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Federal Direct Loans

How to Apply for a Loan.  Spoon River College participates in the William D. Ford Federal Direct Loan Program.  What this means for you:

  • All Federal Direct Student and Direct PLUS Loans certified through SRC will be disbursed directly by the federal government.
  • We will no longer be using multiple private lenders (Federal Family Education Loan Program) for Student or Parent PLUS loans.
  • Interest rates for Direct PLUS Loans will decrease to 7.9%.
  • Direct Loans will not be sold to other financial institutions and will, in turn, be less confusing for students when repayment begins.
  • ALL students, new and/or returning, borrowing a loan at SRC will be required to complete a promissory note before loan funds can be disbursed.

To find out who to contact about your previous loans, go to www.nslds.ed.gov, select Financial Aid Review, and login using your Department of Education PIN to view your loans individually for lender contact information. Students with existing loans from private lenders will retain those obligations, but will now use the Direct Lending Program for any new Student or PLUS loans.

Follow the steps below to apply for a student loan at Spoon River College.

  1. Complete a Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov.
  2. Submit all financial aid documentation requested by SRC.
  3. Register for and attend at least six credit hours.
  4. Complete the Online Entrance Counseling and promissory note for your loan electronically  at www.studentloans.gov.
  5. Complete a 2011-12 Loan Request Form​ and submit it to the Financial Aid Office.
  6. Financial aid staff will determine if a student is eligible for a student loan when the loan is certified and again when the loan funds are disbursed. Eligibility is determined by reviewing hours of enrollment, SAP (Standards of Academic Progress), eligible curriculum, cumulative loan amount borrowed (not to exceed federal maximum allowed), and attendance. Grade level, cost of attendance, EFC (Expected Family Contribution), and aid already applied determine whether the student will be eligible for a subsidized or an unsubsidized Direct Loan.
  7. Once loan eligibility has been determined and your loan certified, you will receive a letter explaining the amount for which you were approved and a disclosure statement from the Direct Loan Processing Center.
  8. Loan checks are mailed by the Business Office on the main campus directly to the student's address on file with the college.
  9. Failure to remain in attendance until the 11th week of the semester or to complete any course for the semester successfully (D grade or better) necessitates a recalculation of your aid eligibility and may result in you being eligible for less aid and having to repay amounts of aid that you previously received.

Failure to complete the applicable steps will cause delays in processing your request.

Please see the Federal maximum annual borrowing limits at the Federal Direct Loans website.

Direct Plus Loans

Direct PLUS Loans (Parent Loan for Undergraduate Dependent Students) are for parents of dependent undergraduate students who do not qualify for need based money to help meet educational costs not covered by other sources of aid. Parents may borrow up to the cost of attendance minus other sources of aid received by the student. The interest rate for loans after July 1, 2011 is fixed at 7.90%. Follow the steps below to apply for a Direct PLUS Loan at Spoon River College.
  1. Parents complete a promissory note at www.studentloans.gov.
  2. Parents also need to complete a PLUS Loan Request Form​
  3. SRC will then certify enrollment, cost of attendance and the loan amount approved.
  4. Once the loans have been guaranteed by the Department of Education, funds can be disbursed to the school as early as the first day of class.
  5. Failure of a student to attend courses for which they are enrolled will necessitate the parent return funds to SRC for return to the Department of Education.
  6. Failure of the student to remain enrolled until the 11th week of the semester or to complete any course for the semester successfully (D grade or better) necessitates a recalculation of your aid eligibility and may result in you being eligible for less aid and having to repay amounts of aid that you previously received.

Alternative or Private Student Loans

Private student loans are nonfederal loans issued by a lender such as a bank or credit union. Private student loans often have variable interest rates, require a credit check and do not provide the same benefits to student borrowers as the federally guaranteed student loans.
Federal student loans offer borrowers many benefits not typically found in private loans. These include low fixed interest rates, income-based repayment plans, and loan forgiveness and deferment options, including deferment of loan payments when a student returns to school. For these reasons, students and parents should always exhaust federal student loan options before considering a private loan.​​​​​​​​​​​​​​​​​
 

 Financial Assistance Programs

 

​​Visit collegezone.com for additional information on ​federal and state financial assistance programs.

Federal Programs​

Federal PELL Grant The Federal PELL Grant is the primary federal student aid program. It is awarded to students on the basis of financial need and does not have to be repaid. Funds received from the Federal PELL Grant may be used for all legitimate educational expenses, including tuition, fees, and related living expenses. This grant is renewable, dependent on continued financial need and meeting academic standards of progress.​​​​​​​​
Federal Work-Study Program (FWS) A limited number of part-time jobs in various departments are available to SRC students. Information from the FAFSA is used to determine eligibility for work through this program. Students are paid the federal minimum wage for up to 20 hours per week of work, depending on their need and the type of work available.​​​​​​​​
Direct Loan This is a loan program whereby students may borrow money for educational expenses. The interest rate is fixed and can change each year. For Subsidized Direct Student Loans disbursed between July 1, 2011 and June 30, 2012 the interest rate is 3.4%. The fixed interest rate for Unsubsidized Direct Student Loans is 6.8%. Repayment begins six months after the student either graduates or ceases to be enrolled at least half-time. To apply for a student loan you must complete Entrance Counseling before your loan is certified and Exit Counseling within 30 days of graduating or dropping below half time enrollment. There are two types of loans available: Subsidized and Unsubsidized. The Subsidized loan is based on financial aid need, and the government pays the interest while the student is in college. The Unsubsidized loan is not based on financial aid need, and the student either has to pay the interest or have it capitalized while in college. They must also have previously applied for financial aid via the FAFSA form.​​​​​​​​​
Federal SEOG Grant The Federal SEOG is a gift-aid programs for undergraduates with exceptional financial need. Pell grant recipients with the lowest expected family contribution will be the first students awarded. Minimum enrollment of six (6) credit hours is required.​​​​​​​​

State Funded Grants

ISAC Illinois Student Assistance Commission. ISAC administers State of Illinois funded aid programs and provides Outreach to Illinois families about navigating the college selection and financial aid process.​​​​​​​​
Monetary Award Program (MAP) This award program is based on financial need and is applicable for the tuition and fees, excluding lab fees, (from 6 through 19 semester hours per semester) of undergraduate work. It is renewable for up to five years. Students are required to reimburse SRC in the event that state funding is not available to pay the complete scholarship awarded to the student. Application for the award is made on the FAFSA form by providing the appropriate information. Read the instructions on the form carefully.​​​​​​​​

Veterans Programs

Students who wish to use Veterans Benefits while at Spoon River College must complete a Veterans Benefit Activation Form each semester and is also available in the Financial Aid Office.

Please Note: Some veterans organizations such as American Legion and Veterans of Foreign Wars offer financial assistance for education to veterans and their dependents. The college recommends that these organizations be contacted directly through the local chapters located in our district communities for additional information.
Veterans Benefits Spoon River College is approved for veterans' benefits through the Illinois State Approving Agency. Any veteran who thinks s/he may be eligible for federal benefits may obtain information and applications through the Financial Aid Office. To maintain eligibility, students who are veterans must be enrolled in an eligible program, attend classes regularly, and be making satisfactory academic progress.​​​​​​​​
IL Veteran's Grant This award will pay the full tuition and applicable fees for Illinois veterans attending SRC part-time or full-time. Any veteran who entered the armed forces as an Illinois resident and who served at least 12 months and returned to Illinois within six months of separation may qualify for this program. A copy of the discharge papers, DD214, showing an honorable discharge, and proof of state residency must accompany the application for the award.​​​​​​​​
IL National Guard Scholarship This award applies to tuition and applicable fees charged for attending SRC part-time or full-time. Eligibility requires that the recipient must be a member of the Illinois National Guard for at least one year and must continue to be a member for the duration of the scholarship.​​​​​​​​
MIA-POW Scholarship This award applies to in-district tuition and applicable fees. Eligibility requires that the recipient must be the spouse or child of an eligible veteran. Information and application may be obtained through the Financial Aid Office.​​​​​​​​

Locally-Based Assistance

Spoon River College Scholarships The Spoon River College Foundation sponsors various scholarships. These scholarships vary in requirements. Some require high academic qualifications and others require financial need. Some are designated for students residing in specific towns within the district.​​​​​​​​
Senior Citizens: Spoon River College District residents who are 60 years or better will receive a tuition and fees (except lab fees) waiver for credit courses. This waiver does not apply to those who are auditing a course(s).​​​​​​​​
Support Agencies Educational Assistance: Persons who are clients of many federal, state, county, township, and/or municipal agencies may be eligible for educational financial assistance through that agency's service program. Examples of such agencies are county rehabilitation centers, Department of Public Aid, county public health offices, Department of Rehabilitation Services, local township offices, and United Workforce Development Board (UWDB) offices.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​