Federal Direct Stafford Student Loans
Federal Direct Stafford Student loans are borrowed money that must be repaid.
The Federal Direct 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 Direct Stafford Loan as determined by the College.
- Subsidized Loans Based on Financial Need: 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.
Federal Direct 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)
To process your Federal Direct 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 @ Direct Loan Servicing.
- The College will orginiate your loan once you are registered for at least 6 credits and have completed entrance counseling.
- Direct Loan Servicing will mail you the Master Promissory Note (MPN) and make it available online for an electronic signature.
- 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. |
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 Federal Direct 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.
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 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 Direct Loan Servicing.
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.
