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Federal Direct Loans

About the Direct Loan 

Direct loans are low-interest federal student loans to help you pay for the cost of education at NVC. The lender is the U.S. Department of Education rather than a bank or financial institution. As a Direct Loan borrower, a Loan Servicer/Federal Loan Servicer will be assigned to service your loans. You may view your loan information, including the name of the Loan Servicer by logging on to the Federal Student Aid website at https://studentaid.gov/.  Your Loan Servicer/Federal Loan Servicer will be your single point of contact for everything related to the repayment of your loans.

There are two types of Direct Loans available at NVC:

  1. Direct Subsidized Loans (Federal Direct Stafford/Ford Loans) are loans for students with financial need, as determined by federal regulations. No interest is charged while you are in school at least half-time and during deferment periods.
  2. Direct Unsubsidized Loans (Federal Direct Unsubsidized Stafford/Ford Loans) are loans for students that are not based on financial need. Interest is charged during all periods.

2022-2023 Application Deadlines

Enrollment Period Application Accepted Beginning Application Deadline
Fall 2022 August 12, 2022 October 28, 2022
Spring 2023 January 04, 2023 April 14, 2023

If you have questions concerning the Direct Loan Application process, please call (707) 256-7301 or stop by the Financial Aid Office during regular office hours to schedule an appointment to meet with a Financial Aid Specialist.

You will need your FSA ID Username and Password that you have created through the Federal Student Aid website to complete this process. You can reset your password, if you have forgotten it by accessing the Federal Student Aid website at https://studentaid.gov/ 

Interest Rates

Interest rates will be established each year, based on the high-yield of the 10-year Treasury note plus a 2.05% add-on.  The interest rate for the 2022-2023 academic year is 4.99 %.  The maximum cap will be 8.25% for undergraduate loans.

Other Loan Fees

The loan origination fee is another expense of borrowing a Direct Loan. The origination fee is subtracted proportionately from each loan disbursement.  The origination fee for Direct Subsidized and Unsubsidized Loans with a first disbursement on or after October 01, 2021 but before October 01, 2022 is 1.057%.  The origination fee for Direct Subsidized and Unsubsidized Loans with a first disbursement on or after October 1, 2022 remains at 1.057%.

Are you eligible to apply for a Direct Loan at NVC?

You may be eligible to apply for a Federal Direct Loan (Direct Loan) at NVC if you meet the following criteria:

  • You have submitted a Free Application for Federal Student Aid (FAFSA) for the current academic year listing NVC as a school of attendance.
  • You have completed the NVC financial aid process and have been determined eligible to receive federal financial aid funds.
  • You have been accepted into (program acceptance required for health occupations programs), and are enrolled in a financial aid eligible program of study at NVC leading to an AA/AS degree, vocational certificate, or transfer to a four-year college or university for a BA/BS degree.
  • You are enrolled and attending at least half-time in courses required by your chosen degree, certificate, or transfer program of study at the time your loan application is submitted.
  • You are not on NVC academic or progress dismissal (or subject to academic or progress dismissal).
  • You are not on Financial Aid Disqualification.
  • You are not in default or delinquent on a prior student loan.
  • You do not owe a repayment of federal Title IV funds.
  • You have not borrowed a Federal student loan at another college for the current academic year.
  • You have not borrowed the maximum yearly amount (see Tables below) you are eligible to receive in Federal student loan funds within the last 12 months.
  • You have not reached or exceeded the Aggregate Loan Limits (see Table 3) for an undergraduate student. 
  • You are in a program for transfer to a four-year college or university and have borrowed less than one-half the Aggregate Loan Limit for undergraduate students.

How much can you borrow at NVC?

The amount you may borrow for a single academic year is shown in the tables below. The amount you will actually be eligible to receive may vary due to the following factors:

  • The loan amount you request;
  • Your year in school, based on the requirements of your chosen program of study at NVC;
  • Whether you are considered a DEPENDENT (Table 1) or an INDEPENDENT (Table 2) student for federal financial aid purposes;
  • The length of time you will be in attendance, also known as your enrollment period, at NVC during the academic year;
  • Your cost of attendance;
  • Your Expected Family Contribution (EFC);
  • Other financial aid you will receive during the academic year;
  • Your remaining eligibility under the annual or aggregate loan limits.

Direct Loan Annual Limits  

Table 1: Dependent Students

DEPENDENT STUDENTS

Base Amount
Subsidized/Unsubsidized Combined

Additional
Unsubsidized

Yearly Maximum

First-Year in Program

$3,500

$2,000

$5,500

Second-Year in Program

$4,500

$2,000

$6,500

 

Table 2: Independent Students 

INDEPENDENT STUDENTS

Base Amount
Subsidized/Unsubsidized
Combined

Additional
Unsubsidized

Yearly Maximum

First-Year in Program

$3,500

$6,000

$9,500

Second-Year in Program

$4,500

$6,000

$10,500

Loan amounts are prorated for students with less than one year remaining for completion of their program, or who are enrolled in non-standard term programs or programs of less than one year in length, or who are enrolled in clock hour certificate programs.

You may receive a Direct Subsidized Loan, a Direct Unsubsidized Loan, or a combination of both for the same academic year. Direct Subsidized Loan is based on unmet financial need, as determined under federal regulations. Need is not a factor in determining eligibility for a Direct Unsubsidized Loan. You may qualify for a Direct Unsubsidized Loan regardless of your financial need.

Unmet financial need is calculated by subtracting your expected family contribution and any education-based funding you are expected to receive during the academic year from your financial aid student budget. If you do not have sufficient unmet need to cover the full amount of your loan request with the Subsidized Direct Loan, the balance may be covered by the Unsubsidized Direct Loan. Total financial aid, including loans, can never exceed your student budget for the academic year.

The maximum total outstanding loan debt you can accumulate while in school is limited, so you must plan carefully to be sure your loan eligibility is not exhausted before you complete your educational goal. Once you reach the limits listed in Table 3, you will be unable to borrow additional federal educational loans until your loan debt is reduced through repayment.

Table 3: Aggregate Loan Limits 

STUDENT STATUS

Subsidized/Unsubsidized Aggregate
Effective July 1, 2008


UNDERGRADUATE DEPENDENT STUDENTS

$31,000
(maximum $23,000 subsidized)


UNDERGRADUATE INDEPENDENT STUDENTS

$57,500
(maximum $23,000 subsidized)


GRADUATE and PROFESSIONAL STUDENTS

$138,500
(maximum $65,500 subsidized)

Napa Valley College Default Rate Disclosure

  • The NVC 2018 cohort default rate is 9.5 percent
  • Percent of NVC Students who Borrow is less than 2%
  • The FY 2018 national cohort default rate is 7.3 percent

  • All loan borrowers, regardless of whether a loan was processed in prior years,  are required to complete Steps 1-4.
  • Borrowers who meet the criteria in Step 5  must complete that step as well.
  • Applications with missing or incomplete documents will be denied and will not be returned to you.  Average processing time is between 6 to 8 weeks.  
  • YOU ARE RESPONSIBLE FOR SUBMITTING ALL REQUIRED DOCUMENTS TOGETHER TO THE FINANCIAL AID OFFICE ELECTRONICALLY, THROUGH DOCUSIGN.  Please use the Check-Off List in Step 4 to upload all required documents.  You will be required to upload documents confirming that you've completed Steps 1 through Steps 3.  When you mark a step complete on the Check-Off List, an attachment button (identified by a paper clip) will appear for you to click to upload the required document, if required for that step.  

Five Steps to Apply for a Direct Loan

  • The first day Direct Loan Applications will be accepted is August 12, 2022.
  • You must meet the NVC Direct Loan Eligibility Criteria at the time you submit your application to be considered for a loan. Your application will be denied if you do not meet the eligibility criteria at the time you submit your application.
  • You must submit your loan request and all required documents, electronically through DocuSign by close of business on the published deadline date.   
  • You will need your FSA ID username and password to complete this process. You can retrieve your FSA ID username and password at the Federal Student Aid website if you have forgotten them.   
  • Individualized instructions are included with each step, so read carefully before moving on to the next step.
  • Most  steps and forms may be completed on your computer by typing the information into to the space provided. Be sure to provide complete and accurate information. Missing or inaccurate/conflicting information may result in the denial of your application.
  • You will be required to make an appointment to meet with your academic counselor, who may not be immediately available. Please be aware that appointments may not be available for up to two weeks or longer.
  • You will be required to upload documents confirming that you've completed Steps 1 through Steps 3 with the Request for a Direct Loan.  Be sure to save a PDF copy of each steps completed to upload with your Request for a Direct Loan in Step 4. You must  sign all required forms. Check them for accuracy and completion before submission.
  • Submit all required forms TOGETHER to the Financial Aid/EOPS Office for processing electronically, through DocuSign. Average application processing time is 6-8 weeks.
  • Incomplete applications will be denied and will not be returned to you.

Step 1: Online Master Promissory Note (MPN)-FSA ID Required

  • Open the website by clicking on the text above. The website will open in a new window.
  • Place your cursor on the "Complete Aid Process", and click on Complete a Master Promissory Note.
  • The Master Promissory Note page will open, and display three different Direct Loan MPNs for you to choose from.  You will be completing the MPN for "I'm an Undergraduate Student".  Click "Log in to Start", next to the I'm an Undergraduate Student.  Sign in with your FSA ID Username and Password and click Log-In to complete your MPN for an Undergraduate Student.  NVC does not participate in the PLUS loan program.
  • NVC requires that you complete a new MPN each year you apply for a Federal Direct Loan.
  • Follow the directions carefully. Your FSA ID will act as your electronic signature and your promise to repay the loan. After you have completed your MPN and submitted it to the Department of Education, you will be able to print and save a PDF copy for your records and to submit with your Request for a Federal Direct Loan.
  • You must attach a PDF copy of the completed MPN for submission with your Request for a Federal Direct Loan Form and Check-Off List.  

Step 2:  Online Entrance Counseling-FSA ID required

  • Open the website by clicking on the text above. The website will open in a new window. 
  • Place your cursor on the "Complete Aid Process", and click on Complete Entrance Counseling.
  • Click "Log In To Start" under the Complete Entrance Counseling box to begin.  
  • Sign in with your FSA ID Username and password.  You will need to complete the entrance counseling for an undergraduate student.
  • Follow the directions carefully.  The entrance counseling is an interactive process.  Read the information provided and answer the questions on each page.  You will need to click on the pull-down arrow to view additional information in the session and provide answer to the questions.  
  • The Entrance Counseling must be completed in a single session.      
  • Read the Borrower Rights and Responsibilities when the link becomes available.
  • SAVE the confirmation page that you've successfully completed the Entrance Counseling for submission with your Request for a Federal Direct Loan Form and Check-Off List.

Step 3:  Comprehensive Student Educational Plan

  • You are required to submit a copy of your current Comprehensive Student Educational Plan.  You may be required to make an appointment with an academic counselor in Counseling Services to complete a comprehensive Student Educational Plan, so plan for a delay of up to several weeks.
    1. If you already have a current comprehensive Student Educational Plan that was prepared by your academic counselor, that you are following, you may submit a PDF copy of it with your Request for a Federal Direct Loan Form and Check-Off List.
    2. Existing electronic student educational plans may be viewed and printed through MyNVC Student Planning.
    3. If you need a new Student Educational Plan or need to change your Student Educational Plan,  you must meet with an academic counselor.  
    4. If you are in specialized program, such as EOPS/CARE/CalWORKs, you should meet with your program assigned counselor or program specialist.
    5. You and your counselor must complete a semester-by-semester, comprehensive Student Educational Plan for your program of study at NVC.  Request that the academic counselor provide you with an electronic PDF copy of the comprehensive Student Educational Plan to submit with your Request for a Federal Direct Loan Form and Check-Off List. 
    6. If your financial aid is restricted by a Financial Aid Appeal contract, submit a PDF copy of your approved Appeal Student Educational Plan with your Request for a Federal Direct Form and Check-Off List.
    7. Submit a PDF copy of your Comprehensive Student Educational Plan with your Request for a Federal Direct Loan Form and Check-Off List.

Step 4:  Request for Direct Loan Form and Check-Off List

  • Click on the link above (A DocuSign Powerform will open in a new window). Enter your Legal Name and NVC Student email address and click on "Begin Signing" to complete the Request for A Direct Loan Form and Check-Off List.
  • If you begin entering information on your form, but need to stop for any reason, you can save your work and finish later.  To save your form and Finish Later, follow these steps:
  •  TO FINISH LATER:  Click on the “OTHER ACTIONS” button at the top of the page.  Choose “Finish Later” from the drop-down menu. 
  •  TO ACCESS YOUR SAVED FORM:  To access your saved form, open the validation email you originally received for this form and then click the “Resume Signing” button.  
  •  Do not use the PowerForm link again, as the PowerForm Signer Information page will open a new Request for a Direct Loan Form, not your saved form.
  • Complete and sign the Request for a Direct Loan Form and Check-Off List.  Complete the Request for a Direct Loan Form and attached all required documents confirming that you've successfully completed steps 1 through 4 to the Check-Off List.  When you mark a Check-off step complete, an attachment button (identified by a paper clip) will appear if additional documents are required for that step.  Click on the paper clip to upload the required document. 
  • FINISH AND SUBMIT.  When you have completed the form and attached all required documents, click the FINISH button to submit.  Your Financial Aid Direct Loan Form will be submitted automatically to the Financial Aid Office for processing.  You will receive a copy of the completed form once it is processed.  

Step 5:  Additional Documents Required

  • If you have a prior educational loan that was discharged due to a permanent, total disability you must submit:
    • an official letter from a physician certifying that you can engage in substantial gainful employment in your field of study; and
    • a signed statement from you acknowledging that the Direct Loan you receive cannot be discharged in the future on the basis of any impairment present when the loan is received, unless that impairment substantially deteriorates.
  • If you have a bankruptcy pending, you must contact the Financial Aid/EOPS Office for further instruction.

  Next Steps -- After You Submit Your Loan Application

  • Direct Loan applications take an average of 6-8 weeks for processing.
  • The Financial Aid/EOPS Office will review your application for completeness. Incomplete applications will be denied and will not be returned to you.
  • Complete applications will be processed and an eligibility determination made.
  • If you are determined ineligible for a Direct Loan, you will be notified by mail of the reason(s) your application was denied.
  • If your application for a Direct Loan is approved, you will receive a letter by mail from NVC notifying you of the loan type and amount approved, the dates you may expect to receive a loan disbursement, and other important information about your loan. Approximately two weeks after your loan is approved, you will also receive a Direct Loan Disclosure Statement from the Federal Direct Loan Program.

Check Your Status Online

Use MyNVC, Financial Aid Self-Service to check your Request for a Federal Direct Loan status, view your financial aid awards, and print your financial aid award letter. Just login to MyNVC , click on Financial Aid Self-Service, and then click on Required Documents.

Application Status Definitions 

  • Submitted by Student
  • Application was received by the Financial Aid/EOPS Office, but it has not yet been processed.
  • Incomplete
  • Required documents or information is missing. You are required to submit additional information before the application can be processed.
  • Pending
  • Application cannot be processed until your financial aid file has been reviewed and is complete. If you have already submitted all documents required to complete your file, average processing time is up to 10 weeks from the date you submit documents to complete your file. If you have not submitted the documents required to complete your file, please do so immediately. A "File Complete" notation will appear in the "Required Documents" screen in Financial Aid Self Service when your file is complete.
  • Disqualified
  • After a careful review of your application and Federal Aid eligibility for the current academic year, it was determined that you were not eligible to borrow a Direct Loan at Napa Valley College. A letter will be sent to you within ten working days explaining why you were not eligible for the loan.
  • Complete
  • Your application has been processed and you are eligible to borrow a Direct Loan at Napa Valley College.
  • A Direct Loan approval letter, listing expected loan disbursement dates and important loan information, will be mailed to you within ten working days.
  • A Direct Loan Disclosure Statement from the Federal Direct Loan Programs will be mailed to you in approximately 2 weeks.
  • The loan amount you are eligible to borrow may be found under My Awards on MyNVC Financial Aid Self-Service.
  • Total Awarded Amount lists financial aid totals by award for the academic year.
  • Financial Aid award by Term lists financial aid awards by the semester.
  • Financial aid award letter allows you to view or print your financial aid award letter for the academic year, which includes both semester and yearly totals.

Online Exit Counseling - Required at 2nd Disbursement

  • Open the website by clicking on the text above.  The website will open in a new window.
  • Place your cursor on "Manage Loans", and click on "Complete Exit Counseling".
  • Click on "Log In to Start" under the Complete Exit Counseling box.
  • Sign in with your FSA ID Username and Password to begin the Exit Counseling.
  • Follow the directions carefully.
  • Please complete the Online Exit Counseling session not more than 2 weeks prior to your expected second disbursement date.
  • You will be asked to update your borrower information near the end of your session. Please complete this information and submit online.
  • Save the confirmation page that you've successfully completed the correct Exit Counseling session and submit it to the Financial Aid/EOPS Office.

Visit the Online Direct Loan Exit Counseling website.

Did you forget your FSA ID? Retrieve your FSA ID

Online Exit Counseling requires that you have your FSA ID Username and password as you will be accessing secure information. If you have forgotten your FSA ID username and/or password, you may retrieve it at the link below. 

U.S. Department of Education Federal Student Aid

Loan Disbursements 

Direct Loan funds are disbursed in two payments during each individual borrower’s eligible enrollment period.

  • Estimated disbursement dates for loans are specific to each borrower and are listed on the borrower’s loan disclosure statement.

  • Loan disbursements are paid within 14 days from the estimated disbursement date listed on the loan disclosure statement.

  • Scheduled payment dates for all financial aid awards are available on the FA Payment Information webpage.

  • Exit Counseling must be completed not more than two weeks prior to receiving the second disbursement for the enrollment period.

Your loan disbursements (refunds) will be paid to you based on your refund selection with  BankMobile Disbursements, a technology solution, powered by BMTX, Inc.  If your address is incorrect or you will be moving in the near future, you must submit a Address Change Form to the Financial Aid/EOPS Office immediately and notify BMTX, Inc.  You can complete the Address Change Form by logging on to MyNVC, Financial Aid Self-Service, Helpful Links.

Please note: if you owe tuition, fees, or related costs to Napa Valley College, the amount you owe will be deducted from your disbursement first. Any remaining loan funds will be paid to you.

How to Cancel Your Loan Disbursement 

  • If you want to cancel your ENTIRE loan amount, you may do so before the first disbursement is paid to you. Please submit your request in writing at least 3 days prior to the FIRST payment date.
  • If you no longer want the SECOND disbursement of your Direct Loan, you may do so before the disbursement is paid to you. Please submit your request in writing at least 3 days prior to the actual payment date. However, you must still complete the Online Exit Counseling process.
  • If you find that you still need loan funds to help pay for educational costs, but do not need the full amount awarded, you may request that the loan amount be REDUCED. Please submit your request in writing at least two weeks prior to the scheduled disbursement date.