Cerritos College. Student Loan Appeal

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1 Student Loan Appeal Selecting a lender New borrowers frequently ask for help in selecting a reliable lender. You will find a list of lenders below, but you are not obligated to make your selection from this list. We are confident that you will receive efficient, dependable service from all of these lenders. If you have borrowed previously, we encourage you to stay with your original lender to avoid having to manage repayment with multiple lenders. Cerritos College LENDERS LIST HACU Education Loan program (HELP) P.O. Box Jacksonville, FL (877) Lender code: Wells Fargo Education Finance Services 301 E. 58th Street N Sioux Falls, SD (800) Lender code: Dear student: There are two types of Federal Stafford Loans - subsidized and unsubsidized. The information provided in this guide will assist you in understanding the Stafford Loan Process at Cerritos Community College, completing your loan application/master Promissoty Note (MPN) and choosing a lender. Cerritos College does not participate in Parent Federal PLUS, Alternative and/or Private Loans. Sincerely, The Financial Aid Office Cerritos Community College FINANCIAL AID OFFICE Alondra Blvd.. Norwalk, CA Phone (562) (ext. 2397). finaid-staff-list@cerritos.edu

2 Cerritos College Financial Aid Information Cerritos College has a student Loan Default Management Plan (DMP). This Plan includes the following procedures: THE APPLICATION PROCESS Once a student receives a financial aid award letter, the student may apply for a student loan under the Federal Family Educational Loan Program (FFELP). The student must complete a loan application online at Once the student successfully completes the application, an electronic certification request will be sent to Cerritos College. New Borrowers: Your loan application must be completed online. Please visit our loan website at Repeat Borrowers: If you have a previous promissory note with Sallie Mae on their OpenNet software system, you can download the Loan Request Form to apply for a loan or it is available at the Financial Aid Office. Once you have completed the Loan Request form, please submit it to the Financial Aid Office. Please note that Citibank, Chase, and Bank of America are no longer participating with FFELP loans at Cerritos College. If one of the above was your lender, you will need to complete a new loan application and select a new lender. Students MUST maintain at least half-time enrollment to receive your loan funds. Once you have received your loan funds, you must maintain at least half-time enrollment to avoid going into repayment status. You must also maintain progress toward your certificate or degree. In reviewing a request for any loan, the Financial Aid Advisory Committee (FAAC) may use "professional judgment" to deny a student loan on a case-by-case basis. If denied a loan, a student will receive a letter from the Financial Aid Office indicating the reason for the loan denial. ONLINE LOAN COUNSELING The federal government requires all new borrowers to complete entrance loan counseling prior to disbursement to review your rights and responsibilities as a borrower. You can complete the online entrance loan counseling at and click on Stafford Loan Guide. EXIT LOAN COUNSELING Federal regulations require that students be given exit loan counseling information at the conclusion of their program at each school or when they are no longer enrolled at least half-time. Cerritos College students MUST complete an exit loan counseling session before we can release your 2nd disbursment. You can complete the online Exit Counseling at and click on the Student Loan Transition guide. Failure to complete the session will delay payment of your loan proceeds. If you have problems completing your online counseling session, please call United Student Aid Funds Servicing Center at (866) CHOICE OF LENDER When you take out a student loan, you are borrowing money you will have to repay. Your repayment period can last 10 years or more, so you want to choose your lender carefully. If you have borrowed in the past, it is best to continue borrowing from the same lender. The first page of this guide has a Lender List to assist you in choosing a lender. These lenders are committed to providing the highest level of service to their borrowers. The interest rates, repayment terms and other regulated loan provisions are the same for each lender. However, there are differences in use of servicers (to manage loan accounts), secondary markets (to purchase loans) and repayment incentives (to save you money). For specific information on service differences, you may contact the lenders directly, or visit their websites. LOAN AMOUNTS Students can apply for the Stafford Subsidized/Unsubsidized Loans ($3,500 or $4,500). Loan amounts will be determined at the time the Financial Aid Office cerifies a student's loan application. NOTE: To be eligible for $4,500, a student must have at least 30 units completed and those units MUST appear on the student's official transcripts at Cerritos College.

3 Any Student interested in additional Unsubsidized Stafford Loan, must submit a loan appeal form to the Fiancial Aid Advisory Committee (FAAC). This appeal must include a statement from the student indicating why the additional loan is needed, with documentation, and a budget of expenses. The appeal form is attached. Dependent students are able to borrow up to $2,000. Independent students can borrow up to $6,000. Students can return their appeal form to the Financial Aid Office counter, drop box, via the Internet, by , by fax or mail. LOAN ELIGIBILITY Once the Financial Aid Office receives the electronic certification request we will review the student's file and determine if the student is eligible for a loan. Your eligibility for a Stafford Loan is based on your Free Application for Federal Student Aid (FAFSA). You are not required to borrow the full amount for which you are eligible: you may borrow less. Remember to always borrow conservatively because this loan must be repaid. Cerritos College has a $22,000 maximum total loan amount for the Federal Stafford Loan Program. This loan amount is a total of all loans received at Cerritos College and/or other institutions. In revieweing a request for a loan, the Financial Aid Office may use "professional judgment" to deny or delay a student loan on a case-by-case basis (e.g., complete withdrawal from all of his/her classes after receiving a loan, not meeting Satisfactory Academic Progress (SAP) standards, having institutional indebtedness at Cerritos College or another college or at a combination of all higher education institutions, prior loan indebtedness). If a loan is denied or delayed, a student will receive a letter from the Financial Aid Office indicating the reason for the loan denial or delay. The federal default fee is a fee charged by the guaranty agency on all Federal Stafford Loans. The current default fee is 1.00% and is paid to the guaranty agency from the loan proceeds. DISBURSEMENT Your loan must be disbursed in multiple disbursements. Generally, if your application has been processed in a timely manner, this means you will receive equal portions of your loan 30 day after the first day of classes each semester. If you attend for only one semester of the academic year, then generally the loan will be split into two disbursments in that semester. NOTE: If this is the first time you have enrolled in college, federal regulations require you to attend classes for 30 days before receiving your first disbursement. Loan checks will be mailed to the address on file in the Financial Aid Office. It is important that students keep the Admissions and Records Office informed of their current address at all times. You must maintain at least half-time enrollment (six [6] units) to receive funds. Once you have received your loan funds, you must maintain half-time enrollment to avoid going into repayment. You must also maintain reasonable progress toward your certificate or degree. A student may be required to submit a mid-term Work in Progress (WIP) report each semester to verify class attendance and progress prior to check disbursement. The Financail Aid Advisory Committee (FAAC) will review a student's financial aid file when a student takes out a loan and later withdraws completely from classes during the term. The committee may make a recommendation regarding a student's financial aid eligibility, and may deny future loans. In addition, you may be required to repay part or all of the loan money you received. If the student is eligible for a loan, the Financial Aid Office will send an electronic loan certification to Sallie Mae for processing. FEES Origination fees are charged by the federal government on all Federal Stafford Loans. The current origination fee varies depending on the

4 What is an Electronic Signature? An Electronic Signature is our new, convenient and fast way to sign your online application! An electronic signature is a process by which a borrower signs their application/promissory note via the Web. Fill out the application as you normally would, select the electronic signature option when prompted, verify your information and your application is instantly submitted for processing. Providing a secure electronic signature is the quickest way to submit your application, and you can eliminate potential delays associated with mailing paper applications. Federal Stafford Loan Information Remember before you borrow: When you apply for a Subsidized or an Unsubsidized Stafford Loan, you are agreeing to repay all the funds you borrow, plus interest and fees. Unlike grants and scholarships, loans must be repaid. Please assess carefully whether or not you in fact need a loan, and monitor your debt so you can afford the montly payments upon completing your education. Federal Stafford Loan Annual Limits as of July 1, 2008: Annual Loan Limits for Dependent Students Freshmen (Less than 30 units completed Sophmore (More than 30 units completed Subsidized Stafford Loan $3,500 $4,500 Unsubsidized Stafford Loan $2,000 $2,000 Annual Loan Limits for Independent Students Freshmen (Less than 30 units completed Sophmore (More than 30 units completed Subsidized Stafford Loan $3,500 $4,500 Unsubsidized Stafford Loan $6,000 $6,000 Federal Lifetime Loan Limits as of July 1, 2008: Federal Lifetime Loan Limits Undergraduate Dependent Undergraduate Independent Graduate or Professional lifetime limit $31,000 (up to $23,000 may be subsidized) $57,500 (between subsidized and unsubsidized) $138,500 (up to $65,000 may be subsidized) or ($224,000 for health professions) Once you exceed the Federal limits you will not be eligible for any Title IV funding (Grants). Please contact your financial aid loan representative for more information.

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6 Cerritos College Financial Aid O ffice Student Loan Appeal Date Submitted: Phone #: Social Security N umber: Student N ame: Student N umber: After G raduation J ob TItle: Expected G raduation Date from C erritos: Transfer To: Expected Transfer Date: C urrent Student Loan Debt: $ Please explain why you need additional loans as well as your plans for paying your loans. If you need additional space, please attach your statement to your appeal form. Signature Date Please provide copies (photocopies are O K) of academic transcripts from ALL colleges and universities you have attended. Failure to submit all academic transcripts will result in denial of your loan appeal. Please complete a loan application online at (one time only). Please provide a copy of your Labor Market Information (which includes future employment plans and expected entry-level salary). This information can be obtained by using the Eureka C omputer Program located at C erritos C ollege C areer Services. Please use the budget worksheets on the back of this form to assist you to describe your current expenses and those expected after your graduation. Do not leave budget items blank. If you do not indicate the proper amount in the actual student loan payment lines, your loan appeal will be denied. A G uide to Education Loans is available at the Financial Aid O ffice to assist you in completing your loan appeal. Please submit your completed student loan appeal to the Financial Aid O ffice. The Financial Aid Advisory C ommittee (FAAC ) will review your appeal and notify you in writing of its decision. N O TE: Failure to provide all required information WILL result in denial of your loan appeal.