Direct Loans are low-interest loans for you and/or your parents to help pay for educational expenses. The lender for Direct Loans is the U.S. Department of Education rather than a bank or other financial institution. Loans are a form of financial aid that must be repaid with interest. Watch a video: What is Compound Interest?
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.
Types of Direct Loans
- Subsidized
- Requires financial need, as determined by federal regulations; Interest is subsidized by the Department of Education 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.
- Unsubsidized
- Not based on financial need; interest accrues 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.
- Parent PLUS
- Must be the parent of a dependent student enrolled at least half-time; credit check is required; not based on financial need; interest accrued during all periods, even during the time a student is in school and during grace and deferment periods. Payment is 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.
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]
Eligibility Requirements
- Your Financial Aid Awards must be finalized in order to apply for a Federal Direct Loan.
- You must be enrolled in at least 6 degree applicable units (excluding remedial units) in an eligible program of study at Cerro Coso. Wait listed courses do not count.
- Cerro Coso must be declared as your home school.
- You must maintain Satisfactory Academic Progress as outlined in the Terms of Agreement for Cerro Coso.
- You must have a declared major and educational goal and be following a Student Education Plan (SEP).
- Students on Financial Aid Suspension are ineligible for Direct Loans.
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 rather than a bank or other financial institution. 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 before borrowing a student loan. A student loan is a serious long-term obligation that should be used only as a last resort. If it is necessary for you to apply for a student loan, you must complete all required steps for processing of the Direct Loan.
NOTICE: Cerro Coso, at the direction of the US Department of Education, has enacted a robust default prevention plan to help students make intelligent decisions about student loans and to become fully aware of repayment requirements. To minimize the student loan default rate among student borrowers, the loan initiation and certification process at Cerro Coso has been enhanced to ensure students enter borrowing only with full knowledge of repayment options, connection to loan servicing agencies, and a solid educational plan leading to program completion.
The Direct Loan Program offers the following types of loans:
- Subsidized: for students with demonstrated financial need, as determined by federal regulations. Interest is subsidized by the Department of Education while a student is in school at least half-time, during the grace period, and during deferment periods.
- Unsubsidized: not based on financial need; interest is accrued during all periods, even during the time a student is in school and during grace and deferment periods.
Funds are disbursed in 2 payments each semester. You must meet all eligibility requirements each payment date in order for funds to be released.
To apply for a Direct Loan you must meet the following eligibility requirements:
- Your Financial Aid Awards must be finalized in order to apply for a Federal Direct Loan.
- You must be enrolled in at least 6 degree applicable units in an eligible program of study at Cerro Coso. Wait listed courses do not count.
- Cerro Coso must be declared as your home school. (The school you intend on graduating from.)
- You must maintain Satisfactory Academic Progress as outlined in the Terms of Agreement for Cerro Coso.
- You must have a declared major and educational goal and be following a Student Education Plan (SEP).
- 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 each step one by one. You must COMPLETE ALL STEPS in order for your loan to process and receive payment. If you are missing a step, you will not receive a loan disbursement.
Step 1: Loan Request (New and Renewal)
Complete a 2022-2023 Cerro Coso Federal Direct Loan Request and Terms. You must complete, sign and return this document to the Office of Financial Aid.
You must submit your documents to the Office of Financial Aid.
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]
Step 2: Entrance Counseling (New borrowers)
All 1st Time borrowers with Cerro Coso must complete a MANDATORY Entrance Counseling ONLINE at studentloans.gov using your FSA ID to log in. Please submit a confirmation to the Office of Financial Aid.
Step 3: Annual Student Loan Acknowledgement (New and Renewal)
All borrowers must complete the Annual Student Loan Acknoweldgement beginning the 2022-2023 Academic year. You can completed this by going to studentaid.gov/asla. Click Start next to Undergraduate for Student. You will then be asked to sign into your account. Review all of your student loan information, then complete your 2022-2023 Acknowledgement by checking the box and hitting submit.
Step 4: Master Promissory Note (MPN) (New and Renewal)
1st time borrowers must complete a Master Promissory Note and Renewal borrowers must update the Master Promissory Note. You will be signing your MPN ONLINE at studentloans.gov with your FSA ID. Please submit a confirmation to the Office of Financial Aid.
Step 5: Financial Aid TV (FATV) (New and Renewal) *Optional*
1st Time borrowers with Cerro Coso must complete the following sessions: Please submit a confirmation online through the Office of Financial Aid.
Renewal borrowers must complete the following session: Please submit a confirmation online through the Office of Financial Aid.
Step 6: Create an Account with Assigned Loan Servicer (Renewal Borrowers)
Renewal borrowers must create an account with their assigned loan servicer. If you are unsure of who your loanAservicer is, please login to www.studentaid.gov. Once you are logged in, under your Dashboard where it says My Aid, click on View Details. Click on the Loans tab, scroll to the bottom where you will see Loan Breakdown. You will then go to your loan servicer's web site, and create your account.
Step 7: Provide a Picture of your Unexpired Driver's License or State Photo ID (New and Renewal)
Step 8: When you Graduate, Leave, or Drop Below Half-Time Enrollment (New and Renewal)
Keep in Mind: You are required to complete Exit Counseling ONLINE at studentloans.gov once you graduate, leave school, or drop below halftime enrollment. Exit Counseling provides important information you will need as you prepare to repay your federal student loan(s).
Student Loan Application Deadlines
| Loan Enrollment Period | Application Deadline |
|---|---|
| Summer 2023 | Summer Loans August 1, 2023 |
| Fall ONLY | December 1, 2023 |
| Fall/Spring | December 1, 2023 |
| Spring 2024 ONLY | April 19, 2024 |
Please allow a 48 hour turnaround time for your insideCC requirements section to be updated. (This does not include weekends or holidays.)
Contact Information
Email: cc_faid@cerrocoso.edu
Phone: (760) 384-6221
Fax: (760) 384-6321
Hours of Operation
M-Th 7:30am-6pm, F-8am-12pm
Summer Hours (May 15 - Aug 11, 2023): M-Th 7am-6pm, F closed
Additional Information
- Deferment and Forbearance Information
- Right to Cancel Information and form
- Federal Student Loans Information
Avoid defaulting on your student loan!
Don't Lose Your Tax Return!
Are you past due on your federal student loans? Call today to get on the right track-with your federal student loans at 1-844-ON-TRACK or visit E.C.M.C. Solutions. Our services are provided to you at no cost by your former school!
Did you know? The government can garnish your tax return if you default on your federal student loan.
There are options that may help you avoid loan default. Cerro Coso has teamed up with E.C.M.C. Solutions to provide student loan borrowers a resource to help you manage your educational loans. This service is FREE of charge and you can contact them regarding loan repayment advice, repayment plan options, forbearances and deferments, and loan forgiveness. Contact E.C.M.C. Solutions by phone at 1-877-331-3262 or visit E.C.M.C. Solutions to connect through email or web chat with one of their counselors.
