Bakersfield College

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Federal Direct Loan Request and Terms

The college strives to limit loan defaults by our students. For this reason, we often decline loan requests to higher risk students.

Therefore, your loan request may be denied or reduced if you:

  • Have an undeclared major or undecided educational goal.
  • Are not enrolled in at least 6 degree applicable units (excluding remedial units) at Bakersfield College in an eligible program of study at Bakersfield College.
  • Are not enrolled in a Title IV eligible program of study.
  • Are not making steady progress in a degree, certificate or transfer program.
  • Appear to be or have been in default or delinquent on financial aid obligations.
  • Have incomplete or missing Federal Direct Loan documents and requirements.

Obligations and Responsibilities of Student Borrowers

  • I understand that if I am a new or renewal borrower I must receive loan counseling prior to funding being released.
  • I understand that I must be enrolled in at least six degree applicable units (excluding remedial units) in an eligible program of study on my Comprehensive Student Education Plan (SEP) at the time of each payment.
  • I understand the amount I borrow is determined on the total number of units I am enrolled in the semester.
  • I understand the subsidized amount I borrow is determined on my “unmet need”.
  • I must maintain Satisfactory Academic Progress as outlined in the current award year Terms of Agreement.
  • I understand Federal Loans are not grants. I must repay this debt even if I do not complete my education.
  • I understand Bakersfield College must be declared as my home school.
  • I understand that the interest rate is no higher than 8.25%. (Only if you obtain the loan at 8.25%)
  • I understand that a 1.057% origination fee will be deducted from each loan. If disbursed after 10/01/2021 there will be an origination fee of 1.057%.
  • I understand that my requested loan amount will be disbursed in two (2) payments each semester.
  • Interest on Subsidized Loans is paid by the U.S. Department of Education while I am enrolled in 6 or more units.
  • I must pay the interest on Unsubsidized Loans while I am in college, or I may choose to have it added to the principal (this increases the amount I must repay).
  • I must begin repaying the loan six months after I graduate, withdraw, or drop below half-time status.
  • I do not have a criminal conviction that will prevent me from obtaining gainful employment in my program of study.
  • My awards cannot exceed my cost of attendance (budget). If additional grants, awards or scholarships are added after a loan has been approved, my loan amounts will be reduced to accommodate the new awards (for example: EOPS grants nd/or vouchers, Bakersfield College Scholarships, Work Study, etc.)
  • I understand that if grades are posted prior to my funds being released, disbursement is contingent on obtaining satisfactory grades.
  • I understand that if I am on Financial Aid Suspension I am not eligible for Direct Loans.
  • It is my responsibility to complete a MANDATORY Exit Counseling BEFORE I leave Bakersfield College, fall below half- time enrollment, or stop attending.

I HAVE READ AND UNDERSTAND THE BAKERSFIELD COLLEGE DIRECT LOAN TERMS AND ELIGIBILITY REQUIREMENTS. I ALSO UNDERSTAND THAT PROCESSING CAN TAKE 3-4 WEEKS. I UNDERSTAND IT IS MY RESPONSIBILITY TO INFORM BAKERSFIELD COLLEGE AND DIRECT LOANS OF ANY CHANGES TO MY AWARD ELIGIBILITY AND CONTACT INFORMATION. I UNDERSTAND THAT I HAVE A RIGHT TO CANCEL OR REDUCE MY LOAN BY COMPLETING THE RIGHT TO CANCEL FORM WITHIN 14 DAYS OF DISBURSEMENT

Students or parents of students who enter into an agreement regarding a Title IV, HEA loan that the loan will be submitted to NSLDS and accessible by authorized agencies, lenders and institutions [HEOA 489 amended HEA Sec. 485B].