Federal Student Loans

• Subsidized loans are need-based, low interest, federally subsidized loans. These loans have no interest while the student is in school at least six credit hours.
• Unsubsidized loans are not based on need and the interest is not subsidized by the federal government. Therefore, students are responsible for all interest accrued. More information can be found online at the Federal Student Aid - Direct Subsidized and Direct Unsubsidized Loans website.
• An origination fee may be charged by US Department of Education to students at time of disbursement.
• Repayment doesn't begin until a student is no longer enrolled at least halftime.
• Students are given a one-time six month grace period to begin their repayment.
• Visit the Federal Student Aid - Calculate Your Federal Student Loan Repayment Options with Loan Simulator website for repayment estimator.

• Students are required to complete the Free Application for Federal Student Aid (FAFSA).
• Students applying for the Direct Stafford loan must be citizens or eligible non-citizens.
• Students must be enrolled in at least six credit hours (half-time) per semester. Please note that you will not receive a disbursement until you are actively attending the six credit hours.
• Students must meet all Satisfactory Academic Progress (SAP) standards and cannot exceed their aggregate or yearly loan limits, including loans received prior to attending GCSC.
• Loans will be processed for subsidized eligibility only, unless unsubsidized loans are specifically requested on the Direct Loan Request Form.
• Students have the ability to borrow less than the maximum student loan amount allowed per semester / year.
• All students must complete Exit Counseling when they graduate, withdraw, or drop below half-time enrollment status.

Students must complete the following steps to request a Federal Direct Loan (Subsidized or Unsubsidized):

1. Complete a FAFSA by visiting the Federal Student Aid - Apply for Aid website
2. Submit a 'Request a Federal Student Loan' form in My Student Dashboard
3. Visit the Federal Student Aid website to complete –
   
   1. Entrance Counseling
   2. A Master Promissory Note
4. Returning students may also need to complete an "Annual Student Loan Acknowledgment" starting with the 2022-2023 academic year.

Once eligibility is determined, you will see award information on your My Student Dashboard. A "Notice of Guarantee and Disclosure Statement" indicating dollar amounts and disbursement dates for the terms requested will separately be mailed or emailed to you by ED within two weeks of your loan origination.

A Federal Direct Parent PLUS Loan is a credit-based low interest loan that a parent can borrow in order to fund their dependent child's education.

Parents must complete the following steps to request a Federal Direct Parent PLUS Loan:

1. Visit the Federal Student Aid to –
   
   1. Submit a Parent PLUS pre-application
   2. Complete PLUS Entrance Counseling
   3. Complete a PLUS Master Promissory Note 
   4. Complete an "Annual Student Loan Acknowledgment"
2. Ensure that your student has completed a FAFSA by visiting Federal Student Aid - Apply for Aid website
3. Submit a Federal Direct PLUS Loan Authorization Form to the financial aid office

Please note - all Federal Direct/Stafford Subsidized and Unsubsidized Loans will be awarded to the dependent student before Federal Direct PLUS loans. 

A private or alternative loan is a loan offered by a private bank / lender that DOES NOT have the same benefits as a federal loan.  A student cannot receive a private loan that is greater than the cost of education minus other financial aid received.  It is in your best interest to exhaust all grant, scholarship, work-study and Federal Direct Loan options prior to considering a private / alternative loan.  Be advised that students have federally protected rights regarding private educational loans.  Information regarding these rights can be found online at the Consumer Financial Protection Bureau website or the FDIC Law, Regulations, Related Acts website.

1. Research private / alternative loan lenders.
2. Contact the private / alternative loan lenders that you're most comfortable with based upon your research in order to inquire about their application procedure.
3. Once approved, complete and submit a Private Education Loan Self Certification Form to your private / alternative loan lender.  
4. Request private / alternative loan certification by emailing the Financial Aid Office at FA@GULFCOAST.EDU from your GCSC account.

Please note:

• GCSC uses Education Loan Management for all private / alternative loan certifications.
• Private / alternative loans will not be certified for continuing education courses, i.e. you have to be a degree or certificate-seeking student in order to receive private loan disbursement at GCSC.  

Federal	Private / Alternative
You will not have to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time.	Many private student loans require payments while you are still in school.
The interest rate is fixed and is often lower than private loans and much lower than some credit card interest rates. View the current interest rates on federal student loans.	Private student loans can have variable interest rates, some greater than 18%. A variable rate may substantially increase the total amount you repay.
Undergraduate students with financial need will likely qualify for a subsidized loan where the government pays the interest while you are in school on at least a half-time basis.	Private student loans are not subsidized. No one will pay the interest on your loan other than you.
You don’t need to get a credit check for most federal student loans (except for PLUS loans). Federal student loans can help you establish a good credit record.	Private student loans may require an established credit record. The cost of a private student loan will depend on your credit score and other factors.
You won’t need a cosigner to get a federal student loan in most cases.	You may need a cosigner.
Interest may be tax deductible.	Interest may not be tax deductible.
Loans can be consolidated into a Direct Consolidation Loan. Visit the Federal Student Aid - Consolidating Student Loans website to learn about consolidation options.	Private student loans cannot currently be consolidated into a Direct Consolidation Loan.
If you are having trouble repaying your loan, you may be able to temporarily postpone or lower your payments.	Private student loans may not offer forbearance or deferment options.
There are several repayment plans, including an option to tie your monthly payment to your income.	Private student loans may not offer forbearance or deferment options.
There is no prepayment penalty fee.	There may be prepayment penalty fees.
You may be eligible to have some portion of your loans forgiven if you work in public service.	It is unlikely that your lender will offer a loan forgiveness program.
Free help is available at 1-800-4-FED-AID and on our websites.	The Consumer Financial Protection Bureau's  private student loan ombudsman may be able to assist you if you have concerns about your private student loan.