Loans for Students
There are two types of Stafford loans: subsidized, for which the government pays the interest while the student is enrolled in at least 6.0 units and unsubsidized, for which the student is responsible for paying all the interest on the loan, during college and after. A student can receive both types of loans at the same time.
To receive loan funds, you must be enrolled at least half time (6.0 units)! Please note! The start date of your classes will affect when you will receive your student loan. Please refer to your registration or the Schedule of Classes to determine the start date of your classes.
As of July 1, 2009, the interest rate is 5.6% for subsidized Stafford loans and 6.8% for unsubsidized Stafford loans.
After graduating, leaving school, or enrolling less than half time, a student will have a six month "grace period" before the first loan payment is due. All student loans must be paid back with interest. Typically a student will have 10 years to repay the loan.
How do I apply for a student loan?
#1) Complete a Free Application for Federal Student Aid (FAFSA).
#2) Return all documents requested by the SBCC Financial Aid Office to complete your FAFSA application.
#3) Request a FFELP Loan Packet once you see student loans offered on your pipeline account.
#4) Complete the FFELP Loan Packet completely, including the online entrance counseling requirements, and return to the Financial Aid Office in person.
#5) Meet with a financial aid advisor in person for review of the loan packet.
Instructions for completing the Master Promissory Note (MPN) online will be given to the student at the time of the loan packet review. Once the student has completed the online Master Promissory Note, the loan will be submitted to the lender for processing.
What if I'm an online student?
Once your financial aid file is complete, contact your financial aid advisor to request a student loan packet. Your financial aid advisor will verify that you are an online student and review the loan amounts for which you are eligible. A loan packet will then be mailed to you with instructions regarding the online entrance counseling requirement and the Master Promissory Note (MPN).
Mail the completed loan packet to the Financial Aid Office, at which point we will confirm successful completion of the online entrance counseling requirement. Your loan will then be certified. You will then be notified by email regarding the steps necessary to complete the online Master Promissory Note.
Please allow 5 to 7 business days for the processing of your student loan once the loan packet is received by our office.
How much can I borrow?
SBCC is a two-year institution. Therefore, students are only eligible to apply for a first- or second-year student loan. Note: Transcripts from other institutions WILL NOT be considered to determine grade level for loan eligibility. SBCC transcripts will be used solely to determine grade level eligibility.
Annual Stafford Loan Limits are as follows:
|
Base Amount |
Additional Unsubsidized |
Additional |
|
|
(All Students) |
Dependent* Students |
Independent* Students |
|
|
Dependent Students whose parents cannot borrow PLUS |
|||
|
1st year |
$3500.00 |
$2000.00 |
$6000.00 |
|
2nd year |
$4500.00 |
$2000.00 |
$6000.00 |
* As defined by the Department of Education for financial aid purposes.
Which lender can I choose?
The following are lenders the majority of our student loan borrowers used in 2008-09 that still participate in the FFELP program at Santa Barbara City College for 2009-10. Santa Barbara City College does not specifically endorse any lender that appears on this list. Borrowers may choose any Federal Family Education Loan lender that will loan money to the student at this college.
Lender List
How do I receive my loan money?
The loan money is delivered to the student through Santa Barbara City College. Aid is first disbursed to the student's account. Approximately one week after aid is disbursed to the student account, a check is mailed to the student by the Cashier's Office - unless the student has signed up for direct deposit on their pipeline account. Checks are mailed to the address on file with the Admissions Office. Please note - checks CANNOT be picked up!
If you have additional questions, please contact our office by emailing your financial aid advisor or calling the office at (805) 730-5157.
