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Financial Aid

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.

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.  

 

 

  • 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).

 

  • 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).

 

  • Federal Direct Parent Loans for Undergraduate Students (PLUS) are available to parents of dependent undergraduate students.
  • Interested parents may get more information or apply for a PLUS online at www.studentloans.gov.
  • The interest rate is variable 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.
  • 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.