Types of Aid
Financial Aid Office
Student Services Building, 2nd fl.
Los Angeles Pierce College
6201 Winnetka Ave.
Woodland Hills, CA 91371
(818) 704-8221 fax
Direct Loan Process and Requirements
The following are general eligibility requirements for federal student loans:
- Complete a Free Application for Federal Student Aid (FAFSA).
- Have submitted all required documents listed on your student portal, if requested.
- Have been packaged for financial aid. This means that you have received your financial aid offer notice. You may view your financial aid offer through your student portal.
- Have satisfied all the general student financial aid eligibility requirements.
- Meet the Satisfactory Academic Progress (SAP) requirements.
- Be enrolled in a minimum of six (6) approved units. Students who are on an Extension Petition must be enrolled in six (6) approved units as stated on the Student Educational Plan.
- New borrowers: Must complete the Entrance Loan Counseling and a Master Promissory Note.
How to Request for a Federal Student Direct Loan
- Until our online loan request is finalized, you may request a loan for the 2020-21 academic year by contacting our Financial Aid Office Virtual Lobby. Download the Loan Data Form and turn in directly through our virtual lobby.
Entrance Loan Counseling Requirement
Federal laws require all borrowers to participate in Student Loan Entrance Counseling. The counseling explains the terms and conditions for the loan you plan to borrow. It also provides borrowers with information about the various Direct Loan repayment options as well as understand your rights and responsibilities as a student loan borrower.
NOTE: Los Angeles Pierce College is part of a Loan Counseling Experiment with the U.S. Department of Education. Students who have previously completed Entrance Loan Counseling and are selected for the experiment will be required to complete the Entrance Loan Counseling on an annual basis. As part of this experiment, student's Direct Loan disbursements are conditional upon completion of additional Entrance Loan Counseling. Students may use the U.S. Department of Education's online Entrance Loan Counseling website and select "Login to Start" to begin your loan counseling. You will need your Federal Student Aid (FSA) User ID to complete the Entrance Loan Counseling. Make sure you save the confirmation of completion for your records and for submission with your loan request.
Federal Regulations for New First-Time Borrower
If a student is enrolled in the first year of an undergraduate program of study and has not previously received a Direct Subsidized Loan, a Direct Unsubsidized Loan, a Subsidized or Unsubsidized Federal Stafford Loan, or a Federal Supplemental Loan for Students, we may not disburse the loan proceeds of a Direct Subsidized or Direct Unsubsidized Loan until 30 days after the first day of the student's program of study. [34 CFR 685.303(b)(5)]
New first-time borrowers will receive their first loan disbursements 30 days after the first day of the term.
Subsidized Usage Limit Applies (SULA)
First-time borrowers who have no prior student loan indebtedness before July 1, 2013 may not receive Direct Subsidized Loans for more than 150% of the published length of their program. This limitation is also called the maximum eligibility period. SULA was instituted to assist students in tracking their progress through their declared programs in order to ensure that students will invest no more than 150% of the time it takes to complete their program of study. Therefore, it is important that students know the length of their program of study as it will affect the maximum period of time to receive Direct Subsidized Loans. If the student exceeds the 150% of the program, the student will be responsible for the interest that accrues on the Direct Subsidized Loan.
For example, if you are pursuing a two-year program at Los Angeles Pierce College, you are limited to three (3) years (150% of 2 years = 3 years). If you are pursuing a one-year certificate program, you will be limited to 1 1/2 years (150% of 1 year = 1 1/2 years).
For additional information about this regulation, visit the U.S. Department of Education Federal Student Aid website.
Awarding and Disbursement Information
The loan period for an awarded Direct Loan corresponds to the period of enrollment (academic terms) that we anticipate you will be attending during the school year. As a result, when awarding the Direct Loan prior to or during the Fall term, the loan is awarded for the academic year: Fall and Spring. Students who are enrolled in Spring only with no Fall enrollment, the loan is awarded for the Spring only. Students who complete a program of study in the Fall term, the loan will be awarded for the Fall only and will be subject to proration.
Loan funds will be disbursed as follows:
- Loans are disbursed twice per loan period (period of enrollment for which your loan covers).
- If the loan is awarded for the academic year (fall and spring), the award total will be allocated with 50% in the fall term and 50% in the spring term.
- If the loan is awarded for one term, the loan will be disbursed in two payments during the term.
- All loans are subjected to loan and origination fees enacted by the U.S. Department of Education.
The Right to Reduce or Cancel the Student Loan
If it is determined that you are eligible, you will be notified via email to your LACCD assigned email to view your financial aid package on your student portal. You have the right to reduce or cancel the loan. You may submit a Loan Cancellation Request form and must be submitted in writing to the Financial Aid Office within thirty (30) days of the date on the award notification.
Dropping Below Half-Time
If you drop below half-time (6 approved units) prior to the scheduled fall term disbursement, the disbursement will be cancelled and loan fund(s) will be returned promptly to the U.S. Department of Education. If you drop below half-time after the scheduled fall disbursement and before the fall term is completed, you will not be eligible for a spring term loan disbursement. In both scenarios you may be eligible for a loan for the spring term only and a new loan must be processed. If you drop below half-time prior to the scheduled spring term disbursement, the disbursement will be cancelled.
The academic year for Federal Direct Loan start with the fall term and ends with the following summer term. This means that if you have borrowed the maximum annual loan limit during the fall and spring terms, you will have no remaining loan eligibility for the summer term within the LACCD. Please keep in mind that if you plan to continue to enroll in the LACCD as your future borrowing during the fall and spring terms will impact your ability to borrow during the summer term.
Annual Loan Limits and Interest Rates/Origination Fees
A student's financial need and annual loan limits determine how much a student may borrow. There are limits on the amount of subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amount that you may borrow for undergraduate study (aggregate loan limits). Students will either be classified as Grade Level One (0-30 units completed) or Grade Level Two (over 30 units completed and student is enrolled in a program of more than one year).
For additional information about Loan Borrowing Limits, visit the U.S. Department of Education Student Aid website.
For information about the current loan interest rate and loan origination fees, visit the U.S. Department of Education Student Aid website.