An education loan is a form of financial aid that must be repaid, with interest. Grants, scholarships, work-study and other forms of gift aid typically cover the full cost of an education at Cypress College
. However, some students find that they must supplement their savings with student loans.
Community colleges remain an affordable option for students. Loan debt and increasing loan default rates are concerning for Financial Aid Offices due to the impact it can have on the institution. As a result, the Cypress College Financial Aid Office has adopted the following loan procedures for student borrowers. These procedures were implemented due to increasing student loan debt for graduates who eventually earn a BA/BS degree. Therefore, Cypress College Financial Aid has a strict policy on established loan limits to (1) help students minimize debt, (2) help students keep aggregate loan eligibility available for when they transfer to four-year institutions, and (3) help improve financial literacy and responsibility so that future economic hardships and credit damage can be prevented.
The Cypress College Financial Aid Office strongly discourages students to borrow loans without first discussing their options with a Financial Aid Technician. Additionally, there are strictly enforced loan eligibility requirements at Cypress College:
- Total loan debt (all institutions attended, past and present) cannot exceed $12,750 (dependent students) or $19,000 (independent students). Only students admitted to competitive Health Sciences programs may petition our loan maximum and request additional funding. Otherwise, these maximums are strictly enforced for all other majors and/or certificate programs at Cypress College.
- Borrowers must have and maintain a 2.0 or higher cumulative grade point average at all times.
- Borrowers must be enrolled in courses that meet major and/or general education requirements for a degree program. Excessive units for remedial courses, prerequisite courses for programs that have special admissions requirements, and excessive PE courses may not be eligible for loan funding.
As a last resort to assist with your college costs, the Direct Loan program offers lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education instead of high interest credit cards. You can also deduct up to $2,500 in student loan interest even if you don't itemize deductions on your income tax return.
Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors at four-year institutions is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS).
The current Cypress College Loan Policy is available on the "forms" page and upon request by visiting the Financial Aid Office.