Federal Direct Loan Eligibility Policy

Students must:

• Have a completed financial aid file (FAFSA and required documents)
• Meet Satisfactory Academic Progress (SAP)
• Not be in default on prior student loans
• Be enrolled in at least 6 active units in an approved program of study

Loans are a last-resort financial resource. Students are strongly encouraged to:

• Explore grants, scholarships, and other aid first
• Borrow only what is needed to reduce long-term debt

• Subsidized Loans: Based on financial need; no interest while enrolled at least half-time
• Unsubsidized Loans: Not need-based; interest accrues from disbursement

Loan amounts are determined based on:

• Remaining financial need
• Dependency status
• Academic year level (based on completed units)
• Under 30 units = First-year loan limits
• 30+ units = Second-year loan limits

Dependent Undergraduate Students

• First Year: $5,500 (up to $3,500 subsidized; remainder unsubsidized)
• Second Year: $6,500 (up to $4,500 subsidized; remainder unsubsidized)
• Third Year & Beyond*: $7,500 (up to $5,500 subsidized; remainder unsubsidized)

Independent Undergraduate Students

• First Year: $9,500 (up to $3,500 subsidized; remainder unsubsidized)
• Second Year: $10,500 (up to $4,500 subsidized; remainder unsubsidized)
• Third Year & Beyond*: $12,500 (up to $5,500 subsidized; remainder unsubsidized)

*Applicable only to students enrolled in a bachelor’s degree program.

Aggregate Loan Limits

Dependent Undergraduate Students

• $31,000 total (up to $23,000 subsidized; remainder unsubsidized)

Independent Undergraduate Students

• $57,500 total (up to $23,000 subsidized; remainder unsubsidized)

Aggregate loan limits include all subsidized and unsubsidized loans received for undergraduate study, including any federal student loans previously borrowed while pursuing or completing a bachelor’s degree or graduate program. Prior borrowing counts toward aggregate eligibility and may reduce remaining eligibility at Cypress College.

Before disbursement:

• Student must be enrolled in 6 active units
• Enrollment is verified prior to release of funds
• First-time borrowers may be subject to a 30-day delay

Loans are disbursed after the freeze date and are issued weekly once eligibility is confirmed. Loans are typically disbursed in two equal installments per academic year.

• Dropping below 6 units before disbursement may result in loan cancellation.
• Withdrawing from all coursework without a Last Date of Academic Activity can result in adjustments, including being billed back for the full loan amount.
• If you withdraw from all classes, your financial aid is recalculated based on earned and unearned aid, including loans.

• In-school deferment may be available for students enrolled in 6+ units
• Students exceeding federal loan limits must resolve over-borrowing before receiving additional aid.

Student loans are a financial responsibility that must be repaid. Borrow responsibly and seek guidance from the Financial Aid Office before applying.