Several loan programs are available. Students accepting student loans are committing themselves to a serious legal and moral obligation: loans must be repaid. Repayment may take as long as 10 years after leaving college. Students are urged to consider their ability to repay a loan, their future credit rating, and their potential indebtedness before accepting a loan. The staff of the Financial Aid Office is willing to discuss the implications of loans on students' future financial situation.
Types of Student Loans
Stafford Direct Loan (DL)
What are Stafford Direct Loans?
Stafford Direct Loans are either subsidized or unsubsidized. A Direct subsidized loan is awarded on the basis of financial need. The federal government pays interest on the loan ("subsidizes" the loan) until the student begins repayment and during authorized periods of deferment.
An Direct unsubsidized loan is not awarded on the basis of need. Students are charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized-that is, the interest will be added to the principal amount of your loan and will increase the amount you have to repay. If you choose to pay the interest as it accumulates, you'll repay less in the long run.
Students may receive a subsidized Direct Loan and an unsubsidized Direct Loan for the same enrollment period.
Who can get a Stafford Direct Loan?
If you're a regular student enrolled at least half-time in an eligible program of study, you may receive a DL. Students must also meet other general eligibility requirements.
How much can I borrow?
Please click here to download the borrowing chart for Stafford Direct Loan limits.
Note: The College can refuse to certify your loan application or can certify a loan for an amount less than you would otherwise be eligible for, if the school documents the reason for its action and explains the reason to you in writing. The school's decision is final and cannot be appealed to the U.S. Department of Education.
Note: The amounts given in the chart are the maximum yearly amounts you can borrow in both subsidized and unsubsidized Stafford Direct Loans. You may receive less than these yearly maximum amounts if you receive other financial aid that is used to cover a portion of your cost of attendance.
What is the interest rate charged on these loans?
For Stafford Direct loans, effective July 1st 2011, Subsidized Loans have an interest rate fixed at 3.4%, while Unsubsidized Loans have an interest rate fixed at 6.8%.
Starting July 1, 2012 Subsidized and Unsubsidized loan disbursements will have a 1% origination fee deducted from the principal of the loan.
When do I pay back these loans?
After you graduate, leave school, or drop below half-time enrollment, you have six months before you begin repayment. This is called a "grace period."
During the grace period on Stafford loans, you don't have to pay any principal. However, interest will be charged. You can either pay the interest during the grace period or allow it to accrue.
After you leave school or drop below half-time enrollment, you'll receive information about repayment and will be notified of the date repayment begins. However, you're responsible for beginning repayment on time, even if you don't receive this information.
Disbursement of Loan Funds
The scheduled disbursement date of your loan is the date that MCCC is scheduled to receive your loan funds.
- If this is your first time borrowing a student loan at any college and your grade level is a first-year undergraduate at MCCC, your funds will not be disbursed any earlier than thirty days after the start of the semester.
- One semester loans: If you are taking out a loan for only one semester, your loan will be split into two disbursements, with 50% of your funds being disbursed a the mid-point of the semester.
How do I apply?
Step 1 –Complete Entrance Counseling
Entrance Counseling must be completed if this is your first-time applying for a loan at MCCC. You will need your FAFSA PIN to complete this step. In addition to online loan couseling, first-time borrowers will be required to complete one-on-one counseling session with a Financial Aid Officer and will be contacted through their college e-mail to set up an appointment before a loan can be processed.
Step 2-Complete a Master Promissory Note (MPN)
A MPN must be completed if you have not borrowed a Stafford Direct Loan in the past 10 years at any college. You will need your FAFSA PIN to complete this step.
Step 3-MCCC Direct Loan Request Form (2013-2014)
The MCCC Direct Loan Request form must be completed by all students wanting to apply for a Stafford Direct Loan for the Fall 2013 and/or Winter 2014 semesters. This form is needed in addition to completing the FAFSA.
*To complete a Spring or Summer MCCC Loan Request Form, please see the Financial Aid Office.
How do I cancel or revise my loan request?
Click here to cancel/revise your loan at MCCC.
Direct Plus Loans
Direct PLUS loans are education loans made by private lending institutions and nonprofit agencies. You are eligible for a PLUS loan if you are the parent, with a good credit history, of a dependent undergraduate student who is enrolled at least half-time. The interest rate changes annually each July 1. The maximum rate that can be charged is 9%. The maximum loan limit may not exceed the student's cost of attendance, minus any financial aid of the student during the period of enrollment. Repayment begins within 60 days of the final disbursement.
For more information regarding student loans, contact Kelly Scheer at (734) 384-4137 or e-mail email@example.com.
As part of MCCC's Default Management Program, we do not certify alternative loans.