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Debt & Default Management

As a small community college, our participation in the Federal Stafford Loan program provides the necessary means in funding higher education for many of our students. Students who are awarded and choose to accept these loans must be committed to repaying the loan(s) and abiding by all program requirements, such as; completing the Entrance Interview. The student will sign a promissory note, promising to repay this federal debt, understand their rights and responsibilities, and complete the Student Loan Request Form before the funds will be disbursed.

These federal student loans are repaid with an interest rate of 6% for Subsidized and 6.8% Unsubsidized (8.5% Parent Plus) for loans disbursed between July 1, 2008 - June 30, 2009 and payments begin after the student ceases attendance or drops to less than half-time status. Arizona Western College values this low interest federal loan program and wants to do everything it can to preserve its integrity. The future is at risk if students do not adhere to their repayment schedules, consequently defaulting on their commitment to repay this federal loan. As a proactive measure to insure the viability of this loan program, AWC is piecing together a default management plan through letters, emails, phone calls and this website information.
 

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