Financial Aid Loans

Types of Loans

Federal Stafford Subsidized Loans: Subsidized Stafford loans are awarded based on need. The interest rate is fixed at 5.6% (beginning for loans first disbursed from July 1st 2009 to June 30, 2010). Please note that all of the lenders on our suggested lender list offer interest rate discounts or principal cancellations of their loans that can save you money, if you meet certain repayment incentive benchmarks.

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  • No payments are required while you are in college.
  • Repayment begins six months after you leave college, graduate, or drop to less than half-time attendance.
  • Eligibility is need-based.
  • Interest is paid by the federal government while you are in college, during an approved deferment period, and during your grace period.

Federal Stafford Unsubsidized Loans:  All full-time students who are a least half-time are eligible for unsubsidized Stafford loans which are not awarded based on need. The interest rate is fixed at 6.8%.

  • Interest starts to accrue immediately upon disbursement. Making interest payments while you are in college is recommended and can save you a considerable amount of money.
  • Repayment begins six months after you leave college, graduate or drop to less than half-time attendance.
  • Interest that is not paid while you are in college will be added to the principal of the loan (capitalized) when you enter repayment.
  • Interest accrues on the loan while you are in college, during an approved deferment period, and during the grace period.

Stafford Debt Management Counseling

Stafford Loan Exit Counseling

Stafford Loan Lender List

  • Lender List
    NOTE: SLFA 833789 is no longer on this list. No new borrowers for this lender code- only prior borrowers. US Bank (827269) will no longer accept applications
Loan disbursement and repayment

Loan funds are disbursed the third week of each term, and the loan is equally divided over the terms you will be enrolled (at least six hours per term) during the academic year. Loan proceeds are electronically transmitted to PCC and posted to your student account. These funds are applied to your PCC college charges. If your loan amount exceeds your charges and creates a credit balance, the funds will be refunded to you. Prior to disbursement, students need to sign the award notification, complete debt management counseling and submit a Stafford Loan Request to the financial aid office. PCC recommends all materials be submitted a minimum of 2 weeks prior to the end of the loan period. Example, if the loan period ends with Winter 2010, the documents would need to be in the financial aid office by March 5th 2010.

Loan repayment begins 6 months after you complete the program, or drop below half-time, which is 6 credits at PCC. Your lender and PCC will be in communication with you prior to the end of the 6 month grace period.

Deferring interest

Depending on the financial need of the student, Stafford Loans can be subsidized (interest paid by the Federal Government while you are in school) or unsubsidized.

Subsidized
The loan is awarded on the basis of financial need. The student will not be charged any interest before they begin repayment or during authorized periods of deferment. The federal government "subsidizes" the interest during this time.
Unsubsidized
The loan is not awarded on the basis of need. The student will be charged interest from the time the loan is disbursed until it is paid in full. If the student allows the interest to accumulate while in school or during other periods of nonpayment, it will be capitalized (the interest will be added to the principal amount of your loan), and additional interest will be based on that higher amount.
Who is eligible?

In most circumstances, you are eligible for Stafford Loan if you are:

  • admitted and enrolled at PCC for at least half-time
  • a U.S. citizen, national or eligible non-citizen
  • enrolled in a degree/certificate program
  • meeting Academic Satisfactory Progress
  • not in default on any student loans or owe a refund to any educational grant program
How much can I borrow?
The amount you can borrow depends on your grade level, dependency status and your federally-defined need and your aggregate borrowing. There are new limits effective for Stafford loans first disbursed on or after July 1, 2008
Stafford Loan Maximums

 

Dependent Student

Independent Student or Dependent Student Whose Parent is Ineligible for PLUS

First-Year Undergraduates

Base Stafford loan eligibility (subsidized and unsubsidized)

$3,500 $3,500

Additional unsubsidized Stafford loan eligibility

$2,000 $6,000
Maximum First-Year Total $5,500 $9,500

Second-Year Undergraduates

Base Stafford loan eligibility (subsidized and unsubsidized)

$4,500 $4,500

Additional unsubsidized Stafford loan eligibility

$2,000 $6,000
Maximum Second-Year Total $6,500 $10,500
What are the rates of interest?
Effective for Stafford loans first disbursed on or after July 1, 2006 the interest rate was fixed at 6.8 percent. Loans disbursed prior to July 1, 2006 will carry a variable rate adjusted annually as of July 1 of each year. However, as of July 1, 2009 subsidized Stafford loans will be a 5.6% through June 30, 2010.. Federal unsubsidized Stafford loans remain at 6.8%.
How do I apply?
  1. You must first submit a FAFSA, including PCC's school code 003213.
  2. Submit any required documents to PCC.
  3. PCC will mail the Award Notification to you. Review and determine if you need the loan debt offered.
  4. Complete Debt Management Counseling, (also referred to as Entrance Counseling) which is a one-time requirement.
  5. Go to the PCC Stafford Loan Lender List. Review the lenders and select one. Portland Community College is providing a list of lenders, however, Portland Community College will certify a loan application from any participating Stafford Loan lender you choose. If you have not completed the Master Promissory Note with that lender, do so at this time. The MPN is valid for 10 years providing you do not change lenders. The MPN will be signed with the federal PIN number. If you do not have a PIN, get one now.
  6. Return the white copy of the Award Notification to PCC, plus the Loan Request.
  7. After the loan information is sent to the lender, you will be notified by PCC.
Borrower's Rights
This printable PDF document details your Borrower's Rights.

PCC Code of Conduct

Federal PLUS Loan

At PCC, federal PLUS loans are for parent(s) of dependent students while attending at least half­time – 6-8 credits.  The Parent PLUS Loan program helps you pay for your son’s or daughter’s education over an extended period of time with a low interest loan.  Because you are borrowing to pay for higher education, the program offers additional benefits – like postponement of loan principal payments if you become unemployed or experience economic hardship. 

PLUS Loans are part of the Federal Family Education Loan Program (FFELP).  FFELP also offers Stafford Loans, which your son or daughter can take out on his or her own behalf.  The Stafford Loan program has a lower interest rate than the PLUS Loan program and offers more benefits such as postponement of loan payments when your son or daughter is enrolled in school.

The amount you may borrow annually is determined by subtracting the financial aid awarded to your son or daughter (including any Stafford Loans) from the total cost of attendance determined by the school.  There are no annual or aggregate borrowing limits set by the federal government, but some lenders may have limits.  Ask you lender for details.

Loans disbursed after July 1, 2006 have a fixed interest rate of 8.5 percent.  Older, existing loans may have a lower rate.  You may pay fees of up to 3 percent of the loan principal amount.

If you are a parent borrower, for loans disbursed after July 1, 2008, you may request the payment on principal be deferred for the six month period that follows any period when you are enrolled at least half-time (Post Enrollment Deferment) and any period when the student beneficiary is enrolled at least half-time for the six month period that follows (Post Enrollment Deferment).

PCC is providing a list of Potential Lenders; however, PCC will certify a loan application from any participating Stafford Loan lender you choose.  Lenders on our Potential Lender list are there because of their customer service and borrower benefits.  The lender is the institution from which the money is actually borrowed, but the interest rates and terms of the loan are set by the U. S. Department of Education.  Some lenders offer special incentives that reduce your loan balance or lower your interest rates.  You may want to visit their web sites for more information. PCC recommends researching your choice of lenders.

Parents complete a Master Promissory Note under which they may receive multiple Federal PLUS Loans from the same lender for the same dependent student over a maximum ten-year period. Parents are responsible for paying the principal amount of the loan and all interest that accrues from the date of disbursement until the loan(s) is paid in full.

What are the requirements?

As a parent borrower, you must be:

  • a student's natural or adoptive mother or father
  • eligible stepparent, if income and assets are considered in the Expected Family Contribution (EFC)
  • borrowing on behalf of a dependent undergraduate student
  • either a U.S. citizen, U.S. national or eligible non-citizen
  • not in default on any education loan or owing a refund on any educational grant
  • not on record with adverse credit history as defined by the U.S. Department of Education
How do parents apply?

Follow these steps:

  1. Student and parent must complete the FAFSA, including the PCC code: 003213.
  2. Submit any documents PCC requires.
  3. Review the Award Notification mailed to the student and determine the loan amount needed.
  4. Go to PCC website for PLUS Lender List. NOTE: SLFA 833789 is no longer on this list. No new borrowers for this lender code- only prior borrowers. US Bank (827269) will no longer accept applications
  5. Review lenders and select one. Do an online credit check. If approved*, complete the Master Promissory Note for the selected lender, if not done previously, signing with your federal PIN number.
  6. Print the 2009-10 PLUS Loan Request form
  7. Submit the Loan Request form to PCC by mail or fax to (503) 977-4965. Mail to PCC Financial Aid, PO Box 19000, Portland, OR 97280

*Parents must pass a credit check. If they do not pass, they may still be able to receive a loan if they can demonstrate that extenuating circumstances exist or if they know someone who can pass the credit check and will agree to endorse the loan, promising to repay if the parents fail to do so.

Pre-Approval Links for PLUS Loan

Alaska Loan

Alaska Loans can only be obtained by students who maintain their residency status with the state of Alaska. Contact the Alaska Student Loan Program for additional information. New Alaska borrowers must attend an individual entrance counseling session before loan funds can be released. An exit interview must be completed when you graduate, withdraw, or drop below half-time enrollment.

Federal Perkins Loan

The Perkins Loan is a fixed 5% deferred-interest loan based on financial need as determined by federal and institutional guidelines. Portland Community College is your lending institution for this loan. No interest accrues on this loan while you are enrolled at least half-time. Repayment begins nine months after you leave PCC. You must complete an entrance counseling session each year you are awarded Perkins funds. Also required is completion of a Perkins Statement of Rights/Responsibilities, Perkins Reference Form and a Perkins Master Promissory Note. When you sign the Perkins MPN, you authorize PCC to certify new loans for the duration of your education at PCC (up to 10 years) without any further MPN signatures. When you graduate, withdraw or drop below half-time, you are required to complete an exit interview. Perkins Loans are prorated based on your enrollment.

Nursing Loan

The Nursing Loan is funded through the Department of Health and Human Services. It is a fixed 5% deferred-interest loan based on financial need as determined by federal and institutional guidelines. Portland Community College is your lending institution for this loan. No interest accrues on this loan while you are enrolled at least half-time in the Nursing Program and is only available to those students enrolled in the Nursing Program. Repayment begins nine months after you leave PCC or are no longer enrolled in a Nursing program. You must complete entrance counseling each year you are awarded Nursing Loan funds. Also required is completion of the Nursing Statement of Rights/Responsibilities, Nursing Reference Form and a Nursing Master Promissory Note. The Nursing MPN must be signed each term in the student loan office before funds may be disbursed. When you graduate, withdraw or drop below half-time, you are required to complete an exit interview.