Loans


Santa Fe College participates in the William D. Ford Federal Direct Loan and the lender is the U.S. Department of Education. Fees may be deferred and books may be charged to accepted loans. The amount of the deferment will be limited to the net loan disbursed. A minimum half-time enrollment status (6-8 hours) per standard term is required for consideration.

A subsidized loan is awarded on the basis of financial need. If you are eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you are enrolled at least half time, for the first six months after you cease to be enrolled at least half time, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow money for an amount up to the annual loan borrowing limit for your level of study (see below).

You might be able to borrow loan funds beyond your subsidized loan amount even if you do not have financial need. In that case, you would receive an unsubsidized loan. We will subtract the total amount of your other financial aid from your cost of attendance to determine the amount of your unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it’s paid in full. You can choose to pay the interest while in school or allow it to accumulate and be added to the principal amount of your loan. If you do not pay the interest while in school, the accumulated interest will increase the loan amount you have to repay.

You can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as you do not exceed the annual loan limits.

Subsidized and Unsubsidized Loan Limits:

Loan Limits for Undergraduate Dependent Students:

  • Dependent undergraduate student (excluding students whose parents cannot borrow Parent Loan for Undergraduate Students (PLUS Loan)
  • $5500 if you are a first-year student enrolled in an eligible program of study. No more than $3500 of this amount can be in subsidized loans.
  • $6500 if you've completed your first year of study in an associate degree program. No more than $4500 of this amount can be in subsidized loans.
  • $7500 if enrolled in a bachelor degree program of study. No more than $5500 of this amount can be in subsidized loans.

Loan Limits for Undergraduate Independent Students:

  • $9500 if you are a first-year student enrolled in an eligible program of study. No more than $3500 of this amount may be in subsidized loans.
  • $10500 if you've completed your first year of study in an associate degree program. No more than $4500 of this amount may be in subsidized loans.
  • $12500 if enrolled in a bachelor degree program of study. No more than $5500 of this amount may be in subsidized loans.

Loan Proration

Loan proration is a reduction of the standard annual loan limit for an undergraduate student. Proration of the loan amount is required if the student’s program, or the remainder of the student’s program, is less than a full academic year (24 credits) in length.

Borrower Responsibilities

Inform your loan servicer if any changes that take place in your name, permanent address, name and address of expected employer, address of next of kin, and/or your enrollment status to less than half-time.

30-Day Hold

If you are a first-year undergraduate student and a first-time borrower, SF will hold your first payment until 30 days after the first day of your enrollment period. This ensures you will not have a loan to repay if you withdraw during the first 30 days of classes.

Entrance Counseling

If this is your first Federal Direct Loan or you are transferring from another institution, you must complete Loan Entrance Counseling at www.studentloans.gov.

Master Promissory Note

If this is your first Federal Direct Loan, you must sign a Master Promissory Note (MPN), a binding legal document that lists the conditions under which you are borrowing and under which you agree to repay your loan. Go to www.studentloans.gov to complete an MPN.

Exit Counseling

Exit counseling helps students gain the fundamentals they need to understand and manage their student loan debt. The institution is required to notify every student at the school who borrowed a Stafford loan if the student ceases to be enrolled at least half time. You will receive exit counseling information through your eSantaFe account and/or via mail. It is important that you complete exit counseling to understand repayment options and your rights and responsibilities as a borrower. It is very important that you make your full loan payments on time either monthly or according to your repayment schedule. If you fail to make your payments on a timely basis, you will be in default, and face serious consequences that will impact your future finances.

Repaying Your Loans

After you graduate, leave school, or drop below half-time enrollment, you will have six months or grace period before you have to begin repayment. If you are a parent reading this and you have a Direct PLUS Loan, you do not have a grace period and must begin repayment within 60 days after the loan is fully disbursed. You have a choice of repayment plans. Your monthly payment will depend on the size of your debt and the length of your repayment period. Click here for a guide that explains available repayment options, includes examples of monthly payments for different loan amounts, and covers other topics you need to consider when managing your loans. Click here to access useful Student Loan Repayment Calculators.

Loan Type Borrowed Amount Interest Rate Monthly Payment Total Interest in Repayment Total Paid Total Months
Direct Loan 3500 6.0 50.00 818.59 4318.59 87
Direct Loan 5500 6.8 51.79 1714.80 6214.80 120
Direct Loan 9500 6.8 109.33 3619.60 13119.60 120
PLUS 5000 7.9 60.40 2248.00 7248.00 120
PLUS 11000 7.9 132.88 4945.60 15945.60 120

How will I get the loan money?

For the Direct Loan program, you will be paid through your school in at least two installments. No installment may exceed one-half of your loan amounts. Your loan money is first applied to pay for tuition, fees, and other school charges. If loan money remains, you will receive the funds however you specify – either on your SF Smartcard (Higher One card), direct deposit, or by check.

Get Your Loan Information

The U.S. Department of Education’s National Student Loan Data System (NSLDS) allows you to access information on loan and/or federal grant amounts, your loan status (including outstanding balances), and disbursements. Go to www.nslds.ed.gov to access this information. For information regarding general loan terminology visit here for Financial Aid TV. For commonly asked questions regarding loans visit here for Financial Aid TV. For more information regarding Direct Loans visit here for Financial Aid TV. For more information regarding repayment on Direct Loans visit here for Financial Aid TV.

Federal Direct PLUS Loan Program (Parent Loan)

Parent PLUS Loans are an unsubsidized loan for which a parent may apply for their dependent undergraduate student. These loans are to help pay student’s education expenses by borrowing up to the Cost of Attendance, less the total financial aid awarded to student.

Who is eligible for a Direct PLUS Loan?

  • Must be a parent (biological, adoptive, or in some cases stepparent) of a dependent undergraduate student.
  • Borrower and dependent must be US citizens or eligible noncitizens
  • Borrower and dependent must not be in default on any other federal loans or owe overpayment to the any previous federal aid program.
  • Student must be enrolled at least half-time (6 credit hours) and enrolled in course work in the degree they are seeking
  • Student must meet the general requirements for federal student aid, including requirements for Satisfactory Academic Progress (SAP).

How to apply for a Direct Plus Loan?

  • Student must complete a Free Application for Federal Student Aid (FAFSA).
  • Parents must complete a Federal Direct Plus Loan application at www.studentloans.gov The borrower is subject to a credit check.
  • Parents must complete a Master Promissory Note (MPN).
  • Parents must complete a SF Federal Direct Parent Loan Program (PLUS) School Certification Request Form (available on our website) and return to the Financial Aid office.

Other Important Information

  • Interest Rate & Loan Origination Fees: www.//studentaid.ed.gov/types/loans/plus
  • Disbursements: PLUS loans are disbursed with the same parameters as other Direct Loans. All deferments will be paid prior to the remaining balances being disbursed based on borrowers preference.
  • Repayments: PLUS repayments begin once the loan has been fully disbursed.
  • PLUS loans are non-transferable to the student. The borrower is responsible for repaying the loan(s).
  • If a PLUS is denied a dependent student may request to be awarded additional unsubsidized loans by completing Revision of Award Request Form (available on our website) For further information regarding Direct Plus Loans information visit www.studentloans.gov or www.studentaid.ed.gov or watch a short Financial Aid TV video

Important Reminder for First Time Loan Borrowers

First Time Loan Borrowers Have a 30-Day Hold:

If you are a first-year undergraduate student and a first-time borrower, SF will hold your first payment until 30 days after the first day of your enrollment period. This ensures you will not have a loan to repay if you withdraw during the first 30 days of classes.