At CVCC, three types of loans are available: direct loans, Parent PLUS loans, and private loans. All loans must be repaid by the student (or parent) to the lender (or agency). The appeal process for direct loans and Parent PLUS loans is the same as for the Pell Grant, ensuring students and parents understand their rights and responsibilities. Private loans do not require an appeal process as they are not subject to Financial Aid Suspension.
Direct loans can be subsidized and/or unsubsidized. The government pays the interest on subsidized loans while the student attends College at least half-time. Subsidized loans are for students who have demonstrated financial need. Unsubsidized loans, which are not need-based, are loans where the interest begins accruing from the beginning date of the loan. The student is responsible for the interest on unsubsidized loans from the date the loan is disbursed. Students must be enrolled and attend at least half-time (6 credit hours or more) to qualify for Direct loans. Students must maintain the exact eligibility requirements for federal aid in the Grants section of the College Catalog. Students who graduate, stop attending, or drop below six credit hours must complete Exit Counseling online. Repayment plans and options can also be found here.
Parent PLUS loans require the same minimum requirements, standards, and conditions as direct loans, except that the loan is in the parent’s name, not the student’s. Please note that if the student is not meeting SAP, a Parent Plus loan can not be disbursed to their student account.
Private loans are obtained through outside lenders of the student’s choosing. The Financial Aid Office does not distribute private loan applications, but it does provide guidance on where to find these applications. Private Loans can vary in terms, conditions and eligibility requirements. For these reasons, Private Loans should be considered as a last resort for educational purposes after all other federal aid options have been exhausted. To make this process simpler, CVCC has partnered with ScholarNet. Our college uses ScholarNet, a secure online system that helps us process private education loans quickly and accurately. If you choose to apply for a private loan through your lender, ScholarNet allows your lender and our Financial Aid Office to share the information safely so your funds can be certified and disbursed without delay. The link to ScholarNet can be found here.