A Guide to Sensible Borrowing

Information to assist you in making decisions about your Stafford Loans.

• Pursue all other alternatives first
• Budget before you borrow
• Estimate anticipated level of debt for your entire program of study
• Know manageable levels of debt, never borrow more than absolutely necessary

Freshman Status - Completion of up to 32 credits of college work.
Sophomore Status - Completion of 33 or more credits of college work and are graduating within the academic year.

Loan Eligibility Requirements

• You must be seeking a degree or certificate.
• You must be enrolled at least half-time (6 credits or more).
• Your loan must be used for educational expenses including tuition, books, and living expenses while you are attending college.
• You must have completed the Free Application for Federal Student Aid (FAFSA) process before your loan application will be reviewed.

Application Requirements

• You must complete a Direct Loan Request available to print through your my.yc.edu portal.
• All borrowers at Yavapai College must complete online Direct Student Loan Entrance Counseling prior to the receipt of your first student loan payment.
• When you graduate, leave school, or drop below half-time enrollment at Yavapai College you must complete exit counseling. A hold will be placed on all your records until exit counseling is completed.

Loan Payment Information

• If you are a first-time borrower and have not completed the first year of your degree or certificate program, federal regulation requires that your first check be issued 30 days after the beginning of the semester.
• All student loans are issued in multiple payments based on the loan period as follows: If you are applying for a fall and spring loan, half will be paid at the beginning of the fall semester and the second half will be paid at the beginning of the spring semester. If you are applying for a fall only, spring only or summer only loan, half will be paid at the beginning of the semester and the second half at the mid-point of the semester.
• If you receive the maximum loan amount during the fall and spring, you may not be eligible for funding in that program for the summer semester.
• You are responsible for picking up your loan proceeds at the Cashier's Office. Checks not picked up within 30 days of the disbursement date will be returned to your lender.

Paying Back Your Loan

You are responsible for payment of:

1. the amount borrowed;
2. interest on the amount borrowed;
3. and fees at the time you receive loan proceeds.

A loan can be expensive. Borrow only what you need. Stafford Loan monthly payments are based on the total amount owed.The minimum monthly payment is $50. Repayment must be completed within 10 years, depending on how much you borrow.You can prepay the principal at any time with no penalty. Repaying the principal sooner will save you money on the interest charges.

You Must Repay Your Loan

You are responsible for repayment of all loans, including interest and any fees, even if you do not finish college. The government will not excuse you from repaying your loan because you do not think you got your money’s worth. If you fail to meet your loan repayment terms, you are delinquent. If you continue to be delinquent, you default on the loan and the entire balance becomes due. Being in default means you may either:

• no longer be eligible for student aid at any school;
• be sued;
• lose your Federal and State income tax returns;
• find it difficult to obtain other credit.

Locate your Student Loans

You can obtain contact information for your student loans at www.nslds.ed.gov. If your defaulted loan has been assigned to the U.S. Department of Education, contact Debt Collection Service at, 800-621-3115. If you are unsure of the holder of your student loans, contact your school for additional guidance.