Federal Stafford Student Loans
Federal Stafford Student loans are borrowed money that must be repaid.
The Federal Stafford Loan Program makes low interest loans available to dependent and independent students enrolled for at least six credits per semester. Students may be eligible for either a subsidized and/or unsubsidized Federal Stafford Loan as determined by the College.
- Subsidized Loans: The Federal government pays the interest on these loans while the student is in school or in a period of deferment.
- Unsubsidized Loans: The student pays the interest after the loan is disbursed until he or she repays the loan in full.
Stafford Loan Limits
| Dependent Students (except students whose parents cannot borrow a PLUS Loan) |
Base Amount |
Additional Unsubsidized Loan Amount |
| Effective July 1, 2008 |
| Freshman |
$3,500 |
$2,000 |
| Sophomore |
$4,500 |
$2,000 |
| Independent Undergraduate Students and Dependent Students whose parents cannot borrow a PLUS Loan |
Base Amount |
Additional Unsubsidized Loan Amount |
| Effective July 1, 2008 |
| Freshman |
$3,500 |
$6,000 |
| Sophomore |
$4,500 |
$6,000 |
Aggregate Loan Limits (Effective July 1, 2008)
- Undergraduate Dependent Students: $31,000 (of which $23,000 can be subsidized)
- Undergraduate Independent Students: $57,500 (of which $23,000 can be subsidized)
- Graduate and Professional Students: currently $138,500 (of which $65,500 can be subsidized)
MCCC has an electronic network established with AES guarantor and its lender partners. To process your Federal Stafford Loan, complete following steps.
- Indicate loan interest on your FAFSA, or submit signed statement, including date, name, and ID #, indicating loan interest.
- Complete Entrance Counseling* online @ American Education Services.
- Loan will be electronically certified and transmitted to AES for guarantee.
- AES will mail you the Master Promissory Note (MPN) and make it available online for an electronic signature.
- Choose your lender, sign and complete the Master Promissory Note (MPN), and return it to AES.
- Summer Loan Requests must be submitted in writing to the Financial Aid Office.
| * |
If we are able to determine that a student has had a prior Federal Stafford Loan, we will not require the completion of the Federal Stafford Loan Entrance Counseling. |
Students interested in a lender or guarantor outside of the AES network to process the loan should complete the following steps:
- Submit a valid FAFSA and do not select "interested in student loans."
- Submit a completed Federal Stafford Loan MPN with the name, address, and federal code of the lender and/or guarantor.
The Loan application will be certified manually and submitted to the lender and/or guarantor via postal mail.
Once the Master Promissory Note is approved and guaranteed, loan funds will be released per semester approximately 30 days after the semester starts, provided the loan is approved prior to the start of the semester. Summer loans will be disbursed after the drop/add period of the last summer session.
Parent Loan for Undergraduate Students (PLUS)
Parents who wish to borrow under the Parent Loan for Undergraduate Students Loan Program must complete the PLUS Loan request form found on the College's forms menu or submit a signed, dated statement to include the student’s name and student ID number, parent’s name, address, social security number, phone number, date of birth, a statement that the parent is not in default on a federal student or parent loan, a statement that the student is the parent’s dependent, and how much funding is requested for each semester, i.e., fall, spring, or summer.
Students whose parents are denied a PLUS Loan may be eligible to borrow additional unsubsidized Stafford Loan funds by submitting a signed, dated statement that includes the student's name; the student's ID number; a request for the additional unsubsidized Stafford Loan; and a copy of the parent's PLUS Loan denial letter from the lender.
PLUS Loan eligibility is determined by the following calculation.
Cost of Attendance (COA) – Expected Financial Aid = PLUS Loan Eligibility
Deadlines
Students must submit the federal loan request 3 weeks prior to the end of the current semester they are enrolled in except when requesting a fall/spring loan. For example, if the student attended at an eligible level during the fall semester, the fall/spring request can be submitted 3 weeks prior to the end of the spring semester. Allow approximately 3-5 weeks for electronic processing and 4-6 weeks for manual processing. Loans that are approved prior to the billing due date will hold course registration.
Loan Exit Counseling
If you have received Federal Stafford Loans at Montgomery County Community College and have graduated or will be transferring, you are required to complete Exit Counseling. You may complete this counseling online at American Education Services (AES).
Loan Ombudsman
Students who need to resolve problems or disputes on any of the following federal loans: Direct Loans, Federal Family Education Loans, Guaranteed Student Loans, SLS Loans, or Perkins Loans may contact the Federal Student Aid Ombudsman or call toll free 1-877-557-2575.
Private/Alternative Educational Loans
These loans are the responsibility of the consumer. You may contact our office to determine how we can work best with the lender that you select.
