How to Apply for a Stafford Loan

American River College encourages students to first apply for any grants or scholarships they may be eligible for prior to applying for a student loan.  A student loan is a serious and long-term obligation that should be used only as a last resort.  If it is necessary for you to apply for a Stafford Loan, please follow the steps below.

1. Complete the Free online Application for Federal Student Aid (FAFSA).
   • List American River College, code 001232, as one of the schools you plan to attend.
   • Obtain a FAFSA PIN (personal identification number) online.
2. Register for classes at American River College. You must be at least a half-time student, enrolled in at least 6 units per semester (3 units in summer).
   • If you are a continuing student at ARC, you must have a cumulative grade point average (GPA) of 2.0 or higher.
3. The Financial Aid Office will notify you it requires additional documents from you in order to complete your file. Notification will be sent by e-mail, so you must have a valid email address.
4. Access your ARC financial aid account online. If you indicated on FAFSA that you want a loan, the "Apply Online" tab will appear, allowing you to complete the loan application.
5. When you meet eligibility requirements, the ARC Financial Aid staff will certify your loan.
6. EdFund (the loan guarantor) will e-mail you the instructions on completing loan entrance counseling on the EdTest website.
7. After you have successfully completed EdTest counseling, you will be directed to our online college lender list and  application (WEBapp), where you sign your Master Promissory Note (MPN). You must have a FAFSA PIN for this step.
8. After your loan is guaranteed, loan checks will be sent to American River College. The Financial Aid Office will verify that you are meeting satisfactory academic progress, currently enrolled halftime, and have not received additional financial assistance that may impact your eligibility.

Loan Check Disbursement

Loan checks are sent to ARC in two disbursements. The lender and guarantor may deduct up to 3% in origination and default fees.  Your loan checks will be mailed to the address on file with Enrollment Services.

If you are a first-year undergraduate and a first-time borrower, your first loan disbursement cannot be sent until 30 days after the first day of your enrollment in at least 6 units per semester (3 units in summer). To be eligible for the subsequent disbursement, you must have successfully completed half-time enrollment with a GPA of 2.0 or higher.

Beginning with Federal Stafford Loans first disbursed on or after July 1, 2008, there are increased annual loan limits for certain categories of students.

Loan Award

Your award amount depends on your grade level and other factors. You may be offered a preliminary loan award, once your financial aid file is completed and a loan application has been submitted.  The actual loan award amount may differ from the preliminary award amount. When your loan request is reviewed, certified, and sent to EdFund (the loan guarantor), we will send you an award notification by e-mail.