Student loans are a form of financial aid that students can apply for to help with educational costs. Student loans are available for those not qualifying for grants or scholarships. Students must arrange for repayment of these loans.
Applying for Student Loans
Before taking out a loan, you need complete entrance counseling. It is a quick online informational section with comprehension questions to confirm your understanding about student loans. Exit counseling is required when you graduate or drop below half-time enrollment. You can get more information at National Student Loan Data System.
In order to request a student loan you will need to go to my.montcalm.edu and follow these steps:
- Log In
- Choose the Finances Tab
- Choose the Direct Loan Process under Financial Aid Links
- Follow the instructions for whether you are a New Borrower or a Returning Borrower
Types of Student Loans
A Federal Direct Stafford Loan is available to you through Montcalm Community College. It may be either subsidized or unsubsidized, based on need. With a Federal Direct Stafford Loan, you are not required to start repayment until you drop below half-time enrollment in college or you exit college. You, the borrower, are responsible for repayment of student loans.
direct subsidized loans
Direct Subsidized Loans are for students with financial need. Your school will review the results of your Free Application for Federal Student Aid (FAFSA) along with your loan request form and determine the amount you can borrow. You are not charged interest while you’re in school at least half-time and during grace periods and deferment periods. Interest RatesUndergraduate students – The interest rate on subsidized and unsubsidized loans first disbursed to undergraduate students between July 1, 2022 and June 30, 2023 will be fixed at 4.99 percent.
direct unsubsidized loans
You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, your school will determine the amount you can borrow once a request is completed. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
Student Loan Review
The National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans.
Studentaid.gov offers debt management resources and also allows you to view your financial aid history. It's an overall site to help you with your student loan and financial aid experience.