Like any loan, a student loan, must be paid back. PCC has joined forces with the Department of Education and SALT in an effort to help students prevent excessive indebtedness and reduce loan default rates. By reducing student loan debt and default rates we can improve students’ lives and empower them for a strong financial future.
To this end, we are offering you more tools, tips and information about your loan options. The following provides details about your loan options as well as directions for borrowing wisely to fund your educational and professional goals.
Note that all loans borrowed through Pima will be submitted to NSLDS and accessible by authorized agencies, lenders and institutions (HEOA 489 amended HEA Sec. 485B).
Subsidized Stafford Loans
With Subsidized Stafford Loans the government pays the interest while you are in school (if you are enrolled for 6 credits or more). Your eligibility is based on your financial need as determined by the Free Application for Federal Student Aid (FAFSA).
New subsidized loan eligibility rules took effect for first-time borrowers as of July 1st, 2013. These rules require that subsidized loan eligibility be limited to 150% of the published length of a program. This means that your eligibility for – and benefits from – subsidized loans end when you borrow subsidized loans for 150% or more of the time needed to complete your program of study. This also means that once you reach or exceed 150% of the weeks required for your program of study, ALL of your subsidized loan(s) will CHANGE to interest bearing loan(s) for the life of the loan or until fully repaid.
Repayment begins after you graduate or stop attending six or more credit hours, some students are eligible for a grace period of six months of deferred payments. If you are a first time borrower as of July 1st, 2013, your payments will be due as soon as your attendance drops below half-time. For more information on this rule visit: 150% Subsidized Usage Limitations
Unsubsidized Stafford Loans
With Unsubsidized Stafford Loans you, the borrower, will have to pay all interest that accrues on the loan. The interest begins accruing at the time of the first disbursement. Your eligibility is not based on financial need but may be impacted by other factors determined by your FAFSA. Repayment begins after you graduate or stop attending six or more credit hours, some students are eligible for an additional grace period of six months of deferred payment. If you are not sure if you are eligible it is best to follow up with your servicer.
Private Student Loans for Higher Education
Private Student Loans are not a Title IV (Federal financial aid) program. Private Loans are credit-based loans offered to students by banks to cover the costs of attending college. These loans are normally used by students who are not meeting the standards of academic progress or have an undeclared program of study. They often have variable interest rates that exceed the fixed interest rate of Federal Direct Stafford Loans.
Students who do not have a co-signer will likely need to be employed and are subject to credit approval for this type of loan. Private loans do not always provide deferment periods and often have a shorter repayment term. For additional information read the Private Student Loan Request Form.
Direct Parent PLUS Loans
Direct Parent PLUS Loans are credit-based loans that are offered to the parent and/or legal stepparent of the student in order to cover the remaining costs of attending college. These loans have a fixed interest rate and repayment starts within 60 days of the final loan disbursement. For additional information read the Undergraduate PLUS Application.