Loans
At Rock Valley College, because of the relatively low cost of tuition, the RVC Financial Aid Office does not include student loans with the initial financial aid package as some other colleges or universities do. Federal Direct Loans are processed by request only. Loan applications are available by request at the Rock Valley College Financial Aid office (second floor of Student Center). Only students that meet eligibility requirements will be given a loan request form.
How to Apply/Eligibility
- Have completed the Free Application for Federal Student Aid (FAFSA) and have a completed financial aid file with Rock Valley College.
- Meet all eligibility requirements (ex: satisfactory academic standards).
- Be enrolled in AND attending six financial aid eligible credit hours per semester.
- Complete a Master Promissory Note and the Online Entrance Counseling. Sign in at studentaid.gov to complete your Master Promissory Note and Online Entrance Counseling.
Federal Direct Loans
- Subsidized loan – This loan is based on financial need. The interest on this type of loan does not accrue while the borrower is actively enrolled/attending an approved program.
- Unsubsidized loan – This loan is not based on financial need and interest starts accruing from the date of disbursement. Borrowers can choose to pay the interest while attending school to keep costs down, or let the interest capitalize and be added to the principal balance.
- https://studentaid.gov/understand-aid/types/loans
- Students should keep track of current and past Direct Loans through studentaid.gov.
- To default means you failed to make your payments on your student loan as scheduled according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan. Default occurs when you become 270 days delinquent in making payments on your loan. As of the time of this writing, the official 3-year cohort default rate for Rock Valley College is 0.0%, which is equal to the average national default rate of 0.0%. The current default rate of 0.0% is due to the temporary pause in student loan payments that occurred from March 2020 to September 2023 due to COVID-19.
- For a full review of the terms and disclosures, please review the Plain Language Disclosure for Federal Direct Subsidized and Unsubsidized Loans.
Private Loans
Students that wish to receive a private student loan to help fund their education will need to apply with their lender. Rock Valley does not have a preferred lender list. If approved, the lender should notify the school that the student has been approved for a private student loan. The Financial Aid Office will then send out notification to the student’s RVC Student Email account to confirm that the student wishes to proceed with the private loan. The private student loan will not be processed until the RVC Financial Aid Office receives this confirmation from the student that they would like to proceed with the private loan.
- Private student loans are generally more expensive than federal student loans and are generally not recommended for Rock Valley College students. Federal Direct Subsidized or Unsubsidized Loans should always be considered first prior to seeking out private loans.
- Private loans often require an established credit record or a cosigner.
Parent Plus Loans
- Parent Plus Loans have higher interest rates and fees when compared to Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans and are not generally recommended for Rock Valley College students. Please note that loans are limited to the total cost of attendance minus whatever other aid the student may already be receiving. The parent is responsible for paying back the entire loan and a credit check will be required. See the Rock Valley College Financial Aid Office for more details.
- For a full review of the terms and disclosures, please review the Plain Language Disclosure for Federal Direct PLUS Loans.
Loan Disbursements
- Full Year Loans: The first half of the loan will be disbursed prior to the first week of the fall term, and the second payment will be disbursed the first week of the spring term. If the student is a freshman first-time borrower, the fall disbursement will be delayed until 30 days into the semester (per Federal regulations).
- One Semester Loans for Fall/Spring: The first half of the loan will be disbursed prior to the first week of the term, the second payment will be disbursed about midterm of the semester. If the student is a freshman first-time borrower, the first disbursement will be delayed until 30 days into the semester (per Federal regulations).
Entrance/Exit Counseling
All students who accept a Federal Direct Loan will be required to complete the Entrance Counseling, which is essentially an overview of your rights and responsibilities regarding your loan. In contrast, the exit counseling will be required if the student withdraws, graduates or drops below the half-time enrollment minimum. Information provided covers interest rates, repayment plan options, loan consolidation, loan forgiveness and loan discharge.
Entrance and Exit Counseling for federal student loans can be completed at studentaid.gov after logging in.
Loan Code of Conduct
Review the RVC Student Loan Code of Conduct
Loan Counseling Sessions
As a first time student loan borrower, you are required to complete an in-person loan counseling session. There is a limit to the number of attendees for the loan counseling sessions.