maximum of $23,000. Indepdent undergraduates and dependent undergraduates whose parents were denied a PLUS loan can borrow a maximum of $46,000 (of which a maximum of $23,000 can be subsidized).
NJ CLASS Loan
NJ CLASS loans are offered through the New Jersey Higher Education Student Assistance Authority (HESAA). These loans are credit based loans and you may require a co-signer. You can apply for the NJ CLASS loan on line at www.hesaa.org.
Other Alternative Loans
Due to RVCC's low cost of attendance students will not often require an alternative loan. These loans are credit based and often have repayment options that are more restrictive then the Stafford loans. If a student would like to borrow an Alternative Loan they will need to contact the lender of their choice to begin the loan process. Once the loan is complete our office will send the student a Loan Request Form (LRF). Upon completing and returning the LRF the financial aid office will certify the loan if the student is eligible.
Parent Loans
Federal Parent Loan for Undergraduate Students (PLUS)
Parents of dependent students may borrow on behalf of their children using a PLUS loan. Parent loans must be repaid over a 10-year period with a fixed interest rate of 8.5%. Parents enter repayment beginning 60 days after disbursement. If you would like to take out a PLUS loan simply contact the lender of your choice. Once the loan is complete our office will send the student a Loan Request Form (LRF). Upon completing and returning the LRF the financial aid office will certify the loan if the student is eligible.
Repayment Information/Resources
Raritan Valley Community College
Updated 020608 by EB