According to our policy and regulations, loan funds will be disbursed as follows:
- Loans are disbursed in two payments per semester. No exceptions.
- If the student is awarded for a full year, the award total will be allocated with 50% in the Fall and 50% in the Spring. Each semester will have two payments, less loan and orgination fees.
- If the student is awarded for only one semester, students will receive their award in two payments during the semester, less loan and orgination fees.
- All loans are subjected to loan and origination fees enacted by the Federal Department of Education.
All applicants for student loans must complete a Master Promissory Note (MPN) and Entrance Loan Counseling, as prescribed by the Eligibility Requirements spelled out above.
Federal Regulations for New First-Time Borrowers
If a student is enrolled in the first year of an undergraduate program of study and has not previously received a Direct Subsidized Loan, a Direct Unsubsidized Loan, a Subsidized or Unsubsidized Federal Stafford Loan, or a Federal Supplemental Loan for Students, a school may not disburse the proceeds of a Direct Subsidized or Direct Unsubsidized Loan until 30 days after the first day of the student's program of study. [34 CFR 685.303(b)(5)]
New first-time loan borrowers will receive their first disbursements 30 days after the first day of school.
Subsidized Usage Limit Applies (SULA)
First-time borrowers who have no prior student loan indebtedness before July 1, 2013 may not receive Direct Subsidized Loans for more than 150% of the published length of their program. This limitation is also called the maximum eligibility period. SULA was instituted to assist students in tracking their progress through their declared programs in order to ensure that students will invest no more than 150% of the time it takes to complete their program.
For example, if you are enrolled in a 4-year bachelor's degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years). If you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years).
Students who reach their 150% limit will lose eligibility to borrow any further subsidized loans, and will not be eligible for the subsidies on any outstanding subsidized loans. For more information on SULA, please click here.