Federal Direct Stafford Loans
Direct Stafford Loans are low-interest loans for students to help pay for the cost of a student's education after high school. You must be enrolled as at least a half-time (6 credits) student to be eligible for a Stafford Loan. The lender is the U.S. Department of Education rather than a bank or other financial institution. The interest rate for the Federal Direct Stafford Loans is fixed at 5.50% for the 2023-2024 academic year for both subsidized and unsubsidized Stafford Loans.
Federal Direct Stafford subsidized and unsubsidized Loans also have a Default Insurance
Fee of 1.057%. The Default Insurance Fee is deducted from the loan before the funds
are disbursed to the institution.
There are two types of Stafford Loans: subsidized and unsubsidized. You must have
financial need to receive a subsidized Stafford Loan. The U.S. Department of Education
will pay (subsidize) the interest that accrues on subsidized Stafford Loans during
certain periods. Financial need is not a requirement to obtain an unsubsidized Stafford
Loan. You are responsible for paying the interest that accrues on unsubsidized Stafford
Loans. Students must complete the Free Application for Federal Student Aid (FAFSA) in order to be awarded Stafford Loans.
For additional information about Federal Direct Loans,
FEDERAL LOAN ELIGIBILTY
Annual Base Amounts and Limits for William D. Ford Direct Student Loans
|
Dependent |
Subsidized (max based on eligibility) |
Total Annual Limit (subsidized & unsubsidized combined) |
|
|
First Year |
$3500 |
$5500 |
|
|
Second Year |
$4500 |
$6500 |
|
|
Independent |
|
|
|
|
First Year |
$3500 |
$9500 |
|
|
Second Year |
$4500 |
$10,500 |
|
Please note that the college certifies the loan amounts listed below.
Student loan amounts are based on a student's budget (also known as the "Cost of Attendance") less other aid awarded, up to the annual base amount or limit.
Federal Loans Parent Plus
Parents may borrow a Federal PLUS loan to assist with educational expenses. The interest rate is a fixed 8.05%. Federal Direct Parent PLUS Loans also have a Default Insurance Fee of 4.228% for loans disbursed after October 1, 2022. The Default Insurance Fee is deducted from the requested loan amount before the funds are disbursed to the institution. For additional information visit Student Aid on the Web.
Title IV HEA Federal student and/or parent loans are submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
Entrance and Exit Interviews
All students receiving loan funds are required to participate in both entrance and exit counseling. Entrance counseling takes place prior to the first disbursement of the loan and exit counseling is conducted prior to or at the time the student borrower ceases enrollment. Student loan counseling discusses information regarding the responsibilities of indebtedness, repayment options and consequences should you fail to repay the loan. Student loan counseling is an online process with the U.S. Department of Education at studentloans.gov. Exit counseling packets are mailed to all students with instructions on the exit counseling process.
Private Loans
A number of private outside agencies offer students alternative sources for financing their education. Unlike federal loans, the terms of private loans are set by the individual lenders. The interest rate and fees are determined by your credit history, your debt-to-income ratio and that of your co-signer. Gogebic Community College does not have any preferred lender relationships. No lender may be authorized to use the name, emblem, mascot, logo or other institutional identifier of Gogebic Community College for any marketing of private education loans.
If you have any questions regarding these loans, please contact the lender for more information. Your private education lender will require you to complete a Private Education Loan Application Self Certification. You should use the version the lender provides as it may contain pre-populated information, but you may use this version if your lender does not provide you with one.
