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.
College of the Redwoods tracks the cohort loan default rates (CDR) of it's loan borrowers:
Default prevention has never become more important 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.
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.
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. We do not process private student loans.
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 APPLY
- STUDENT LOANS:
- 2019/20 Direct Loan Request Process - (Instructions)
- You can find the instructions for requesting a loan, as well as any additional steps required as outlined on the direct loan request process page, linked above.
- All students interested in a federal student loan must apply using the loan process through CR. 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.
- PARENT LOANS:
- 2019/20 Parent PLUS Loan Application Process - (Instructions)
- Parents can review instructions and resources for applying for a Parent PLUS Loan on our Parent PLUS Loan Process page linked above.
- Parents may apply for a Parent Loan for Undergraduate Students (PLUS) online at https://studentloans.gov/myDirectLoan/index.action.
- Parents can estimate their payments by using this calculator: https://studentloans.gov/myDirectLoan/repaymentEstimator.action
- 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.
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