Loans
The Federal Direct Loan Program assists students from both low- and middle-income families. Students who demonstrate financial need for all or part of the annual loan limit may qualify for a subsidized loan, in which the federal government pays the interest during periods of in-school deferment and throughout the grace period.
Direct Loan payments are deferred as long as the student remains enrolled at least half-time. Repayment begins six months after the student drops below six units of enrollment or graduates.
Students who do not demonstrate financial need for all or part of the annual borrowing limit may still be eligible for an unsubsidized loan, for which they are responsible for paying interest while in school.
A Direct Student Loan is a long-term financial commitment that can impact your cash flow and purchasing power for many years. It is important to carefully consider whether taking on loan debt is necessary to cover your expenses. You should explore alternative ways to meet your financial needs, such as budgeting carefully, seeking part-time employment, or applying for scholarships. If you determine that a loan is essential for your education, borrow only the amount you truly need.
To be considered for a Direct Loan, a student must:
- Complete a Free Application for Federal Student Aid (FAFSA).
- Enroll in six (6) or more units related to your program of study/educational goal.
- Contact College of Alameda Financial Aid Office to request a Student Loan Packet, and ensure that all required documents are submitted before the deadline.
How much a student may borrow?
- The Financial Aid office will determine the loan type, and the actual loan amount you are eligible to receive each academic year.However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on what year you are in school and whether you are a dependent or independent student. The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
Year
Dependent Students
Independent Students
First-Year Undergraduate Annual Loan Limit
$5,500 – No more than $3,500 of this amount may be in subsidized loans $9,500 – No more than $3,500 of this amount may be in subsidized loans Second-Year Undergraduate Annual Loan Limit $6,500 – No more than $4,500 of this amount may be in subsidized loans
$10,500 – No more than $4,500 of this amount may be in subsidized loans.
Current Interest Rates, Loan Fees, and Important Information
- Interest rate: 6.39% for new loans taken out between July 1, 2025 before July 1, 2026.
- Origination fee: 1.057% will be deducted from each loan on or after October 1, 2020 and before October 1, 2026
- Students must pay the interest on Unsubsidized Loans while in college, or may have it added to the principal (this increases the amount students must repay later).
- Students must begin repaying the loan 6 months after graduation, withdraw, or drop below half-time status.
- Students do not have a disability that will prevent from obtaining gainful employment in program of study.
- Students do not have a criminal conviction that will prevent from obtaining gainful employment in program of study.
- The awards cannot exceed cost of attendance (budget). If additional grants, awards or scholarships are added after a loan has been approved, loan amounts will be reduced to accommodate the new awards (for example: EOPS grants and vouchers, PCCD Foundation scholarships, Federal Work-Study and/or CalWORKS Work-Study, etc.).
What options are available if a student cannot afford loan payments?
- Change the Student’s Payment Due Date: Do they get paid after their loan payment is due each month? If so, student needs to contact the loan servicer and ask whether they would be able to switch the date their loan payment is due.
- Change the Student’s Repayment Plan: What they ultimately pay depends on the plan they choose and when they borrowed. For students seeking lower monthly payments, an income-driven repayment plan may be appropriate, as it calculates payments based on the borrower’s income.
- Consolidate the Student’s Loans: Students with multiple federal student loans can simplify repayment by applying for a Direct Consolidation Loan, which combines all federal loans into a single loan with one monthly payment.
If the options above don’t work for the student and they simply can’t make any payments right now, they might be eligible to postpone your payments through a deferment or forbearance. However, depending on the type of loan, interest may continue to accrue during the period when payments are paused.
Contact Information for Students and Borrowers
Direct Loan Application Services
E: codsupport@acs-inc.com
P: 1-800-557-7394
F: 1-877-623-5082
Electronic Master Promissory Note Services
P: 1-800-557-7394
F: 1-301-470-1244
W: https://studentloans.gov
Repayment Questions and Services
P: 1-800-848-0979
W: www.myedaccount.com
Direct Loan Consolidation Services
P: 1-800.557.7392
W: https://studentaid.gov/loan-consolidation/
College of Alameda partnered with ECMC Solutions to provide student loan counseling and support to borrowers as they navigate federal student loan repayment. Contact ECMC Solutions by phone at 1-877-331-3262, or visit their website to make an appointment, connect through email, or web chat with a student loan counselor. The team at ECMC also offers a free webinar series to support borrowers as they navigate repayment
Other Programs and Resources
College of Alameda is a diverse, supportive, and empowering learning community for seekers of knowledge. We believe through an exchange of experience, ideas, culture, and identity the lives of all CoA students are enriched. As such, all CoA programs are open access for all students to benefit from the richness of our diverse community. We encourage all students to participate in CoA’s cultural programs, events, and celebrations. We welcome you to join us and personifying our inclusive spirit!