Grants & Loans
Grants and student loans can be important resources that help students achieve their educational goals. Otero College offers Federal Stafford Loans through the Federal Family Educational Loan (FFEL) program. Otero also offers financial counseling to students taking out student loans to ensure their understanding of the obligations and responsibilities associated with the repayment of student loans.
Loan Application Process
Otero College has now joined the Federal Direct Loan Program. Follow the steps below to begin the loan application process:
Entrance Counseling: If you are a first time borrower or switching to Direct Lending you must complete Entrance Counseling before you can receive any loan funds. Go to www.studentaid.gov and look for the link to Entrance and Exit Counseling on the top right hand side of the page. After you have completed your Entrance Counseling, Otero Financial Aid Office will be notified.
Completing Master Promissory Note: All students using Direct Lending must complete a new Master Promissory Note; please visit www.studentaid.gov, where you will click on “Complete New MPN for Student Loans”. Otero Financial Aid Office will receive notification once you have completed this process.
Accept Loan Offer: Please contact your financial aid office for more information and instructions.
Grant Options
These grants are designed to provide financial assistance to those who need it to attend post-high school educational institutions. Amount of the award is set each year by the U.S. Department of Education. Grants may be awarded to full-time and part-time students who are U.S. citizens, meet other federal mandated guidelines and are making satisfactory academic progress.
For Information on how to apply for this grant please contact the Director of Financial Aid at Otero College.
The Colorado student program is designed to assist needy students with educational expenses. To qualify, the student must be a resident of the State of Colorado and must demonstrate and document financial need. Colorado Student Grants for out-of-state students are not available. For Information on how to apply for this grant please contact the Director of Financial Aid at Otero College.
One year grants-in-aid, valued at $200 to $2,000 depending on the extent of documented need, are designed to assist students of exceptional financial need, who, for the lack of financial means of their own or of their families, would be unable to obtain such a grant. Funds for these grants are provided from Federal appropriations and they may not exceed the lesser of $2,000 or one-half the total amount of student financial aid provided by the institution. The Federal Supplemental Education Opportunity Grant may be renewed annually upon application, providing the recipient continues to meet eligibility requirements.
For Information on how to apply for this grant please contact the Director of Financial Aid at Otero College.
Loan Options
The loan is secured from a private lending institution, i.e., a bank, a savings and loan, or credit union. There is no loan payment or interest charged while the student remains in school at least half-time. Students must begin repaying the loan at an annual variable rate based on a 91 day T-Bill +3.10%, capped at 8.25%, six months after they graduate, leave school, or are enrolled less than half-time. These loans are guaranteed by various agencies and reinsured by the federal government. Students are required to apply through a federally approved need analysis system to determine their eligibility and have a complete financial aid file prior to having a Stafford Loan processed by the Financial Aid Office.
For information on how to apply for this, please contact the Financial Aid office at Otero College.
This loan is for the parents of dependent students and secured from a private lending institution. Parents may borrow up to the cost of attendance per child (minus other aid). Repayment may be made monthly or quarterly; or interest may be capitalized no more frequently than quarterly. Annual variable rates are based on a 52 week T-Bill +3.10%, capped at 9%.
For Information on how to apply for this grant please contact the Director of Financial Aid at Otero College.
Frequently Asked Questions
Subsidized Loans
If you have a subsidized loan, you will not be charged interest while you are enrolled in school at least half time, during a grace period, or during authorized periods of deferment. Interest will begin to accrue(accumulate) when you enter repayment. Repayment usually begins within 6 months after you graduate, leave school or do not enroll at least half time (6 credit hours/semester).
Subsidized loans are based on financial need.
Unsubsidized Loans
If you have an unsubsidized loan, you are responsible for the interest from the time the loan is disbursed until it’s paid in full. You can pay the interest as you go along. Or, you can allow the interest to accrue (accumulate) – for example, while you’re in school you can have the interest added to the principal amount of your loan later. This means the interest will be “capitalized.”
Unsubsidized loans are not based on financial need.
If you are a student who is enrolled in an eligible program at least half time (6 credits/semester) and meet the other criteria for Federal student aid programs, you may be eligible to receive a Direct loan.
Federal Stafford Loans for Undergraduate Dependent Students (whose parents have not been denied a PLUS Loan)
| Grade Level | Base Amount* | Additional Unsubsidized | Total Amount |
|---|---|---|---|
| Freshman | $3,500 | $2,000 | $5,500 |
| Sophomore | $4,500 | $2,000 | $6,500 |
| Aggregate** | $23,000 | $8,000 | $31,000 |
* Base Amount = Maximum amount that may be Subsidized
** Aggregate = Maximum amount you can borrow for your entire undergraduate degree
Federal Stafford Loans for Undergraduate Independent Students (and Dependent Students whose parents have been denied a PLUS Loan)
| Grade Level | Base Amount* | Additional Unsubsidized | Total Amount |
|---|---|---|---|
| Freshman | $3,500 | $6,000 | $9,500 |
| Sophomore | $4,500 | $6,000 | $10,500 |
| Aggregate** | $23,000 | $34,500 | $57,500 |
* Base Amount = Maximum amount that may be Subsidized
** Aggregate = Maximum amount you can borrow for your entire undergraduate degree
The amount a student can borrow is also limited by the student’s school costs, other financial aid the student may receive, and in the case of subsidized loans, the student’s Expected Family Contribution (EFC).
To meet satisfactory academic progress standards, you must:
- Maintain a minimum cumulative grade point average (GPA) of 2.0 or above for all credits attempted;
- and Complete at least 67% of cumulative attempted credit hours: (Credits Completed / Credits Attempted X 100 = Completion Rate) and Complete eligible degree/certificate program within 150% of scheduled program length.
Once you have attempted 110% of the number of credit hours required for your degree or eligible certificate program, you will be required to submit a Degree Completion Evaluation Form with a signature of an Academic Advisor or Counselor in order to be considered for continued financial aid eligibility.
Up to a maximum of 30 credit hours of ‘for credit’ remedial coursework are allowed when determining enrollment status. Therefore up to 30 credit hours of remedial credits will not be included in the calculation when determining if you have exceeded the maximum time length (150% of the hours required) for your declared program of study, provided the courses are not applicable to that program.
ESL classes are not included in the maximum time length (150% of the hours required) for the calculation of SAP. Transfer credit hours are included in the calculation of allowable maximum timeframe.
Attempted credit hours under all courses of study are included in the calculation of attempted and earned credit hours. If it is at any point determined you cannot complete your program of study within 150% of the program length, financial aid eligibility will be suspended.
Review of Satisfactory Academic Progress will be done shortly after the stated due date for grades at the end of each academic term.
Should you fail to meet one of more of the above indicated standards you will be placed on financial aid probation or suspension according to Otero’s guidelines.
Parent Loans
Exit Counseling
Solutions at ECMC
Otero College has teamed up with Solutions at ECMC to answer all of your student loan repayment questions. Solutions at ECMC is a non-profit organization dedicated to helping students manage educational loans and their resources are available to you free of charge.
To contact a Solutions Student Loan Repayment Advisor, email or web chat, or call them at 1-877-331-3262.
Andee Leininger
Director of Financial Aid
(719) 384-6834
andee.leininger@otero.edu
McBride Hall 132
McKensie Avens
Assistant Director of Financial Aid
(719) 384-6985
mckensie.avens@otero.edu
McBride Hall 132