Federal Direct Loan Request Form

These changes are pending final rulings and are subject to change.

 

Changes to Federal Loan Repayment 

For loans disbursed after July 1, 2026, income-driven repayment plans will be replaced by a new Repayment Assistance Program (RAP). Borrowers of loans disbursed after July 1, 2026, will be able to choose RAP or a standard 10-year or 25-year repayment plan. 

Borrowers of loans disbursed before July 1, 2026, will have the option to remain in existing income-driven repayment plans (IBR, PAYE, SAVE) but must enroll by June 30, 2028. They will be moved to RAP if they miss this deadline.  

Please contact your loan servicer(s) or review information available from the Department of Education concerning federal loan repayment. 

Loan Limits

Legislation has established a lifetime limit of $257,500 on all federal student loans combined. This cap applies to the total outstanding principal balance of your federal loans, which includes Subsidized, Unsubsidized, and Grad PLUS loans. Please note that this aggregate limit does not include Parent PLUS loans. The new lifetime loan limit is $257,500, which includes student borrowing for undergraduate, graduate, and professional study.

Parent PLUS loan changes:

Parent PLUS Loans originated after July 1, 2026, will be subject to a yearly limit of $20,000 and a lifetime limit of $65,000. PLUS Loans will be subject to these new limits if you (the student) transfer to another school, cease or pause enrollment, change your program type, or if three years have passed. As long as you remain concurrently enrolled at DACC within the same program type, new PLUS loans will not be restricted to these limits for up to three years.

Additionally, taking out a new Parent PLUS Loan after July 1, 2026, will force your parents’ entire loan balance into a new tiered standard repayment plan. This can change their monthly payment and affect loan forgiveness. If your parent does not take out a new Parent Plus Loan after July 1, 2026, they will not be forced into the new tiered standard repayment plan and can continue in their current repayment plan. This change will also affect parent borrowers who are interested in loan forgiveness through a consolidated loan. Please contact the DACC Financial Aid Office for other payment options if a new Parent PLUS Loan may not be the best option.

 

Loan requests are due by the last day of attendance each semester. If this deadline has passed, please consider other payment options for your courses.

Before loan eligibility can be determined, the following requirements must be met:

• You must file the current year’s Free Application for Federal Student Aid (FAFSA)
• You must complete all Financial Aid file requirements and have a completed file
• You must have an official copy of your High School transcript or equivalent record on file
• You must have all previous colleges attended official grade transcripts on file AND evaluated by your DACC academic counselor for Transfer in Credits for your program of study
• You must be enrolled at least half-time (6 credit hours) when the loan is certified and when funds are disbursed
• You must not be in default on a federal educational loan or owe a repayment of a federal grant
• You must be in and maintain Satisfactory Academic Progress (SAP)
• You must complete loan counseling and understand that all previous Federal Loan borrowing will be considered when calculating current eligibility. DL borrowing has award-year limits and lifetime eligibility limits.

34 CFR Section 685.301(a) (7) of the William D. Ford Federal Direct Loan Program (Direct Loans) provides that a school may refuse to certify a Direct application or may reduce the borrower’s determination of need for the loan if the reason for that action is documented and provided to the student in writing provided the determination is made on a case-by-case basis. If you are determined not to be eligible for a loan this Award Year, you will be notified in writing via email as to the reason.

As a Federal Direct Loan Borrower, you must understand that you are about to undertake a very serious obligation.
Before accepting any of your Federal Loan proceeds, understand that you must repay the full amount of this loan with all accrued interest and deducted fees, whether or not you are satisfied with your educational experience or obtain employment upon completion of your educational program, or are dissatisfied with other services that were available from this institution.

The full details of your loan contract (including interest rates, fees, repayment terms, deferment options, etc.) are provided to you as part of your loan application, Master Promissory Note (MPN), and Disclosure Statement materials. If you fail to fulfill any of the terms of your loan contract, you will be considered in default and may suffer the following negative consequences:

• Be sued to force payment and pay court and attorney costs
• Federal or state tax refunds may be withheld
• The default will be reported to credit bureaus, affecting future borrowing and credit availability
• Lose eligibility for other federal financial aid
• Wages may be garnished
• The loan becomes due in full immediately

It is your responsibility to notify the Department of Education (Federal Student Aid Information Center (FSAIC) at 1-800-433-3243) within 10 days if you:

• Fail to enroll for school as scheduled or expected
• Graduate or withdraw from school
• Change schools
• Enroll at or drop to less than half-time status
• Change your name or address
• Want to request a deferment or forbearance of payments, or to inform that you are having a hardship that affects your ability to repay

IF YOU ARE A FIRST-TIME BORROWER AT DANVILLE AREA COMMUNITY COLLEGE

All new DACC Federal Direct Loan borrowers must complete an Entrance Interview before their loan funds can be released. You may complete this requirement at https://studentaid.gov/entrance-counseling/.

You will need to complete an electronic Master Promissory Note (eMPN) at https://studentaid.gov/mpn/ if this is your FIRST Direct Student Loan or if it has been more than 10 years since your last one.

Both the Entrance Interview and MPN must be completed before disbursement of funds.

COMPLETE THE NEXT PAGE AND SUBMIT TO THE FINANCIAL AID OFFICE.

Processing may take 5-10 business days. Please be prepared for longer processing times during any month that a semester begins.

All mail will be sent to address on record with the Admissions office. If this is different from your student admissions address, you must contact their office to update at 217-443-8800. Please provide your most current contact information. 

NOTE: Your DACC student email is used for all communications from DACC departments. You must use your online account (MyDACC) for viewing your bill, class schedule, awards, and grades as this information is NOT mailed to you.

You have the right to cancel or reduce the loan prior to disbursement. (After disbursement with certain restrictions and limitations. Contact our office for further information)

Go here to learn about the differences between subsidized and unsubsidized direct student loans.