Galveston College Financial Aid
 

Loans

Students loans, unlike grants and work-study, are borrowed funds that must be repaid, with interest. Galveston College participates in the William D. Ford Federal Direct Loan Program. Federal Direct Loans include Direct Subsidized and Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.

Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college. Subsidized loans are low-interest loans for financially needy undergraduate students. Interest does not accrue while the student is in school and during certain periods. You must have financial need to receive Direct Subsidized Loans.

Direct Unsubsidized Loans are low-interest loans for undergraduate and graduate students. Students are responsible for the interest for the life of the loan, including when they are in school. Financial need is not a requirement to obtain a Direct Unsubsidized Loan.

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education (the Department). Direct PLUS Loans are unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

Parent Eligibility Requirements

You must be the student’s biological or adoptive parent or the student’s stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program. For financial aid purposes, a student is considered “dependent” if he or she is under 24, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid is submitted. (Exceptions are made for veterans, wards of court, and other special circumstances.) If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA.

Additional Requirements

Parent PLUS Loan borrowers cannot have an adverse credit history (a credit check will be done). In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs. You can find more information about these requirements in Funding Education Beyond High School: The Guide to Federal Student Aid.

Applying for a PLUS Loan and the Master Promissory Note (MPN)

To take out a PLUS Loan for the first time, you must complete a PLUS Application and master promissory note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). The MPN will be provided either by your child’s school or the Department.

You must complete the MPN electronically, you can do so online at StudentLoans.gov. If you are borrowing Direct PLUS Loans for more than one student, you’ll need to complete a separate MPN for each one. To complete an MPN online, you will be required to use your Department of Education-issued PIN (not your child’s). If you do not have a PIN, you may request one from the official PIN site.

In most cases, once you’ve submitted the MPN and it’s been accepted, you won’t have to fill out a new MPN for future loans you receive to pay for the educational expenses of the same student. You can borrow additional Direct Loans on a single MPN for up to 10 years.

You’ll receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount and loan fees, and the expected loan disbursement dates and amounts.

Credit Check & Endorser Alternative

A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history or documenting to the U.S. Department of Education’s satisfaction extenuating circumstances relating to your adverse credit history. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.

Loan Limits, Interest Rate, and Loan Charges

There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child’s education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. The school will determine the actual amount you may borrow.

The interest rate for Direct PLUS Loans is fixed. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan’s first disbursement. To find out more information on interest rates for Direct PLUS Loans, contact your loan servicer.

In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. We deduct the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds.

How a Loan is Disbursed

Generally, your loan will cover a full academic year and your child’s school will make at least two disbursements to you, for example, at the beginning of each semester or quarter or at the beginning and midpoint of your academic year.

In most cases your child’s school will disburse your loan money by crediting it to your child’s school account to pay tuition, fees, room, board, and other authorized charges. If the loan disbursement amount exceeds your child’s school charges, the school will pay you the remaining balance of the disbursement directly by check or other means. In some cases, with your permission, the school may disburse some of the PLUS Loan money directly to the student. Your child’s school will notify you in writing each time they disburse part of your loan money and will provide information about how to cancel all or part of your disbursement if you find you no longer need the money. You will also receive a notice from us confirming the disbursement. You should read and keep all correspondence received concerning your loan.

How to Repay the Loan

The repayment period for a Direct PLUS Loan begins 60 days after you have received the last installment of the loan for that school year. This means that you generally must begin repayment while your child is still in school. However, you may be able to defer making payments while your child is enrolled.

Using the Loan for Education Expenses

You may use the loan money you receive only to pay for your child’s education expenses at the school that is giving you the loan. Education expenses include school charges such as tuition, room and board, fees, and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation, and rental or purchase of a personal computer.

 

First Step – Complete the Free Application for Federal Student Aid (FAFSA)Please note, you must complete a new FAFSA for each academic year. The academic year begins with the fall semester and ends with the summer semester at Galveston College.

2022-2023: This application is for the 2022-2023 academic year (Fall 2022, Spring & Summer 2023)

Second Step – If you are requesting a Direct Subsidized or Unsubsidized Loan for the fall, spring or summer terms, please submit the Loan Request and Adjustment Form.

If you are requesting a PLUS loan, please log on to StudentAid.gov and select “Apply for a PLUS Loan” under the “Apply for Aid” tab. Once your parent has received the confirmation please forward the email to finaid@gc.edu.

Third Step – Complete the Entrance Counseling by logging on to StudentAid.gov and selecting “Complete Entrance Counseling” (Please choose undergraduate counseling type) under the “Complete Aid Process” tab.

Fourth Step – Submit the Loan Request and Adjustment Form and confirmation of your complete Loan Entrance Counseling to finaid@gc.edu. The forms, counseling confirmations, and status update request must come from your Galveston College Whitecaps email.

Fifth Step – Once your loan has been awarded, sign the Master Promissory Note (MPN) by logging on to StudentAid.gov and selecting “I'm an Undergraduate Student Log In To Start". You are encouraged to download or print a copy of your MPN for your records. We recommend waiting until your loan award has been made before completing your MPN online.

 **If you are having difficulty completing your MPN and Entrance Counseling, please call the government’s student helpline at 1-800-433-3243.

Student Eligibility Requirements
 Must meet Title IV eligibility criteria as determined bycompleting the FAFSA
 Must be enrolled in at least six (6) hours in an active eligibledegree program to be disbursed loan funds
 First-time loan borrowers, per the federal government requirements, must have a 30-day delay hold from the first day of class before they are eligible to receive the first loan disbursement.

 

The loan disbursements will be issued as follows depending on the loan request:

 Two equal disbursements in fall and spring
 Two equal disbursements for fall only loan requests or spring only loans request
 Two equal disbursements for summer. Each summer session is a separate semester for financial aid and requires an updated Loan Request and Adjustment Form.

 

Summer loans are the same as fall or spring, you must be enrolled at least six (6) credit hours in an active eligible degree program to be disbursed loan funds.

 If you received the maximum loans during the Fall and Spring terms, additional loans are not available unless you advanced a grade level.

 If you stop attending classes, if you drop below six (6) hours during any semester, if you do not complete six (6) hours at the end of the semester, or if you graduate, you will be required to complete the exit interview online at StudentAid.gov.

Borrowers that must complete Exit Counseling 
 Fall below half-time (6 credit hours)
 Stop attending your classes
 Have totally withdrawn from the institution, or have withdrawn and are now less than six (6) credit hours
 Graduate from Galveston College Complete the Exit Counseling by logging on to StudentAid.govand selecting “Complete Exit Counseling” under the “Manage Loans” tab.

 

Responsible Borrowing

Before you take out a loan, it’s important to understand that a loan is a legal obligation that makes you responsible for repaying the amount you borrow with interest. Even though you don’t have to begin repaying your federal student loans right away, you shouldn’t wait to understand your responsibilities as a borrower.

 Keep track of how much you’re borrowing. Think about how the amount of your loan(s)will affect your future finances, and how much you can afford to repay. Your student loan payments should be only a small percentage of your salary after you graduate, so it’s important not to borrow more than you need for your school-related expenses.
 Research starting salaries in your field. Ask your school for starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate. You can also use the U.S. Department of Labor’s Occupational Outlook Handbook or career search tool to research careers and salaries.
 Understand the terms of your loan and keep copies of your loan documents. When you sign your promissory note, you are agreeing to repay the loan according to the terms of the note even if you don’t complete your education, can’t get a job after you complete the program, or you didn’t like the education you received.
 Make payments on time. You are required to make payments on time even if you don’t receive a bill, repayment notice, or a reminder. You must pay the full amount required by your repayment plan, as partial payments do not fulfill your obligation to repay your student loan on time.
 Keep in touch with your loan servicer. Notify your loan servicer when you graduate; withdraw from school; drop below half-time status; transfer to another school; or change your name, address, or Social Security number. You also should contact your servicer if you’re having trouble making your scheduled loan payments. Your servicer has several options available to help you keep your loan in good standing

 

Current Interest Rates

The interest rates for Direct Subsidized Loans and Direct Unsubsidized Loans are shown in the chart below.

Loan Type

Borrower Type

Interest rates for loans first disbursed on or after 7/1/22 and before 7/1/23

Direct Subsidized Loans and Direct Unsubsidized Loans

Undergraduate

4.99%

Direct Unsubsidized Loans

Graduate or Professional

6.54%

Direct PLUS Loans

Parents

7.54%

The interest rates shown above are fixed rates for the life of the loan.

 Yearly and Lifetime Borrowing Limits

Year

Dependent Students (except students whose parents are unable to obtain PLUS Loans)

Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)

First-Year Undergraduate Annual Loan Limit

$5,500—No more than $3,500 of this amount may be in subsidized loans.

$9,500—No more than $3,500 of this amount may be in subsidized loans.

Second-Year Undergraduate Annual Loan Limit

$6,500—No more than $4,500 of this amount may be in subsidized loans.

$10,500—No more than $4,500 of this amount may be in subsidized loans.

Third Year and Beyond  Undergraduate Annual Loan Limit

(Bachelor Degree Students Only)

$7,500—No more than $5,500 of this amount may be in subsidized loans.

$12,500—No more than $5,500 of this amount may be in subsidized loans.

Subsidized and Unsubsidized Aggregate Loan Limit

$31,000—No more than $23,000 of this amount may be in subsidized loans.

$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.

Student Loan Entrance Counseling


Register for the in-person meeting on your chosen date and time from the section below. You must register in advance no later than one hour prior to the session start time. Borrowers at Galveston College MUST attend an in-person loan counseling session in addition to the online student loan entrance counseling at StudentAid.gov once an academic year. If you do not attend one of these mandatory sessions, your student loan will not be processed and will not disburse. This means that your loan funds will not be available.

Sessions generally last 45 minutes to 1 hour. Please be sure to arrive on time as students arriving late will not be admitted.

Dates and Times for In-Person Student Loan Entrance Counseling

Wednesday, May 25th, 11:00am

Tuesday, June 14th, 1:00pm

Monday, July 18th, 11:00am

Wednesday, August 3rd, 10:00am

Tuesday, August 9th, 10:00am or 2:00pm (VIRTUAL-ZOOM)

Thursday, August 11th, 3:00pm

Wednesday, August, 17th 2:00pm                                 

Monday,  August 22nd, 11:00am

Thursday, September 1st, 2:00pm

Thursday, September 15th, 10:00am                            

Wednesday, September 28th, 1:00pm

Tuesday, October 4th, 10:00am

Monday, October 17th, 2:00pm

Entrance Counseling Session located in room R-359. Please have your FSA ID and Password. THERE WILL ONLY BE ROOM FOR 30 STUDENTS PER SESSION! Please be sure to arrive on time as no one will be admitted late.

Sign Up HERE

New dates are added monthly to accommodate new applicants for the upcoming semester. If you have any questions or do not understand this requirement, please contact:

Galveston College
Financial Aid Office
4015 Avenue Q
Galveston, TX 
(409) 944-1235
Email: finaid@gc.edu

My Federal Student Aid 

Borrowers can log in at StudentAid.gov to view their federal student loan information, including loan balances, interest rates, and loan servicer contact information.

Loan Simulator

Borrowers can use the simulator tool at StudentAid.gov to compare different monthly payment options based on their loan debt, income, and family size.

Student Loan Repayment

By visiting StudentAid.gov borrowers can learn how to make payments on their loans; find the right repayment plan; figure out what to do if they can’t afford their payments; and see what circumstances might result in a loan being forgiven, canceled, or discharged.

A cohort default rate is the percentage of a school’s borrowers who enter repayment on Federal student loans during a federal fiscal year (October 1 to September 30) and default within the cohort default period. The United States Department of Education (ED) releases official cohort default rates once per year.

The Department of Education calculates the school’s cohort default rate by dividing the number of borrowers from the school entering repayment in a cohort year and default within a 3-year period divided by the number of borrowers from the school entering repayment in the cohort year.

Important Note: Some schools have a small number of borrowers entering repayment. Other schools have only a small portion of the student body taking out student loans. In such cases, the cohort default rate should be interpreted with caution as these rates may not be reflective of the entire school population.

Academic Year Cohort Official Cohort Default Rate

National Average

Official Cohort Default Rate

(Public Community College)

FY2018 11.1% 9.7%
FY2017 13.3% 10.1%
FY2016 15.2% 10.8%

** For more information go to Federal Student Aid for Official Cohort Default Rates for Schools.

Consequences of Default

Consequences of default for students can be severe. Outstanding interest on the loan is capitalized and collection fees may be added, often resulting in a balance that is higher than the amount initially borrowed. Defaulted loans are reported to credit bureaus, causing borrowers to sustain long-term damage to their credit rating. A defaulter may also face difficulty in securing a mortgages or car loan, may have their wages garnished, and their federal income tax refunds and other federal benefits seized. Until the default is resolved (i.e. through rehabilitation or garnishment), collection efforts continue, and the defaulter will be ineligible for additional federal student aid.

Questions? Contact Us.

Hours of Operation
Monday - Thursday
07:30 AM - 06:00 PM
Closed Friday
finaid@gc.edu
409-944-1235
409-944-1505

 

Questions? Contact Us.

Hours of Operation
Monday-Friday
07:30 AM - 06:00 PM
info@gc.edu
409-944-4242
409-944-1500