Financial Aid
Federal Family Educational Loan Programs
Stafford Loan Program
Students may be eligible for either a subsidized and/or an unsubsidized Federal Stafford Loan. The school determines what type of loan the student is eligible for based on the information provided on the Free Application for Federal Student Aid (FAFSA) and enrollment level.
- Subsidized Loans: the Federal government pays the interest on these loans while the student is in a period of deferment.
- Unsubsidized Loans: the student pays the interest after the loan is disbursed until he or she pays the loan in full.
Stafford Loan Limits
Additional unsubsidized Stafford loan limits applicable to undergraduate students are increased for loans first disbursed on or after July 1, 2008. Subsidized limits (up to base amount) are unchanged. For students enrolled as regular students in eligible programs, annual Stafford loan limits are as follows.
| Dependent Students (Except Students Whose Parents Cannot Borrow a PLUS Loan) | Base Amount | Additional Unsubidized Loan Amount | |
| Prior to July 1, 2008 | Effective July 1, 2008 | ||
| Freshman | $3,500 | 0 | $2,000 |
| Sophomore | $4,500 | 0 | $2,000 |
| Independent Undergraduat Students and Dependent Students Whose Parents Cannot Borrow a PLUS Loan | Base Amount | Additional Unsubidized Loan Amount | |
| Prior to July 1, 2008 | Effective July 1, 2008 | ||
| Freshman | $3,500 | $4,000 | $6,000 |
| Sophomore | $4,500 | $4,000 | $6,000 |
Eligibility Examples
A dependent freshman whose parent has access to PLUS borrowing (whether or not the parent is actually willing to borrow) could previously have borrowed $3,500 in a subsidized loan. If the student did not have need for the full $3,500, the student could have borrowed a subsidized loan for the amount of demonstrated need and the difference between that amount and the $3,500 base limit in an unsubsidized loan. Under the new law, that student will be able to borrow a total of $5,500, no more than $3,500 of which may be subsidized.
A dependent freshman whose parents are unable to borrow PLUS could previously have borrowed a total of $7,500, no more than $3,500 of which could be subsidized. Under the new limits, that student can borrow a total of $9,500, no more than $3,500 of which can be subsidized (that is, the base limit of $3,500 plus the new additional unsubsidized limit of $6,000). The amount a student can actually borrow may not exceed cost of attendance minus other assistance (or, for subsidized loans, other assistance plus the EFC). The same limits apply to a freshman who is an independent student.
Aggregate Loan Limits (Effective July 1, 2008)
- Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized)
- Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)
- Graduate and Professional Students: currently $138,500 (no more than $65,500 of which can be subsidized)
Loan Entrance Counseling
Students applying for Federal Stafford Loans must complete Entrance Counseling. The Financial Aid Office will not certify your loan until Entrance Counseling is complete. 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. You can complete this interview online at American Education Services (AES) or contact the Financial Aid Office to complete Entrance Counseling.
Choice of Lender
As a Montgomery County Community College student you have the option to borrow from any lender/guarantor. The school has an electronic network established with AES as the guarantor and its lender partners which allows for the most efficient Federal Stafford Loan delivery system with Montgomery County Community College.
How to Apply for your Federal Stafford Loan
- Indicate interest in a student loan on your FAFSA.
- Your loan will be electronically certified and transmitted to AES for guarantee and approval provided you answered yes to a student loan on the FAFSA and you are registered at an eligible level of at least 6 credits per semester or more and meet all other eligibility requirements.
- If you did not indicate interest in a student loan on your FAFSA, you may submit a signed, dated statement to include your student name and ID # requesting your Stafford Loan.
- AES will mail you the Master Promissory Note (MPN) and will make it available for an electronic signature.
- Sign and return your completed Master Promissory Note (MPN) to AES. You may also sign your MPN electronically at the AES Website using your Department of Education PIN.
For those students interested in a lender or guarantor outside of the AES network, please follow the steps below.
- 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 application will be certified manually and submitted to the lender and/or guarantor of your choice via regular mail.
Once a Master Promissory Note is approved and guaranteed, the loan funds will be released to the college on the set disbursement dates for each semester. All federal loans are scheduled to disburse approximately 30 days after the beginning of each semester provided the loan is approved prior to the start of the semester. Summer loans will disburse after the drop/add period of the latest starting summer session. Loans will be processed for 50% of your annual eligibility per semester provided you meet eligibility requirements.
Parent Loan for Undergraduate Students (PLUS)
Parents who wish to borrow under the Parent Loan for Undergraduate Students (PLUS) Loan Program must complete the PLUS Loan request form found on our forms menu or submit a signed, dated statement to include the student’s name and student ID#, parent’s name, address, social security number, phone number and date of birth, statement that the parent is not in default on a federal student or parent loan, statement that the student is the parent’s dependent, and how much funding you are requesting 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 to include the student’s name and student ID# requesting the additional unsubsidized Stafford Loan and attach the Parent PLUS Loan denial letter from your Parent’s Lender.
PLUS Loan eligibility is determined by the following calculation.
- Cost of Attendance (COA) – Expected Financial Aid = PLUS Loan Eligibility
Deadlines
The student must submit their federal loan request 3 weeks prior to the end of the semester in which they are attending, except when requesting a fall/spring loan. If the student was attending 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. Please 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 your 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.
