Loans are not part of a student's initial financial aid award. To the extent that a student is eligible and funds are available, every effort is made to meet financial need with the California College Promise Grant (CCPG - formerly known as BOG Enrollment Fee Waiver), Cal Grant, Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), and Federal Work-Study (FWS) programs. Students who need additional funds may apply for a Federal Stafford loan or a Federal PLUS (Parent) loan. The amount and type you may borrow is based on many factors including year in school, dependency status, student budget (cost of attendance) and financial need.

Independent students who borrow the annual maximum in the Subsidized Stafford loan program may be eligible to have their remaining need met or may replace their Expected Family Contribution (EFC) with an Unsubsidized Stafford loan. There are significant differences between the Subsidized and Unsubsidized Stafford loans. Click here to read about the differences between the 2 types of Direct Federal Loans.

All first-time borrowers interested in federal loans must attend an entrance loan workshop. Post COVID 19 lockdown, students will receive an email, in leu of an in-person workshop. All borrowers are encouraged to read ALL the information provided to you in the Entrance Email in order to get the most up to date information regarding loan terms and conditions. The email provides information on student eligibility and the terms and conditions of borrowing through the federal Stafford and PLUS loan programs. Failure on the student's part to demonstrate a satisfactory level of knowledge about the programs will result in denial of a federal loan. In addition, all students will be required to complete the ON-LINE version of Entrance counseling. The on-line entrance counseling is located on www.studentaid.gov

After successful submission of all loan application materials, all students are reviewed for loan eligibility. All students who are eligible, or ineligible for loans, or are denied loan eligibility will be notified in writing.

Loans for first-year students are the exception, not the norm. First-year students need to carefully review their educational objective prior to applying for a loan. After receiving AND reading the entrance counseling material, first year students are advised to meet/contact the Assistant Director of Financial Aid/Loan Coordinator (or her designee) if additional assistance and information is needed.

In order to receive a federal loan, students must apply for financial aid by completing the current year Free Application for Federal Student Aid (FAFSA) and submit all other forms or documents requested by the Financial Aid Office. In addition, students must provide the following:

• Master Promissory Note (MPN)* AND Entrance Loan Counseling (only on-line; Go to www.studentaid.gov)
• GCC Loan Request Form (LRF)
• Clear copy (Front and Back) of their valid Driver’s License or other valid government issued ID

*MPN’s are valid for 10 years, unless the student transfers to another school.

In accordance with the Higher Education Act (as amended), the Financial Aid Office has the legal authority to refuse to certify an otherwise eligible borrower's loan application or reduce loan eligibility.

Such a decision, along with the reason for denial, will be provided to the student in writing, by mail.

Loan applications will be reviewed for the following:

• Academic standing - Applicants must have a clear educational objective, demonstrate a record of academic progress toward that objective and maintain a grade point average (GPA) of 2.0 or better. Students who are on Academic Dismissal, Term Dismissal and/or Satisfactory Academic Progress (SAP) Dismissal are not eligible for federal loans.
  
  
• Lack of satisfactory progress - The student must be making satisfactory academic progress. If a student is on academic or financial aid warning the loan application may be denied. Students on academic or financial aid dismissal (SAP Dismissal) are not eligible for loans.
  
  
• Unwillingness to repay - The Financial Aid Office retains the right to deny loans to any
  applicant who has indicated they are unable or unwilling to repay debts or loans by their
  statements or by having been delinquent on other debts.

A student may appeal the denial of their loan in writing to the Associate Dean of Financial Aid (or her designee). Students should include any documentation they deem necessary for their appeal. A final decision will be communicated to the student in writing, by mail.

All first-time borrowers are required to complete an in-person and/or on-line exit counseling workshop at the end of their first academic year (spring/early summer) they borrow a federal student loan. This workshop will cover information required by federal regulation. A letter, email, packet and/or instructions on their Student Center, To Do List, instructing students what to do will be sent to all students who have borrowed federal Stafford loan(s) for the current academic year. Before you finish your academic program at GCC, you will need to complete at least one on-line and/or exit counseling workshop.

Periodically the Financial Aid Office may send letters/and or emails (GCC email address) to currently enrolled students participating in the federal loan programs to remind them of their responsibilities as borrowers. This reminder does not negate the student's responsibility to keep the Department of Education and/or their Servicers updated on any changes in name, address, enrollment status (drop below half-time status or completely withdraw), or college of attendance.

The SFA Ombudsman works with borrowers to informally resolve loan disputes and problems. They
help borrowers having problems with the following federal loans:

• Federal Family Education loans- subsidized and unsubsidized Stafford loans, FFEL PLUS loans (for parents), and FFEL Consolidation loans,
• Federal Direct loans - subsidized and unsubsidized Direct Student loans, Direct PLUS loans (for parents), and Direct Consolidation loans, and
• Guaranteed Student loans (GSL), SLS loans, and Perkins loans.

The Ombudsman customer service line is (877) 557-2575. Click here for more information:  Department of Education Complaints - Student Loan Borrowers Assistance (studentloanborrowerassistance.org)

When completing your Master Promissory Note (MPN) go to: www.studentaid.gov; Last day to submit an MPN for loans awarded prior to each term deadline is the last day of each Summer term.

Deadlines: The Last day to submit a loan application for each semester is listed on the Financial Aid “Deadlines” page. Deadlines are listed for each semester on the following website: Financial aid Deadlines

Enrollment level: Students must be enrolled in at least 6 units (or 6+ FA Contract units) to be eligible to apply for a federal loan. Also, you must be enrolled in at least 6 units (or 6+ FA Contract units) at the time a disbursement is made and or received and when it is ready to be mailed to you.

Students on a financial aid contract: If you had a Term Dismissal appeal approved, you received a list of courses (your contact) for which you can receive financial aid. When calculating your enrollment (full-time, half-time, etc.) for loan purposes, we only consider the classes from your contract. For example, if you are enrolled in 12 units for the Fall semester, but only 6 of those units are classes on your contract, you are considered HALF-TIME for loan (and other financial aid) purposes and calculations. Also, if you are enrolled in 6 units for Fall and only 5 of those units are classes on your contract, you are considered LESS-than-HALF time for loans (and other financial aid purposes) and will not be eligible for any student loans.

GPA and Progress review: All students’ cumulative grade point average (CGPA) and progress are evaluated. Your CGPA must be 2.0 or higher and your progress must be 67% or higher in order to apply for a federal loan. The Financial Aid Office also reviews your CGPA and progress every time we receive a disbursement for your loan. Thus, if your CGPA and/or progress falls below the minimums previously stated before a disbursement is received, you will not be eligible for that or any subsequent disbursement.

Students who attend only one semester: The Financial Aid Office recommends that you do not apply for more than one-half of the annual loan maximum in these circumstances. Why? Because a) it will limit your overall indebtedness, and b) if you transfer mid-year it will not adversely affect your ability to borrow funds at your next school. Also, loans are prorated for all students attending one semester within an aid year and who are graduating upon completion of that semester/term.

Disbursements: If you have been awarded a fall/spring loan, you’ll receive one disbursement per semester (50% in fall and 50% in spring) except in certain circumstances. If you are applying for a loan beyond the mid-point of the LOAN PERIOD (i.e., a fall/spring loan’s mid-point would be after the fall semester is completed), your loan could be disbursed in one lump sum. DO NOT contact the Tuition Office with questions regarding the disbursement of your loan monies. Once your loan is processed you will be given information regarding the ANTICIPATED loan disbursement dates. If you have questions regarding the disbursement of your loan monies, you can contact the Financial Aid Office.  Effective January 29, 2024, Federal Direct loans are sent to students from the Tuition Office, via BankMobile.  PLUS loans are sent via a check through the Tuition Office.

Grade level: A student who has completed 29 or less units in an AA/AS or transfer program will be considered a GRADE LEVEL 1 or freshman/first year student. Students in certificate programs are usually considered to be first year students, with final grade level determination made by the Associate Dean of Financial Aid or her designee.

Exit counseling reminder: All first-time student borrowers must complete Exit Counseling during their first academic year they borrow a federal student loan. This may include an in-person workshop and or the on-line Exit Counseling on studentaid.gov. Reminders are sent to all students regarding this requirement, yet many students procrastinate in fulfilling it. If by the end of the spring/early summer semester you have not attended and/or completed an Exit Counseling Workshop please log into your “MYGCC” and view your ‘To Do List’ for further instructions.

Learn to Budget: Be smart when borrowing. This applies to all students regardless of their future educational plans. For those students who plan to transfer to a 4-year college, be aware that your costs will be higher at your next school. As such, your need to borrow at your next school will increase and your borrowing will be limited.

Remember: Your loans MUST be REPAID. Even though you may not be making payments on your loan while you are enrolled, you will be expected to start repayment when you graduate, withdraw, or leave school. Federal loans are part of your credit history and should be treated like any other debt. Having a large loan debt could affect your ability to obtain future credit, including car loans, mortgages, or credit cards.

Instructions to screen-shot your Loan Summary, Complete your Loan MPN, Entrance and Exit Counseling (pdf)