What types of Direct Loans are available?

Subsidized Loans are for students with financial need as determined by federal regulations. No interest is charged while you are in school at least half-time, during your grace period, and during deferment periods.

Unsubsidized Loans are for students and are not based on financial need. Interest is accruing immediately during in-school, grace period and deferment.  Interest accruing during these periods may be paid or capitalized. 

PLUS Loans are available to credit-worthy parents of dependent undergraduate students.  Parents may borrow the difference between the student’s total cost of education and all other aid the student is receiving.  

Consolidation Loans allows students or parents to combine one or more of your federal education loans into a new loan that offers several advantages such as one monthly payment, flexible repayment options, or reduced monthly payments.  Before making a decision to consolidate your federal student loans, consider factors such as the affordability of your monthly payments, the number of payments you need to make to multiple lenders, the interest rates on each of your loans, and how much you are willing to pay over the long term.  Parent PLUS Loans cannot be consolidated with the student’s loans.

What are the eligibility requirements?

You must be enrolled at least half-time (6 credits) at the College and you must meet general Title IV eligibility requirements.

How do I apply for the DL Program?

The process is similar to what you have used in the past. You must complete the Free Application for Federal Student Aid (FAFSA) and check on the application that you wish to be considered for a loan. Community College of Philadelphia will then review the application and notify you of the eligibility for the loan and the maximum amount.

Will a new Master Promissory Note (MPN) need to be completed?

All current FFELP borrowers and any new borrower will have to sign a new electronic Federal Direct Loan Application/Master Promissory Note (MPN).  The Direct Loan process will be completed online. The E-MPN can be completed at www.studentloans.gov. The MPN will only need to be signed once (good for up to 10 years); as loans are requested for subsequent years, the loans will be added to your Master Promissory Note. The MPN explains the terms and conditions of your loan and is your legally binding agreement to repay your loan to the Department.  Students will need the Department of Education issued PIN to complete the process.

Will a new PLUS Master Promissory Note (MPN) need to be completed?

Parents of dependent Undergraduate students and Graduate students who have previously borrowed under FFELP and any new borrower will be required to complete a new electronic Federal Direct PLUS Loan Application/Master Promissory Note (PLUS MPN).  The Direct PLUS Loan should be applied for the academic year.  The loan cannot be applied for more than 90 days before the start of the academic year.  The Federal Direct PLUS Loan application process involves two steps:

• Complete the Community College of Philadelphia Federal Direct PLUS Loan Request Form
• Complete the Federal Direct PLUS Loan Master Promissory Note (MPN) at www.studentloans.gov.

If your loan application is not approved, you will be contacted by the Federal Servicer (in writing) and given the option of appealing the credit decision or resubmitting the application with a credit-worthy endorser.  Questions concerning your credit decision should be directed to the Federal Servicer’s Applicant Service at 1-800-557-7394. 

You must have a Department of Education issued Personal Identification Number (PIN) before completing and signing the electronic MPN.  If you do not have a Federal PIN, or have lost your PIN, you may obtain one at the Federal PIN Website, www.pin.ed.gov.

Who should I contact about application questions?

Application questions should be addressed to the Financial Aid Office.  You may email financialaid@ccp.edu or call (215)-751-8271.

What happens if some of my federal student loans are serviced by a lender/guarantor and another part of my loans will be serviced through the Department of Education?

The source of the loan application and funding is semester and year specific. The combination of FFEL Program and DL loans is not unusual. In the case of the DL Program, since the choice to participate in either FFEL Program or DL is a decision that each school must make, it already happens that you could have loans in both programs. This is the case if you begin your education at a school that uses the DL Program and then transfer to a school using the FFEL Program; you would have loans with each program. In order to make repayment to one source once repayment starts, you may take out a federal consolidation loan which combines both types of loans into a single loan.

What if my loans are not consolidated? 

Your lender will send information about repayment and notify you of the date repayment will begin.  Under FFEL Program, you will repay to a private lender or their designated loan servicer that made the loan.  Under DL, payments are made to the Direct Loan Servicing Center.  You will make separate monthly payments to each servicer.  It is recommended that you visit the National Student Loan Data System (NSLDS) Student Access website at www.nslds.ed.gov.  NSLDS provides a central database for student aid.  You will need your Federal Student Aid PIN to access the website 

How does the Federal Direct Consolidation process work? 

Once you graduate or choose to no longer attend school on a half-time basis, you can contact the DL Program for an application for a Direct Consolidation Loan, which will combine the FFEL Program and DL loans into one type of loan. When it comes time to begin repaying the loans, you will be provided with several options concerning consolidation to be able to choose which one has the greatest advantage.  You may call the U.S. Department of Education Consolidation Department at 1-800-557-7392 or visit www.loanconsolidation.ed.gov.

Who do I call about loan repayment questions?

Direct Loan Servicing Center Customer Service Representatives are available to answer borrower phone calls at 1-800-848-0979 from Monday through Friday 8:00 am E.S.T. to 8:30 pm E.S.T. or visit www.studentloans.gov.

How can I keep track of my Federal Student Loans borrowed?

We recommend that you visit the National Student Loan Data System (NSLDS) Student Access website at www.nslds.ed.gov.  NSLDS provides a central database for student aid and allows students access to view information from schools, guaranty agencies, the Direct Loan program, as well as other programs; which is a valuable tool in managing your federal student loan information.

You will need your Federal Student Aid PIN to access the website; you have used the PIN when electronically signing your loans or when completing your FAFSA.  You can request a duplicate PIN be sent to you at www.pin.ed.gov.