An education loan is a form of financial aid that must be repaid, with interest. Grants, scholarships, work-study and other forms of gift aid typically cover the full cost of an education at Cypress College. However, some students find that they must supplement their savings with student loans.
Community colleges remain an affordable option for students. Loan debt and increasing loan default rates are concerning for Financial Aid Offices due to the impact it can have on the institution. As a result, the Cypress College Financial Aid Office has adopted the following loan procedures for student borrowers. These procedures were implemented due to increasing student loan debt for graduates who eventually earn a BA/BS degree. Therefore, Cypress College Financial Aid has a strict policy on established loan limits to (1) help students minimize debt, (2) help students keep aggregate loan eligibility available for when they transfer to four-year institutions, and (3) help improve financial literacy and responsibility so that future economic hardships and credit damage can be prevented.
- Dependent students who have an amount of $12,000 combined student loan debt will need to submit a petition to the Financial Aid Office to be given consideration for additional student loans. The Financial Aid Office only grants approval for loans over the stated limit if the student's program of study, academic standing, or extenuating circumstances warrant approval. Petitions are considered on a case by case basis and final decisions are made by the Loan Petition Committee.
- Independent students who have an amount of $19,000 combined student loan debt will need to submit a petition to the Financial Aid Office to be given consideration for additional student loans. The Financial Aid Office only grants approval for loans over the stated limit if the student's program of study, academic standing, or extenuating circumstances warrant approval. Petitions are considered on a case by case basis and final decisions are made by the Loan Petition Committee.
The Cypress College Financial Aid Office strongly discourages students to borrow loans without first discussing their options with a Financial Aid Technician.
As a last resort to assist with your college costs, the Direct Loan program offers lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education instead of high interest credit cards. You can also deduct up to $2,500 in student loan interest even if you don't itemize deductions on your income tax return.
Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors at four-year institutions is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS).