Student Loan Information

Palomar College participates in the William D. Ford Direct Loan Program, administered by the US Department of Education.  Direct student loans are low interest loans to help pay for the cost of a student’s education after high school.  William D. Ford loan funds are borrowed directly from the federal government, not from banks.

While we neither promote nor advocate student loans, we do provide information on the process and the rights & responsibilities that accompany obtaining both subsidized and unsubsidized student loans to interested students.  It is our hope that the information on this site will help you make an informed decision about borrowing student loans.

IMPORTANT: Loan funds are borrowed money that must be repaid with interest. Remember, you must repay the full amount of your loan(s) even if you don’t complete your education program, can’t find work related to your area of study or are dissatisfied with the education or services you received from your school(s). Defaulting on a student loan has serious negative consequences for the borrower.

Loan Application

Direct Loan Q & A
Answers to frequently asked loan questions

Online Direct Loan Orientation
New Palomar College Borrowers– Sign in & go to Direct Loan Orientation. Once completed, we will be notified electronically within 3 days.

Direct Loan Servicer Account Setup 

Palomar College Partners with Inceptia for default prevention services 

You’re not alone when it comes to student loans.  Palomar College has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with free assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s friendly customer representatives may reach out to you if your loan(s) become delinquent. Inceptia is not a collection agency. We’ve partnered with them to help you explore a wide variety of possibilities (options) such as:

> alternative repayment plans,
> deferment,
> consolidation,
> discharge,
> forgiveness, and
> forbearance 

Inceptia will stay in touch with you via phone calls, letters, and/or emails to help you find answers to your questions and solutions to your issues. For additional resources including information on repayment options, please visit Inceptia’s Federal Student Loan Overview website at


The following are key points about Direct Loans:

  • Students do not borrow from banks.  Direct Loans are loans made with federal capital and are owned by the federal government.

  • Direct Loans are never sold.  Borrowers make loan payments to the Department of Education for the life of their loans.

  • Students do not wait in lines to endorse bank checks because schools receive loan funds electronically from the federal government and disburses them to students directly.

  • Borrowers have flexible repayment options with a Direct Loan, including Income Contingent Repayment, and they can change options when they need to without a fee at any time during the life of the loan.

  • In general, students borrowing the maximum amount in subsidized student loans will have their cost of attendance budgets increased by $42
Last modified on August 14, 2015