Prior to accepting student loans, it’s important to understand the benefits and the consequences of assuming student loan debt, as well as, understand your responsibilities as the borrower.
This is the maximum amount you are allowed to borrow during a single academic year. See the chart below.
(except students whose parents are unable to obtain PLUS Loans)
(and dependent undergraduate students whose parents are unable to obtain PLUSLoans)
|First-Year Undergraduate Annual Loan Limit||$5,500-No more than $3,500 of this amount may be in subsidized loans.||$9,500-No more than $3,500 of this amount may be in subsidized loans.|
|Second-Year Undergraduate Annual Loan Limit||$6,500-No more than $4,500 of this amount may be in subsidized loans.||$10,500-No more than $4,500 of this amount may be in subsidized loans.|
|Subsidized and Unsubsidized Aggregate Loan Limit||$31,000-No more than $23,000 of this amount may be in subsidized loans.||$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans.|
Subsidized Loan - A loan in which the federal government pays the interest while you are registered at least half-time (6 credit hours at MCC) in school, during your grace period, and during authorized deferments.
Unsubsidized Loan - A loan in which you are responsible for all the interest on the loan. You may choose to pay it as you go or let it accrue (build up) and pay it when you begin paying your loan back.
Students may cancel all or a portion of the loan(s) and have the canceled funds returned to the lender. Students must submit a Change Request Form to the Financial Aid Office within 14 days of the date of the disbursement if they want to cancel all or a portion of the loan. The student is responsible for any outstanding balances on their account once their loan is canceled or reduced.
Repayment begins six (6) months after the student stops attending at least 6 credit hours. Please contact your loan servicer for details.
Loan changes can be made by logging into Student Forms; You will create an account if you do not already have one.
After July 1, 2013, first-time Direct Loan Borrowers will be subject to new regulation by the Department of Educations which limits Subsidized loan eligibility. In general, a student may not receive Direct Subsidized Loans for more than 150% of the published length of their program. Therefore, timely degree completion can help prevent extra costs incurred by borrowers who could lose the benefit of having the government paying the interest on their loan while in school.
Parents of dependent students can borrow from the PLUS Loan program. The PLUS Loan is a low-interest, unsubsidized loan available to parents to supplement their child's aid package, up to the school's cost of attendance.
To apply for the PLUS loan, the parent borrower must:
In order to be eligible the parent borrower must meet the following requirements.
The maximum loan amount that can be requested is the student's cost of attendance minus any other financial aid the student receives.
In some instances, a student may not qualify for a Federal Direct Stafford Loan. For these students there are private loans available through private banks and credit unions. The student will need to contact these individual banks and credit unions for loan applications and exact terms and conditions. Mott's Financial Aid Office will certify the amount the student can borrow based on the student's cost of attendance minus any other financial aid the student receives.