Students borrow loans to assist in financing their college education. Student loans must be repaid to the Federal Government. After students graduate, leave school, or drop below half-time enrollment, a borrower will have an initial six-month grace period before they are required to begin repayment. Students will receive communication from a servicing agency assigned by the U.S. Department of Education to manage the loan repayment. To determine eligibility, students must complete the Free Application for Federal Student Aid (FAFSA), satisfy outstanding requirements, maintain Satisfactory Academic Progress (SAP) toward your degree, be enrolled in an eligible degree-seeking program and be enrolled at least half time (6 credits or more). The U.S. Department of Education is the lender for Direct Subsidized and Unsubsidized Stafford Loans. In accordance with the U.S. Department of Education regulations, a student’s Title IV loan information is submitted to the National Student Loan Data System (nslds.ed.gov). Authorized agencies, lenders, guarantors, servicers, and institutions have access to this information. For more information on student loans, student and parent borrowers can visit: https://studentloans.gov, https://studentaid.ed.gov, and https://nslds.ed.gov.

DIRECT SUBSIDIZED LOAN

The Federal Direct Subsidized Stafford Loan is available to prospective students who demonstrate financial need. Direct Subsidized Stafford Loans have a subsidized (government paid) interest while a student is enrolled at least half time (6 credits or more), during the initial six-month grace period, and authorized deferments approved by the assigned loan servicer. The principal payment is not required and optional for prepayment while the student is qualified for in-school deferment.

DIRECT UNSUBSIDIZED LOAN

The Federal Direct Unsubsidized Stafford Loan is available to prospective students who may not qualify for a Subsidized Stafford Loan. This loan is not based on financial need. The Unsubsidized Loan has the same basic terms and procedures as the Subsidized Loan except that interest will start accumulating from the time that the loan is disbursed. Students have the option to prepay the interest while in school or opt to defer while qualifying for an in-school deferment.

DIRECT LOAN PROCESS AND INFORMATION

Beginning with the Fall 2020 and Spring 2021 school year, students interested in borrowing a student loan (all first-time and re-entry students) are required to successfully complete the Financial Aid Application or FAFSA (the FAFSA must also be complete with no outstanding requirements), the Federal Direct Student Loan Request Form, an online Master Promissory Note (MPN), and an online Loan Entrance Counseling session before Windward Community College (WCC) can determine student loan eligibility and release the loan disbursement.  Follow the steps below to complete the loan process:

1. Complete and submit to the WCC Financial Aid Office the Federal Direct Student Loan Request Form.  Upon receipt of the Loan Request Form, the WCC Financial Aid Office will review the information and determine eligibility for student loan(s).  If students are eligible for student loan(s), an email will be sent to the student’s UH (hawaii.edu) email.
2. Click Here to complete the Direct Loan Master Promissory Note (MPN) – This is the legal binding agreement in which a borrower agrees to repay federal student loan(s) and any accrued interest and fees to the assigned loan servicer. The obligation of the borrower is to repay the full amount of the loan(s), regardless of whether the borrower completes the program, is unable to obtain employment upon completion, or is otherwise dissatisfied with or did not receive the educational or other services that the student borrower purchased from the institution. 
   • Go to https://studentaid.gov/
   • If you have not yet created an FSS ID click apply for an FSA ID here
   • Click the “Log In” button and enter your FSA ID Username and Password
   • Go to the “Complete Aid Process” drop down menu
   • From the dropdown menu, click on “Complete Master Promissory Note”
   • Look for “MPN for Subsidized/Unsubsidized Loans” and click on the blue “Start” button to the right of the screen
   • Input all of the required information, including school information at the bottom (be sure to list Windward Community College so that we receive your completed Master Promissory Note) and “Submit” when done
   • You will receive confirmation that you have successfully completed your entrance counseling at the end of the session
3. Click Here to complete an Online Entrance Counseling session for Direct Subsidized and Unsubsidized Loans – During an entrance counseling, the borrower will be able to understand the responsibilities and obligations the borrower is assuming.
   • Go to https://studentaid.gov/
   • If you have not yet created an FSA ID click Apply for an FSA ID here 
   • Click the “Log In” button and enter your FSA ID Username and Password
   • Go to the “Complete Aid Process” drop down menu
   • From the dropdown menu, click on “Complete Entrance Counseling”
   • Scroll down and look for “Complete Entrance Counseling” and then click on the blue “Start” box
   • List Windward Community College in the “Add School to Notify” box
   • Once you see Windward Community College in the “Add School to Notify” box, click the “Notify this School” button
   • Under “Select Student Type,” select the “I am completing entrance counseling to receive Direct Loans as an undergraduate student,” and click on the “Continue” button.  Follow the instructions and complete and submit your Loan Entrance Counseling
   • You will receive confirmation that you have successfully completed your entrance counseling at the end of the session

LOAN RATES AND FEES

If you receive a federal student loan, you will be required to repay the loan with interest. Interest is money paid to the lender for the loan amount borrowed. Interest is calculated as a percentage of the loan amount borrowed. You may prepay your loan principal and interest at any time. Prepayment may reduce the amount of interest you may owe. You can review the current interest rates and origination fees for direct loans at the Federal Student Aid Interest Rate website..

LOAN LIMITS

Annual loan limits for Independent and Dependent students (based on FAFSA) apply. In addition, there are undergraduate Aggregated Lifetime Loan Limits. For the most current information, see the Federal Student Aid Loan Limits Website.

DEFERMENT/FORBEARANCE

Students can receive a deferment/forbearance (postponement) on a loan if they meet certain requirements by contacting their loan servicer to find out what the requirements are. No payments are required while a student is enrolled at least half-time (6 credits or more), which qualifies for an In-School Deferment by your loan servicer. An In-School Deferment is a postponement status for repayment while you are in school. Forms are also available at the WCC Financial Aid Office, https://studentaid.ed.gov, and at your loan servicer’s website. Register online with your loan servicer’s website and review your loan status each term. For more information on types of postponement with your loans, visit https://studentaid.ed.gov.

REPAYMENT

Contact your assigned loan servicer to select a repayment plan. Check with your loan servicer which repayment plans are available to you. If you do not select a repayment plan, your loan servicer will default your plan to the Standard Repayment Plan with fixed payments over a maximum of 10 years. Students may also contact the Financial Aid Office on campus for advising. To review all repayment plans, visit https://studentloans.gov or https://studentaid.ed.gov/sa/repay-loans. *Repayment of the loan normally begins six months after the student graduates, withdraws from school, or is no longer enrolled at least half time (6 or more credits), for fall, spring or summer terms.

*If at any time this occurs, the borrower must complete a mandatory exit counseling session within 30 days at https://studentloans.gov. If you would like to schedule an in-person Loan Entrance or Loan Exit Counseling Session, Please contact the WCC Financial Aid Office for an appointment at 808-235-7449 or by email wccfao@hawaii.edu.

Loan Exit Counseling provides important information, such as when and where to make payments, what to do if you are unable to make payments, and what happens if you are in default. Contact your Financial Aid Office or assigned loan servicer for payment arrangement information.