Federal Family Education Loan Program (FFELP)
CCBC participates in the Department of Education's Federal Family Education Loan Program (FFELP) which includes subsidized, unsubsidized, and parent loans. The Financial Aid Office (FAO) believes students will find the FFELP Loan option quick and convenient.
Loan Application Process
The student must begin the process by submitting the Free Application for Federal Student Aid (FAFSA) which will result in an electronic report being sent to CCBC. The FAO must be informed of the student's interest in a loan and will provide the loan application and verification materials. The loan application will not be given to the student until the FAO has the FAFSA results. All loan applicants are required to complete the verification process, which includes the submission of federal tax returns for both the student and parent, if applicable, and any other documents requested by the FAO. Not every request for a FFELP loan is approved by the FAO.
Federal Subsidized Loan
Subsidized Loans are available to students who need to borrow in order to meet their academic expenses and can officially demonstrate they have financial need. Financial need is determined after examining the student's academic budget relative to their ability to contribute to that budget. The Expected Family Contribution (EFC) is determined after the FAO analyzes the results of the student's SAR.
Students who meet the above criteria and are enrolled in at least 6 billable hours, can be further reviewed by the FAO regarding a Subsidized Loan. Subsidized Loan means that the Federal Government will pay all interest associated with the loan as long as the student does not go below 6 academic credits or qualifies for one of the other deferments. CCBC students may borrow up to $3,500 for the freshman level and up to $4,500 for the sophomore level.
Federal Unsubsidized Loan
Students who apply for financial assistance and do not demonstrate financial need (read the first paragraph above under Federal Subsidized Loans) can request an Unsubsidized Loan. This is a student loan similar to the Federal Subsidized Loan in that the interest rate and repayment terms are the same. If you are not eligible for the maximum Subsidized Loan for your grade level, you may borrow the difference in an Federal Unsubsidized Loan. Interest may be paid quarterly or allowed to accumulate during school and other deferment periods and will be capitalized (added to principal). The total subsidized and unsubsidized amount cannot exceed $3,500 at the freshman level, ($7,500 for independent students) and $4,500 at the sophomore level ($8,500 for independent students). Because we are a two-year institution there are no federal student loans offered beyond the sophomore level.
Federal Parent Loan (Plus)
Loans are available to parents of dependent students who enroll in 6 or more credits. The loan is to be used for the student's cost of education. It is required that a FAFSA be completed as well as our internal Certification Signature Form and a PLUS Loan Application. Interest on PLUS loans is a fixed 8.5% interest rate. A credit check of parent borrowers will be performed.
General Information about both Subsidized and Unsubsidized Loans
First-time borrowers cannot receive their disbursements until 30 days from the start of the semester. In addition, they need to complete an Entrance Interview prior to receiving any disbursements (Entrance Interview schedule). All borrowers must complete an Exit Interview when they cease attendance or drop below half-time. Federal Stafford Loans originated on or after July 1, 2006 will have a fixed interest rate of 6.80%.
The processing sequence for a Federal Stafford Loan is as follows:
1. Complete the Free Application for Federal Student Aid (FAFSA)
2. Verification of the information submitted on FAFSA (i.e. federal tax return, verification worksheet, certification page, etc.)
3. Completion of Loan Packet (obtained from the Financial Aid Office)
a. Federal Stafford Loan Request Form
b. Master Promissory Note
4. Entrance Counseling (Entrance Interview schedule)
5. 30-day delay in disbursement for first-time borrowers only
6. Exit Counseling
Student Loan Counseling
Students who have never received a loan at CCBC must attend a group entrance counseling session prior to us processing a loan application. The entrance counseling is presented in numerous group sessions on all three campuses. A list of the groups sessions with dates, times and locations is included in the loan packet or the list can be viewed here.
Students are also required to attend an exit counseling session before graduating or otherwise leaving school. The dates and times of the exit counseling sessions can be obtained by calling one of the Financial Aid Offices. If unable to attend an exit counseling session in person, students can also complete the exit counseling online by going to EDTEST.
For additional information including application deadlines please call the Financial Aid Office.
Loan Disbursement Information
First-time borrowers receive their first loan disbursements 30 days after the start of classes. Continuing students recevie their disbursements approximately 3 weeks from the start of the semesters. Refunds are processed by the Bursar's office and are mailed to your home address within 10 to 14 business days from the date of your fund disbursement. Please note: Loan proceeds are disbursed in two equal payments for two-semester loans (i.e. fall/spring; spring/summer), and only once for semester only loans.
Loan Lender Information
The Community College of Baltimore County has a recommended lender list consisting of seven (7) lenders. This lender list has been in existence for the last five (5) years. The lenders have been chosen for this list based on the borrower benefits the lenders can offer the students of the Community College of Baltimore County. These lenders are carefully selected due to their processing procedures, online capability, quality of customer service to students and staff and quick resolution to student loan issues.
The list of recommended lenders are:
If you have borrowed previous federal Stafford loans through FFELP, you are encouraged to borrow again with the same lender. You may choose any lender who participates in FFELP.
To get information on the status of a loan, disbursement updates, and repayment options, visit Edfund's web site.
Student Loan Ombudsman - The Ombudsman receives, reviews, and attempts to resolve, informally, complaints from loan borrowers, compiles and analyzes data on complaints and makes appropriate recommendations.
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Internet: http://fsahelp.ed.gov or http://ombudsman.ed.gov
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Toll-free telephone: (877) 557-2575
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Mail:
Office of the Ombudsman
Student Financial Assistance
U. S. Department of Education
Room 3012, ROB #3
7th and D Street, SW
Washington, DC 20202-5144
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