Student Loans
Federal Stafford Loans are made by a lender such as a bank or credit union. Eligibility for the subsidized Stafford Loan is based on financial need as determined by the FAFSA. The loan's interest rate is fixed at 5.6 percent (for loans first disbursed July 1, 2009 to July 1, 2010). Students who do not show need as determined by the FAFSA or are not eligible for the entire amount of their loan to be subsidized are eligible for the unsubsidized Stafford Loan. The interest rate for the unsubsidized Stafford loan is fixed at 6.8 percent. Students must be enrolled in an eligible program at least half-time (at least 6 credit hours) to receive the Stafford Loan.
First-year students may be eligible to borrow up to an annual maximum of $3,500. Students who have successfully completed their first year (30 credits) may borrow up to an annual maximum of $4,500.*
The maximum loan amount will be reduced utilizing a proportional pro-ration for those academic programs less than 24 college credits or 30 vocational credits (900 clock hours) and/or 30 weeks per academic year (Fall and Spring Semesters).
The lender may charge a two percent origination fee. The Guarantee Agency may charge a maximum one percent insurance fee.
Loan repayments generally begin six months after the student graduates, leaves school or drops below half-time enrollment. Loans are not available for the summer semester at Daytona State College.
*BAS students, admitted at the junior or senior status to the program may borrow up to the annual maximum of $5,500.
The Office of Financial Aid Services has invested in updated software that will allow the staff to take advantage of enhanced electronic processing of your Free Application for Federal Student Aid (FAFSA).
Disbursement of all loans and grants will not occur until after enrollment has been verified, but book vouchers will be available prior to the start of classes for those students with an approved award.
All student loan funds will be received through EFT (electronic funds transfer). Loan funds will not be disbursed until after the end of the tuition refund period and enrollment has been verified. For the 2009 fall semester, the first loan disbursements are scheduled for September 16th for those who have received a financial aid award and submitted all loan paperwork by August 10, 2009.
First-year students who are also first-time borrowers may not receive their loan funds until at least 30 days after classes begin in their program, and their enrollment has been verified. (First-year, first-time borrowers must also complete Stafford Loan entrance counseling before their loan funds can be received.)
Please note that your eligibility for the Federal Stafford Loan (as well as other financial aid) is partially based on your enrollment status as well as the start date of classes. Certain courses have staggered or irregular start dates (Term B) that are not the same as the beginning of the standard semester.
If you are enrolled in these courses, you will not be eligible to receive the loan funds (or other financial aid) until the classes are in progress and enrollment can be verified.
Refunds (including refunds from Federal Stafford Loan funds) will be processed through the method you selected when you activated your DaytonaStateOne card.
Student Loan Processing Cycle
The processing of a Student Loan has multiple steps that do not start until the Master Promissory Note (MPN), or the Stafford Loan Acceptance Form (for returning borrowers) is completed and returned AND the Entrance interview has been completed.
The College makes every attempt possible to make a schedule and workflow that has a goal of disbursing loan balances at the earliest possible time. Coordinating the electronic information among the college, the loan processing center (ELM), the State of Florida Department of Education (or other guaranty agency), your lender, the National Disbursement Network, Higher One, and faculty attendance submission is a complex process to navigate, administer and coordinate.
CAUTION: Please remember, at the start of the semester the agencies described above are processing loans for every college in the state and/or country resulting in a possible slow down in the system due to the high volume. Also, think of all the computers involved and all of the events that could happen to cause a disruption or slow down of the disbursement. This is why you should never write checks or make payment promises when waiting for a loan disbursement.
The college will always use the first funds received to pay for tuition, fees, and other college obligations, including book vouchers and book loans. At the start of each semester loan funds are disbursed first, with Pell Grants and other awards being disbursed about 7-10 days later. For the Fall 2009 semester, due to the large volume during the peak processing cycle, students who return the MPN after August 10, 2009 may have later estimated disbursement dates than those listed below.
Step 1. The college will review your MPN or Loan Acceptance Form to make sure it is completed correctly, or return it to you for correction.
Step 2. The college completes an online data process to electronically send your loan application to ELM, the loan processing center. At the same time the college sends the original of your MPN to your lender for their review, or updates the system for the new year loan request for returning borrowers.
Step 3. ELM will review your application and electronically send your loan application to the State of Florida Department of Education (or other appropriate guaranty agency) for the loan guaranty processing, and at the same time electronically forwards your loan application information to your lender.
Step 4. The lender will review both the original MPN and the electronic file received from ELM, and if all is in order will electronically approve the loan and notify the loan processing center ELM. Similarly, the State of Florida Department of Education (or other appropriate guaranty agency) will electronically notify ELM when they have awarded you the loan guaranty.
Step 5. When ELM has received approvals from both your lender and the State of Florida Department of Education (or other appropriate guaranty agency), your loan disbursement will be scheduled with the National Disbursement Network.
Step 6. The initial disbursement date each semester is scheduled for approximately 2-3 weeks after classes start to allow for the enrollment verification process to be completed. Loan funds are received from the National Disbursement Network on Monday, Wednesday and Thursday . First time borrowers cannot have loans disbursed until 30 days after the start of classes.
Step 7. When the loan funds are received from the National Disbursement Network, they go into a general college clearing account and then the funds are disbursed to the individual student accounts. The college then needs to confirm that enrollment has been verified by instructors for at least 6 credits, and there have been no withdrawals reducing current enrollment to below 6 credits. At the same time, completion of the Entrance counseling will be verified once again.
The loan funds are used to pay the tuition and fees, books, and Bridge Loan, if any, and if there is a balance, the excess is sent electronically to your Daytona State One card. Excess loan funds received on Monday are sent to HigherOne by the end of the day Wednesday, and the loan funds received Wednesday and Thursday are sent to HigherOne by the end of the day Friday.
Please Note:
A student’s eligibility for the Federal Stafford Loan is partially based on the credit hour enrollment as well as the start date of classes. Students should be aware that certain courses have staggered or irregular start dates (A and B terms) that are not the same as the beginning of the standard semester. Students enrolled in these courses are not eligible to receive the loan funds until the classes are in progress and enrollment can be verified. Students enrolled in a course with staggered start dates are encouraged to check with Financial Aid Services for information concerning aid disbursement dates. [For example: Since a student must be enrolled for at least 6 credits in order to receive the loan funds, if you are enrolled for 3 credits in Term A and 3 credits for Term B, your loans will not be disbursed until after Term B begins and your enrollment is verified. If you are enrolled for 6 credits for Term B only, your loan funds will not be disbursed until after Term B begins and your enrollment is verified.
Estimated Disbursement Dates – Fall 2009
15 wk/16wk//Fall A Fall B
Stafford Loan (returning borrowers) September 16th November 6th
Stafford Loan (first time borrowers) October 2nd November 30th
Loans for students with a one-semester loan period
2nd Disbursement One semester Loan
15 wk/16wk/Fall A- November 6th Fall B--November 30th
Pell Grant (Fall A) and full semester courses September 25th
Pell Grant (Fall B) November 13th
