Loans

Student Loans
Palo Alto College offers two (2) types of loan programs at this time – short term and long term loans. The amount students can borrow depends on individual program limits. Repayment of the long-term loans begins six (6) months after graduation or from the date of below half-time enrollment. Short term loans are reserved for the time of registration and must be repaid within 30 days or an earlier date as dictated by district officials.

Short Term (Emergency Loans)
These loans are only available for Fall & Spring terms for registration purposes. They are limited funds and only reserved to assist with payment of tuition cost, not to exceed an average of $700. The applicant must first submit proof that he or she has applied for the FAFSA and will qualify for Pell Grant. Contact the PAC Student Financial Services office additional requirements, restrictions and availability of funds.

The Federal Family Educational Loan Program (FFELP)

• Stafford Loans
• Parent Loans (PLUS)

Student loans are borrowed money that must be paid back, with interest, just like credit cards, car & home loans. You cannot cancel payment on these loans because you didn’t like the education you received, didn’t get a job in your field of study or because you are having financial difficulty. Loans are legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years.

About the FFELP:

• These are low interest loans that are co-signed and regulated by the federal government.
• The loan funds are processed and obtained through a private lender such as a bank, credit union or loan servicer.
• The school (not the lender) is responsible to determine loan awards after all other financial aid has been awarded.
• The choice of the lender is the sole responsibility of the student loan borrower.
• Loan awards are based on guidelines set by the Department of Education, annual loan limits, and our Default Prevention strategies.
• Every loan request is considered on a case-by-case basis.
  

Application Requirements:

• Current year FAFSA on file and complete.
• Enroll as an official PAC student in an Associate Degree, Certificate or Transfer Program and in the core curriculum for the chosen major.
• Enroll for at least time (6 credit hours) in college credit courses.
• Transfer/Transient students within the same award year are not awarded loans.
• Meet Satisfactory Academic Progress (SAP) requirements.
• Transfer Students: All transfer students must submit copies of transcripts from all other colleges, except ACC colleges. attended to determine academic progress and grade level (freshman or sophomore).

Requirements for New Freshman Borrowers:

• Required to wait 30 days after the first official class day of the loan period for the disbursement of the first loan funds.
• These students must have an alternative method of paying tuition, fees and other educational expenses without the loan.

Loan Counseling

• Loan Entrance Counseling is required for all borrowers before the first loan funds can be disbursed to the borrower.
• Loan Exit is required for all borrowers during the last semester of at least half-time enrollment.
• Both types of loan counseling are available on line. - Stafford Loan Counseling.
• Loan counseling is not required for PLUS borrowers.
• A TRANSCRIPT HOLD will be placed on the students’ admissions record until Exit Counseling has been satisfied.

Stafford Loan Counseling

Application Processing Steps
Step 1:
Student/Applicant complete the PAC Lender Selection Authorization Form (LSAF) – Only available in the PAC Student Financial Services office at this time.

Select a Lender

Step 2:
1. The PAC/SFS advisor will determine loan award only after Pell Grant and other aid has been awarded.
2. The approved loan amount will be posted on www.alamo.edu. Click to Palo Alto College, then to “Login to Student Services” to Accept Award. Scroll down to see messages concerning your award & disbursement information.
3. If your loan application is not approved, a letter of denial will be mailed to the address on the application.

Step 3: Federal Guarantee
After your loan has been approved and certified by the school, the application data will be transmitted to the Texas Guarantee Student Loan Corporation (TG) for federal guarantee.

Step 4: THE MASTER PROMISSORY NOTE (M.P.N.)
1. The TG will notify your lender of your loan guarantee. A Master Promissory Note (MPN) will be mailed directly to you from TG with an instructional cover page and two (2) copies of the MPN. Read it thoroughly and carefully. You must immediately mail one completed copy of the MPN to your lender. Keep one copy for your records.
2. If you are a previous borrower and using the same lender, you may not receive a new MPN. Your current MPN is valid for up to ten (10) years. Check with your lender to be sure you have a valid MPN on file. Also, call your previous lender to make sure that they are still participating in the FFELP program.
3. A Disclosure Statement will be sent to your from your lender/servicer. This form will indicate the approved loan amount for the award period and the estimated dates that your loan funds will be sent to the school.

Step 5: Disbursement of Loan Funds
1. The lender will process your loan funds after they receive the MPN from you and will send the funds directly to the school. A Master Check will be printed and made payable to Palo Alto College.
2. The Student Financial Services Office will post the net loan funds from the Master Check directly into the students PAC tuition billing account.
3. The loan funds will first pay any outstanding balances (tuition, fees, payment plan, Short Term Loan, etc.)
4. A check for the remaining amount of your loan funds will be generated and issued to the student at the next scheduled check disbursement date provided by the Bursar’s Office.

APPLICATION DEADLINE DATES: FALL – Oct 27 SPRING – March 27
Loan Applications are not accepted during peak registration periods.