Federal Direct Loans

• Federal Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school.
• The lender is the U.S. Department of Education (the Department), but... the entity you deal with, your loan servicer, can be a private business.
• Visit www.studentaid.gov for more information about types of Federal Direct Loans.
• Student loans are a serious commitment, you are required to pay them back even if you drop out, do not complete your education, or are unsatisfied with the education you receive.
• You are not required to borrow the maximum amounts.
• For Parent loans, at Cuesta College we require a student to borrow the maximum amount they are eligible for first, and if a parent loan is approved it will be applied second. To apply please visit www.studentaid.gov

A student must meet the following criteria to be eligible for Federal Direct Loans:

• Complete a FAFSA
• Be enrolled in a minimum of 6 units per semester in a program leading to a degree, certificate, and/or transfer
• Maintain Satisfactory Academic Progress (SAP)
• Not be delinquent or in default on any previously borrowed Federal Student Loans
• Not be in overpayment on any previously received Pell Grant
• Not exceeding annual or aggregate loan limits from prior loan usage

Depending on your financial need as determined by the FAFSA, there are two types of Federal Direct Loans you are eligible for:

• Subsidized Loan: A need-based loan program in which the loan interest is subsidized (paid) by the Department of Education while a student is in school at least half-time or during periods of deferment
• Unsubsidized Loan: A non-need-based loan program in which the loan interest accrues (is charged) upon disbursement of the loan

A student may be eligible for both loan types or only the Unsubsidized Loan based on financial need. 

• Submit a FAFSA
• Complete Your Financial Aid File
• Complete the following steps below, according to your status; First-time Borrowers or Continuing Borrowers. Only fill out one form.

• The school will determine what loan types and the actual loan amounts you are eligible to receive each academic year. However, there are limits on the amounts of subsidized and unsubsidized loans you can borrow each academic year called 'annual loan limits' and the total amounts you can borrow as an undergraduate called 'aggregate loan limits.'
• Loan limits vary depending on: what year you are in school and whether you are a dependent or independent student.

** Please note, The Financial Aid Office may also limit an individual student's approved loan amount based on a number of factors: 

• Cumulative Loan Debt
• Rate of Academic Progress

• Register to attend a virtual Student Loan Workshop with the Cuesta College Financial Aid Office
  • RSVP is necessary as spots are limited
    
    
• Attend a virtual Student Loan Workshop
  • Students must be on camera for the duration of the workshop
  • Be prepared with a copy of your government-issued photo ID for verification at the end of the workshops
  • The Loan Request Form will be provided at the end of the workshop

• Complete Loan Entrance Counseling at studentaid.gov
  
  
• Sign a "Master Promissory Note" (MPN) at studentaid.gov
  
  
• Submit Loan Request Form
  • The Loan Request Form will be provided at the end of the workshop

Please allow 30 days for your loan request to be processed and originated. 

Once your loan has been finalized, it may take up to two scheduled disbursement dates for the funds to appear on your student account. We recommend planning accordingly, as loan funds may not be available immediately. For a list of upcoming disbursement dates, please see the Financial Aid Disbursement Calendar.

NEW LOAN BORROWERS:
Students who are first-time federal Direct Loan borrowers are subject to a mandatory 30-day delayed disbursement period in accordance with federal regulations. The 30-day period begins on the first day of the term, and loan funds cannot be disbursed until the delay period has been satisfied.

Loan Workshops are offered regularly throughout the term for your convenience. Space is limited, so advance registration is recommended to reserve your spot. If your preferred workshop is full, please register for the next available session. The workshop link will be provided once you register.

The registration links will be available by June 15, 2026. Please check back regularly for registration information.  

Helpful reminders to regarding the workshops:

• Students must be on camera for the duration of the workshop
• Be prepared with a copy of your government-issued photo ID for verification at the end of the workshops
• The Loan Request Form will be provided at the end of the workshop

• If you need to modify your loan to decrease (If it has already been processed or within 30 days of disbursement) or increase it, complete the electronic Direct Loan Modification Form
• You can cancel all or part of a loan by notifying the Financial Aid Office before your loan is disbursed
• You won’t be charged interest or fees on any portion of a loan that’s cancelled within 120 days of the disbursement date
• You can return loan funds to your servicer more than 120 days after disbursement, but the return will be processed as a pre-payment on the loan, and you’ll be charged interest and a loan fee on the amount you return.