| Frequently
Asked Questions
College Students
|
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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: |
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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. |
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Repayment
options are available for you to choose |
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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? |
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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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| 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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| 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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