Financial Aid Office

Loan Frequently Asked Questions

Chabot College Loan Application Instructions

Entrance & Exit Counseling

Sign MPN

Loan Disbursement Schedule

Loan Timeline

Loan FAQ's

How Much Money Can I Borrow?

Freshman Year (Grade Level 1: 0-29 units at Chabot College). The maximum amount to borrow is $3,500 in Subsidized and/or Unsubsidized loans per academic year.

Sophomore Year (Grade Level 2: 30 or more units at Chabot College).  The maximum amount to borrow is $4,500 in Subsidized and/or Unsubsidized loans per academic year.

Dependent Students-May be eligible to borrow an additional $2,000 in Unsubsidized loans per academic year. (We strongly discourage borrowing this extra amount at the Community College Level.)

Independent Students- (You are an independent student if you were not required to provide parental information when completing the 2009-2010 FAFSA Application). May be eligible to borrow an additional $6,000 in Unsubsidized Loans per academic school year.  (We strongly discourage borrowing this extra amount at the Community College Level.)

*Your grade level is determined by the Admissions & Records Office.  If you intend to include units earned from prior schools to establish grade level 2 eligibility, you must request evaluation of your official academic transcripts by the Admissions & Records Office and submit documentation to the Financial Aid Office.

• If you enroll for less than an academic year, your approved loan may be less than you request.

• Your loans will be awarded equally between fall/spring semesters if you request the maximum amounts.

• No more than half the annual maximum will be awarded during the fall semester.

The Financial Aid Office may determine, on a case by case basis, to deny a loan request based on prior academic history, prior loan defaults, an already high aggregate loan debt, or other concerns.  This decision is final.

What are the Undergraduate Aggregate Loan Limits?

Aggregate Loan Limit- Is the maximum allowable unpaid principal amount a student may borrow throughout their academic career.  The aggregate limits listed below are for undergraduate students seeking post-secondary education through the level of a bachelor's degree.

Dependent Undergraduate Students

Subsidized $23,000  only and $31,000 total Subsidized and Unsubsidized combined.

Independent Undergraduate Students

Subsidized $23,000 only and $57,500 total Subsidized and Unsubsidized combined.

Please think about how much you may depend on loans once you enter a Bachelor's Program; don't risk your future by taking on debt unnecessarily at the community college level.

How Is My Eligibility Determined?

Loan eligibility is determined by taking your cost of attendance (COA) minus your expected family contribution (EFC) minus all financial aid awarded and other financial resources available to the student.

COA-EFC-FA-RESOURCES = REMAINING ELIGIBILITY/POTENTIAL LOAN ELIGIBILITY

What Interests and Fees Will I Be Charged?

For Loans disbursed on or after July 1, 2009-June 30, 2010:

Stafford Loan Interest Rates:

• Subsidized Loans-5.6% Interest Rate

• Unsubsidized Loans-6.8% Interest Rate

Lender Origination Fee and Guarantor Default Fee:

• Lender Origination Fee-.5% will be deducted from loan check

• Guarantor Default Fee-1.0% will be deducted from loan check

When Will I Receive My Money?

Each Loan (subsidized and unsubsidized) will disburse in two payments and will be mailed from the ELM National Disbursement Network (as a paper check) to the Chabot College Financial Aid Office.  The Financial Aid Office will contact you by telephone and/or email when your check(s) are available for pick up.

If your loan period covers the Fall and Spring semester, you will receive your 1st disbursement in the Fall* and your 2nd disbursement in the Spring.

If your loan covers only one semester, you will receive your 1st disbursement at the start of that semester* and your 2nd disbursement after you have completed half of the same semester.

*Disbursement begins 30 days after the start of the semester for NEW borrowers (students who have not received a loan at Chabot College) AND on the 1st day of the semester for RETURNING borrowers.*

Summer loan eligibility is reviewed after you register for summer and are awarded free grant aid.  If you receive the maximum annual loan amounts during fall and spring you will not have further eligibility for the summer semester.

Online Entrance and Exit Counseling

Entrance Counseling is required for each year that you take out a student loan.  Results of your Entrance Exam must be submitted with your Student Loan Request Form

Exit Counseling is a 2nd disbursement counseling requirement at Chabot College.  Results of your Exit Exam must be Submitted to the Financial Aid Office BEFORE you can pick up your 2nd disbursement student loan check(s).  Your funds will be returned to your lender after 30 days of receipt if this requirement is not satisfied.

In addition to Chabot's 2nd disbursement counseling requirement, federal law requires that all student loan borrowers complete Exit Counseling: 1) Upon graduation or completion of your academic program 2) when transferring or 3) when withdrawing or enrolling less than half-time. Reminders will be mailed to students as they are identified to attend, however it is the student's responsibility to advise the Financial Aid Office and their lenders when leaving Chabot College.

Complete your entrance and exit counseling online at: www.edfund.org/edtest