Direct Student Loans

Loans are essentially money that is borrowed with a promise to pay back.

The Loan Program was designed with the intention of students borrowing money to assist with the cost of attending college, so they can earn a degree and become competitive for higher paying jobs and positions.

Direct Student Loans are a federal program that provides another option to help pay for tuition, fees, and other expenses of college.

Eligibility is determined by the information on the student's FAFSA.

• *Subsidized Loans are interest-free while you attend school at least half-time (6 credits)
• **Unsubsidized Loans begin to accrue interest at the time funds are disbursed to you and continue to accrue interest until the loan is paid in full.

When we review a loan request, our Financial Aid offices first approve Subsidized Loans and then Unsubsidized loans if necessary because it works to the student's benefit.

Students are required to be...

• Register for at least six approved/required credits each quarter.

IF a student skips a quarter, their loan request will be canceled as we do not send aid to students who are not actively enrolled in classes.

• Students will need to fill out a new loan request if they want to continue to receive loans when they resume their enrollment.

Waitlist means that you have not been formerly admitted into the class. Because of this, Waitlist credits do not count towards the 6 approved/required credits.

If you are seeking a loan and waitlisted,  here are some things to consider.

• Be Flexible: Meet with an Academic Advisor and see if there is another required class you can enroll in now, and take the waitlisted class in another quarter.
• Make alternative plans: Not reaching the 6 credits mean loans might not be an option this quarter. Finding alternate ways to pay for college may be something you need to consider.

What does it mean to prorate a loan?

• Prorating is a process to divide the loan in a proportional way based on the period a loan seeking student is enrolled.

Why does the Finanical Aid office prorate a loan?

• Every student has a limited budget. Loan funds, along with other finanical aid cannot exceed the Cost of Attendance.
• Loans are required to be prorated when a student will attend less than 3 quarters of the academic year and will be completing their program of study during that same academic year.
• The process of proration ensures that a student's loan request does not exceed the Cost of Attendance.
• Loans have limits that change based on how many credits a student has earned toward that program. See chart above.

When does the Financial Aid office prorate a loan?

A student is seeking loan funding but is planning on enrolling in 2 or less quarters and will complete their program.

• • Example: Fall and Winter, but not Spring. A student's annual cost of attendance for 2 quarters is less than 3 quarters.
  • This creates a situation where a loan may need to be prorated to ensure the student's total financial aid does not exceed their Financial Aid Budget.

You may cancel your loan any time before the disbursement of funds each quarter.

You may apply for a loan at any time during the school year. We cannot process a loan for a school year that has ended, and we typically stop processing loans two weeks prior to the end of spring quarter.

Below are some links for additional information about Loans and making a repayment:

• Managing My Loans
• Calculate My Repayment Options
• Understanding Loans
• Student Loan Advocate

First-Time/First-Year Borrowers: 30-Day Hold
If you are a first-year student (less than 45 credits towards your program at Edmonds) and a first-time Direct Loan borrower, you will have to wait 30 days into the first quarter you are eligible for loans to receive your first disbursement. 

The dates below begin the calculation of your disbursement. Funds will be sent within five business days of the applicable date. 

2023-2024 School year

• 30 days hold for First-Time/First-Year Borrowers has been removed

Mid-Quarter Disbursement Dates (One-Quarter Loans)
If you are requesting a loan for only one quarter, your disbursements will be split in two disbursements.

• The first disbursement will go out at the beginning of the quarter or once your loan is certified. However, if you are a first-year student and a first-time borrower, you will receive your disbursement 30 days into the quarter.
• The second disbursement will go out mid-quarter.

The dates below begin the calculation of your disbursement. Funds will be sent to within five business days of the applicable date. 

2023-2024 School year

• 30 days hold for Single Quarter Loans has been removed

•  Federal regulations require you to complete an Exit Counseling session upon leaving Edmonds College, whether you graduate or withdraw from school.

• You will receive an email from Edmonds College with instructions for completing Exit Counseling once you are no longer half-time, in at least six (6) credits. 

• Complete the application process with your private lender
• Once your private lender approves your application, contact our office.

• The financial aid office at Edmonds College will process loans in a timely manner. Edmonds College will not refuse to certify or delay certification based on choice of lender
• The financial aid office does not contract with any lender and does not receive any staffing assistance from lenders.
• Students are advised to borrow loans through the federal student loan programs. Private loans will not be packaged or offered from any specific lender.
• Employees in the financial aid office are prohibited from receiving gifts from lenders, guaranty agencies, or loan servicers.
• Edmonds College does not have revenue-sharing arrangements with any lender. Advisory boards will not receive compensation from any lender. Edmonds College prohibits the offer of funds for private loans.