Direct Loan Program

Important: Cerro Coso Community College does not currently participate in or certify private (alternative) student loans.

You MUST have a valid FAFSA application for the year you intend to borrow loans. Dream Act applicants are not eligible for the Direct Loan program.

ECMC Solutions

Types of Direct Loans

William D. Ford Federal Subsidized, Unsubsidized and Parent PLUS Loans

Watch a short video on Types of Federal Student Loans

William D. Ford Federal Direct Subsidized Loan

Requires financial need, as determined by federal regulations; No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. Payment due 6 months after graduation or dropping below half-time enrollment.

William D. Ford Federal Direct Unsubsidized Loan

Not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. Payment due 6 months after graduation or dropping below half-time enrollment.

William D. Ford Federal Direct Parent PLUS Loan

Must be the parent of a dependent student enrolled at least half-time; credit check is required; not based on financial need; interest charged during all periods, even during the time a student is in school and during grace and deferment periods. Payment due 60 days after final disbursement (may be deferred while student is enrolled at least half-time).

All the above loan types have loan fees that are a percentage of the total loan amount. See Federal Student Aid's current loan fees.

Federal Direct Loan Lifetime Limits for Undergraduate

Undergraduate		Federal Direct Loan Annual Limits
		Subsidized	Total Subsidized & Unsubsidized
Dependent	Freshman	$3,500	$5,500
	Sophomore	$4,500	$6,500
Independent	Freshman	$3,500	$9,500
	Sophomore	$4,500	$10,500

Freshman status is awarded to students who have completed 0–29.5 units. Sophomore status is awarded to students who have completed 30 or more units. If a student has transfer units, a counselor evaluation is required before their grade level can be updated.

Federal Direct Loan Lifetime Limits	Subsidized	Total Subsidized & Unsubsidized
Undergraduate Dependent	$23,000	$31,000
Undergraduate Independent	$23,000	$57,500

Note: During your Online sessions, you will observe the following:

Information disclosed to students or parents of students who enter into an agreement regarding a Title IV, HEA loan that the loan will be submitted to NSLDS and accessible by authorized agencies, lenders and institutions [HEOA 489 amended HEA Sec. 485B]

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Getting Started

Direct Loan Instructions

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education. The lender is the U.S. Department of Education, not a bank or private lender. Direct Loans are a form of financial aid and must be repaid with interest.

Cerro Coso Community College strongly encourages students to apply for grants or scholarships first before borrowing a student loan. A student loan is a serious, long-term financial obligation and should be used only as a last resort.

If you choose to apply for a Direct Loan, you must complete all required steps before your loan can be processed.

NOTICE: At the direction of the U.S. Department of Education, Cerro Coso has implemented a robust default prevention plan to help students make informed borrowing decisions and fully understand repayment responsibilities. The loan initiation and certification process has been enhanced to ensure students borrow responsibly, connect with loan servicers, and follow a solid educational plan leading to program completion.

Loan funds are disbursed in two payments each semester. You must meet all eligibility requirements on each payment date in order for funds to be released.

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Eligibility Requirements

1. Your Financial Aid Awards must be finalized in order to apply for a Federal Direct Loan.
2. You must be enrolled in at least 6 degree-applicable units (excluding remedial units) in an eligible program of study at Cerro Coso Community College. Wait-listed courses do not count.
3. Cerro Coso must be declared as your home school.

4. You must maintain Satisfactory Academic Progress (SAP) as outlined in the Terms of Agreement for Cerro Coso.

5. You must have a declared major and educational goal and be following a Student Education Plan (SEP).
6. Students on Financial Aid Suspension are ineligible for Direct Loans.

Steps to Complete Loan Process

Submit all completed steps at the same time. Do not submit steps one by one.

You must COMPLETE ALL STEPS in order for your loan to be processed and receive payment.

If any step is missing, your loan will not be disbursed.

Steps 2 through 11 require confirmation through uploaded materials (screenshots, images, or PDFs).

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Step 1 – Loan Request (New and Renewal)

1. Loan Request Form
2. Create account in Verification Connection
   1.  Instructions for creating your account:
      1. Login to your Inside CC portal.
      2. Click on Financial Aid.
      3. Select the applicable Academic Year in the top right.
      4. Click on Verification Connection.
   2. Access Verification Connection

Information disclosed to students or parents of students who enter into an agreement regarding a Title IV, HEA loan that the loan will be submitted to NSLDS and accessible by authorized agencies, lenders and institutions [HEOA 489 amended HEA Sec. 485B]

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Step 2 – Required Loan Workshop (New and Renewal)

All borrowers are required to attend a Financial Aid Loan Workshop at the designated times provided after you submit your request.

Attendance is mandatory prior to loan certification annually.

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Step 3 – Entrance Counseling (New Borrowers)

All first-time borrowers at Cerro Coso must complete MANDATORY Entrance Counseling.

Complete Your Student Loan Entrance Counseling Requirement

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Step 4 – Annual Student Loan Acknowledgment (New and Renewal)

All borrowers must complete the Annual Student Loan Acknowledgment. Click the Log In to Start button next to I'm an Undergraduate Student. You will then be asked to sign into your account. Review all your student loan information, then complete your Acknowledgment by checking the box and clicking Submit.

Complete the Annual Student Loan Acknowledgment

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Step 5 – Master Promissory Note (MPN) (New and Renewal)

• First-time borrowers must complete a Master Promissory Note (MPN).
• Returning borrowers must update or renew their MPN.
• You must sign using your FSA ID.
  • References will be contacted.

Complete Master Promissory Note (MPN)

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Step 6 – Financial Aid Videos and Quizzes (New and Renewal)

First-time borrowers with Cerro Coso must complete the following sessions:

1. First-time Borrower Module

 

Renewal borrowers must complete the following session:

2. Renewal Borrower Module

Please submit confirmation online through the Office of Financial Aid in Verification Connection.

 

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Step 7 – Comprehensive Student Education Plan

All borrowers must have a current Student Education Plan (CSEP) on file. To complete a Comprehensive Student Education Plan in-person or by phone, contact the Counseling Department at (760) 384-6219.

All borrowers are required to be enrolled in classes only on the CSEP.

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Step 8 – Additional References (New and Renewal)

• All borrowers must submit two additional personal references that are not listed on the Master Promissory Note.
  • References will be contacted.

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Step 9 – Loan Servicer Account (Renewal Borrowers)

Returning borrowers must create an account with their assigned loan servicer.

If you are unsure of your loan servicer, log in to studentaid.gov and view your loan details under My Aid.

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Step 10 – Government-Issued Photo Identification (New and Renewal)

All borrowers must submit a clear copy of the front and back of a valid, unexpired driver’s license or state photo ID.

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Step 11 – Additional Review for Students on Warning or an Approved SAP Appeal due to Suspension (If Applicable) (New and Renewal)

Students who are approved for financial aid through a Satisfactory Academic Progress (SAP) appeal due to suspension, or who are currently on Financial Aid Warning, must complete additional academic progress reviews before loan funds can be released.

If You Are on an Approved Appeal or Warning:

• Your loan funds will not be disbursed immediately
• Your academic progress must be reviewed before funds can be released
• Loan disbursement depends on the results of your progress review 

Progress Report Review Timeline

Progress reports are requested from instructors at the following points during the term:

• Week 5
• Week 9 (only if satisfactory progress is not confirmed during Week 5) 

After progress reports are requested, the Financial Aid Office generally requires approximately 1 to 2 weeks to:

• Receive instructor responses
• Review academic progress
• Update financial aid and loan eligibility

How Loan Eligibility Is Determined During an Appeal or Warning

• If your Week 5 progress report shows you are meeting the requirements of your appeal or Warning status, your loan may be approved and disbursed retroactively
• If Week 5 progress is not satisfactory, your academic progress will be reviewed again during Week 9
• If Week 9 progress is not satisfactory, your end-of-term grades will be reviewed to determine eligibility

If you are meeting the requirements of your appeal or Warning status at any review point, your loan may be disbursed once eligibility is confirmed.

Important Reminders

• Loan approval during an appeal or Warning period is not guaranteed
• Meeting SAP, appeal, and Warning requirements is the student’s responsibility
• Loan funds may be disbursed later in the term if eligibility is confirmed after a progress review

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Step 12 – Exit Counseling (When Applicable)

Exit Counseling is required when you:

• Graduate
• Withdraw
• Drop below half-time enrollment

Exit Counseling provides essential repayment and loan management information.

Complete Student Loan Exit Counseling

Student Loan Application Deadlines

Loan Enrollment Period	Application Deadline
Summer 2026	July 24, 2026
Fall ONLY	December 5, 2026
Fall/Spring	December 5, 2026
Spring ONLY	May 3, 2027
Summer 2027	Pending

Students on an Approved Financial Aid Appeal Due to Suspension

Students who are approved for Financial Aid through an appeal due to SAP suspension, or who are on Warning, must complete additional progress reviews before loan funds can be released.

If you are on an approved appeal for academic suspension OR a Warning:

• Your loan will not be disbursed immediately. Your academic progress must be reviewed before funds can be released.
• Disbursement depends on your progress report review.

Progress Report Review Timeline

Progress reports are requested from instructors at the following points during the term:

• Week 5
• Week 9 (only if you do not have passing grades in week 5)

After progress reports are sent to instructors, the Financial Aid Office requires approximately 1 to 2 weeks to:

• Receive responses from instructors
• Review academic progress
• Update your financial aid and loan eligibility

How Loan Eligibility Is Determined During an Appeal

• If your Week 5 progress report shows you are meeting appeal requirements, your loan may be approved and back paid
• If Week 5 progress is not satisfactory, your Week 9 progress report will be reviewed
• If Week 9 progress is not satisfactory, your end-of-term grades will be reviewed

If you are meeting the terms of your appeal at any review point, your loan may be disbursed retroactively once eligibility is confirmed.

If you are not passing all enrolled courses at the time of review, you will not be eligible for a loan.

Important Reminders

• Loan approval during an appeal is not guaranteed
• Meeting appeal requirements or satisfactory academic progress is the student’s responsibility
• Back payment of loan funds may occur if eligibility is confirmed later in the term

Students with questions about appeal-related loan processing timelines are encouraged to contact the Financial Aid Office for individualized guidance.

Right to Cancel

Any time Cerro Coso Community College credits a student account with Title IV loan funds, a notification is sent to the student, or parent for a William D. Ford Federal Direct Parent PLUS Loan, of the anticipated date and amount of the disbursement, the student's or parent's right to cancel within 14 days all or a portion of the loan, and the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement.

You can view the Right to Cancel form below under "Additional Information."

Get Current Interest Rates

You MUST have a valid FAFSA application for the year you intend to borrow loans. Dream Act applicants are not eligible for the Direct Loan program.

Find What You Need to Succeed

Direct Loan Resources

CC Federal Direct Loan Workshop (PDF)Direct Loan Process GuideCurrent Loan PriceFAFSA

Financial Aid TV Videos

What is a Federal Direct Student Loan?William D. Ford Federal Direct Parent PLUS LoanCompound InterestCerro Coso FATV

Contact Financial Aid

Federal School Code: 010111

Phone: (760) 384-6221 | Fax: (760) 384-6321 | Email: cc_faid@cerrocoso.edu

Address:
Cerro Coso Community College
Office of Financial Aid
3000 College Heights Blvd
Ridgecrest, CA 93555

Additional Information