Applying for a Student Loan

Applying for a Student Loan

General Information

Brookdale Community College participates in the William D. Ford Federal Direct Loan Program (FDLP), which consists of subsidized loans, unsubsidized loans, and Parent PLUS loans. Students or parents who enter into an agreement regarding a Title IV HEA loan are advised that the loan will be submitted to NSLDS and accessible by authorized agencies, lenders, and institutions.

What is a Federal Direct Loan?

Congress established the William D. Ford Federal Direct Loan Program to help reduce complexity in the financial aid process. The Federal Direct Loan Program does not involve the use of a private lender, such as a bank. You are borrowing from the federal government. If you would like more information about federal loan programs, as well as instructions for completing the loan process, start with these links:

Every school has a different process for offering student loans. At Brookdale, we do not include an offer of a loan in a student’s award package. Every student who meets the requirements will qualify, however the process requires you to request the amount you wish to borrow through WebAdvisor/My Financial Aid self-service (view detailed instructions). Remember that first time borrowers must complete loan entrance counseling and a Master Promissory Note (MPN) found on studentloans.gov.

Federal Direct Student Loans

Federal Direct Subsidized Loan

• Annual limit: Dependent first-year undergraduates: $3,500 subsidized (up to total $5,500 if combined with unsubsidized).
• Grace period: Repayment begins six months after dropping below half-time enrollment.
• Term length: Up to 10 years for standard repayment.
• Interest rate: Fixed at 6.39% for loans first disbursed July 1, 2025 – June 30, 2026.
• Subsidy: Federal government covers interest while enrolled at least half-time and during grace period.

Federal Direct Unsubsidized Loan

• Annual limit: Up to $5,500 total for dependent first-year students (includes both subsidized and unsubsidized); if unsubsidized only, limit remains $5,500.
• Grace period: Begins six months after the student drops below half-time status, same as unsubsidized
• Term length: Up to 10 years.
• Interest rate: Also 8.94% for disbursements in the 2025 – 2026 year.
• Accrual: Interest accrues from disbursement; students may pay during school or have it capitalized later.

Federal Direct Parent PLUS Loan

• Annual limit: Up to full cost of attendance minus other aid.
• Repayment: Begins once disbursed, parents must begin repayment within 60 days, or alternatively, they can defer until six months after the student drops below half-time.
• Term length: Standard 10-year repayment.
• Interest rate: Fixed at 8.94% for loans originated July 1, 2025 – June 30, 2026.
• Origination fee: About 4.228% deducted from each disbursement.

Alternative Loans

Alternative loans should be a last resort for students whose financial aid package already includes Direct Loans and other sources of financial aid, and who still need additional funding to meet his or her educational costs. The annual loan limit is the cost of education minus any estimated financial aid received. Eligibility is determined by the lender. The borrower may need to be credit worthy and have established annual income, or may need a co-signer. Start your search on the Internet or contact your personal banker to learn about private alternative loans.

How Much Can I Borrow?

The annual maximum amount (see chart below), may be awarded to you as a combination of subsidized and unsubsidized Federal Direct loans. You will be charged interest on the portion that is unsubsidized until which time you go into repayment. If you do not pay the interest while in school or during any grace or deferment period, you can elect to have the interest added to the principal. This is called capitalization. If you choose to capitalize the interest, you will have a larger payment when you begin to repay your loan.

Consistent with federal regulations, Federal Direct loans have an origination fee of up to 1.066%. This percentage fee will be deducted from the loan proceeds before the funds are applied to your student account.

The aggregate amount for subsidized and unsubsidized loans is $31,000.00 for dependent students and $57,500.00 for independent students.

Dependent Students

Note: Additional unsubsidized loan funds of up to $4,000* per year (not included in the chart) may be available for students whose parents are denied a Parent Loan for Undergraduate Students (PLUS).

*Subject to approval.

Independent Students

How Do I Apply?

Requesting a student loan is optional. Your financial aid package will not include a loan unless you follow these instructions to request one. You must be registered for at least 6 credits to qualify.

1. Complete a Free Application for Federal Student Aid (FAFSA)
2. Obtain an FSA ID
3. Go to Federal Student Aid and complete both, loan entrance counseling and a Master Promissory Note (MPN). (This is only required once while a student is registered at Brookdale Community College).
4. Go to My Financial Aid, then Request New Loan and answer all the questions and click “Submit”.

You must also meet all other criteria applicable to federal aid programs including:

• Be a U.S. citizen or eligible non-citizen
• Be matriculated and enrolled for a minimum of 6 credits
• Maintain satisfactory academic progress
• If requested, provide additional documentation to the college

Request for Unsubsidized Loan Dependent Status Review

Financial aid regulations state that dependent students are required by law to provide parental information and signatures to be considered for financial aid.

If your parent has ended providing parental support and refuses to complete the parental sections of the FAFSA, you may be eligible to receive a Federal Direct Unsubsidized Direct Loan. Support is defined as: cash support, payment by the parent of educational costs, non-cash support such as room and board, and/or health insurance benefits.

In order to be considered for eligibility, please complete and submit a Request For Unsubsidized Loan Dependent Status Review (PDF).

How to Apply for a Federal Direct or Parent Plus Direct Loan

1. Complete and submit a Request For Unsubsidized Loan Dependent Status Review (PDF).
2. Apply for a PLUS loan.

How Am I Notified?

The Financial Aid Office at Brookdale will notify you by email when your loan has been awarded. Awards are determined on an ongoing basis and completed after your financial aid record is complete. To be completed you must respond to all requests for additional information and complete the loan process.

Please notify the Financial Aid Office if you change your mind and decide not to participate in the Direct Loan Program. You can cancel your loan up to 30 days after your loan is applied to your student account.

How Are My Loan Funds Disbursed to Me?

Once you have been notified by Financial Aid of your award, and you have a bill because you are registered for classes, the amount of your award will be posted as “anticipated” until it is applied to your student account as a disbursement which occurs after the add/drop period of your term. To see your eligible anticipated aid, go to Self-Service and check in My Student Account.

All loans are disbursed in two payments. If your pending loan exceeds your tuition and fee charges you may purchase books using your remaining loan balance. The Bookstore will have your information on file and will apply your available book charges against your tuition account.

Any remaining credit balances will forwarded to you within 14 days of being credited on your student account.

You have the option of receiving your refunds in your own bank account. If you do not sign up for anything, a check will be mailed to the address you have on file in the Registration office. To choose direct deposit, sign on to WebAdvisor and go to My Preferred Refund Method.

How Do I Repay My Loan?

Read about Repaying a Student Loan.

Questions? Contact the Financial Aid Office.