Loans are a type of financial aid that must be repaid. If other sources of financial aid are not sufficient to cover the costs of attending Mendocino College, you may need to consider loans as an alternative. Please review the information provided below to see the different types of loans available.
Federal Student Loans
There are two types of Direct Stafford Federal student loans. The subsidized and unsubsidized loans may be available to students after completing the Free Application for Federal Student Aid (FAFSA).
| Subsidized Loan | Unsubsidized Loan | |
| Who is eligible? | Students in an eligible degree or certificate program who demonstrates financial need. |
Students in an eligible degree or certificate program. |
| What is the interest rate? | 4.53% | 4.53% |
| Who pays interest? |
The government pays your loan interest as long as you are enrolled in at least 6 units, during periods of deferment, and in some cases, for six months after you graduate (grace period) or drop your enrollment below 6 units.^ You are responsible for interest in at all other times. |
You are responsible for all interest accrued upon disbursement of the loan. |
| How many units must I be enrolled to qualify for this loan? | You must be enrolled in at least 6 units to receive this loan for the semester.* | You must be enrolled in at least 6 units to receive this loan for the semester.* |
| Is there a fee to receive this loan? | Yes, there is a 1.059% origination fee assessed to all disbursements. This fee changes every October 1st. | Yes, there is a 1.062% origination fee assessed to all disbursements. This fee changes every October 1st. |
| When do I begin repaying my loan? | Six months after you graduate (grace period) or drop below 6 credit hours. | Six months after you graduate (grace period) or drop below 6 credit hours. |
| Can my loan be canceled, forgiven or discharged? | Only under certain conditions, as determined by the Department of Education. | Only under certain conditions, as determined by the Department of Education. |
*Equivalency letters cannot be used to substantiate full-time, three-quarter time or half-time enrollment for federal student loans.
^If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012 and July 1, 2014, you are responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance. If you received a Direct Subsidized Loan that was first disbursed on or after July 1, 2014 it will be eligible for the interest subsidy during your grace period.
Federal Student Loan Limits
| Academic Level | Dependent Student | Independent Student |
| Freshman (0-30 units completed) | $5,500 (no more than $3,500 may be in a subsidized loan) | $9,500 (no more than $3,500 may be in a subsidized loan) |
| Sophomore (30.5+ units completed) | $6,500 (no more than $4,500 may be in a subsided loan) | $10,500 (no more than $4,500 may be in a subsidized loan) |
| Maximum total debt | $31,000 (no more than $23,000 may be in subsidized loans) | $57,000 (no more than $23,000 of this amount may be in subsidized loans) |
Monitoring Your Federal Student Loan Debt
It is your responsibility to monitor your Direct Stafford Federal loan debt. If you reach your maximum loan debt amount or the annual loan limit, you will not be eligible to receive any additional Federal Stafford loans. If the Financial Aid Office at Mendocino College determines at any time that you have exceeded your annual or maximum loan debt amounts, you awards may be reduced or canceled. An example when this may occur is if you reached your annual and/or maximum loan debt limits at another institution and then request a loan at Mendocino College.
To monitor your annual and aggregate Direct Stafford Federal loan amounts, please visit nslds.ed.gov. There you will find a list of all the loans you have borrowed and which servicer is maintaining your loan.
Before borrowing, remember that loans must be repaid. Use an online loan payment calculator to investigate how much your monthly payment may be before you decide to borrow loans.
150% Direct Subsidized Student Loan Limit
There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period”. To obtain more information, visit: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized.
Requesting a Federal Student Loan
All loan borrowers, regardless of whether a loan was processed in prior years, are required to complete Steps 1-4.
Step 1: Complete Online Entrance Counseling by visiting studentloans.gov
Students must sign in using their U.S. Department of Education FSA User ID to complete this step.
Read the information provided and answer the questions on each page. You must correctly answer the quiz questions at the bottom of each page to complete counseling successfully.
Students must attach the Entrance Counseling Completion Verification screen to their Federal Student Loan Request form.
Step 2: Complete Online Financial Awareness Counseling by visiting studentloans.gov
Sign in using your U.S. Department of Education FSA User ID to complete this step.
Read the information provided and answer the questions on each page. You must correctly answer the quiz questions at the bottom of each page to complete counseling successfully.
You must attach the completed Financial Awareness Counseling page to your Federal Student Loan Request form.
Step 3: Complete Online Master Promissory Note (MPN) by visiting studentloans.gov
Follow the directions carefully and submit the electronic signature through the federal website as your promise to repay the loan.
You must attach the front page of the Master Promissory Note (MPN) to your Federal Student Loan Request form.
Step 4: Submit a loan request via MyMendo by selecting "My Finanical Aid Status" then "Request a New Loan".
Once you submit the Loan Request electronically, you will need to complete the Additioanl Loan Info form that will be requests under "Complete required documents". Submit the information requested in the Additional Loan Info form and steps 1-3 above.
After Submitting a Federal Student Loan
Direct Loan applications take an average of 3-4 weeks for processing.
The Financial Aid Office will review all applications for completeness. Incomplete applications will not be processed and will be returned to the student.
Completed applications will be processed and a determination of loan eligibility will be made.
Submission of a loan application does not guarantee eligibility.
Students can use MyMendo to check their Direct Loan Application status.
Federal Parent Loans
Parent PLUS Loan: May be an option for parents of undergraduate students to help pay for educational expenses. A parent of a dependent student may be eligible to borrow a Parent PLUS Loan as long as the student is pursuing an eligible degree or certificate, is enrolled in at least 6 units and meets financial aid satisfactory academic progress requirements. This loan is contingent on credit worthiness.
To pursue this option, go to studentloans.gov. From the studentloans.gov home page, click on the "Sign In" button located in the "Manage My Direct Loans" box. The Sign In page will appear. Once signed in, click on the "Direct PLUS Loan Requests" option located under the "My Loan Documents" heading on the left menu bar. The "Direct PLUS Loan Requests" page will appear. Please contact the Financial Aid Office once you have completed this process.
Alternative Loans
Private Education Loans: These loans may be borrowed from a bank or credit union. The lending institution sets the terms of the loan if approved. Once you are approved for the loan, the Mendocino College Financial Aid Office will be required to confirm borrower eligibility. If the Financial Aid Office confirms eligibility, the loan amount cannot exceed a student's cost of attendance at Mendocino College. Please contact the Financial Aid Office for more information on these type of loans.