Federal Direct Loans FAQ

To receive loan funding at West Georgia Technical College, students should submit a Direct Loan Request form to the financial aid office, complete entrance counseling, and sign their master promissory note online at studentloans.gov.  The loan processing time frame can be up to 2-3 weeks during peak processing times. You must have six (6) credit hours within your major to be eligible for loan funding.

You will need to complete the applicable FAFSA for the academic year for which you want the loan and submit all required documents to determine your eligibility for financial aid.  You will also need to complete a Federal Direct Loan Request.  The form can be found at: https://www.westgatech.edu/financial-aid/financial-aid-forms/.

No.  A student in default on a federal loan is ineligible for any federal or state aid until the loan is out of default or the student has made six (6) voluntary on-time payments to the servicer of his/her defaulted loan.  There are some private educational loan programs that may be available to students in default.  Private loans require a credit check.

No.  Maintaining Satisfactory Academic Progress is a requirement to receive financial aid.  There are some private educational loan programs that may be available to students on Satisfactory Academic Progress suspension.  Private loans require a credit check.

The U.S. Department of Education established the maximum loan a student can receive based on their classification in school and dependency status?  A student who must report parental income information on the FAFSA is considered dependent.  A dependent student may borrow a maximum each academic year (Fall, Spring, and Summer semesters) $5,500 as a freshman and $6,500 as a sophomore.  A student who is over age 24, married, have children that they provide over 50% of their support, or veteran are considered an independent student.  An independent student can borrow an additional $4,000 beyond the dependent loan maximum–$9,500 as a freshman and $10,500 as a sophomore.  Because the highest degree offered at WGTC is an associate degree, a student’s classification cannot exceed sophomore.

Federal Direct Loan recipients must complete loan entrance counseling and a Master Promissory Note at https://studentloans.gov/myDirectLoan/index.action before their loan can be disbursed.

A student’s loan eligibility is limited to the cost of attendance for the semester(s) the loan is requested, and the lifetime loan limit established by the U.S. Department of Education. The student’s financial aid from grants, scholarships, work-study, and external resources must be deducted from the cost of attendance budget to determine his or her loan eligibility.

Federal Direct Loans must be disbursed in a minimum of two payments. Loan requests for a single semester, for example, fall semester only, are subject to this requirement.  The disbursements will occur at the beginning and midpoint of the semester.

A loan will not disburse if any one of the following conditions exists:

• Student is not currently enrolled in a minimum of six (6) credit hours;
• Loan entrance counseling and/or Master Promissory Note not completed;
• Updated information from the U.S. Department of Education changes the student’s financial aid eligibility.

Loan amounts are reduced when the student is awarded additional financial aid or if updated information reveals the student has borrowed in excess of the annual or lifetime loan limits.

West Georgia Technical College is required to keep the U.S. Department of Education informed of any changes in a student’s enrollment status.  Changes in your enrollment status can trigger provisions in your Master Promissory Note.  Therefore, any student who has received a Federal Direct Loan who drops below six (6) credit hours in a semester, completely withdraws from all classes, has a break in enrollment, for any reason, transfers to another institution, or graduates from program of study is required to complete exit counseling.

You will be in violation of a condition of your promissory note, as exit counseling is required by federal law.  You will not be prepared with important information you’ll need to repay your loan to avoid defaulting.  WGTC will cancel any pending loan disbursements if exit counseling is not completed.

Exit counseling is completed online at https://studentloans.gov/myDirectLoan/index.action.  You’ll need your FSA ID username and password to access the site.

Withdrawals from a class or classes can impact your financial aid and may require you to repay some of your awarded financial aid.   It may have implications on future financial aid eligibility because financial aid recipients are required to maintain Satisfactory Academic Progress for continued eligibility.  Therefore, it is imperative to meet with a financial aid counselor before withdrawing from a class(es).

Financial aid is awarded for the entire semester.  If you receive federal aid such as Pell Grant, SEOG, FWS, or Federal Direct Loans, etc. and withdraw from all classes before completing 60 percent of the semester, you may have to repay a portion of your awarded aid for that semester.  Consult with a financial aid counselor before withdrawing.  If your withdrawal results in a balance owed to WGTC, a hold will be placed on your account, preventing further enrollment until the balance is paid in full.  Repayment of aid is made to the Business Office.  Federal Direct Loan recipients are required to complete exit counseling.