Financial Aid

Loans

A Federal Direct Loan is a form of financial aid that is borrowed and must be repaid with interest. Loans are available to students and parent(s) to help meet the cost of education after all other funding options have been exhausted.

Students must be enrolled in a minimum of six credit hours that meet Program Objective Enrollment Compliance (POEC) to be considered for a loan. Initial amounts may be adjusted if your graduation term falls within your loan period.

Learn About Your Loan Debt and Repayment Options

Do you want to know what Broward College is doing to prepare you for loan repayment?

Broward College will provide the following information annually to our students receiving loans:

An estimate of the total amount of loans.

An estimate of the potential loan repayment amount, including principal and interest.

This information is available through myBC. Once a student signs on to myBC, an alert will appear requesting a review of their financial aid loan information. The next alert will display the current loan debt as reported to the National Student Loan Data System (NSLDS). The student is requested to review and confirm the information reported from NSLDS. This confirmation is stored in the student's records.

Note: This information will not be displayed for students with no prior loan history.

Know What You Owe

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's central database for student aid. NSLDS tracks your loans through their entire life cycle; from aid approval to closure. The site displays information on loan amounts, outstanding balances, loan statuses, and disbursements. Information regarding your Federal Direct Loans will be submitted to NSLDS. If you have borrowed from multiple institutions, you will be able to use NSLDS to review your total indebtedness. You may access this information to learn about your loan debt and repayment options by logging in with your FSA ID and password.

Calculate Your Loan Payment

The loan repayment calculator provides an estimate of the size of your monthly loan payments and the yearly salary required to manage them. Just enter your loan balance, interest rate, and term of your loan. You will receive an estimated monthly payment along with how much total interest you will pay over the life of the loan. Students are encouraged to use the repayment estimator as they enter repayment for the first time or as they are exploring repayment options.

Learn About Responsible Borrowing

Borrowing responsibly is borrowing only what you need to pay your educational expenses and what you can realistically afford to repay when you leave school. Financial Awareness Counseling provides tools and information to help you understand your financial aid and assist you in managing your finances. Details on your income, financial aid, and living expenses are needed to provide more accurate budgeting information. Topics included in the session are Understand Your Loans, Manage Your Spending, Plan to Repay, Avoid Default, and Make Finances a Priority. You may access the financial aid awareness counseling by logging in with your FSA ID and password.

Before You Leave School

Exit Counseling provides important information to help prepare you to repay your student loan(s). If you graduate, withdraw, or drop below half time (five credits or less), and have borrowed a Federal Direct Loan, Broward College requires that you complete exit counseling. The goal of exit counseling is to remind you of your rights and responsibilities as a student loan borrower. You may access the exit counseling by logging in with your FSA ID and password.

Annual loan limits are determined by class (freshman, sophomore, etc.) and dependency status.

Academic Level	Dependent	Independent
Freshman (0-30 credits)	$3,500 ($2,000 Unsubsidized)	$3,500 ($6,000 Unsubsidized)
Sophomore (31-60 credits)	$4,500 ($2,000 Unsubsidized)	$4,500 ($6,000 Unsubsidized)
Junior and Senior (61 credits or more)	$5,500 ($2,000 Unsubsidized)	$5,500 ($7,000 Unsubsidized)

Aggregate loan limits are maximum loan amounts that a student can receive throughout their academic career. Once the aggregate loan limit is met, the student becomes ineligible for Federal Direct Loans.

	Subsidized Loan Limit	Unsubsidized Loan Limit	Combined Loan Limit
Dependent	$23,000	$8,000	$31,000
Independent	$23,000	$34,500	$57,500

The interest rate varies depending on the type of loan and the first disbursement date of the loan. The table below provides interest rates for loans first disbursed on or after July 1, 2018.

Interest Rates for Direct Loans disbursed on or after July 1, 2018 and before July 1, 2019.
Subsidized	5.05%
Unsubsidized	5.05%
Direct Parent PLUS	7.6%

Federal Direct Loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted from each loan the borrower receives; meaning, the amount that is received will be less than the amount borrowed. The borrower is responsible for repaying the full amount of the loan. The table below provides the loan fees for loans first disbursed on or after October 1, 2018.

Fees for Direct Loans disbursed on or after October 1, 2018.
Direct Subsidized and Direct Unsubsidized Loans	1.062%
Direct PLUS Loans	4.248%

Direct Loans for Students

If you would like to receive Federal Direct Loans, please log in to myBC to accept, decline, or reduce the subsidized loan that is part of your award package. Next, complete the Entrance Counseling and Master Promissory Note on studentloans.gov. To apply for an unsubsidized loan, please submit the Loan Request Form; there is no acceptance required in myBC.

Direct Loans for Parents

Parents of dependent students may borrow a parent PLUS loan to help their child(ren) pay for college.

Parent PLUS loans are available to dependent students only; a dependent student is determined during the completion of the Free Application for Federal Student Aid (FAFSA). Dependent students must have already completed the Free Application for Federal Student Aid (FAFSA) prior to the parent being considered for a parent PLUS loan.

The parent PLUS loan offers a fixed interest rate and flexible loan limits. The annual loan limit of a parent PLUS loan is the full cost of attendance minus other financial aid received by the student.

Who can request a parent PLUS loan?

Biological or adoptive parents may borrow a parent PLUS loan. A stepparent may also borrow a parent PLUS loan if the stepparent is currently married to the student's parent.

Legal guardians or foster parents cannot borrow a parent PLUS loan. Grandparents, aunts, uncles or other relatives cannot borrow a parent PLUS loan unless they have legally adopted the student.

How do I apply for a parent PLUS loan?

The parent should request the loan at www.StudentLoans.gov. The student is unable to request the loan on behalf of the parent. The parent must use the same FSA ID that was used to sign the FAFSA to request the loan.

A Master Promissory Note (MPN) is also required for all parents determined eligible for a parent PLUS loan.

Does my credit history affect my eligibility for a parent PLUS loan?

A credit check will be performed during the application process. Eligibility for a parent PLUS loan does not depend on the borrower's credit score or debt-to-income ratio. However, the borrow cannot have an "adverse credit history."

Credit history is considered "adverse" if the credit check determines that any of the following conditions exist:

A current delinquency of 90 or more days on more than $2,085 of total debt
More than $2,085 in total debt in collections or charged off in the past two years
Default, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of federal student loan debt in the past five years

If a parent has an adverse credit history, the parent may still borrow a parent PLUS loan by submitting a successful appeal to the Department of Education documenting extenuating circumstances or by obtaining an endorser (co-signer) who does not have an adverse credit history.

Please see below for more information regarding the options for a parent with adverse credit history.

Who can be an endorser and how do they cosign a parent PLUS loan?

An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower (the parent) fails to make satisfactory repayment or defaults on the loan. The endorser cannot be the student of the parent who is applying for the loan.

In addition to providing their personal information, the endorser will need the following:

An FSA ID
The last name of the borrower who was denied the parent PLUS loan
An endorser code or award ID of the parent PLUS loan that will be co-signed
The names and contact information for two references

The endorser must complete the endorser addendum through www.StudentLoans.gov after the borrower has received a credit denial as a result of their Parent PLUS Loan Application.

When will disbursement take place?

Broward College disburses all Federal Student Aid, including loans, after class attendance has been verified for each session in a term.

Disbursement typically occurs 4-6 weeks after classes have begun. Loans covering two semesters are disbursed in two separate and equal amounts.

Parents will be asked to authorize the disbursement of PLUS Loan funds to their student.

Broward College has the right to deny any student Federal Student Aid when fraud is suspected. The student will be responsible for repayment to the school should the loan be cancelled and debt is incurred.

What is the interest rate and fee on the parent PLUS loan?

The interest rate is 7.6% and the origination fee is 4.264%.

I have been approved for a parent PLUS loan, what do I do now?

The student of the approved parent will initiate the 2018-2019 Parent PLUS Loan Request Form online. A valid e-mail address for the approved parent will need to be provided at the start of the request form. This e-mail address will be used to contact the parent to complete their portion of the form.

Once the student and parent completes the form, It will be sent to the Financial Aid Office for processing. Processing may take up to 14 business days. The loan may be tracked through the student's myBC.

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