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Direct Loan Information

The Financial Aid Office does not participate in certifying alternative education bank loans.

This is 2012/2013 Loan Information. For CURRENT YEAR Loan info please go to our new website:

**Important Notice**

The Department of Education has implemented a change to the Direct Loan program.   Effective March 1, 2013, the fee for obtaining a student loan will increase.  It is anticipated that the loan fees will increase from 1.0% to approximately 1.053%.  This change will affect any students whose 1st loan disbursement for the 2012-2013 school year occurs after March 1, 2013.  Palomar College has decided to continue processing loans using the 1.0% rate until the Department of Education provides a final rate.  Affected students may be billed for the difference at a later date.

Palomar College believes that it is the responsibility of the Financial Aid Office to provide students complete information regarding their financial assistance options to help minimize the cost of attending college.

While we neither promote nor advocate student loans, we do provide information on the process and the rights & responsibilities that accompany obtaining both subsidized and unsubsidized student loans to interested students.

It is our hope that the information on this site will help you make an informed decision about borrowing student loans.

The following are key points about Direct Loans:

  • Students do not borrow from banks.  Direct Loans are loans made with federal capital and are owned by the federal government.

  • Direct Loans are never sold.  Borrowers make loan payments to the Department of Education for the life of their loans.

  • Students do not wait in lines to endorse bank checks because schools receive loan funds electronically from the federal government and disburses them to students directly.

  • Borrowers have flexible repayment options with a Direct Loan, including Income Contingent Repayment, and they can change options when they need to without a fee at any time during the life of the loan.

   Important Notes

  Common Questions

Online Financial Literacy Workshop
Financial Aid Code of Conduct
   Loan Application and Information
Deadline for 2012-2013 Loans is 11/21/12 for the Fall 2012 term &
4/19/13 for the Spring 2013 term

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