Student Loans

A direct student loan is aid that is deferred until you’re out of school. 

Student loans are a form of financial aid that can help you pay for tuition, books, and living expenses while you’re in school. SJC offers the following loans:

  • Federal Direct Subsidized loan – a loan for students who have financial need as determined by the FAFSA. Interest is not charged on subsidized loans while you’re in school at least half-time.
  • Unsubsidized Direct loans – a loan that is not based on financial need. Interest is charged on the loan.
  • Federal PLUS (Parent Loan for Undergraduate Students) loan – an unsubsidized loan for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
  • Private Education Loan – Private loans are education loans that are not funded by the federal government. They are loans that are borrowed from private lenders (such as banks).  Private loans may be borrowed alone, or as a supplement to your existing federal student aid package has long as your total award amount is lower than your Cost of Attendance.  Unlike federal loans, private loans are subject to credit approval and usually have a higher interest rate.  Students interested in applying for a private loan must meet Satisfactory Academic Progress and be registered a minimum of 6 credits.  

If you’re interested in student loans there are a few things you must do.

  • Complete the FAFSA (Free Application for Federal Student Aid). Make sure you say you are interested in student loans on your FAFSA and that you added SJC as the school to receive your FAFSA information.
  • Submit all requested forms, and/or documents, to the SJC financial aid office (your file must be complete).
  • If you are new to college or just new to SJC, you MUST attend a first time borrower’s loan seminar.

Online and distance students can complete the 1st Time Borrowers Loan Seminar by visiting this link:, watching the full presentation, and answering the short questions at the end.  Once you completely view the presentation your attendance will automatically be recorded.

You will need to log in with your San Juan College username and password in order for your completion to be recorded.  Please call the Help Desk at 505-566-3266 if you cannot log in.

Loan Application Fall 2018/Spring 2019

  • Complete the Entrance Counseling session
  • Complete the Direct Loans Master Promissory Note.
  • Be enrolled for 6 credit hours or more (at least half-time status).
  • Maintain at least a half-time enrollment status (6 credit hours or more per semester)


Do I have to complete a Promissory Note in order to receive a student loan?

Yes! The Master Promissory Note or MPN is the binding legal document you sign when you apply for a student loan. It lists the conditions under which you are borrowing and the terms under which you agree to pay back the loan. It includes information on how interest is calculated and what the deferment and cancellation provisions are. It is very important to read and save this document because you will need to refer to it later when you begin repaying your loan. You should electronically complete and sign your MPN using your FSA ID to open the site. NOTE: It is important that you read through everything on the MPN sight, click on all URL’s and boxes, scroll completely to the bottom of popup document windows, and click on the blue bars in order to successfully complete the MPN.

Does San Juan College participate in loan programs?

San Juan College participates in the Direct Loan Program. This program includes Stafford subsidized, Stafford unsubsidized, and PLUS loans. Subsidized means the government pays the interest while you’re enrolled at least half-time, and for up to 6 months after you are no longer enrolled at least half-time. Unsubsidized means you are responsible for the interest, effective the date the loan credits to your San Juan College account.

PLUS loans are parent loans. Parents are responsible for the interest on PLUS loans. They are not subsidized. Nursing student loans are federal loans awarded to students enrolled in the College of Nursing.

How do I apply for student loans?

When you complete your FAFSA, check that you are interested in loans to question 31 on the FAFSA. However, even if you do not check that you are interested you may still request a loan when you need it.

For detailed steps on applying for loan please see our student loans webpage.

You will need to complete the following five steps:

  1. Review your current loan history on the National Student Loan Database System (NSLDS).
  2. Read information on the website about student loans.
  3. Complete the online Direct Loan Entrance Counseling Session.
  4. Complete the online Direct Loan Master Promissory Note (MPN).
  5. Complete and submit a Loan Request Form to the SJC Financial Aid Office.

Once ALL your Financial Aid Application forms have been received by our office then the processing & awarding of your requested loan will begin.

What is an Entrance or Exit Counseling?

During entrance counseling, the borrower is reminded of the seriousness of taking out a loan, the terms and conditions, the repayment obligations, and the consequences of defaulting on a loan. All borrowers of a Federal Stafford Loan must complete entrance counseling before you’re given your first disbursement of the loan. Entrance counseling needs to be completed online at the Direct Loan website.

When a loan borrower graduates, withdraws, or drops below half-time status, he/she must complete Exit Counseling. During exit counseling the terms and conditions of the repayment of the loan are reviewed, along with debt management strategies. Exit counseling needs to be completed online at the Direct Loan website.