North Central Michigan College is a Federal Direct Stafford Loan participant. The lender is the U.S. Department of Education rather than a bank or other financial institution. The interest rate and loan fees are set by the U.S. Department of Education. Additional information on the Federal Direct Student Loans can be found at StudentLoans.gov.
It is important to understand your rights and responsibilities in the loan process.
By doing so, you will greatly diminish delays or problems you may otherwise encounter.
Your rights and responsibilities include the following:
You are required to begin repaying your Federal Direct Stafford Loan six months after you graduate, leave school or drop below half-time attendance. Borrowers generally have 10 years to repay these loans. Under a level repayment plan your monthly payment would be at least $50. For example, the monthly payment on a $7,500 Stafford loan with an interest rate of 6.8 percent would be $86.31 under a 10-year repayment plan.
Please Note: If you fail to repay your loan, you will be considered in default. If this occurs, your credit rating will be damaged and you may not be able to borrow in the future to pay for a car or home or even to continue your education. Your wages may be garnished and your federal and state income taxes may be withheld; your loan may be sent to a collection agency and you will be liable for collection fees.
There are two types of Federal Direct Stafford Loans: subsidized and unsubsidized.
Subsidized: For students that meet certain financial need criteria, the federal government will pay the interest on the loan while the student attends school at least half-time or during times when the student qualifies for an authorized deferment.
Unsubsidized: Students that do not meet the financial need criteria for a subsidized loan may qualify for an unsubsidized student loan. The student is responsible to pay the interest on the loan while they are in school or they can choose to have the interest added to their principal balance.
Loan amounts and maximums are set by the government. All students must meet eligibility requirements. Loan limit information for students attending a two year community college is provided below.
Loan Limits as of 7/1/08
|Dependent Students||Base Amount||Additional Unsubsidized Loan Amount|
|Dependent Students Whose Parents Cannot Borrow a PLUS Loan||Base Amount||Additional Unsubsidized Loan Amount|
|Independent Students||Base Amount||Additional Unsubsidized Loan Amount|
Lifetime Loan Limits
Dependent undergraduates -- $31,000
Independent undergraduates -- $57,500
All students who want to obtain a student loan are required to complete a North Central Student Loan Request Form.
Please print it, fill it out completely, and forward it to Financial Aid at the address or fax listed on the bottom of the form.
If you are a first time borrower with North Central Michigan College you will need to complete loan entrance counseling. A link to entrance counseling is below. Once you reach the link you will need to sign on using the same FSA ID and Password used to submit your FAFSA.
Complete a Master Promissory Note (MPN) with the U.S. Department of Education. Once again you will need to sign on using the same FSA ID and Password from when you submitted your FAFSA.
Federal Direct PLUS Loans are available to credit-worthy parents of dependent students. Parents are responsible for all interest that accrues on the loan from the date it is fully disbursed until the loan is paid in full. The interest rate and loan fees are set by the U.S. Department of Education. Repayment options for the Parent PLUS Loans are 1) payments begin 60 days after the loan is fully disbursed or 2) six months after the student ceases to be a half-time or more student, even if they do not graduate or complete their program of study.
All parents who apply for a PLUS loan are required to complete a North Central Michigan College Parent PLUS Loan Request Form.
Please print it, fill it out completely, and forward to Financial Aid at the address or fax listed at the bottom of the form.
Complete the Direct Plus Application Process by clicking the link below. Once again you will need to sign on using the same FSA ID and Password used to sign your student's FAFSA.