4 1 406.4 William D. Ford Federal Direct Loan Program

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TECHNICAL COLLEGE OF THE LOWCOUNTRY
PROCEDURE
PROCEDURE NUMBER:

4-1-406.4

PAGE:

1 OF 3

PROCEDURE TITLE:

William D. Ford Federal Direct Stafford Loan
(Direct Loan) Program

BASED ON POLICY:
REVISION NUMBER:

4

OFFICE OF
RESPONSIBILITY:

FINANCIAL AID

PRESIDENT

February 21, 2018__
DATE

PURPOSE
The purpose of this procedure is to outline the criteria for determining a student’s
eligibility for the Federal Family Educational Loan: Federal Stafford Loan and the
process for administering student loans.
PROCEDURE
1. Eligibility Requirements
a. A student must be enrolled at least half time.
b. A student is required to be enrolled at the College and seeking a degree,
diploma, or certificate as well as registered in courses within their program of
study to obtain a loan.
c. A student must complete a Free Application for Federal Student Aid (FAFSA)
form.

TECHNICAL COLLEGE OF THE LOWCOUNTRY
PROCEDURE
PROCEDURE NUMBER:

4-1-406.4

PAGE:

2 OF 3

d. A student receiving a loan must make Satisfactory Academic Progress as
defined in Procedure 4-1-404.10 in order to continue to receive a loan.
e. Previous student loan debt must not exceed the federally defined limits.
f. A student must maintain a current address and phone number with TCL and the
loan company for which they have the student loan.
g. A student must complete an online entrance interview/counseling.
h. A student must demonstrate financial need as determined by the results
indicated on the Student Aid Report (SAR) in order to receive a Federal Stafford
Subsidized Loan.

2.

i.

A student must have completed the verification process prior to the certification
of the student loan and within the prescribed deadlines.

j.

A student with less than half-time enrollment status will be reported to the
guaranteeing agency within sixty (60) days of an academic term through the
National Student Loan Clearing House.

Processing Loans
a. A student meeting the qualification requirements listed above will then complete
an in-house student loan request which includes the following information:
(1)

Loan type and amount requested;

(2)

Identifying the semesters the student plans to attend.

b. The student may meet with the Financial Aid Counselor to address any questions
concerning the process, application or requirements.
c. The Financial Aid office will process the loan paperwork and forward the
information electronically to the US Department of Education. The student is
responsible for completing the MPN (Master Promissory Note) in a timely manner
to ensure that deadlines are met for processing within the term requested.

TECHNICAL COLLEGE OF THE LOWCOUNTRY
PROCEDURE
PROCEDURE NUMBER:

4-1-406.4

PAGE:

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3. Disbursement of Funds
a. Upon receipt of an approved student loan certification, students will be allowed to
charge books and tuition to their student campus bookstore accounts.
b. New, first time freshmen students may be subject to a thirty (30) day hold as
required by the U.S. Department of Education and guidelines.
c. Students who are receiving a one term only loan may be subject to two (2)
disbursements (disbursement date and mid-term) as required by the U.S.
Department of Education.
d. Student loans are not certified until the published disbursement date and when
the student is attending not fewer than six (6) credit hours of their course load.
Remaining funds are disbursed within fourteen (14) days after the loan is
certified. No funds are drawn from the US Department of Education until the loan
certification is final. Disbursement dates and the disbursement of all Title IV
funds, including student loans, are the responsibility of the Business Office.
e. The Financial Aid Office provides certification of loan eligibility to the Business
Office.
f. Upon receipt of notification of the completed certification, including the student’s
attendance, the Business Office will process refunds to the student, as outlined
by the Title IV/PELL disbursement schedule.
g. Student loan funds returned to the Business Office as the result of an outdated
mailing address will be canceled. All funds will be returned to the US
Department of Education as is the mandated requirement.
4. Exit Interview/Counseling
a.

Exit interviews/counseling will be required for all loan students who either
graduate, drop below half-time enrollment or withdraw from college. The
purpose of exit interviews/counseling is to informs students about their rights
and responsibilities as a loan borrower, repayment procedures, deferment
options, and default liabilities.
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