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The federal government and some private institutions will loan students the money to go to college. This money must be paid back with interest.

Federal loans typically have better interest rates and terms, so we encourage you to investigate your federal borrowing options first.

As with nearly all financial aid, the first step in the loan application process is to complete a Free Application for Federal Student Aid (FAFSA).


Federal Loans

Federal Direct Student Loans are available to all eligible students. Students must be enrolled in 6 eligible credits to receive Direct Subsidized, Direct Unsubsidized or Direct PLUS loans.

Direct Subsidized and Unsubsidized Loans

Direct Subsidized Loans

To receive Direct Subsidized Loans, student must demonstrate financial need. Subsidized Loans are interest free while the student is in school, but begin accruing interest six months after the student ceases to be enrolled for at least 6 credits (half-time).

Direct Unsubsidized Loans

Direct Unsubsidized Loans do not require financial need. These loans are not interest free while students are in school and begin accruing interest after disbursement.

Learn more about Federal Direct Loans.

Direct PLUS Loans for Parents

Parents of dependent students may apply for Direct PLUS Loans. These loans are available regardless of financial need and the amount of eligibility depends on the total cost of attendance.

Learn more about Direct PLUS Loans.

Accepting a Federal Student Loan

If you are eligible for a federal direct loan, the award offer will list your maximum federal loan amount

Evaluate your aid offer carefully. In the case of loans, keep in mind that whatever amount you borrow must be paid back with interest. You may not need to borrow as much as the amount listed on your award offer.

If you decide to borrow a federal direct loan at AACC to help pay for your courses or other related costs, you must access the AACC Federal Direct Loan Request Form by logging into MyAACC and choosing Menu > Self Services > Financial Aid.

You must complete and sign the request form and email it to finaid@cjpk.net for review. Additional emails will be sent to your MyAACC email account with more instructions and updates on your request.

First-Time Borrowers

If this is the first time you have requested a federal loan, you must complete an entrance interview online or by making an appointment with a financial aid advisor.

First-time borrowers also are required to complete a Master Promissory Note (MPN) once their loan is processed. You will receive an email when your MPN is available. You will need your driver’s license and contact information for three references (these are NOT cosigners).

All new borrowers must wait 30 days from the first day of classes to receive their federal direct loan funds.

Learn more about the Master Promissory Note (MPN), loan interest rates and fees.

You will receive additional information regarding subsequent loan borrowing, legal and privacy notices, and other required disclosures once your loan has been certified. This information will be sent by your Federal Loan Servicer as required by the the U.S. Department of Education.

Additional Loan Information

Loan Cancellations

You have the right to cancel all or a portion of a loan disbursement within 14 days of the date your school disbursed your loan money (by crediting the loan money to your school).

  • If you want to cancel your loan disbursement in advance at AACC, write or email us from your MyAACC account to request a cancellation of an upcoming disbursement. It must include your name, student ID and a statement requesting the loan disbursement be canceled.
  • If your loan has been disbursed, you will receive an email to your MyAACC account notifying you of your "Right to Cancel" the loan. You must write or email us from your MyAACC account to request the cancellation of your loan within 14 days after receiving the email. You must include your name, student ID number and a statement requesting the cancellation of your loan.

Responsible Borrowing

It is important to consider the impact student loans may have on your future. Borrow only what you need to assist with your educational costs. Watch this video to learn about your responsibilities as a borrower and what you should consider when taking out loans for college.

Before borrowing a student loan, visit the Federal Student Aid website. It provides great financial aid information, including repayment plans and estimates for how much your monthly payment might be for various amounts. If you  decide to take out a loan for your educational expenses, be sure to understand the terms and conditions of the loan and what repayment options are available to you.

Repayment

  • A loan is money you borrow and must pay back with interest.
  • Interest is a loan expense charged to the borrower for the use of borrowed money.

You can use the National Student Loan Data System (NSLDS) website to find out who your servicer is and stay updated on your loan history and status.

Learn more about repaying your loans, grace periods, late charges, loan default and your responsibilities as a borrower.

AACC works closely with Student Connections to provide student loan default prevention options to our students. Student Connections will assist you with repayment options or resolving loans that are in default. Your can talk to a borrower advocate for free at 866-311-9450. 

Borrowers Agreement

All students who accept federal loans must agree to the following:

  • The student will remain enrolled in at least 6 credits for each term that the student has requested Federal Direct Loan funds. Courses taken as “audit” do not count toward enrollment. If the student enrolls for less than 6 credits, the loan will be canceled for that term.
  • Loan funds will not be disbursed until after the start date and drop deadline for at least 6 credits of courses have passed and after attendance has been confirmed in at least 6 credits.
  • If the student withdraws from classes after aid is disbursed, the student may have to repay all or a portion of disbursed aid to AACC.
  • If the student is due a refund check, it will be mailed five to 10 business days after the college disburses the funds.
  • Award notifications list the annual maximum amount for loans. AACC will certify the eligibility for both Subsidized and Unsubsidized Federal Direct Loans and may have to reduce the student’s requested amount based on annual limits, excessive prior student loan debt or other eligibility.
  • AACC may need to reduce or cancel the loan(s) if the student becomes over-awarded.
  • If the student’s loan is only for one term, it may be disbursed in two equal disbursements.
  • Once the student’s loan is processed, the student must complete a Master Promissory Note (MPN) before any loan funds will be disbursed. The student will receive an email notification requesting that the student complete an MPN online. If the student fails to complete the MPN, the loan will be canceled and the student will be responsible for all charges due to AACC.

Private Loans

It is recommended that students complete a FAFSA to see their Federal Direct Loan options before making a decision about additional borrowing.

Private student loans are not part of the federal student loan program and may require a credit check. You may borrow private loans from any lender you choose. Some private loans are open only to students taking credit classes, but others will consider continuing education (noncredit) students as well.

Borrowing costs vary between programs and institutions. You will need to investigate the costs and choose the program that's right for you.

Learn more about the differences between federal and private student loans.

Questions to consider before applying for a private student loan:

  • Are there fees associated with this loan?
  • What is the interest rate?
  • What repayment terms and benefits does this lender offer?
  • Will I need a co-signer?
  • How much should I borrow?
  • Will I be required to make payments while enrolled?
  • What is my current outstanding balance not covered by financial aid?
  • What are the enrollment requirements for this loan?

Additional Resources

FINAID.org offers a loan analyzer that helps students compare borrowing costs from an extensive list of private loan companies.

Questions?

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