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Loans

student loan processes

information regarding federal student loans

A student loan is money you borrow for educational purposes and that you promise to repay to the lender. Borrowing money generally requires interest to be paid, which means you will repay more than you borrow. For this reason, MCC encourages students to only borrow loans as a last resort. 

Eligible students may borrow Federal Direct Loans from the U.S. Department of Education. 
 

Federal DIRECT Student Loan

To apply for a Federal Direct Loan, you must accept the amount you wish to borrow in Financial Aid Self-Service. 
Then, you must complete:
Online Student Loan Entrance Counseling
Online Direct Loan Master Promissory Note (MPN)

 

Loan certifications

According to HEA Sec. 479(A)(c), 34 CFR 685.301(a)(8), DCL GEN-11-07; MCC has the authority to refuse to certify a loan(s) for an individual borrower, or may certify a loan for an amount less than the borrower’s maximum eligibility, on a case-by-case basis.

Loan certification criteria:

  • Student must be enrolled and attending at least six credit hours (half-time) per quarter. 
  • Student must maintain Satisfactory Academic Progress for Federal Student Aid eligibility. 
  • Students have a right to cancel their loan by notifying the Financial Aid office in writing no later than 14 days after funds are applied to their student account. 
  • The Financial Aid Office will maximize Subsidized Loan eligibility before Unsubsidized Loan eligibility.
  • The Financial Aid Office may reduce a loan amount if outside financial assistance reduces ument need in the student's budget. 
  • The Financial Aid Office may not exceed the annual federal limit for Direct Loans. Transfer students may be affected if they used loans at another institution.

Annual Loan limits

Grade Level One: 0 - 44.99 completed credit hours
$5,500 - dependent student (maximum Direct Subsidized is $3,500)
$9,500 - independent student (maximum Direct Subsidized is $3,500)

Grade Level Two: 45+ completed credit hours
$6,500 - dependent student (Maximum Direct Subsidized is $4,500)
$10,500 - independent student (Maximum Direct Subsidized is $4,500)

 

What is the Difference between the two types of Federal Direct Loans?

  • A Subsidized Federal Direct Loan is based on financial need. "Need" is determined by subtracting the Expected Family Contribution (determined by federal formula) and all other forms of aid from the Cost of Attendance (COA). The federal government pays the interest for you while you are enrolled in school at least half-time, during the six-month grace period after you stop attending school at least half-time and during periods of authorized deferment. The maximum amount a student may borrow in Subsidized Loans at Grade Level One is $3,500 and at Grade Level Two is $4,500.
  • An Unsubsidized Federal Direct Loan is not based on financial need and is available to you regardless of income. Because this loan is not subsidized by the government, you are responsible for all interest which accrues during in-school, grace and deferment periods. You may choose to make periodic interest payments to the lender or opt to have the accrued interest capitalized (added on to) the principal loan amount.

The interest rate is fixed at 5.50 percent for undergraduate subsidized and unsubsidized loans with the first disbursement of loans on or after July 1, 2023 and before July 1, 2024—meaning, loans received for 2023-24 Award Year.

Undergraduate subsidized and unsubsidized loans with the first disbursement of loans on or after July 1, 2022 and before July 1, 2023 have a fixed interest rate of 4.99 percent—meaning, loans received for 2022-23 Award Year.

All Federal Direct Loans are assessed a loan fee by the federal government. This fee helps reduce the cost of making these low-interest loans. The federal government will deduct the fee from the loan before the borrower receives any loan money; therefore, the loan funds received by the borrower may be less than the amount they will repay. For Subsidized and Unsubsidized loans originated on or after October 1, 2020 and before October 1, 2024 the loan origination fee is 1.057 percent.


If you withdraw after borrowing, you must:

‚ÄčComplete Loan Exit Counseling
Repayment Estimator/Loan Simulator

COHORT DEFAULT RATE

A cohort default rate is the percentage of a school's student borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), Oct. 1 to Sept. 30, and default or meet other specified conditions prior to the end of the next fiscal year. Please refer to the Cohort Default Rate Guide below for a more in-depth description of cohort default rates and how the rates are calculated.

Cohort Default Rate Guide
 

Federal plus loan

To apply for a PLUS Loan, you must complete the following steps:

Complete the MCC Federal Direct PLUS Loan Request form. Contact the Financial Aid Loan Associate for processing instructions.
Complete the Direct PLUS Loan Master Promissory Note (MPN)
Repayment Estimator/Loan Simulator

This loan program is designed to assist the parent(s) who wants to borrow money to help pay for the educational expenses for each child who is a dependent undergraduate student.

The student must be registered for a minimum of six credit hours for the entire loan period in order for a parent to be eligible for a PLUS loan. Students must first complete a FAFSA so that their eligibility for federal student aid can be determined prior to processing this application for the student and parent.

The interest rate is fixed at 8.05 percent for Direct Plus Loans for dependent students with the first disbursement of loans on or after July 1, 2023 and before July 1, 2024—meaning, loans received for 2023-24 Award Year. Direct Plus loans originated on or after October 1, 2020 and before October 1, 2024 the loan origination fee is 4.228 percent.

Alternative/private loan

MCC does not certify prvate student loans.