Regulations Regulations

Loan Policy and Regulations

Disbursement Information

Per our policy and regulations, loan funds are disbursed as follows:

  • All loans are disbursed in two payments per semester. No exceptions.
  • All loans are disbursed 30 days after school starts to take into account late starting classes
  • A student who has a loan that is awarded for the full year, will have it disbursed evenly between both Fall and Spring semester, 50% in the Fall and 50% in the Spring. Each semester will have two payments, minus origination and loan fees.
  • A student who is awarded for only one semester, will receive their award in two payments during the semester, minus origination and loan fees.
  • All loans are subjected to origination and loan fees enacted by the Federal Department of Education. 
  • Student must be making progress and may be asked for a Work in Progress form for continued borrowing
  • Student must be actively attending 6 units before disbursement.  Late starting classes cannot be counted until after they start.

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.




34 CFR 685.301(a)(8) Origination of a loan by a Direct Loan Program school

(8) A school may refuse to originate a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan or may reduce the borrower's determination of need for the loan if the reason for that action is documented and provided to the borrower in writing, and if-
(i)    The determination is made on a case-by-case basis;
(ii)    The documentation supporting the determination is retained in the student's file; and
(iii)    The school does not engage in any pattern or practice that results in a denial of a borrower's access to Direct Loans because of the borrower's race, gender, color, religion, national origin, age, disability status, or income.
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