| Frequently
Asked Questions
Adult Learners
|
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to FAQ |
Want
Extra Credit For College?
Choose First Community Bank Loans! |
| First Community Bank
Loans provides extra benefits to help you make the most of your
student loan. |
| • |
Fast loan
approval |
| • |
Expert customer service
department located right here in Texas |
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Online PLUS loan pre-approval |
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Great repayment incentive
programs: |
| |
AllStar: |
| |
|
.5% interest rate reduction
with AutoPay |
| |
|
1% principal balance credit after
the 1st 12 consecutive and on time payments |
| |
|
1% principal balance credit after
the 2nd 12 consecutive and on time payments |
| |
MVP (Most Valuable
Payer) Program: .25% interest rate reduction with AutoPay |
| |
|
Earn up to five free loan payment
certificates by making your student loan payments on time. The
first MVP Certificate is earned after making 36 consecutive
and on time payments. From there, an additional MVP Certificate
is earned for every 12 consecutive and on time payments made. |
| • |
Repayment options are
available for you to choose |
| • |
Life of loan servicing
from origination through repayment |
|
|
| How
do I apply for a student loan? Who will my lender be?
Can
I earn other income from working while going to school and
receiving the loan?
Will
my student loan help me establish credit?
After
I am approved for the loan, when do I receive the money?
Am
I eligible for a student loan?
What
schools may I attend with a federal or private student loan?
What
expenses do these student loans cover?
If
I receive a scholarship, grant, or other financial assistance,
am I still eligible for a student loan?
Do
I have to re-apply for a student loan each year?
When
must the loan be repaid?
How
long do I have to repay my loan? |
| |
How do I apply for a student loan? Who
will my lender be? |
| Applying for a loan
is a simple process: |
| 1. |
You must complete a Free Application
for Federal Student Aid (FAFSA)
that you can obtain from the school you plan to attend or the
Department of Education. |
| 2. |
Next, you should contact the financial
aid office of the school you plan to attend and request that
they send you the school’s financial aid package. |
| 3. |
After completing the FAFSA,
and any additional requirements of the school you plan to attend,
mail these forms back according to the specific instructions.
The school’s financial aid office will notify you of the
aid and loans you may qualify for with an award letter. |
| 4. |
When the loan has been awarded,
you will be notified by the school. In some cases the school
will send you a Stafford and/or PLUS Student Loan partially
completed for you. If you do receive these forms, you must use
them. If you are not mailed these forms, then contact an eligible
Student Loan lender to obtain the proper promissory note. |
| 5. |
On your promissory note that you
return to your school, you will be asked to indicate who your
lender will be. Federal law specifies several categories of
lenders that are eligible to originate loans under the Federal
Family Education Program. They include a National or State Chartered
Bank, Savings and Loan Association, Credit Union, Pension Fund,
or an Insurance Company at most colleges and universities. |
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| Can
I earn other income from working while going to school and receiving
the loan? |
| |
Yes. Again, the amount of the student
loan might be affected by the amount of income the student is
earning while in school. The FAFSA
will help answer this question for you, including any work/study
programs for which you may qualify. |
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| Will
my student loan help me establish credit? |
| |
Yes. As with most loans, your student
loan will be reported to a national credit bureau and an excellent
payment record will help establish a good credit rating. |
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| After
I am approved for the loan, when do I receive the money? |
| |
The school you are attending will
specify the dates that the loan proceeds should be disbursed.
Most loans are funded in two installments at the beginning of
each semester and are usually disbursed directly to the school
according to their procedures. Your school can give you more
information about their policies.
There are three types of government-guaranteed student loans
for you to consider: Each loan type is designed to meet different
needs.
• Subsidized Federal Stafford Loans
These loans allow the federal government to pay the interest
on the loan while the student is attending school, during grace
periods or deferments.
• Unsubsidized Federal
Stafford Loans
With Unsubsidized Stafford Loans, the borrower is responsible
for paying all the interest that accrues during school, grace
and deferment periods. Unsubsidized Stafford Loans are available
to dependent and independent students who do not qualify for
Subsidized Stafford Loans.
Note: Financial
eligibility is determined by the school based upon
federal law, information provided by the applicant, an analysis
of the
student’s needs, the estimated cost of the education,
and the
student’s eligibility for other financial aid.
•
Federal PLUS (Parent) Loans
With PLUS loans, the borrower is responsible for paying all
the interest that accrues.
• Grad PLUS Loans
The Federal PLUS Loan for graduate/professional students is
specifically designed to enable these students to increase their
federal fiancial aid with an affordable interest loan.
Note:
Financial eligibility is determined by the school based upon
an analysis of the student’s financial need (the cost
of education minus other financial aid), and the financial capacity
of the parent to repay the loan. |
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| Am
I eligible for a student loan? |
| |
In most cases, eligibility requirements
are easy to meet. We’ve listed most of the general guidelines
below. The school’s financial aid officer will determine
your financial need for a Subsidized Stafford Student Loan based
upon factors such as the cost of attending school, family income,
and the number of dependents in the family. Unsubsidized Stafford
Loans are also available to students who do not qualify for
Subsidized Stafford Loans or whose Subsidized Stafford Loan
eligibility does not meet the amount they need (up to the annual
loan limit). |
| |
• Stafford Loan Guidelines:
|
| 1. |
The student must be a U.S. citizen,
and in some cases non-citizens are also eligible. |
| 2. |
The student must be enrolled, or
accepted for enrollment, on at least a half-time basis at an
eligible school. This includes study abroad programs approved
by an eligible school in the United States. |
| 3. |
The student must be enrolled in
a degree or certificate program, or a program required fo professional
accreditation and demonstrate satisfactory academic progress. |
| 4. |
The student must have applied for
a Federal Pell Grant. |
| 5. |
The student must be willing to certify
his or her intent to use the loan proceeds for educational purposes
only. |
| 6. |
The student must not have defaulted
on any other federally guaranteed education loan, or owe any
refund on a federal education grant or scholarship. |
| 7. |
And last, male students must be
registered with the U.S. Selective Service (if required to register).
In addition, students receiving loans may not be incarcerated. |
| |
• Parent PLUS and
Grad PLUS Loan Guidelines: |
| 1. |
The student and parent must be U.S.
citizens, and in some cases non-citizens are also eligible. |
| 2. |
The student must be enrolled, or
accepted for enrollment, on at least a half-time basis at an
eligible school. This includes study abroad programs approved
by an eligible school in the United States. |
| 3. |
The student must be must be in good
standing with the eligible school and continue to make satisfactory
academic progress at a post-secondary school (which includes
community or junior colleges, colleges, or universities). |
| 4. |
The student and parent must not
have defaulted on any other federally guaranteed education loan,
or owe any refund on a federal education grant or scholarship. |
| 5. |
The parent must not have any adverse
credit history. |
| 6. |
And, male students must be registered
with the U.S. Selective Service. In addition, student or parent
must not be incarcerated. |
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| What
schools may I attend with a federal or private student loan? |
| |
You can use your student loan to
pay for education expenses at most accredited institutions of
higher education. Included are most colleges and universities,
community and junior colleges, and vocational, trade or technical
schools.
All of these education institutions limit enrollment to students
who are high school graduates or those with equivalency certification.
These schools are accredited by a national accrediting association
that is approved by the federal government. |
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| What
expenses do these student loans cover? |
| |
Most expenses related to the cost
of an education are allowable: tuition, fees, books, supplies,
room and board, and even transportation to and from school. |
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to top |
| If
I receive a scholarship, grant, or other financial assistance,
am I still eligible for a student loan? |
| |
Probably! However, the total amount
of the student loan might be affected based upon other aid you
are receiving. After you complete the FAFSA and return it as
instructed, you will have a better idea of the specific amounts
available. |
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to top |
| Do
I have to re-apply for a student loan each year? |
| |
Yes, you will need to complete a
FAFSA each year you borrow money, and you may not be required
to sign a new promissory note each year. However, you are not
required, in any way, to continue borrowing each year. For Stafford
Loan borrowers, as long as you remain enrolled in school at
least half-time, you do not need to begin repaying your loan. |
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| When
must the loan be repaid? |
| |
Repayment of the loan begins six
months after graduation, or six months after the student becomes
enrolled less than half-time. PLUS loan repayment begins within
60 days of the final disbursement. Certain repayment deferments
are available if you qualify. While most borrowers repay their
loans as agreed, there are several penalties for non-payment.
Defaulting on a loan will be reported to the credit bureau(s)
and will prevent you from receiving additional financial assistance. |
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| How
long do I have to repay the loan? |
| |
Loan repayment terms can be up to
ten years, and a minimum monthly payment of $50 is required.
Loan consolidation and longer terms are available under certain
circumstances will probably prevent you from receiving other
types of loans for cars, credit cards, and even a mortgage loan.
If you default on the loan, the Internal Revenue Service may
hold your tax refund and your employer can garnish your wages.
It is important to remember that most individuals with undergraduate
and/or graduate degrees earn substantially higher incomes than
do individuals without higher education degrees. So, in addition
to earning a degree, college graduates have the opportunity
to earn far more money during their lifetime – which makes
loan repayment easier to afford. |
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