Loans

There are two types of Direct Stafford Federal student loans. The subsidized and unsubsidized loans may be available to students after completing the Free Application for Federal Student Aid (FAFSA). 

All loan borrowers, regardless of whether a loan was processed in prior years, are required to complete Steps 1-3.

Step 1: Complete Online Entrance Counseling

Students must sign in using their U.S. Department of Education FSA User ID to complete this step.
Read the information provided and answer the questions on each page. You must correctly answer the quiz questions at the bottom of each page to complete counseling successfully.  

Step 2: Complete Online Master Promissory Note (MPN)
Follow the directions carefully and submit the electronic signature through the federal website as your promise to repay the loan. 
  
Step 3: Submit a loan request via MyMendo by selecting "My Financial Aid Status" then "Request a New Loan".

Once you submit the Loan Request electronically, you will need to complete the Additional Loan Info form that will be requests under "Complete required documents". Submit the information requested in the Additional Loan Info form and steps 1-3 above.

After Submitting a Federal Student Loan

• Direct Loan applications take an average of 3-4 weeks for processing.
• The Financial Aid Office will review all applications for completeness. Incomplete applications will not be processed and will be returned to the student.
• Completed applications will be processed and a determination of loan eligibility will be made.
• Submission of a loan application does not guarantee eligibility.
• Students can use MyMendo to check their Direct Loan Application status.

Parent PLUS Loan: May be an option for parents of undergraduate students to help pay for educational expenses. A parent of a dependent student may be eligible to borrow a Parent PLUS Loan as long as the student is pursuing an eligible degree or certificate, is enrolled in at least 6 units and meets financial aid satisfactory academic progress requirements. This loan is contingent on credit worthiness.

To pursue this option, go to studentloans.gov. From the studentloans.gov home page, click on the "Sign In" button located in the "Manage My Direct Loans" box.  The Sign In page will appear. Once signed in, click on the "Direct PLUS Loan Requests" option located under the "My Loan Documents" heading on the left menu bar. The "Direct PLUS Loan Requests" page will appear.  Please contact the Financial Aid Office once you have completed this process.  

Private Education Loans: These loans may be borrowed from a bank or credit union. The lending institution sets the terms of the loan if approved. Once you are approved for the loan, the Mendocino College Financial Aid Office will be required to confirm borrower eligibility. If the Financial Aid Office confirms eligibility, the loan amount cannot exceed a student's cost of attendance at Mendocino College. 

Before applying for a private loan, Mendocino College strongly encourages students to review their eligibility for federal and state financial aid programs, including Federal Direct Loans, Pell Grants, Cal Grants, and the California College Promise Grant. These programs often provide lower-cost or no-interest options that may be more beneficial than private education loans.

To apply for federal or state financial aid, students must complete the Free Application for Federal Student Aid (FAFSA) or, for eligible undocumented students, the California Dream Act Application (CADAA) each academic year.

Students are also directed to review the differences between federal student loans and private education loans prior to borrowing from a private lender.

Truth in Lending Act

Private lenders must comply with federal Truth in Lending Act requirements, which include:

• Three separate loan disclosures:

1. At application,
2. At loan approval,
3. Prior to disbursement.

• A minimum three-business-day waiting period between the borrower’s receipt of final disclosure and the lender’s ability to disburse loan funds.
• Borrowers must sign and submit a Private Education Loan Applicant Self-Certification Form to the lender before funds are released.

Your lender will supply disclosures and specific instructions about these requirements.

Private Education Loan Self-Certification

Under federal law, all students applying for a private education loan must complete the Private Education Loan Applicant Self-Certification Form. The purpose of this form is to ensure that students understand:

• Federal, state, and institutional aid may be available;
• Title IV federal student loans often have more favorable terms than private loans;
• Private loans may not be necessary if remaining educational costs can be met using other aid.

Obtaining the Self-Certification Form

Your lender should provide the form.
If you do not receive one, you may download the federally approved blank form here: Private Education Loan Applicant Self-Certification Form 

If completing the downloaded version, students should contact their lender for an application ID or other identifier so the form can be matched to the loan application.

You can also refer to the cost of attendance tables on the Financial Aid Office website.

Information Needed to Complete the Form

To complete your form, you will need:

• Cost of Attendance (COA): You may view Mendocino College’s annual COA figures on the Financial Aid website.
• Estimated Financial Assistance (EFA): If you have been awarded financial aid, your EFA appears in MyMendo → Award Summary.
  Students may also request assistance or a printed copy from the Financial Aid Office.

Submission of Your Completed Form

Students must submit the signed self-certification form directly to their lender, not to Mendocino College.

Mendocino College will certify private education loans only if:

• All lender requirements are met; and
• The loan does not exceed Cost of Attendance minus Estimated Financial Assistance.

It is your responsibility to monitor your Direct Stafford Federal loan debt. If you reach your maximum loan debt amount or the annual loan limit, you will not be eligible to receive any additional Federal Stafford loans. If the Financial Aid Office at Mendocino College determines at any time that you have exceeded your annual or maximum loan debt amounts, you awards may be reduced or canceled. An example when this may occur is if you reached your annual and/or maximum loan debt limits at another institution and then request a loan at Mendocino College.

To monitor your annual and aggregate Direct Stafford Federal loan amounts, please visit studentaid.gov. There you will find a list of all the loans you have borrowed and which servicer is maintaining your loan.

Before borrowing, remember that loans must be repaid. Use an online loan payment calculator to investigate how much your monthly payment may be before you decide to borrow loans.