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Loans |
| Financial Aid Homepage |
| The Federal Stafford Loan program enables
students to borrow from banks or other lending institutions that
make loans. A loan is money that is "loaned" at a variable
interest rate for the borrower's temporary use. It must be
repaid. |
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Federal Subsidized
Stafford Loan
The Federal Subsidized Stafford Loan is available to students
with financial need (COA – EFC = Need). Students are required to
complete a FAFSA in order for the financial aid director to
determine their eligibility for subsidized loans. Subsidized
means that the federal government pays the accrued interest
while the student is in school. The interest rate is variable.
Students must be enrolled in six or more credits and meet all of
the general eligibility requirements for receiving financial
aid. Loan repayment begins after six months if the student drops
below six credits, withdraws, or graduates from MCC. Students
must choose a lender for the loan. Banks, credit unions, or
savings and loan associations make the loan, and there is an
origination/insurance fee. Students must complete a
Master
Promissory Note and Entrance Counseling before receiving the
loan and Exit Counseling upon dropping below six credits,
withdrawing, or graduating. See the Student Loan Chart below for
annual and aggregate loan limits. |
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Federal
Unsubsidized Stafford Loan
The Federal Unsubsidized Stafford Loan is a non-need based
program for those students who are ineligible for any, or all,
of the subsidized loan. The major difference between the Federal
Subsidized Stafford Loan and the Unsubsidized Stafford Loan is
interest begins accruing immediately upon disbursement of the
unsubsidized loan. The interest can be capitalized (added to the
principle of the loan), or can be paid each year by the student.
Paying the interest yearly is recommended because it will
prevent the interest from accruing upon interest while the
student is in school. The interest rate is variable. Students
must be enrolled in six or more credits and meet all of the
general eligibility requirements for receiving financial aid.
Loan repayment begins after six months if the student drops
below six credits, withdraws, or graduates from MCC. Students
must choose a lender for the loan. Banks, credit unions, or
savings and loan associations make the loan, and there is an
origination/insurance fee. Students must complete a
Master
Promissory Note and Entrance Counseling before receiving the
loan and Exit Counseling upon dropping below six credits,
withdrawing, or graduating. See the Student Loan Chart below for
annual and aggregate loan limits. |
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Student Loan Chart
The maximum loan limits for dependents is also the maximum
amount of subsidized loans available for all students for that
grade level. Additional unsubsidized loan money, which is only
available to independent students or dependent students whose
parents do not qualify for a PLUS Loan, is not automatically
awarded to students. Students must request the additional
unsubsidized loan at the financial aid office. |
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| Student Status |
Freshman Annual Loan Limits |
Sophmore Annual Loan Limits |
| Dependent |
$3,500 (sub/unsub)
$2,000 (add'l unsub) |
$4,500 (sub/unsub)
$2,000 (add'l unsub) |
| Independent |
$3,500 (sub/unsub)
$4,000 (add'l unsub) |
$4,500 (sub/unsub)
$4,000 (add'l unsub) |
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Aggregate Loan
Limits
The maximum outstanding total subsidized and unsubsidized limits
for a dependent student is $23,000. The maximum for an
independent student or a dependent student whose parents do not
qualify for a PLUS Loan is $46,000, of which no more than
$23,000 can be in the form of subsidized loans. |
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Federal PLUS Loans
(Parent Loans for Undergraduate Students)
Federal PLUS Loans are variable interest, unsubsidized loans
made to parents of dependent students. Parents may borrow the
cost of attendance less other financial aid. The parents are
required to complete a form from the financial aid office before
they can receive a PLUS Loan. The form includes a statement of
educational purpose, which states that the loan money will be
used for educational purposes. PLUS borrowers must begin
repaying both principal and interest within 60 days after the
loan is disbursed. For more information on PLUS Loans, please
contact Loren Lancaster, financial aid director, at
1-800-541-9281, (406) 874-6171, or
FinAid@milescc.edu. |
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