Loans

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

 

 

Download the Federal Direct Loan Brochure!

Why Choose Federal Student Loans?

Federal student loans can be a smart investment in your future — when borrowed responsibly. You shouldn’t be afraid to borrow a student loan, but you should borrow only what you need.

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:

• Fixed interest rates — usually lower than private loans and credit cards.
• No credit check or cosigner required.
• No repayment while enrolled at least half-time.
• Interest paid by the government on subsidized loans (if eligible) while in school.
• Flexible repayment options, including income-driven plans.
• Loan forgiveness opportunities for certain public service jobs.

How do I request a Federal Direct Loan at Chabot College?

Chabot does not automatically offer Federal Direct Loans in the students initial Financial Aid package. If you’re interested in borrowing:

1. Request a Federal Direct Loan Request Form from the Financial Aid Office.
2. Submit the form along with a valid non-expired government-issued photo ID.
3. Submit the form before the deadline published each semester on the Important Dates and Deadlines page.

To be eligible, you must:

• Have a current FAFSA on file with Chabot College for the current academic year and have completed all financial aid requirements.
• Be enrolled in at least 6 units (half-time) for the semester.
• Meet Satisfactory Academic Progress (SAP) requirements.

Before You Receive Your Loan Funds

If approved, you must complete these federal requirements:

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Entrance and Exit Counseling

Before receiving your loan - and again when you're preparing to leave school - the U.S. Department of Education requires you to complete loan counseling. These interactive sessions are designed to help you fully understand your rights and responsibilities as a borrowers. 

 

Understanding Your Loan Obligations

Borrowing a federal student loan is a serious financial commitment. You are legally required to repay your loan — plus interest — even if you:

• Don’t finish your program
• Can’t find a job after graduation
• Are unsatisfied with your education

If you qualify for a Direct Subsidized Loan, the federal government may pay your interest while you’re in school. If you borrow a Direct Unsubsidized Loan, interest accrues immediately.

You are required to:

• Complete Entrance Counseling before your first loan disbursement
• Complete Exit Counseling when you graduate, leave school, or drop below half-time enrollment

Repayment typically begins 6 months after you leave school or fall below half-time status. Not repaying your loans can lead to delinquency, default, and negative consequences.

 

Loan Disclosure Information

Chabot College is committed to transparency regarding federal student loans. In compliance with the Higher Education Act (HEA), we provide required disclosures so you can make informed borrowing decisions. These include:

• Loan terms and conditions
• Interest rates and fees
• Your rights and responsibilities
• Repayment options
• Consequences of default
• Deferment, forbearance, and forgiveness options

This information is available on our website and at https://studentaid.gov, and you can request more details directly from the Financial Aid Office.

 

Compliance with Federal Requirements

Chabot College complies with all federal loan regulations under the Higher Education Opportunity Act (HEOA) and the William D. Ford Federal Direct Loan Program.

We are federally required to:

• Provide loan disclosures before disbursement, during repayment, and when students separate from the college
• Report loan information to the National Student Loan Data System (NSLDS) — accessible to the U.S. Department of Education, loan servicers, and authorized institutions
• Keep policies and counseling tools up to date for accuracy and compliance

Borrower Resources

We provide a variety of resources to help you make informed decisions about your loans. Explore these tools and support services to stay on track with your repayment and manage your finances effectively.

• Federal Student Aid Loan Simulator: Use the Loan Simulator to estimate your monthly payments, compare repayment plans, and make decisions that align with your financial goals.
• Track Your Federal Loans through StudentAid.gov: Track your federal loan amounts, interest rates, and servicer information through the StudentAid.gov website.  All federal loans will be submitted to NSLDS and are accessible by authorized agencies, lenders, and institutions in accordance with federal guidelines [HEOA 489 amended HEA Sec.485B]. Staying informed about your loan details can help you avoid missed payments and understand your repayment obligations.
• Public Service Loan Forgiveness (PSLF): If you work in qualifying public service jobs, you may be eligible for PSLF, which forgives the remaining balance on your Federal Direct Loans after 120 qualifying payments. Learn more about PSLF here.
• Financial Aid Office Support: For additional guidance, Chabot College’s Financial Aid Office offers one-on-one support to help you navigate loan repayment, select the right repayment plan, and understand deferment, forbearance, and forgiveness options.

Accessible and Student-Centered Loan Information

We prioritize making student loan information easy to access and understand:

Our website includes clear sections on:

• Loan types and eligibility
• Required forms and counseling 
• Repayment and forgiveness programs 
• Borrower Resources 

We use plain language to break down complex topics so you feel confident in your decisions.

We provide guidance - meet with a Financial Aid Advisor to:

• Understand your loan options
• Submit required documents 
• Choose the right repayment plan
• Explore deferment, forbearance, or forgiveness 

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We’re Here to Support You

The Financial Aid Office is dedicated to helping you make smart financial decisions. We regularly update loan information to stay in line with federal regulations and keep you informed as a borrower.

If you have any questions or need help with any part of the loan process, please reach out to the Financial Aid Office. We’re here to help you succeed.