Loan Programs

Federal Direct Student Loans
Alternative Loans
Federal Direct Student Loan Program

Once your loan is processed, no adjustments will be made on the amount of your loan due to enrollment change, unless you owe a repayment. It is a requirement that all first-time Direct-Loan borrowers at Del Mar College have a pre-loan counseling session to have their rights and responsibilities disclosed. (A list of dates and times will be mailed to you.)

All loan applicants must complete and sign an electronic promissory note for each respective loan at the time of the counseling session. Minimal enrollment is six semester hours per term.


The following loan programs are available at Del Mar College:

William D. Ford Federal Direct Loan Program
Del Mar College participates in the Federal Direct Loan Program. Just as with the FFEL loan programs used at other institutions, this program consists of Federal Subsidized and Unsubsidized student loans. Unlike the FFEL loan programs, the U. S. Department of Education is your lending institution and will be responsible for all your correspondence and repayments.

If you are interested in applying for a loan, please indicate your preference on the FAFSA.

After the student accepts the award online, the loan will be originated. Once it has been originated, you will receive specific instructions about your loan.

The amounts shown in the chart below are maximum amounts that you may borrow for an academic year. You might receive less than the maximum amount if you receive other financial aid.


DIRECT LOAN PROGRAM
Annual Loan Limits for Undergraduate Students
Effective for Loans first disbursed on or after July 1, 2008
Dependent Students
(excluding students whose parents cannot borrow PLUS)
Base Amount
Sub/Unsub
Additional
Unsubsidized Loan
Amount
First-year undergraduate
$3,500
$2,000
Second-year undergraduate
$4,500
$2,000
Independent Students
(and dependent students whose parents cannot borrow PLUS)
Base Amount
Sub/Unsub
Additional
Unsubsidized Loan
Amount
First-year undergraduate
$3,500
$6,000
Second-year undergraduate
$4,500
$6,000


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William D. Ford Federal Direct Subsidized Loan (DLSUB)
This Federal long-term loan is designed to help students who have difficulty meeting college expenses. The U. S. Department of Education is your lending institution.

The maximum amount a student may borrow under the Sub/Unsub loan is $3,500 for first-year students and $4,500 for students in the second year of their program. Financial Aid Services will determine the amount of your loan. Should you wish to borrow less, please contact Financial Aid Services.

Additional unsubsidized loans are available at Del Mar College.

Remember to borrow wisely.

All first-time borrowers at Del Mar College must attend a pre-loan counseling session before loan funds are disbursed. Should the borrower withdraw, graduate, or not plan to attend Del Mar College the following semester, he or she must complete an exit interview.

Terms or Conditions of the Loan

  1. Monthly payments begin six (6) months after the student is no longer enrolled in college at least half time.
  2. The minimum payment is $50 per month. The payment may be larger depending on the size of your loan debt.
  3. The interest rates for loans disbursed on or after July 1, 2008 is 6.0%.

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Federal Direct Unsubsidized Loan (DUNSB)
This loan program is only for students who do not qualify for the Direct Subsidized Loan. The Federal Direct Unsubsidized loans terms and conditions are the same as the Federal Direct Subsidized loans when it comes to the loan limits and deferments. However, there is an exception, students pay the interest during in-school and deferment periods. Interest accrued during those periods may be paid or capitalized. The interest rate for Unsubsidized loans disbursed on or after July 1, 2008 is 6.8%.

To apply for this loan, or any other loan, the student must follow the same application procedures as required for the other financial aid programs.

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Federal Parent Loans for Undergraduate Students (FPLUS)

Parents of a dependent undergraduate student may borrow funds under this loan program on behalf of the student. Parents can borrow up to the student's cost of education minus other financial aid the student may have received. Parents must have a good credit history to qualify.

Del Mar College and TG (Texas Guaranteed) have teamed up to provide a Web-based application for Parent Loans for Undergraduate Students (PLUS). This online application -TG Loans by Web-- guides you though the process of obtaining a loan.

The interest rate for the FPLUS is a fixed interest rate. The interest rate for PLUS loans disbursed on or after July 1, 2008 is 8.50%. Payments begin within sixty (60) days from the date of disbursement, with a $50 minimum payment per month. Loan regulations allow at least five (5) but no more than ten (10) years to repay the loan. The parent borrower may prepay the whole or any part of the loan at any time without penalty or may defer payments of the principal if the student is attending school half-time. Please note that although the principal may be deferred, the interest continues to accrue or must be paid.

The FPLUS loan disbursement will be made co-payable to the College and the parent borrower. The parent should contact the Financial Aid Office for check release procedures.

For more information about applying for a FPLUS Loan go to: http://www.delmar.edu/finaid/fplus.html .

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Alternative Loans
Alternative loans are private loans offered by lending institutions. They are not part of the federal government guaranteed loans and should only be used when all other options have been exhausted. Research all possibilities for scholarships, grants, work-study and federal loans before borrowing from an alternative loan program. To apply for an Alternative Loan, you must conplete the Federal Application for Student Aid (FAFSA). If FAFSA has not been completed, you may do so at www.fafsa.ed.gov. What should you look for in an Alternative Loan?

  • Annual Percentage Rate (APR)
  • Loan Limits
  • Repayment Terms
  • Cosigner Requirement
  • Repayment Incentives
  • Interest Capitalization
  • Lender for Federal Loans
How to apply:
Should you determine you need an alternative loan:
  1. Do your research and go to the website of the lender of your choice and apply through their on-line application.
  2. The lender will review and make a determination on your loan. Should your loan be approved, your lender will forward your information to TG.
  3. Should you owe any money to Del Mar College, we will deduct the outstanding balance and mail you the remaining loan funds.
Attention:
Your school determines your eligibility and the amount of your loan regardless of the credit decision. Remember that obtaining a credit approval is NOT an immediate process; please have patience as this process takes place.

Questions?
Contact your lender or Del Mar College.

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