Federal Direct Loans

Approved loan amounts will be viewable through the My Financial Aid Portal under "Awards" once the loan has been processed. Standard processing timeline for loan requests are 2 – 4 weeks.

Your loan funds are disbursed once each semester (Fall and Spring), generally 30 days into the term.

Please make sure you have set up direct deposit in Touchnet to receive your funds. Students who do not set up direct deposit will be paid by electronic check sent to their email address.

The Federal Direct Loan amount that you are eligible to borrow each academic year (Fall, Spring and Summer) is limited by: 

1. your grade level at IVC*;
2. whether you are a dependent or an independent student;
3. your unmet financial need; and
4. your cost. You cannot borrow more than your unmet financial need or the cost of your attendance at IVC.

Since IVC is a two-year institution, you may not borrow more than the second-year amount, even if you are enrolled for a "third year."

*Students who have not completed at least 30 units at IVC and/or Saddleback College but would like to request the sophomore second-year loan amount must submit transcripts showing 30 completed units from their prior school to the IVC Financial Aid Office for consideration.

Undergraduate Dependent Students can borrow a maximum total of $31,000 (of which no more than $23,000 can be subsidized loans).

Undergraduate Independent Students can borrow a maximum total of $57,500 (of which no more than $23,000 can be subsidized loans).

For the Federal Direct Subsidized Student Loan, the federal government will pay the interest until your six-month grace period ends. Repayment begins six months after you ceased to be enrolled as a student with at least half-time status.

For the Federal Direct Unsubsidized Student Loan, the government will not pay interest while a student is in school. Interest accrues and must be paid or capitalized during periods of enrollment in school and/or deferment.

Current interest rates can be found on the Federal Student Aid website. 

For student loans, an origination fee of the total loan will be assessed and deducted automatically. The net disbursement will reflect these fees; therefore, the amount credited to the student's account will be less than the loan amount. 

This fee is determined by the U.S. Department of Education. Current amounts are available at Federal Student Aid. 

Loan Entrance Counseling is required for all student borrowers applying for a Federal Direct Loan at IVC. Counseling can be completed online and will help you understand your rights and obligations as a student loan borrower. 

Entrance counseling must be completed, and proof of completion must be emailed to the financial aid office at ivcfao@ivc.edu, before you can submit your Federal Direct Loan Request Form for processing. 

Other required steps are needed before we can process a Federal Direct Loan Request (please see Federal Direct Loan Process above). You can complete your Entrance Counseling at https://studentaid.gov/entrance-counseling/.

A signed Master Promissory Note is required for all student borrowers applying for a Federal Direct Loan at IVC. The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). 

A Master Promissory Note (MPN) must be completed and signed, and proof of completion must be emailed to the financial aid office at ivcfao@ivc.edu, before you can submit your Federal Direct Loan Request Form for processing. 

Other required steps are needed before we can process a Federal Direct Loan Request (please see Federal Direct Loan Process above). You can complete your Entrance Counseling at https://studentaid.gov/mpn/.

Federal regulations require that all student loan borrowers must have an exit interview/exit counseling when they graduate, transfer, withdraw, or drop below half-time. During exit counseling, you are reminded of your rights and responsibilities as a student loan borrower. Topics include when repayment starts, various repayment plans, deferments, loan consolidation, and consequences of default. For more information about exit counseling, please see https://studentaid.gov/exit-counseling/.

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 made. Visit http://studentaid.gov for more information.

Your student loan servicer handles all billing regarding your student loan repayment. After you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period for Direct Federal Subsidized and Direct Federal Unsubsidized loans before you have to begin repayment. For more information on loan repayment, please see https://studentaid.gov/h/manage-loans.

You have a choice of repayment plans. How much you pay and how long you take to repay your loans will vary depending on the repayment plan you choose. There are several plans available. For more information, see  https://studentaid.gov/manage-loans/repayment/plans.

Your loan provider will notify you of the date your loan repayment begins. We can't emphasize enough the importance of making your full loan payment on time. If you don't, you could end up in default, which has serious consequences. Student loans are real loans — just as real as a car loan or mortgage. You must pay back your student loans. Exit Counseling can be completed online at https://studentaid.gov/exit-counseling/.

If you defaulted, it means you failed to make payments on your student loan according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan. In other words, you failed to make your loan payments as scheduled. Your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government all can take action to recover the money you owe.

Here are some consequences of default:

• You will become immediately responsible for repayment of the entire unpaid balance of your loan and any interest you owe.
• You are no longer eligible for deferment or forbearance, and you lose eligibility for other benefits, such as the ability to choose a repayment plan.
• National credit bureaus can be notified of your default, which will harm your credit rating, making it difficult to buy a car or home, or to get a credit card.
• You would be ineligible for additional federal student aid if you decided to return to school.
• Your wages may be garnished, meaning your loan payments can be deducted from your paycheck.
• State and federal tax refunds can be withheld and applied toward the amount you owe.
• You can be sued.