Financial Assistance Student Loan Policy
The SVCC student loan policy is established by the Coordinator of Financial Assistance to ensure a balance between serving our students, meeting the requirements of federal regulations and ensuring a reasonable level of student loan debt. Section 428 of the Higher Education Amendments gives the institutions permission to refuse to:
- Certify a loan
- Certify an amount more than the borrowers maximum eligibility
Because SVCC is concerned with the level of indebtedness incurred by SVCC students and their parents, we have adopted the following policy procedures.
Student Eligibility Requirements:
- Student must be enrolled as a half-time student or greater.
- Must be in good satisfactory academic progress standing.
- Must be in a Financial Assistance eligible degree/certificate seeking program.
- Must have completed Direct Loan entrance/exit loan counseling at SVCC. (Loan Counseling is valid for three years from date of completion.)
- Must have completed the FAFSA and all required processing with SVCC.
- All first time borrowers must complete a Master Promissory Note (MPN) with Department of Education.
- Must have turned in completed budget worksheet.
- Must submit official transcripts to the Admissions office for any college or university previously attended.
The Coordinator of Financial assistance, after reviewing a request for Direct Loan, may use “Professional judgment” to deny a loan on a case-by-case basis (e.g., a student totally withdrawing from all of his/her classes after receiving a loan, having institutional indebtedness at SVCC or another college, or a combination of all higher education indebtedness). A student failing to meet the Standard of Progress must submit a written appeal and make an appointment with the Coordinator of Financial Assistance before a loan will be processed. If the student is denied a loan, he/she will receive a letter from the Office of Financial Assistance indicating the reason for the loan denial.
Maximum Loan Amounts
The maximum loan amounts were established by the Department of Education. Students who have completed 29 or fewer hours at SVCC are considered freshman, and are eligible for a full-time $3,500 fall/spring loan. Dependent students may request an additional $2000 in unsubsidized loans and an independent may request an additional $6000 in unsubsidized loans. Students who have completed 30 hours or more are eligible for a full-time $4,500 fall/spring loan. Dependent students may request an additional $2000 in unsubsidized loans and an independent student may request an additional $6000 in unsubsidized loans. Federally mandated loan limits may be viewed at the Department of Education web site at https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized. Maximum loan limits include all student loans received that have an outstanding balance, either at SVCC or another educational institution attended.
Periods of Eligibility: Examples of loan amounts
Students may apply for loans for the fall, fall/spring, or spring semester.
Sub = Subsidized Loan
Unsub = Unsubsdized loan
All loans requested are subject to reduction based on the Cost of Attendance and other financial assistance resources at SVCC. The Cost of Attendance is $14973.00 for full time (full year) attendance, $7486.00 half- time (full year), and $3743.00 for half-time either fall or spring. Summer is based on a two month Estimated Family Contribution and the Cost of Attendance. The Cost of Attendance minus other financial assistance minus the loan request may not exceed the Cost of Attendance for the period requested. All loan requests are looked at on a case-by-case basis. If your loan request is denied or reduced for any reason, including the Cost of Attendance, you will be advised of the reason in writing in your student e-mail account. If you are unsure of the loan amount you may request, please stop by the Office of Financial Assistance.
Periods of Eligibility:
Loan requests may be submitted to the Office of Financial Assistance for the current semester no later than thirty days prior to the last day of class for that semester. An appeal of this requirement may be requested in person by making appointment to see the Coordinator of Financial Assistance.
Loans are generally not allowed for the summer semester. For students requesting a summer loan the request for the summer loan must be submitted in writing to the Coordinator of Financial Assistance. These appeals should include the amount of the requested loan, why the loan is needed, and how the loan will be used.
Higher Education Act of 1998:
Under this regulation, a SVCC student who stops attending or withdraws completely from classes within a semester may receive Title IV financial aid equal to the percentage of the payment period or enrollment period completed. Direct Loans are included in this act.