Loans

William D. Ford Federal Direct Loan (Direct Loan) Program

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Download a copy of our Federal Direct Loan Brochure here!

Federal student loans are an investment in your future. You should not be afraid to borrow a student loan, but you should be smart about it – think about how much you may have to depend on student loans once you enter into a bachelor’s program; don’t mortgage your future by taking on debt unnecessarily at the community college level.

Federal student loans offer many benefits compared to other options you may consider when paying for college:

• The interest rate on federal student loans is fixed and usually lower than that on private loans—and much lower than that on a credit card!
• You don’t need a credit check or a cosigner to get a Direct Loan at Chabot College.
• You don’t have to begin repaying your federal student loans until after you leave college, whether you graduate or not, or drop below half-time.
• If you demonstrate financial need, the government pays the interest on some loan types while you are in school and during some periods after school.
• Federal student loans offer flexible repayment plans including several options in postponing your payments if you are having trouble paying your loan.
• If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions.

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How do I request a Direct Loan at Chabot College?

The Chabot Financial Aid Office does not automatically offer Direct Loans in the students initial Financial Aid package. Students interested in borrowing a federal student loan are required to submit a Direct Loan Request form to the Financial Aid Office for processing. 

The Direct Loan Request form is available upon request by contacting the Financial Aid Office. The form has a different due date every semester published on our Important Dates and Deadlines website.

In order to be considered for a Direct Loan, you must:

• Have a FAFSA application on record with Chabot College for the current academic year AND have all Student Financial Aid Requirements completed (so that overall financial aid eligibility can be determined by the Financial Aid Office).
• Maintain an enrollment level of at last half time (6 units) for each semester that you are awarded.
• Maintain academic eligibility by meeting Satisfactory Academic Progress (SAP) requirements.

If your Direct Loan Request is approved, in order for your loan funds to disburse, you will first be required to complete:

• Entrance Counseling (required for new borrowers who have never borrowed funds through the Direct Loan Program or the FFEL Program)
  • This counseling requirement ensures you understand the terms and conditions of your loan and your rights and responsibilities. You’ll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.
• Master Promissory Note (MPN) for Undergraduate Students (required each new academic year that you borrow a Direct Loan at Chabot College)
  • This is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education.
• Annual Student Loan Acknowledgement
  • Required if this is your first time accepting a federal student loan, you are acknowledging that you understand your responsibility to repay your loan.
  • Required if you have existing federal student loans, you are acknowledging that you understand how much you owe and how much more you can borrow.