Financial Aid Federal Family Education Loans

The Federal Family Educational Loan Program (referred to as FFELP) provides low-interest educational loans made by private lending institutions or non-profit agencies to the student or to the student’s parent. These loans are insured by the Michigan Guaranty Agency and reinsured by the federal government.

How does a student apply for a student loan?

Fill out a Free Application for Federal Student Aid (FAFSA). When your financial aid is complete, you will receive an Award Letter from the MMCC Office of Financial Aid.
Complete the Entrance Loan counseling requirement, the Loan Acceptance Form and the Master Promissory Note.

Federal Policies

Students must be registered in a minimum of six credit hours.
Students must be enrolled in a certificate or degree program.
Students must meet all MMCC Financial Aid Satisfactory Academic (SAP) policies.

	Federal Subsidized Stafford Loan	Federal Unsubsidized Stafford-Dependent	Federal Unsubsidized Stafford-Independent	Federal PLUS
Eligible Borrowers	Dependent undergrad students, Independent undergrad students, Graduate or professional students, Based on Financial Need	Dependent undergrad students, Not based on Financial Need	Independent undergrad students, Graduate or professional studies, Not based on Financial Need	Parents of dependent undergrad students Must meet lender’s credit criteria Not based on Financial Need
Interest Rate Loans Disbursed prior to 07/01/2006	Variable rate capped at 8.25%	Same as Federal Subsidized Stafford	Same as Federal Subsidized Stafford	Variable rate capped at 9.0%
Interest Rate Loans Disbursed on/or after 07/01/2008	Fixed rate 6.0%	Fixed rate 6.8%	Fixed rate 6.8%	Fixed rate 8.5%
Annual Loan Limits 2007/2008	By grade level - $3,500 - $4,500	By grade level Base - $5,500 - $6,500 (Cannot exceed Stafford annual maximums, including subsidized) Parent Denied PLUS Additional $4,000	By grade level Base - $9,500 - $10,500 (Cannot exceed Stafford annual maximums, including subsidized)	Cost of education minus aid = eligible loan amount
Loan Payments and Maturities	Borrower has 5 to 10 years for repayment with a $600 minimum annual payment	Same a Federal Subsidized Stafford	Same a Federal Subsidized Stafford	Same a Federal Subsidized Stafford
Disbursement	Loan proceeds are sent to the school, co-payable to the student and school, generally in at least 2 disbursements	Same a Federal Subsidized Stafford	Same a Federal Subsidized Stafford	Loan proceeds are sent to the school, co-payable to the student and school, generally in at least 2 disbursements
Repayment	Repayment begins 6 months after student drops below ½ time study or graduates	Same as Subsidized Stafford but interest is due from date of disbursement and, if deferred, will be capitalized to the loan balance after the in-school and grace period end	Same as Subsidized Stafford but interest is due from date of disbursement and, if deferred, will be capitalized to the loan balance after the in-school and grace period end	First payment is due within 60 days after disbursement