Loans

The Federal Direct Loan Program provides eligibile students with Subsidized, Unsubsidized, or Parent PLUS loans from the Department of Education to help eligible students cover the cost of higher education.

To receive any of these loan options from the Alamo Colleges District, students must submit a request within the loan request timeframe and meet the requirements. The processing time to be awarded is 4-6 weeks.

 

Eligibility

  • Eligibility:

  • Parent PLUS loans are available to help parents pay the remaining cost of their child's education. A credit check of the parent is performed during the application and the parent will make their selections on:

      • The loan amount requested
      • The period that the loan will be paid such as fall only, fall and spring, spring only, and summer
      • Whether any refund will go to the student or parent after the student's balance is paid

     

    Eligibility:
      • Student must be classified as Dependent as determined by the FAFSA
      • Student must be enrolled in at least 6 credit hours within their degree plan
      • Student must maintain Satisfactory Academic Progress (SAP)
      • Student must complete any incomplete financial aid requirements including verification
      • Parent applying must be biological, adoptive, or a stepparent. 
      • Parent applying must have good credit history, no defaulted student or PLUS loans

Requesting Loans

  • 1. Complete the Federal Direct Loan Request through your ACES account during our published submission dates.

    How to Request a Loan on ACES

    2. Complete Entrance Counseling on studentaid.gov. This is counseling to ensure you understand your obligation to repay the loan.

    3. Complete a Master Promissory Note (MPN) agreeing to the terms of the loan on studentaid.gov.

    4. Review our Direct Loan Eligibility page for all terms and conditions.

  • 1. The parent must complete the Parent PLUS Loan Application on studentaid.gov during the submission dates.

    2. The parent must complete a Master Promissory Note (MPN) agreeing to the terms of the loan on studentaid.gov.

     

    Additional Requirements for Adverse Credit History

      • If the credit check was initially denied on the Parent PLUS Loan Application, there are options for it to be approved with an endorsers credit or with an appeal on studentaid.gov.
      • If either of these options are approved, the parent must also complete PLUS Credit Counseling on studentaid.gov. 
      • If the credit check was denied on the Parent PLUS Loan Application, the student may be eligible to borrow additional Unsubsidized loans upon request and a review of eligibility. A Co-signer Statement from the parent and student must be submitted before the student is awarded additional Unsubsidized loans.

 

Alternative Loans

Alternative student loans are funded by private lending institutions. It is highly recommend that you seek available Federal Direct Loan options from a FAFSA before you apply for an Alternative loan as they offer more benefits such as lower interest rates and they don't rely on a student's credit.

 

    • Each private lender will have their own set of eligibility criteria, interest rates, and repayment requirements. 
    • Alternative loans are based on a student’s credit history and often require a co-signer.
    • Alternative loans are primarily used when federal aid and scholarships do not cover a student's Cost of Attendance (COA).
    • The loan amount requested cannot exceed your Cost of Attendance (COA) minus other financial aid.
    • Due to Federal Lending Laws, private lenders are required to provide multiple disclosures to the student borrower and to collect a Self-Certification Form.
    • The lender will also request eligibility certification from the Alamo Colleges District. Please plan ahead as this process will take several weeks to complete.

     

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