Several loan programs are available. A student is not required to accept a loan in order to receive other types of aid. Students should consider the possibility of replacing part of the value of a loan with a job. Speak with the Office of Financial Aid to determine whether employment is 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.

Federal Stafford Loans

What Loans are available?
Federal Stafford Loans are either subsidized or unsubsidized. A 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 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 FFEL and an unsubsidized Stafford Loan for the same enrollment period.

Who can get a Federal Stafford Loan?
If you're a regular student enrolled at least half-time in an eligible program of study, you may receive a FSL. Students must also meet other general eligibility requirements.

How much can I borrow?
A dependent undergraduate student can borrow up to:

• $3,500 if you're a first-year student enrolled in a program of study that is at least a full academic year;
• $4,500 if you've completed your first year of study, and the remainder of your program is at least a full academic year.

An independent undergraduate student or a dependent student whose parents are unable to get a PLUS Loan, can borrow up to:

• $7,500 if you're a first-year student enrolled in a program of study that is at least a full academic year (at least $4,000 of this amount must be in unsubsidized loans);
• $8,500 if you've completed your first year of study, and the remainder of your program is at least a full academic year (at least $4,000 of this amount must be in unsubsidized loans).

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 above are the maximum yearly amounts you can borrow in both subsidized and unsubsidized Stafford 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.

The total outstanding debt from all Stafford Loans combined cannot exceed:

• $23,000 as a dependent undergraduate student;
• $46,000 as an independent undergraduate student (no more than $23,000 of this amount may be in subsidized loans); or
• $138,500 as a graduate or professional student (no more than $65,500 of this amount may be in subsidized loans). The graduate debt limit includes any Stafford Loans received for undergraduate study.

What's the interest rate charged on these loans?
For the Stafford Loans disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent.

For Stafford Loans that were first disbursed before July 1, 2006, the interest rate may be different. Check with the lender or agency that holds the loan.

On subsidized loans, the federal government pays the interest while you're enrolled in school at least half time, during a grace period, or during authorized periods of deferment. Interest will begin to accrue-that is, accumulate-when you enter repayment.

For unsubsidized loans, you'll be charged interest from the day the loan is disbursed until it is repaid in full, including in-school, grade, and deferment periods. You may choose to pay the interest during these periods or it can be capitalized.

Is there a charge for these loans?
You'll pay fees of up to four (4) percent, deducted proportionately from each disbursement of your loan. For an FFEL Loan, a portion of this fee goes to the federal government to help reduce the cost of the loans.

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 a subsidized loan, you don't have to pay any principal, and no interest will be charged. During the grace period on an unsubsidized loan, you don't have to pay any principal, but interest will be charged. You can either pay the interest or allow it to accumulate.

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.

Federal PLUS Loans
Federal 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. To apply for a PLUS loan, click here.

Click here to apply for a Federal Stafford Loan

In-School Deferment Request

Short Term Loans
Short term loans are available to help pay for books and supplies. Preference is given to full-time students. A short term loan must be repaid by the end of the semester for which the loan is made. In order to apply, your tuition & fees must be paid in full and your cumulative GPA be at least a 2.0. Application forms are available at the College Financial Aid Office.

For more information call Kelly Scheer at (734) 384-4137 or e-mail kscheer@monroeccc.edu