Financial Aid

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Attention: In Person Services have resumed starting June 1st. Please review the CR COVID-19 Rules before arriving to campus.

Email Us Here

Or send us an email at finaid@redwoods.edu

For form submission please use the eForms platform to submit forms to the financial aid office.


FALL 2021 HOURS:

Eureka
Student Services Building
Mon.-Thurs. 9am-4pm
Fri. 11am-3pm
707.476.4182

Del Norte
Mon.-Fri. 8am-5pm
Appointments Only.
707.465.2300

Klamath-Trinity
Mon.-Fri. 8am-4pm
Appointments Encouraged.
530.625.4821

Direct Loans


INTRODUCTION:

The Federal Direct Loan program is a federally-funded loan program available to students who need additional resources to pay for educationally related expenses. This loan program should be considered only as a last resort after all other options have been considered. Remember that loans must be repaid, with interest! Typically, repayment begins 6 months after you are no longer enrolled at a minimum of 6 credits. Students must complete exit loan counseling before they withdraw, drop below 6 units, or graduate. This page will review CR's default rates, types of loans, current loan interest and fees, loan resources, how to request direct loans and optional additional loan counseling.


 

DEFAULT RATES:

College of the Redwoods tracks the cohort loan default rates (CDR) of it's loan borrowers. Click the drop down below to review College of the Redwoods current default rates.

 

Year CDR Rate Year CDR Rate
2010 29.9% 2011 24.7%
2012 23.8% 2013 22.7%
2014 14% 2015 16.2%
2016 18.8% 2017 22.7%
2018* 16.54% (estimated) 2019* In Progress


What is a default rate? A cohort default rate is the percentage of CR student borrowers who enter repayment on certain loans during a particular federal fiscal year, October 1 to September 30, and default or meet other specified conditions prior to the end of the second following fiscal year. Why is measuring the default rate important and what does it do for us? Lenders use this rate to determine their risk exposure and evaluate the health of the student lending program at an institution. *Cohorts effected by COVID-19 Pandemic.

Default prevention has never been more prudent, as the nation faces a staggering 1.2 trillion in student loan debt. Colleges across the nation are feeling more pressure to reduce their CDR as the federal government requires CDR's to be below 30% and most recently the state of California has requested CDR's for Community Colleges to be below 20%. College of the Redwoods is making every effort to implement default prevention strategies, while making sure students have access to the loan funds they need to obtain their higher education goals.

 

TYPES OF LOANS AVAILABLE:

Click on the sections below to learn more about the types of loans that are offered at College of the Redwoods through the Department of Education. The sections include important information, such as the interest rates and origination fees of each type.

 

  • Direct Subsidized Loans are available to undergraduate students with financial need.
  • Your school determines the amount you can borrow, and the amount may not exceed your financial need.
  • The U.S. Department of Education pays the interest on a Direct Subsidized Loan
    • while you’re in school at least half-time,
    • for the first six months after you leave school (referred to as a grace period*), and
    • during a period of deferment (a postponement of loan payments).
    • For the Subsidized Loan Limits, Interest Rate and Origination Fees

 

  • Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
  • Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
  • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
  • For the UnSubsidized Loan Limits, Interest Rate and Origination Fees

 

  • Federal Direct Parent Loans for Undergraduate Students (PLUS) are available to parents of dependent undergraduate students.
  • Interested parents can get more information about limits, interest rates and origination fees at https://studentaid.gov/understand-aid/types/loans/plus/parent
  • Parents may apply for a PLUS online at www.studentaid.gov.
  • The interest rate is fixed and a credit check is required. The credit check is applicable for up to 180 days. The credit check is a hard inquiry on your credit history.
  • Direct PLUS Loans are loans available to parents of dependent undergraduate students to help pay for educational expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
  • Parents completing an electronic PLUS MPN or applying for a PLUS loan must use their own FSA ID, and not their child's FSA ID.
  • The Parent/Guardian is the borrower of a Parent PLUS loan, not the student, the Parent will be responsible for paying back on the loan.
  • Parent PLUS borrowers must be the biological or adoptive parent of a dependent undergraduate or the spouse of the parent whose income and assets were reported on the Free Application for Federal Student Aid (FAFSA ®), or would be reported if a FAFSA® were filed.
  • If you are experiencing issues with the Parent PLUS Loan Application online, please contact the Student Loan Support Center at: 1-800-557-7394. College of the Redwoods does not oversee the online application process.
  • If you are having issues with your FSA ID and Password, please contact the FSA ID help center at: 1-800-433-3243, College of the Redwoods does not have administrative access to your log in credentials

NOTE: We do not process private student loans and cannot provide guidance on private loans.

 

LOAN INTEREST AND FEES

Learn more about the current interest rates and origination fees for Federal Direct Subsidized, Unsubsidized, and Parent PLUS Loans below.

 

2021-2022* 2021-2022* 2021-2022*
Subsidized 
Interest Rate
			
Unsubsidized
Interest Rate
Parent PLUS
Interest Rate
3.73% Fixed 3.73% Fixed 6.28% Fixed
     
2022-2023** 2022-2023** 2022-2023**
Subsidized
Interest Rate
Unsubsidized
Interest Rate
Parent PLUS
Interest Rate
TBA: 06/2022 TBA: 06/2022 TBA: 06/2022

* Loan Originated after July 1, 2021, and before July 1, 2022.
** Loans Originated After July 1, 2022 and before July 1, 2023.

To learn more about direct loan interest rates, please visit: https://studentaid.gov/understand-aid/types/loans/interest-rates

 

 

Loan Origination
Fee Dates
Sub/Unsub Loan
Origination Fee
Parent PLUS
Origination Fee
Starting October 1, 2020 1.057% 4.228%
Starting October 1, 2021 1.057% 4.228%


Example of Loan Origination Fee:

An origination fee is deducted from each loan refund you will receive. Let’s say the loan origination fee is 1.057%. To determine the approximate amount you will receive in each refund, multiply your loan amount for the term by 1.057%; this is the amount that will be deducted from your loan award. Then, subtract the loan fee from your loan award, to determine the approximate total amount you will receive. Finally, divide that amount by 2 to determine approximately how much you will receive in each disbursement. For example, if you have been awarded a Subsidized Loan in the amount of $3500.00, you would calculate the approximate amount you will receive as follows:

  • $3500.00 X 1.057% (or 0.01057) = $37.00 estimated fee
  • $3500.00 - $37.00 = $3463 estimated total to be disbursed
  • $3463 / 2 = $1731.50 estimated amount of each refund

To learn more about direct loan origination fees, please visit: https://studentaid.gov/understand-aid/types/loans/interest-rates


 

STUDENT LOAN RESOURCES:

College of the Redwoods is dedicated to assisting student borrowers with managing their student loans, we have developed some online resources to provide students with guidance on a variety of student loan topics. Please visit the pages below to learn more about your student loans and the resources available to assist you. Each link will take you to a webpage that will include links to outside resources, on campus resources, and video playlists.


 

HOW TO REQUEST A DIRECT STUDENT/PARENT LOAN:

Instructions: To learn more about the loan request process, including access to the loan application, please CLICK on the expander below.
 

 

  • 2021/2022 Direct Loan Request Process - (Click Here to get Started)
    • You can find the instructions for requesting a direct loan, as well as any additional information such as eligibility requirements, deadlines and loan processing status on the direct loan request process page, linked above.
    • All students interested in a federal student loan must submit a request as we do not automatically award student loans. To begin this process you must start with completing the FAFSA and all required documents, because you must first have your eligibility for other types of aid determined before your loan request can be considered. Please review the types of loans we offer above before requesting a student loan.

What is a Federal Direct Loan?

 

 

  • 2021/22 Parent PLUS Loan Application and Process - (Click Here to Get Started)
    • Parents can review instructions and resources for applying for a Parent PLUS Loan on our Parent PLUS Loan Process page at the link above.
    • Parents may apply for a Parent Loan for Undergraduate Students (PLUS) online at https://studentaid.gov
    • Parents can estimate their payments by using this calculator: Loan Simulator
    • Students must also have a completed FAFSA on file and meet all federal eligibility requirements in order for a parent to receive a PLUS Loan.
      • If you are experiencing issues with the Parent PLUS Loan Application online, please contact the Student Loan Support Center at: 1-800-557-7394. College of the Redwoods does not oversee the online application process.
      • If you are having issues with your FSA ID and Password, please contact the FSA ID help center at: 1-800-433-3243, College of the Redwoods does not have administrative access to your log in credentials.

What is a Parent PLUS Loan?

 



 

ADDITIONAL LOAN COUNSELING (optional):

If you have any questions about the loan request process or repaying your loans you can:

    • Drop-In: at the Financial Aid Service Window, Welcome Center or the FinLit Advisor Office
    • Call: our Financial Aid Office at 707-476-4182 | Financial Literacy Advisor at 707-476-4183
    • Email: at: studentloanassistance@redwoods.edu | FinAid@redwoods.edu. 
    • Book: Students or Parent PLUS Loan Borrowers can make a phone, video or in person Appointment online using the below appointment card.

 

It is the policy of College of the Redwoods not to discriminate on the basis of race, color, national origin, sex, disability or age in its educational programs and its employment practices.

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