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Federal Direct Loans

Mesalands Community College participates in the William D. Ford Federal Direct Loan Program. Loans made through this program are referred to as Direct Loans. Eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Loans include Subsidized, Unsubsidized, and PLUS Loans.

You repay these loans directly to the loan servicer assigned by the US Department of Education.

Direct Subsidized/Unsubsidized Loan

  • The FAFSA application is used to determine a student’s eligibility for Federal Direct Loans. Complete a FAFSA.
  • Direct Loans (Subsidized and Unsubsidized) are given to students attending school at least half-time.
  • The U.S. Department of Education is the lender, and you receive the loan money through your school.
  • You may receive a Direct Subsidized Loan, a Direct Unsubsidized Loan, or both for the same academic year.
  • A student qualifies for a Direct Subsidized Loan based on financial need, as determined under federal regulations.
  • A student’s need is not a factor in determining eligibility for a Direct Unsubsidized Loan. Students may qualify for a Direct Unsubsidized Loan regardless of their financial need.

If you are interested in a Direct Student Loan, please contact the financial aid office.

Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan is an Unsubsidized Direct Loan for parents of dependent students. A Federal Direct Parent PLUS Loan enables parents with good credit histories to borrow money. The Federal Direct Parent PLUS Loan does not require demonstrated financial need. Repayment begins 60 days after the last loan disbursement. To apply, parents must complete a separate Federal Direct Parent PLUS Loan Application provided on the Department of Education’s website.

Apply for a Federal Direct Parent PLUS Loan

Subsidized Direct Loan Eligibility is Limited to 150% of an Academic Program

Effective for new Direct Loans for which the first disbursement is made on or after July 1, 2013: Subsidized Direct Loan eligibility is limited to a maximum of 150% of the student’s current academic program length.

  • Borrowers may receive Subsidized Direct Loans for no more than 150% of the length of the current academic program (ex: 3 years for a 2-year degree)
  • Once a borrower has received Subsidized Direct Loans for 150% of the length of their program, the borrower’s future Subsidized Loan eligibility will end.
  • A student who has received Subsidized Direct Loans for 150% of the length of their program and continues enrollment beyond that point will lose all subsidies on previously received Subsidized Direct Loans and would be required to pay all accumulated interest.

This policy is in addition to, and not in place of, the lifetime aggregate loan limits currently in place.

ANNUAL LOAN LIMITS PER GRADE LEVEL
CLASS LEVEL CREDIT HOURS

SUBSIDIZED

(Max Per Semester; Dependent & Independent Students)

UNSUBSIDIZED

(Max Per Semester; Dependent & Independent Students)

Freshman 0-29

Maximum

$3,500/annual ($1,750/semester)

Dependent – $2,000/annual

Independent – $6,000/annual

Sophomore 30 +

$4,500/annual

($2,250/semester)

Dependent – $2,000/annual

Independent – $6,000/annual

Loan refund checks will not be disbursed without a Master Promissory Note and Entrance Counseling on file with the Department of Education