Loan Facts

Federal Direct Loans – a federal student loan, made through the William D Ford Federal Direct Loan Program, for which eligible students borrow directly from the U. S. Department of Education at participating schools. Direct Subsidized, Direct Unsubsidized and Direct Consolidation Loans are types of Direct Loans.

Subsidized Loan

This loan is based on financial need for which the federal government pays the interest that accrues while the borrower is in school, grace or deferment status. Beginning with the 2012-2013 academic year, new borrowers will have a limit on the amount of subsidized loans.

Please be sure to read about the limit on the amount of subsidized loans. It is important for all students.

Unsubsidized Loan

This is a loan where the borrower is fully responsible for the paying of the interest regardless of loan status. Interest accumulates from the date of disbursement. UCC does not offer this loan at the time of the initial award. Students have to apply for it. Please fill out the Loan Request & Revision Form.

In compliance with federal regulations, loans will be prorated for students attending less than 3 terms.

Maximum Annual Limits for Loans

Year              Dependent        Independent
1-44 credits at UCC
No more than $3,500 of this may be in sub loans
No more than $3,500 of this may be in sub loans
45+ credits at UCC
No more than $4,500 of this may be in sub loans
No more than $4,500 of this may be in sub loans


Maximum Undergraduate Aggregate Limits for Sub and Unsub Loans

Dependent   Independent
$23,000 $57,500

Entrance Counseling

Entrance counseling is required by the federal government for all first time loan borrowers at Umpqua Community College. The counseling is completed online and UCC will be notified electronically within in 24-48 hours. Once this has been completed it should be a satisfied requirement for subsequent academic years. Entrance Counseling will help borrowers to understand:

  1. Their rights and responsibilities as a borrower
  2. The terms of their loan
  3. Repayment obligations and consequences of non-payment

Loan Agreement for a Subsidized/Unsubsidized Loan (MPN)

The Loan Agreement for a Subsidized/Unsubsidized Loan (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s); for instance, it will include information on how interest is calculated, when interest is charged, available repayment plans, and deferment and cancellation provisions.

To log in and complete the Loan Agreement for a Subsidized/Unsubsidized Loan (MPN), click here.

The Loan Agreement for a Subsidized/Unsubsidized Loan (MPN) is also required by the federal government when a student chooses to borrow money. This is the official document that a borrower must sign as a promise to repay their loans. This is completed on line and UCC is notified electronically within 24-48 hours.

Exit Counseling

When a student graduates from UCC or is no longer enrolled at least half time (6 credits) exit counseling has to be completed. This is a federal requirement. Exit counseling is completed online. The exit counseling session will explain the borrower’s loan obligations and various pay back options that student borrower has. A student will be reminded via their student email and student requirements that they have to complete exit counseling. It is the student’s responsibility to ensure this is completed.

Other Resources

Financial Literacy Guidance from Federal Student Aid

Public Service Loan Forgiveness

If you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness Program (PSFL). Click the link to see whether you might qualify.

Other Items Associated with Student Loans

Tax Credits & Deductions

The Taxpayer Relief Act of 1997 created two tax credits to help families meet the cost of a college education. The American Opportunity Tax Credit and the Lifetime Learning Credit. The American Opportunity Tax Credit, formerly known as the Hope Tax Credit, may offer a tax credit up to $2,500 per student. The Lifetime Learning Credit may offer up to $2,000.

In general, qualified expenses for the education tax credits include tuition and required fees for the enrollment or attendance at eligible post-secondary educational institutions. The expenses paid during the tax year must be for an academic period that begins in the same tax year or an academic period that begins in the first three months of the following tax year.

You may be able to deduct interest you actually paid on your student loans and may reduce your overall tax liability. Since tax credits have income limits and many other restrictions, it is advised to talk with a tax consultant or visit the IRS web site for information and tips.

If you disagree with the amounts listed on your 1098-T, contact the UCC Student Accounts Office at 541.440.4630. If you did not receive a copy of your 1098-T, you can print a copy by logging in to your Student Self Service. Click on ‘Student’, then ‘Student Account’, ‘Tax Notification’, and type in the appropriate ‘Tax Year’. For more information on what the 1098-T is click the link here.

Interest Rates & Fees

When you accept loans, you accept an original amount called a ‘principal’. When you enter into repayment, you will repay more than the original principal. Items such as interest and fees may be added to the principal.

Interest is money paid to the lender in exchange for borrowing money and set into law by Congress. Interest is calculated as a percentage of the unpaid principal borrowed.

The amount of interest that accrues on your loan is determined by a simple daily interest formula. Multiply your loan balance by the number of days since the last payment times the interest rate factor. The interest rate factor is calculated by dividing your loans interest rate by the number of days in the year.

Most student loans will have a loan fee that is a percentage of the total loan amount. The loan fee is deducted from each loan disbursement you receive. This means the loan you receive will be less than the principal you borrow. You will be responsible for repaying the entire principal amount you borrow. Upon entering repayment, borrowers must make their first 12 loan payments on time to keep this benefit. This entire fee goes to the government to help reduce the cost of the loans.

Contacting Your Loan(s) Servicer(s)

For information regarding:
– Loan Status
– Loan Cancellation
– Loan Disbursement Amounts and Dates

Contact the Financial Aid Office directly at 541.440.4602 or by email [email protected].

For information regarding loan repayment, deferment or forbearance, contact your servicer. Servicer information can be located by using the National Student Loan Data System (NSLDS) web site. The following are all loan servicers for federally held loans made through the William D. Ford Federal Direct Loan Program and the Federal Family Education Loan Program (FFELP).




FedLoan Servicing (PHEAA) 1.800.699.2908
Granite State – GSMR 1.888.556.0022
Great Lakes Educational Loan Services, Inc. 1.800.236.4300
HESC/Edfinancial 1.855.337.6884
MOHELA 1.888.866.4352
Navient 1.800.722.1300
Nelnet 1.888.486.4722
OSLA Servicing 1.866.264.9762

To find out who your loan servicer is, view your loan history at Your loan servicer can help you manage your student loan payment for free.

NSLDS integrates data from schools, guaranty agencies, Direct Loan Program and other Department of Education funding so students and parents can manage their loans and grants. Students will need their FSA ID provided by the Department of Education when accessing NSLDS.

What type of information will you find on NSLDS?
     – Lender names and contact information
– Loan details such as account numbers, current balances, and loan types
– School name and contact information
– Guarantor name and contact information
– Other federal aid programs

What if I disagree with the information on NSLDS?
If you disagree with any of the information reported to NSLDS, contact the appropriate institution listed on the detail pages on the site to update your data.

Further questions regarding NSLDS may be answered by contacting the Federal Student Aid Information Center at 1.800.433.3243 or by email [email protected].

Loan Consolidation

A federal loan made by the U.S. Department of Education that allows you to combine one or more federal student loans into one new loan. As a result of consolidation, you will have to make only one payment each month on your federal loans, and the amount of time you have to repay your loan will be extended.  Before determining if consolidating your loan is right for you, you need to weigh out the pros and cons of consolidation.  We encourage you to research before making this decision.  Here are a few things to consider.

Who can I consolidate with?
You would need to apply with the Department of Education for a Federal Direct Consolidation Loan through To ask questions about consolidating your loans before you apply, contact the Federal Loan Consolidation Information Call Center at 800-557-7392.

How do I consolidate?
Once you log into, you will be able to electronically complete the Federal Direct Consolidation Loan Application and Promissory Note. The electronic application consists of five easy steps. After you submit the application, the consolidation servicer selected will complete the actions required to consolidate your eligible loans. The consolidation servicer will be your point of contact for any questions you may have related to your consolidation application. It is critical that you continue making payments on your current loans.

Which loans can I consolidate?
The following loans may be consolidated: Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, Federal Direct PLUS Loans, PLUS loans with FFEL Program, Supplemental Loans for Students, Federal Perkins Loans, Federal Nursing Loans, Health Education Assistance Loans and some existing consolidation loans.

Do I lose any of my benefits?
To ask questions about consolidation before you apply, contact Federal Loan Consolidation Information Call Center at 800-557-7392.

What would my consolidation interest rate be?
We strongly encourage you to contact the Federal Direct Loans program if consolidation makes sense for you. For more consolidation information visit

Federal Direct Loans

Loan Repayment Options

It is important to remember that federal student loans must be repaid. Once you drop below half-time enrollment (6 credits), you will begin a 6-month grace period. During this grace period, you are not required to make loan payments, however will receive repayment information and the due date of the first payment. At any time during or after the grace period you become enrolled in 6 or more credits, you may become eligible for an in-school deferment. You are encouraged to contact your loan servicer(s) to discuss your deferment options.

Here is a quick break down of each repayment plan with a link for more detailed information:

Standard Repayment Plan
Under this plan, you will pay a fixed monthly amount for a loan term of up to 10 years. Depending on the amount of the loan, the loan term may be shorter than 10 years. There is a $50 minimum monthly payment. Visit the Federal Student Aid web site for more details.
Graduated Repayment Plan
This plan begins off with lower payments that gradually increase every 2 years. The loan term is 12-30 years, depending on the total amount borrowed. The monthly payment can be no less than 50% and no more than 150% of the monthly payment under the standard repayment plan. The payment must be at least the interest that has accrued and a minimum of $25.
Extended Repayment Plan
This plan is like the Standard Repayment Plan but allows a loan term of 12-30 years, depending on the total amount borrowed. Stretching out the payments over a longer period of time, reducing the size of each payment but increasing the total amount repaid over the lifetime of the loan. Visit the Federal Student Aid website for more information.
Income Driven Plan
Under this plan, the required monthly payment will be based on your income during any period when you have partial financial hardship. Your monthly payments may be adjusted annually. The maximum repayment period under this plan my exceed 10 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance of your loans.
Income Sensitive Plans
This plan gives you the flexibility to repay your loans without causing undue financial hardship. Each year, monthly payment will be calculated on your adjusted gross income, family size and the total amount of your loans. The minimum repayment period is 25 years. If you have not fully repaid your loans after 25 years under this plan, the unpaid portion will be discharged. However, you have to pay taxes on the amount that has been discharged.

Defaulted Loans

You will be considered in default if you fail to make payments for 270 days (9 months).  Perhaps the biggest penalty of defaulting on your student loans is that your credit rating is damaged.  Your ability to rent an apartment, finance a car or house, or even to get a job, could hinge on your good credit.

In addition to reporting your default to credit bureaus:
– Loans may become immediately due and payable
– Income tax refunds may be withheld and applied to your loan balance
– Wages may be garnished
– State issued professional license or certificate may be withdrawn
– Loss of eligibility for future federal student loans and other types of federal aid programs
– Loss of monthly repayment options and deferment
– Initiation of court action

Defaulting on student loans can be very expensive.  Use a Default Calculator, provided by Student Loan Hero, to find out how expensive defaulting can be.

If you are currently in default and have questions, we can help. Contact UCC’s Default Specialist at 541.440.7787.

Student Loan(s) Counseling (Entrance & Exit)

The Higher Education Act of 1965 requires colleges to provide loan borrowers of federal student loans with loan counseling. Entrance counseling occurs before loans will be disbursed and will explain the use of the Loan Agreement for a Subsidized/Unsubsidized Loan (MPN) and the impact of deferring interest (interest capitalization) on the loan balance and cost of the loan.  Exit counseling occurs shortly before the student graduates or drops below half-time enrollment, while requiring students updated permanent address, the name and address of their employer and the address of their next of kin.  The loan counseling is focused on helping students understand their rights and responsibilities and obligation to repay the debt.

The loan counseling will review a lot of information:
– the terms and conditions of the loan
– an example or actual monthly payments
– available repayment plans
– deferment and forbearance options
– loan forgiveness and cancellation provisions
– the ability to accelerate repayment without a prepayment penalty
– the pros and cons of consolidation
– the consequences of default
– availability of tax benefits

The loan counseling sessions will emphasize that the borrower is obligated to repay the full amount of the loan even if the borrower does not graduate, is unable to get a job after graduation or is dissatisfied with the quality of the educational program or other services.

Entrance/Exit Counseling

Deferments & Forbearance

Loan Deferment
A deferment is a period of time during which no payments are required.  You cannot receive a deferment if you have loans that is already in default.

Circumstances in your life may make it difficult to make your loan payments on time.  You may qualify for a deferment, allowing payments to halt for a small period of time or lower your loan payments.  Contact your loan servicing organization to develop alternative repayment options.

During deferment you do not have to make any principal payments on your loan.  However, if you have a Federal Direct Unsubsidized Stafford Loan, you are always responsible for interest payment even during deferment.

The different 5 types of deferment:

In-school – You may qualify if you are enrolled at least 6 credits in an eligible school. There is no time limit on this deferment.
Unemployment – The deferment can last for up to three years. You must provide documentation to your lender that you are actively seeking employment.
Rehabilitation – You may qualify if you are participating in an approved rehabilitation program. There is no time limit on this deferment.
Graduate Fellowship – You may qualify if you are participating full-time in a graduate fellowship program. There is no time limit on this deferment.
Economic Hardship – You may qualify if you are constrained by severe financial circumstances. The deferment is limited to three years.

If you do not qualify for a deferment, you may be able to work out special arrangements with your lender called forbearance. During periods of forbearance you can reduce or postpone monthly payments. You are responsible for any interest that accrues on your subsidized or unsubsidized Stafford Loans during this time. Generally, lenders are not required to grant forbearance but are willing to if you stay in contact and demonstrate you are serious about repaying your loans. So do not be embarrassed to ask your lender for help.

Debt Management

As you know, education loans can help pay for your education. Borrow only what you need and remember that you must payback — with interest — whatever you borrow.

Here are steps you can take to help you get a grip on your finances.

  1. Get organized:  Set up separate files for your bank statements, household bills, insurance payments, college catalogs and application financial aid papers, loan documents and correspondence with your college.
  2. Keep track:  Write down all your expenses in a notebook for two to four weeks to help you understand your spending habits and find out where your money is going.
  3. Create a monthly spending plan and stick to it: Prioritize your spending. Use’s Monthly Budget/Cost Projection Calculator.
  4. Be realistic: Go back to your spending plan every few months and ask yourself: Is it working? If not, is there anything you can do without!
  5. Start Saving: No matter how little you may have to save, even just $20 a month, will get you in the habit of saving and give you a cushion for a financial emergency.
  6. Borrow smart: If you need to borrow money for college, calculate how much you can afford to repay by looking at what your monthly payment would be. Use the Loan Repayment Calculator to determine your monthly loan payment.
  7. Pay as you go: Paying as little as $20 each month on student loans while in school, you can save you money over the life of the loan, depending on the interest rates.
  8. Keep track of how much you borrow: You may go online with National Student Loan Data System to see what the amount of your student loans are including interest costs and fees.
  9. Be thrifty: Pack a lunch, get a roommate, shop garage sales and thrift stores, buy used textbooks, take public transportation, clip coupons, take advantage of weekly food specials, rent videos instead of going out to the movies, ship around for the best phone, Internet, checkbook each month.
  10. Avoid using credit cards: It’s easier that you think to get a credit card and even easier to get into trouble.

Remember to keep your lender informed of things like your enrollment status, graduation date, and address.

Rights & Responsibilities

As a loan borrower, you have certain Rights and Responsibilities. When a loan is accepted, you accept the obligation to repay that loan. The promissory notes outlines all specific legal obligations. By understanding the rights and responsibilities, you will maintain a good credit status on you loan. Listed below are just some of your rights.

You have a right to:
1.) A copy of your loan agreement when you receive your loan and your original loan agreement when your loan is paid in full.

2.) Receive notice if your lender assigns, sells, or transfers your loan to another lender or servicing agency.

3.) Information regarding interest rates, fees, balance owed and a repayment schedule before you go into repayment.

4.) A grace period before you enter into repayment.

5.) Prepay all or any part of your loan balance without penalties.

6.) Request and receive a deferment if you meet the eligibility requirements.

7.) An explanation about default and the consequences of defaulting on your loan.

As a loan borrower, you have certain Rights and Responsibilities. When a loan is accepted, you accept the obligation to repay that loan. The loan agreement outlines all specific legal obligations. Understanding the rights and responsibilities, you will maintain a good credit status on you loan. Listed below are some responsibilities.

It is your responsibility to:
1.) Repay your loan.

2.) Make payments on your loan even if you are not billed.

3.) Continue to make payments on your loan while waiting for a response to a deferment request.

4.) Notify your lender if you have circumstances that affect your ability to repay.

5.) Keep your lender informed of enrollment status changes or if you graduate.

6.) Keep your lender informed if your address, name, or social security number changes.

7.) Read all information related to your loan and understand your loan obligations.

8.) Complete exit counseling.

For more details regarding your Rights & Responsibilities refer to your Loan Agreement of a Subsidized/Unsubsidized Loan (MPN).