Truth in Lending
All guaranteed student loans at Amarillo College will be processed through the Federal Direct Loan program. Under this program, all guaranteed student loans will be funded by the Department of Education.
The Department of Education establishes an annual maximum loan limit for Direct loans.
Currently the following maximum limits are:
Dependent Students: First Year - $5500 (no more than $3500 may be subsidized)
Second year - $6500 (no more than $4500 may be subsidized)
Independent Students: First year - $9500 (no more than $3500 may be subsidized)
Second year - $10,500 (no more than $4500 may be subsidized)
For loan limit requirements, students with less than 30 credit hours completed toward their current active degree plan will be classified as first year. Students with 30 or more credit hours completed toward their current active degree plan will be classified as second year.
Students at AC may not be eligible to receive the maximum annual loan limit during the academic year. Students’ loan awards may not exceed the student’s cost of attendance minus any financial aid awarded minus other resources (for example, assistance received from the WIA program, DARS, or other outside resource such as scholarships).
The Department of Education also establishes an overall aggregate limit for Direct loans.
Currently the following maximum aggregate limits are:
Dependent students who have borrowed an aggregate of $23,000 or more, or Independent students who have borrowed an aggregate of $40,000 or more, will have their Financial Aid file evaluated on a case-by-case basis prior to any additional Direct loan awarding. The AC Financial Aid Office does reserve the right to use professional judgment on a case-by-case basis when denying the awarding of additional Direct loan funds to borrowers with excessive Direct loan aggregate balances. Students who are denied may submit a student loan appeal to the Financial Aid Office.
The Department of Education charges a 1.051% origination fee for all subsidized and unsubsidized Direct loans. Students who wish to apply for a Direct loan at AC must submit a loan request form or summer loan request form to the Financial Aid Office. To qualify for Direct loan funds, students must complete the FAFSA process, be attending at least 6 degree required hours, be meeting the terms of the Satisfactory Academic Progress policy and not currently have a guaranteed student loan in default.
Private Education loans are credit based loans used to cover education expenses. AC requires students to have a completed FAFSA application on file prior to processing a private education loan. Amarillo College does not maintain a preferred lender list for private education loans. Students are encouraged to research lender fees and terms prior to requesting a private loan from a participating lender. Private Education loans do not have a predetermined maximum amount; however, some lenders do establish a minimum loan amount. Private Education loans that are certified by the AC Financial Aid Office will not exceed the student’s cost of attendance less any other financial aid received. Private education loans do not have the same repayment options available for Direct loans. Private education loans are not dischargeable in bankruptcy. Students are encouraged to exhaust all other avenues of paying for tuition and fees prior to applying for private education loans.