• Fall/Winter Direct Loan Policy and Request Form 
• Spring/Summer Direct Loan Policy and Request Form

The loan requires repayment after the student leaves school or enrolls less than six credit hours.

The student is required to sign a promissory note and complete entrance counseling (first-time borrowers only).  In addition, when the student drops below half-time (6 credit hours or more) or leaves school, exit counseling is required.  Macomb will notify the student via email when he/she drops below half-time enrollment.  This notification includes a link to the Federal Direct Loan website for exit counseling. 

A subsidized loan means the student is not charged interest on the loan during the following periods: 

• The student’s enrollment in school is at least half-time (6 credit hours or more)
• A six-month grace period immediately following the student’s withdrawal or graduation from school

During the periods indicated above, the student is eligible to file a deferment, which authorizes the student’s payments to be postponed.  The federal government subsidizes the interest during the deferment period.

An unsubsidized Federal Direct Stafford Loan is not based on financial need.  The student is charged interest from the time the loan is disbursed until it is paid in full.

If the student allows the interest to accumulate, it will be capitalized.  This means interest will be added to the principal amount of the loan and additional interest will be based on the higher amount.  This will increase the total repayment amount of the loan.  The student who chooses to pay the interest as it accumulates will repay less on the loan.

The interest rate for subsidized loans is fixed at 4.5%; unsubsidized loans have a fixed rate of 6.8%.  Student borrowers are also charged a net fee of .5% on the loan.  These fees are deducted from each loan disbursement.  This fee is paid to the federal government to help offset the cost of the loan.  If the student does not make payments when required, he/she will be charged collection costs and late fees.

Loan Limits*

The following loan limits apply to the Federal Direct Stafford Loan:

• If you have less than 32 credit hours (including transfer credits from another college) you cannot exceed $7,000 in total loans and are limited to $3,500 per academic year ($1,750 per semester)
• If you exceed 32 credit hours or more (including transfer credits from another college) you cannot exceed $14,000 in total loans and are limited to $4,500 per academic year ($2,250 per semester)  

*Because Macomb Community College is concerned about student loan defaults and increased debt levels of student borrowers, the College has adopted lower limits and stricter loan eligibility requirements.  Students should review the loan policy for these requirements.  Students denied a Stafford loan based on these guidelines can file a letter of appeal to the Director of Financial Aid.

Private Loans

There are some instances when a student may not qualify for a Federal Direct Stafford Loan.  In these circumstances, there are private education loans available to students from private banks and credit unions.  The Financial Aid Office certifies the amount a student can borrow, based on the cost of attendance. 

Students are cautioned to be suspicious of unsolicited loan offers. Student loan debt can accumulate quickly and result in a lifetime burden of high payments and credit denials for automobile purchases, credit cards, and home mortgages.  To avoid these problems, read and understand the terms and conditions of all loans. 

Students are encouraged to borrow from the Federal Direct Stafford Loan, which has more favorable interest rates and repayment options.

The student may request the form required under section 128(e)(3) of the TILA - Truth in Lending Act, and information to complete the form, to the extent Macomb Community College has this information.

Students can contact the Financial Aid Office for names of participating lenders.