Direct Loan Procedures and Requirements

Direct Loan Eligibility Requirements

Before submitting a Direct Loan application, all applicants must already have a current FAFSA application on file with Modesto Junior College AND have an offer letter from Modesto Junior College Student Financial Services Office. Offer letters can be viewed on MyMJC.

Have a declared major with the Admissions & Records Office
Must be seeking a certificate, associate or transfer degree in an eligible Title IV program of study (16 or more units in length) from MJC.
MUST Meet SAP (Satisfactory Academic Progress) standards for each semester that they are applying for and/or are awarded a Direct Loan
Loan applications may be denied and/or awarded loan amounts may be reduced or canceled if the applicants is not making steady progress towards their declared program of study. Students must be in good academic standing, as spelled out under Modesto Junior College’s FA SAP GUIDELINES.
Enroll in and maintain a minimum of six (6) semester units for each semester that they are applying for and/or are awarded a Direct Loan
Direct Loan awards are awarded for the entire Fall and Spring enrollment period and will have two (2) disbursements per semester, half in the Fall and the other half in the Spring. If the student is no longer meeting SAP requirements or the minimum enrollment requirement after the Fall semester, the student will lose loan eligibility for the Spring and the remaining loan disbursement will be canceled.
Students must not be in default for any other federal student loans
National Student Loan Data System (NSLDS): Using your FSA ID you can access your entire loan history including balances, interest rates, and lender contact information. NSLDS
Must Complete Modesto Junior College Loan Application in its entirety
Any application that is not fully completed will not be processed or accepted. Make sure to do all the sections completely.
If attended previous colleges need official transcripts evaluated

Loan Application Process

Request Loan Application at mjc_finaid@mjc.edu

- Read every page thoroughly
- Provide 2 Personal Reference with different address
- Go to iGrad and Log in or Create Account
- Click on Read your welcome message from Yosemite Community College District
- Read message then click on "Exercises"
- Complete the following:
  1. Creating a Financial Plan
  2. Repaying your Student Loans
  3. Creating a Budget and Sticking to it
  4. Finding Scholarships for Schools
  5. Getting Out of Debt
- Once all completed print out Completion Certificates and attach to loan application
- Read and sign the student responsibilities
- Certification of Identity document will need Valid State or Federal ID
- Make sure to complete all requested sections
- You will need to print out of NSLDS, Master Promissory Notes and Loan Entrance Counseling
- All documents should be submitted in person to the West Campus, Financial Aid office, Yosemite Hall 147.
Loan Entrance Counseling (EC)

This is a Federal requirement and must be completed before any loan can be disbursed. This section will provide you with vital information you will need to know about the terms and conditions of the loan. It will also go over the right and responsibility as a student borrower

- Go to Loan Entrance Counseling and Log in
- Once logged in click "Complete Loan Counseling"
- Click "Start" button
- Add School to Notify
- Select state and search school
- Click "Notify School"
- Select "I am completing entrance counseling to receive Direct Loans as an Undergraduate student"
- Read and follow Instructions Carefully
- Print completed loan counseling
- Remember to Log out

3. Master Promissory Note (MPN)

The MPN is a legally binding contract stating that you understand all the terms and conditions of the loan and the students right and responsibilities. Your signature indicates you have understood and accepted the terms and conditions of the loan and you are agreeing to repay the loan with interest.

- Go to Master Promissory Note and Log in
- Once logged in click "Complete Master Promissory Note"
- Click "Subsidized/Unsubsidized"
- Read and follow instructions carefully
- Print out completed MPN
- Remember to Log out

4. Exit Counseling

Upon exiting all Direct Loan student borrowers who are graduating, leaving school, or dropping below half-time enrollment are required to complete exit counseling. If the borrower does not do it electronically through Loan Exit Counseling, Modesto Junior College will email/mail a paper exit form to the most recent email/home address on file within 30 days of borrower graduating, leaving school, or dropping below half-time enrollment.

- The loan review process will take 4-6 weeks
- Make sure to keep copies of your Master Promissory Note and Loan Entrance Counseling
- You will be notified through your MJC student email only whether you were approved or denied for the loan

34 CFR 685.301(a)(8) Origination of a loan by a Direct Loan Program school

(8) A school may refuse to originate a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan or may reduce the borrower's determination of need for the loan if the reason for that action is documented and provided to the borrower in writing, and if-
(i)   The determination is made on a case-by-case basis;
(ii)   The documentation supporting the determination is retained in the student's file; and
(iii)   The school does not engage in any pattern or practice that results in a denial of a borrower's access to Direct Loans because of the borrower's race, gender, color, religion, national origin, age, disability status, or income.

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