Chabot College participates in the William D. Ford Direct
Stafford Loan Program.
Direct Stafford Loans are low-interest educational loans
for students to help cover the cost of educational expenses.
may use the loan money you receive only to pay for your
education expenses. Education
expenses include school charges such as tuition, room and board,
fees and indirect expenses such as books, supplies, equipment,
dependent child care expenses, transportation and rental or
purchase of a personal computer.
You do not begin paying these loans back until after you
graduate or enroll less than half-time.
The lender is the U.S. Department of Education.
With Direct Loans, you
Borrow directly from the federal government and have a
single contact—your loan servicer—for everything related to
repayment, even if you receive Direct Loans at different
Have online access to your Direct Loan account information
via your servicer's website.
Can choose from several repayment plans that are designed to
meet the needs of almost any borrower, and you can switch
repayment plans if your needs change.
The Two Types of Federal Direct Stafford Loans available at
Chabot College are SUBSIDIZED and UNSUBSIDIZED loans.
Depending upon your level of financial need (as determined by
the Financial Aid Office) you may be eligible for one or both of
these Federal Direct Stafford Loans.
are awarded on the basis of financial need. You won't be charged
any interest until you graduate or drop below six units because
the federal government subsidizes the interest during the time
you are enrolled.
When you graduate, transfer or drop below six units at
Chabot College, you have a six-month grace period before you
begin repayment on this loan.
The government will no longer subsidize the interest
during the six month grace period.
Subsidized loan interest rates:
3.4% fixed rate for the 2012/2013 academic year
6.8% fixed rate for the 2013/2014 academic year
An origination fee of 1.051% is deducted from all subsidized
charge interest from the time the money is first disbursed until
it is paid in full. When you graduate, transfer or drop below
six units at Chabot College, you have a six-month grace period
before you begin repayment on your loan.
The interest is capitalized when you enter repayment,
meaning that you pay interest on any interest that has already
accrued. One way to minimize how much interest accrues is to pay
the interest as it accumulates. If you still have several years
until you receive your degree, this can become very expensive
and is NOT RECOMMENDED.
Unsubsidized loan interest rates:
fixed rate for both the 2012/2013 academic year and the
2013/2014 academic year.
An origination fee of 1.051% is deducted from all unsubsidized