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 and unsubsidized Direct Stafford Loans (also known as Direct Subsidized Loans and Direct Unsubsidized Loans), Direct PLUS Loans, and Direct Consolidation Loans. You repay these loans directly to us.
This loan is based on financial need and you will not owe any interest on the before repayment. The federal government “subsidizes” (or pays) the interest while you’re in school at least half-time, for the six months after you leave school (your grace period) and during a deferment (a postponement of loan payments). Award amounts vary based on grade level in school, dependency status and other financial assistance received.
This loan is not based on financial need and interest is charged on the loan from the time it is disbursed until it is repaid in full. Students have the option of paying the interest during deferment periods and during the grace period, or they may capitalize the interest. Capitalizing interest means that it will be added to the principal amount of the loan and it will increase the amount to be repaid. Award amounts vary based on grade level in school and dependency status.
| Grade Level | Annual Stafford Loan Limit for Combined Subsidized & Unsubsidized | Aggregate Stafford Loan Limit |
| Freshman (23 credits or less) | $5,500 (Maximum $3,500 Subsidized) | $31,000 (Maximum $25,000 Subsidized) |
| Sophomore (24 credits or more) | $6,500 (Maximum $4,500 Subsidized) | $31,000 (Maximum $25,000 Subsidized) |
Independent Students
| Grade Level | Annual Stafford Loan Limit for Combined Subsidized & Unsubsidized | Aggregate Stafford Loan Limit |
| Freshman (23 credits or less) | $9,500 (Maximum $3,500 Subsidized) | $57,500 (Maximum $25,000 Subsidized) |
| Sophomore (24 credits or more) | $10,500 (Maximum $4,500 Subsidized) | $57,500 (Maximum $25,000 Subsidized) |
This is a loan for parents of dependent students. The maximum loan amount is the difference between the student’s cost of attendance and other aid the student receives. PLUS loans are the financial responsibility of the parent, not the student. Interest begins to accrue on the day of the first disbursement and repayment begins within 60 days after the last disbursement on the loan.
To minimize student debt for MGCCC enrollment and to preserve eligibility for transfer to other colleges, loans will be certified for students up to $25,000. Students with a total loan debt less than $25,000 will be certified for student loans provided all other criteria are met. Students whose current loan debt exceeds the $25,000 limit will not be certified unless approved by the Director of Financial Aid through “Professional Judgment.”
U.S. Department of Education regulations require all first-time borrowers of Federal Stafford and Federal Unsubsidized Stafford Loans to complete an entrance interview. The FAO cannot process a student’s loan until counseling has been completed. Access the entrance counseling online at mappingyourfuture.org/oslc/.
U.S. Department of Education regulations require Federal Stafford and Federal Unsubsidized Stafford Loan recipients to complete an exit interview when graduating from or when leaving MGCCC.
Access the exit counseling online at mappingyourfuture.org/oslc/.
The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for student aid. It receives data from schools, agencies that guaranty loans, the Direct Loan program, the Pell Grant program, and other U.S. Department of Education programs. NSLDS provides a centralized, integrated view of Title IV loans and Pell grants that are traced through their entire cycle: from aid approval through closure.
