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Student Loans

Loan Programs

Loans are an effective and reliable method of funding higher education; however there are a few things that should be considered before you borrow:

  • When you borrow you are accepting the responsibility of repaying the loan plus the interest.
  • It is your responsibility to know all of the terms and conditions of your loan.
  • You should stay with one lender throughout your college career if possible.
  • You must keep the lender informed of any of the following changes: withdrawal from school, transfer to another school, drop below six (6) credit hours per term, student’s name, address or social security number change or parent’s address or name change.
  • You are expected to know what options and responsibilities you have regarding repayment. This includes when you start repayment, what kind of loan(s) you have, what options exist concerning consolidation, deferment, and forbearance.
  • Failure to repay a loan will cause you serious consequences, which may include ineligibility for other financial aid, withholding of tax refunds by the Internal Revenue Service, difficulty in obtaining credit, and the garnishing of wages.

You should carefully review your situation before you borrow. Consideration should be given to other sources of funding prior to accepting a loan. You need to calculate exactly how much loan is necessary to meet your educational needs and review your repayment obligations thoroughly before assuming added debt.

The William D. Ford Federal Direct Loan Program – ACC participates in the following programs. Interest rates on these loans are set annually. For more information on interest rates, contact the Financial Aid Office.

Federal Direct Loan – There are two types of Federal Direct Loans. Federal Direct Subsidized Loans are based on a student’s financial need unmet by other financial aid. Federal Direct Unsubsidized Loans are used to replace the family contribution.  With a Federal Direct Subsidized loan, the federal government pays the interest on the loan while the student is attending college at least half-time (6 credit hours) or in a grace period up to six months after the student leaves college. If a student receives a Federal Direct Unsubsidized Loan, the student has the option to either pay the accruing interest quarterly, or to have it capitalized at the point repayment begins. Freshman students may borrow up to $3,500 per year. Sophomore loan limits are $4,500 per year. (A sophomore is defined as a student who has thirty (30) credit hours, either earned or transferred to ACC).

First time borrowers at ACC are required by law to complete an Entrance Loan counseling session and sign a Master Promissory Note prior to receiving their first loan disbursement. Additional information concerning student’s rights and responsibilities regarding their loan(s) will be provided through this process. The two additional requirements must be completed at the studentloans.gov website.

Step 1: Complete Loan Entrance Counseling

  • Direct Loan Entrance Counseling explains the obligations you agree to meet as a condition of receiving a Direct Loan.
  • If you are a student and have not previously received a Subsidized/Unsubsidized Loan or PLUS Loan (graduate students only) under the Direct Loan Program or Federal Family Education Loan (FFEL) Program, you must complete loan counseling for that loan type before receiving a loan to ensure that you understand your responsibilities and the obligations you are assuming.
  • To complete Entrance Counseling for Direct Subsidized/Unsubsidized Loans and Direct PLUS Loans, sign in using your Federal Student Aid PIN. Select the "Complete Entrance Counseling" option found in the left navigation bar and follow the directions.

Step 2: Sign a Direct Loan Master Promissory Note (MPN)

  • The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years).
  • For more information about the MPN, go to the studentloans.gov FAQ website.

Federal Direct PLUS Loan – This loan is for the parents of dependent students. The parent(s) may borrow up to the cost of education less any estimated financial aid the student will receive. The Federal Direct Plus Loan is credit based and requires a credit approval.

Student Loan Payments - Student loan funds borrowed through The William D. Ford Federal Direct Loan Program are sent electronically to ACC and paid to student accounts. No loan(s) will be released prior to scheduled disbursement dates for any reason.  First time borrower loan disbursements are made 30 days from the beginning of the term, any balance remaining after the loan has disbursed will be mailed to the student.

Avoid Default

Paying off a student loan is a great way to develop a good credit history. Timely loan payments are critical. If you are having difficulty repaying your loan due to unemployment, a temporary financial setback or another problem, contact your lender to find out about your options.

A defaulted loan is serious. If you default, it means the lender has turned your loan over for collection and the entire amount is due and payable. Once you are listed as being in default on a student loan, no financial aid of any form will be available to you. To rectify this, you must contact your lender immediately to determine what steps they will require to resolve this issue. Normally, if a person makes six on-time, non-garnished, monthly payments, they may qualify to apply to have their loans rehabilitated. If this is approved, a student can then reapply for financial aid. With 12 on-time, non-garnished, monthly payments, they may qualify to apply to have their loans then taken out of defaulted status. Consequences of having a loan in default include:

  • A damaged credit rating
  • Court action or litigation
  • Garnishment of state and federal tax refunds and state lottery winnings
  • Wage garnishment and attachment of property
  • Loss of additional student aid eligibility
  • Loss of deferment and monthly repayment options
  • Assessment of collection costs
  • Possible effect on professional licensing
  • Inability to attain federal student financial aid at any institution.

The College prohibits and will not tolerate discrimination or harassment that violates federal, state law, or Board Policy 3-120 or Board Policy 4-120. The College does not discriminate on the basis of gender, sex, race, color, age, creed, national or ethnic origin, physical or mental disability, veteran status, pregnancy status, religion or sexual orientation. The College complies with Titles VI and VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Education Amendments of 1972 (Title IX), the Age Discrimination in Employment Act, the Rehabilitation Act of 1973, the Americans with Disabilities Act, Pregnancy Discrimination Act of 1978, Vietnam Era Veterans Readjustment Assistance Act of 1974; Executive Order 11246, and sections 24-34-301, C.R.S. et seq..

For information regarding civil rights or grievance procedures, contact: Title IX Compliance/Equal Opportunity Officer David Castro Chief Operating Officer, 5900 South Santa Fe Drive, Littleton, CO 80160. Phone 303.797.5704 or david.castro@arapahoe.edu

Complaints may also be filed with the Vice President of Legal Affairs and Vocational Education Administration, Colorado Community College System, 9101 E. Lowry Blvd., Denver, Colorado 80230-6011, phone 303.595.1549; or the Office for Civil Rights, U.S. Department of Education, Region VIII, Federal Office Building, 1244 Speer Blvd., Suite 310, Denver, Colorado, 80204, phone 303.844.5695.