Loans

Loans, unlike grants or work-study, are money that must be repaid, with interest.  To apply for a loan, a separate Federal Direct Loan Request Form must be completed and submitted to the Financial Aid Office.  You must also have a completed FAFSA in addition to the loan worksheet.

Steps to Apply for Student Loans

  1. Complete your FAFSA.
  2. Check your ctcLink Portal and turn in any required forms to the Financial Aid Office.
  3. Submit a complete Federal Direct Loan Request form after you have been awarded. 
  4. Complete your loan entrance counseling and master promissory note if you are a first-time loan borrower.  Note that first time borrowers will have a 30-day delay from the first day of the quarter until their loan funds are disbursed.

**WASFA eligible students are not eligible for Federal Direct Loans

Two Types of Loans

The Direct Subsidized Loan is based upon financial need. The government subsidizes (or pays) the interest for you while you are enrolled at least half time (six credits) in an eligible, degree-seeking program. You will have six months once you graduate or drop below half-time attendance before you must begin repayment at which point interest will begin accruing at a fixed rate.

The Direct Unsubsidized Loan is not need-based, eligibility is based on the cost of attendance and other aid received. Interest accrues at a fixed rate as soon as you receive the loan funds. You have six months once you graduate or drop below half-time attendance before you must begin repayment.

 

Loan Eligibility & Disbursement

  • You may cancel future disbursements of your loan at any time.
  • You must enroll in a minimum of 6 credits that apply to your financial aid eligible program, to be eligible for Direct Loans.
  • First-time college students borrowing a Direct Loan may be required to have their loan funds held for the first 30 days of the quarter before funds can be disbursed.
  • One-quarter loans are disbursed in two payments, one at the beginning of the quarter and one at the midpoint.
  • Direct Student Loan offers are subject to change from the original offer for a variety of reasons, including impending graduation status, incoming scholarships or other aid applied to a students account. Questions about why a loan offer was reduced from the original award amount can be sent to

Deferment

While you are at least half time (taking 6 or more credits), you can receive an in-school deferment on your existing student loans. You will not be required to make any principal or interest payments while you are enrolled at least half time in school. GHC will automatically report your enrollment information on the 10th day of the quarter to the National Student Loan Clearinghouse.

Exit Counseling

If you drop below 6 credits, Graduate or Leave School, you are required to complete an Exit Counseling session.

PLUS Loans

PLUS loans are available for parents to take out for their student. For more information please contact the Financial Aid Office.

Private Loans

Students may apply for a private loan through a financial institution of their choice. GHC does not endorse or provide recommendations for private loan funding sources.

Additional Federal Direct Student Loan Information

Students are Required to Know and Understand the Following Federal Direct Student Loan Information:

  • You must have a complete financial aid file at GHC—this means you have completed your FAFSA, submitted requested forms and/or documents to our office, and received a notification with an award offer or an email stating you have no grant eligibility.
  • You must be enrolled in an eligible degree or certificate program and taking a minimum of 6 credits (half-time) which apply to your program in each quarter to receive a loan.
  • A new federal reporting requirement now means that a student must be enrolled for classes at GHC before we can actually process their loan. For example, if a student plans to start fall quarter 2024 and wants to apply for a loan where fall quarter will be the initial quarter of their loan for the 2024-2025 year, then they would have to be enrolled for fall quarter 2024 classes before we would be able to process the loan.  Please keep this in mind as you begin the loan process for an upcoming quarter.
  • Your student loan eligibility is determined using your FAFSA information, GHC’s cost of attendance, other financial aid and scholarship awards, your grade level, dependency status and annual maximum loan limits.  This loan eligibility may be a combination of subsidized and unsubsidized federal student loan amounts.
  • Grade or borrower level is based upon your earned credits for your current degree or certificate at GHC, it is NOT based on number of calendar years or quarters you have attended school. To be considered a level two (or second year) borrower you must have 46 or more college-level credits that apply to your program of study.  
  • Your student loan will be disbursed equally over your requested enrollment period. Typically, this is all the quarter(s) you plan to attend GHC for at least 6 credits, for example between fall 2025 and spring 2026
  • Outstanding tuition and fees will be deducted from loan disbursements as allowed by federal regulations. Any remaining amount will be disbursed to the student via BankMobile disbursements, a technology solution, powered by BMTX, Inc., GHC's electronic funds distribution partner.
  • Like all other financial aid, no loan funds after disbursement to the student's account, will be refunded before the quarter begins.
  • Generally loan processing time and disbursement of funds is 2 to 3 weeks.
  • For students completing the remainder of their program in less than one academic year, we are required to prorate your loan based on the number of credits you will take to complete your degree or certificate.
  • The interest rate is determined annually for all federal student loans, this change takes effect each year on July 1st.  Interest rates for federal loans first disbursed between 07/1/2024 and 6/30/2025 are 6.53% for subsidized and/or unsubsidized undergraduate students. The Parent PLUS rate is 9.08% for the same time frame. 
  • Currently there is a 1.057% origination fee charged by the Department of Education for loans disbursed on or after 10/1/2019 and before 10/1/2025. This fee may change on 10/1/2025. This fee is deducted, by the Department of Education, from each loan disbursement you receive. Parent PLUS loans currently have an origination fee of 4.228% for the same time periods listed above.
  • This is a student loan and must be repaid.
  • You have the right to cancel your student loan at any time. If your loan funds have been disbursed to you, you have 14 business days to return the funds to GHC to be refunded back to the loan program on your behalf. Contact the Financial Aid Office at finaid@ghc.edu if you have any questions.
  • All loan recipients are required to complete the Federal Student Loan Exit Counseling when they graduate, leave GHC, or drop below 6 credits (half-time) enrollment. You will receive notification from our office but can complete before receiving at https://studentaid.gov/exit-counseling/.
  • Grays Harbor College's most recent Cohort Default Rates (CDR):
  • 2021: 0% 
  • 2020: 0%
  • 2019: 7.1%

Annual Maximum Loan Limits

Dependent Student (students that were required to use parent(s) information on their FAFSA)

Level 1 borrower $5,500 of which no more than $3,500 can be subsidized
Level 2 borrower $6,500 of which no more than $4,500 can be subsidized

Independent Student

Level 1 borrower $9,500 of which no more than $3,500 can be subsidized
Level 2 borrower $10,500 of which no more than $4,500 can be subsidized

Lifetime Maximum (Aggregate) Loan Limits

Dependent Undergraduate Students

$31,000—no more than $23,000 of this amount may be in subsidized loans

Independent Undergraduate Students

$57,500—no more than $23,000 of this amount may be in subsidized loans

Students Accepted in a BAS degree (4-year degree)

Students in a BAS degree are typically considered to be Level 3 or Level 4 borrowers
(3rd or 4th year student) and as such have different maximum loan limits. 
Please see the award notification that you received for detailed information.