Federal Direct Loan Request Form

Before borrowing, please consider this:

Borrowing should be seen as the "last" resort after gift aid is exhausted, scholarships have been searched for and applied for, and the school payment plan has been considered.

You are strongly encouraged to consider these other resources before pursuing a student loan:

DACC Foundation Scholarship

Outside scholarships

DACC Payment Plans

 

If you must use student loans, be conservative about the amount you request to borrow. Student loans must be repaid with interest. 

Loan Proration

Eligibility for less than full-time students will be prorated based on enrollment status and academic level beginning with the 2026-2027 academic year. To qualify for federal loans, students must still meet the minimum half-time enrollment requirement. CHANGES IN ENROLLMENT MAY AFFECT LOAN ELIGIBILITY FOR FUTURE SEMESTERS. Please contact the financial aid office before dropping or withdrawing, and be aware that failed courses may also affect your future loan amounts.

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.

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 per student. PLUS Loans will be subject to these new limits if you (the student) were not enrolled at DACC as of June 30, 2026, transfer to another school, cease or pause enrollment, change your program type, or if your expected time to credential has passed.

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.

 

Want to know exactly how these changes will affect you? Go here:  One Big Beautiful Bill Act Updates

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 or loan
• 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 Counseling 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 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 Counseling and the MPN must be completed before funds are disbursed.

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.

NEW REQUIREMENT FOR LOAN AMOUNTS:

• DACC is required by the Deptartment of Education to adjust annual loan amounts in direct proportion to the percentage of full-time enrollment (12 credit hours per semester).
• Any deviation from the enrollment information provided below will result in a recalculation of your loan eligibility. A recalculation that results in a loan reduction may cause a balance due to DACC.
• Continue with completing the Loan Request Form only if you are certain of your FALL and SPRING credit hours
• Credit hours for fall 2026 and spring 2027 cannot be left blank; fill in 0 if you will not be enrolled for one of the semesters

PLEASE NOTE: CHANGING YOUR SCHEDULE, DROPPING, AND WITHDRAWING FROM COURSES MAY AFFECT CURRENT AND FUTURE LOAN AMOUNTS. PLEASE CONTACT THE FINANCIAL AID OFFICE BEFORE MAKING ANY CHANGES TO YOUR ENROLLMENT.

Budget Worksheet

The budget worksheet will help you determine your expenses and estimate your available income. You will need to consider all of your resources and the total cost of your education. The budget worksheet lists most of the important expenses and resources, such as tuition and fees, textbooks and supplies, scholarships, etc. For assistance, see Cost of Attendance.

To complete the worksheet, enter numbers in the fields that pertain to you and the semester(s) you are enrolled in at DACC for the school year. When you have finished entering the values, add each column to get a total of expenses and income, and then compare.

 

Request the Loan Amount

The chart below lists the maximum annual subsidized and unsubsidized Federal Direct Loan limits.

• Subsidized Direct Loans are awarded based on financial need, and not all students will be eligible. Interest is "subsidized" or paid by the federal government while you are in school at least half-time, and during qualifying grace periods and authorized periods of deferment. During all other times, you are responsible for paying the interest.
• Unsubsidized Direct Loans are not based on financial need. You are responsible for the accrued interest from the time the loan is disbursed. You may pay the interest periodically while in school at least half-time, or the interest will be accrued and capitalized at the start of repayment.

Note: You may be eligible for a combination of subsidized and unsubsidized Federal Direct Loans. We award subsidized loans first, and any remaining loan eligibility is awarded as an unsubsidized loan. Check your Self-Service portal on MyDACC for the breakdown of your loans.

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

Loan award amounts may be lower than requested amounts for several reasons. Please review your award on your Self-Service Portal and contact the financial aid office with any questions.

 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)

Certification and Signature

With my signature below, I certify that these loan funds will be used for educational expenses and costs associated with going to school and that I understand a) loans must be paid back; b) I cannot increase my loan amount without a written request; c) any change to enrolled hours listed on this form will result in a mandoatory loan recalculation and possible balance due to the college, and d) the federal annual loan limits as were explained in the Entrance Counseling session may differ from loan amounts I am eligible to receive while attending DACC. Federal annual and aggregate loan limits are listed at studentaid.gov/understand-aid/types/loans.

Processing may take 5-10 business days. Please be prepared for longer processing times during any month that a semester begins, as loan requests are received in high volume during this period. Watch your student email and Self-Service portal for updates on the status of your loan request.

To avoid longer wait times, you can request your student loans well in advance of a semester start date.