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.
College of the Redwoods tracks the cohort loan default rates (CDR) of it's loan borrowers and is pleased that the rates are decreasing! In 2010 our rate was 29.9, in 2011 it was 24.7%, in 2012 it was 23.8%, and in 2013 the CDR 22.7%. The most current cohort from 2014 has draft CDR of 13.8% as recently provided by the Federal Government.
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 intuition.
HOW TO APPLY
- STUDENT LOANS: All students interested in a federal student loan must apply using the loan process through CR. Begin by completing the FAFSA and all required documents, because you must first have your eligibility for other types of aid determined before your loan application can be processed. Please review the types of loans we offer below before applying for your student loans. You can find the instructions for applying, as well as any additional steps required outlined in the 2018/19 Direct Loan Application Process
- PARENT LOANS: Parents may apply for a Parent Loan for Undergraduate Students (PLUS) online at studentloans.gov. Students must also have a completed FAFSA on file and meet all federal eligibility requirements in order for a parent to receive a PLUS.
If you have any questions about the loan application process or repaying your loans, you can call our Financial Aid Office at 707-476-4182
TYPES OF LOANS
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.