How do I apply?Loans: Attention! New 2008 update:
Required Entrance Counseling For Student Loan Borrowers
Agenda:
___General Loan Information
___Debt Management
The loan session will last approximately 60 to 75 minutes and the session is closed five minutes after it begins. Please attend one loan session from the following choices.
Campus |
Date |
Time |
Location |
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Germantown |
Wednesday, October 15, 2008 |
Humanities & Social Sciences |
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Germantown |
Thursday, October 16, 2008 |
2:00 pm to 3:00 pm |
Science & Applied Studies |
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Rockville |
Wednesday, October 15, 2008 |
6:00 pm to 7:00 pm |
Technical Center |
Rockville |
Thursday, October 16, 2008 |
12:00 pm to 1:00 pm |
Computer Science |
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Takoma Park/Silver Spring |
Wednesday, October 15, 2008 |
6:00 pm to 7:00 pm |
Student Services Center |
Takoma Park/Silver Spring |
Thursday, October 16, 2008 |
1:00 pm to 2:00 pm |
Student Services Center |
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Director's Newsletter
Current conditions in the U.S. credit market and the College Cost Reduction Act (CCRA) passed by Congress in September 2007 had a direct impact on most FFELP lenders. Many lenders revised their borrower benefits, and some withdrew from the loan program.
Are you interested in borrowing a Stafford Loan for the 2008 - 2009 academic year?
Please note these important updates on loan programs.The 2008 - 2009 Stafford Processing Form and the required Student Loan History Form are available for download and printing from our college web site beginning July 1, 2008. The Stafford Processing Form and the Student Loan History Form may be submitted to the financial aid office beginning on Monday, July 7, 2008.
2008 - 2009
Stafford Loans and PLUS Loans
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Federal Stafford Loans |
Federal PLUS Loans |
Documents required:
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Documents
required:
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| Helpful information: You must use MC forms. Do not use application materials from bank web sites.You must apply directly from the school. | |
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The school cannot process your Stafford loan if your file is incomplete. The school is neither the guarantor nor the lender of this loan. |
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You will be able to sign your loan application (master promissory note) on the Web once the school notifies you. |
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If you move, you must notify your lender of the address change. |
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Loan proceeds will not be released to the school until 30 days past the first day of classes of each semester and may be later based on when you apply and/or when your file became complete. You must maintain six (6) credit hours to have a loan processed. |
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The PLUS Loan Processing Form will be available for download and printing from our college web site beginning on July 1, 2008 for parent borrowers. The PLUS Loan Form will be accepted in the financial aid office beginning on Monday, July 7, 2008.
If you borrowed in the past with any lender, we suggest that you contact them to see if they are still lending to MC students. You may be required to choose a new lender and sign a new Master Promissory Loan Note.
The following lenders appeared on our lenders to consider list last year and are no longer participating in the FFEL program.
- M & T Bank
- Sandy Spring Bank
- Independence Federal Savings Bank
All new Stafford Loan borrowers at Montgomery College (MC) must be registered for six or more bill hours and must complete an entrance interview in order to submit a loan application to the financial aid office.
A new borrower at MC includes students who have never had a Stafford Loan and students who may have borrowed at another college prior to attending MC.
REMEMBER YOU WILL BE REQUIRED TO SIGN YOUR MASTER PROMMISSORY NOTE IF THIS IS YOUR FIRST LOAN AT MC.
Loans have repayment requirements. We offer a sample of some amounts you may be asked to repay depending on the outstanding loan total borrowed. Be a wise consumer and borrow reasonably so your repayment does not take a major portion of your resources. Sample chart.(pdf document)
Annual Borrowing Limits For Dependent Students
Effective 07/01/08
*The Subsidized Stafford Loan for
2008 - 2009 is fixed at a 6% interest rate.
**The Unsubsidized Stafford Loan for
2008 - 2009 is fixed at a 6.8% interest rate.
Grade Level |
*Subsidized (Sub) Maximum |
**Unsubsidized (Unsub) Maximum |
Combined Sub & Unsub Maximum |
|---|---|---|---|
Freshman |
$3,500 |
$ 2,000 |
$5,500 |
Sophomore |
$4,500 |
$2,000 |
$6,500 |
Effective 07/01/08
Grade Level |
Subsidized Maximum |
Unsubsidized Maximum |
Combined Sub. & Unsubsidized Maximum |
|---|---|---|---|
Freshman |
$3,500 |
$6,000 |
$9,500 |
Sophomore |
$4,500 |
$6,000 |
$10,500 |
Effective 07/01/08
Student Type |
Subsidized
Maximum |
Combined Sub. &
Unsubsidized Maximum |
|---|---|---|
Dependent Undergraduates |
$23,000 |
$31,000 |
Independent Undergraduates |
$23,000 |
$57,000 |
WHAT TO DO NOW
1. If you cannot attend an in-person session when announced, go to the ONLINE counseling session at Stafford Entrance Counseling Online. Remember, you will be contacted to attend an in person session later in the semester. Funds will not disburse until you have completed the group session, if required.
See your financial aid office representative if you have questions. Complete an online entrance interview and print the page which says you completed the Entrance Counseling.Bring the page to the financial aid office to receive a Stafford Loan Application folder. The folder contains an MC Stafford Loan Form, information (about borrower limits and definitions of subsidized and unsubsidized loans) and a Student Loan History Form.
2. Return the History Form and the Processing Form to the financial aid office in order to process your loan request for the semester or the current academic year.
3. You will be contacted to attend an in-person loan session before the loan can be disbursed to your account.
4. After a loan is processed by the school you need to sign a MASTER PROMMISSORY LOAN NOTE. It is available online or by paper. The online method is faster.
COMPARE RATES AND LOAN SERVICE OPTIONS. You may choose a lender of your choice. We have some lenders who have electronic services with MC.
Lenders you may want to consider using for your Stafford Loan
If you have prior educational loans you may review your records at the National Student Loan Data System for student borrowers.
Stafford Loan Exit Counseling Interview
(You may attend the scheduled college session and we will complete a loan exit session with you.)
Please note the Sallie Mae web site has a new login screen.
Review your entries on the required forms for accuracy and provide any additional items requested. Student errors are the most frequent causes of additional processing delays for student financial aid awards.
These sessions are for all of the following loan borrowers:
- Students who are graduating or are transferring to another college or
- Students who will be enrolled less than half-time or
- Students who are not planning to register for the semester at MC.
We have received questions about loan consolidation. One lender (ED Funds) has information that may be useful to students with the question "Is consolidation right for me?"
Another source of information on consolidation is Finaid.org (consolidation page)
Master Promissory Note ---E-sign OnlineMaster Prom Note e-sign
The following group of students will need to sign a MPN (Master Promissory Note) for 2008 - 2009:
- All new loan borrowers at Montgomery College
- Borrowers whose lender no longer participates in the FFEL program.
- Borrowers who are required to choose a new lender because the lender no longer participates with Montgomery College.
- All Bank of America borrowers (new and old) will need to sign a new MPN at the ACS website. Information will be posted soon.
Bank of America Borrowers Only!
Master Promissory Note directions
Attention: All Bank of America Student Loan Borrowers must sign a new Master Promissory Note (MPN). Carefully follow the instructions below. After your loan has been processed by Montgomery College, you can sign your Master Promissory Note (MPN) by clicking on this link to the
Bank of America MPN site
- Select "Apply for a Federal Stafford Loan Master Promissory Note"
Then click the continue tab.
- Select the tab "continue" to leave the Bank of America site.
You will be directed to a site called ACS.
- Enter the borrower information: SSN, Name, and Date of Birth.
- Select the continue tab.
- Read the instructions carefully.
- Next select the continue tab.
You will be directed to a section titled Welcome to Stafford Apply On-Line. You will be asked if you want to continue.
- Select the Yes tab.
- Enter the information requested and have your FAFSA pin number readily available.
- Once you have completed all sections and signed the MPN with your pin number, print a copy for your records.
Students who have a Stafford Loan already processed from MC for the current semester may sign the Master Promissory Loan Note online. Please note that you must have completed the loan process at Montgomery College to use the online e-signature service. If you have questions, contact the MC loan team by phone at 240-567-5100.
Some Points to Remember About Stafford Loans
- Loan Applications must be made each year.
- The process of applying for financial aid, including loans, can
take up to eight weeks during the peak processing times.
- We offer you some hints to help you complete the process as quickly
as possible.
- Quick Reference for Stafford Loan borrowers only.
- .File FAFSA and all MC application forms required.
- Attend the Loan Entrance Counseling Session.
- Complete the Stafford Loan Processing Form.
- Complete and sign the Promissory Loan Note and return it to the
Guarantee Agency.
- Maintain 6 college credits throughout the semester.
How is the Stafford Loan processed?
In general, after your financial aid file is awarded by Montgomery College, you request a separate Stafford Loan Processing Form from our office. You may request a Stafford Loan Processing Form after your Stafford Loan Entrance Counseling Session is completed. The loan will be processed by our loan team ( after your loan Entrance Interview is completed).
We look at the number of credits for which you have registered during the academic semester you request the loan. We look at your academic progress and we look at your number of credit hours attempted overall at Montgomery College.
You must have six bill hours in an eligible degree program and you must be in good academic standing in order to receive a Stafford Loan. Your Stafford Loan Application Form will be returned to you if you fail to meet the requirements for the loan.
Sign your Promissory Note, and return it to Sallie Mae in the pre-addressed envelope provided. We also offer the e-sign opportunity as noted above. Your signature on your Promissory Loan Note acknowledges that you understand the terms of your loan and your repayment obligations. Failure to sign the Promissory Note stops the loan process, and you cannot receive a loan.
Keep a copy of all financial aid documents.
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Federal Stafford Loans (Subsidized & Unsubsidized)
The Subsidized Federal Stafford loan is available to those students with financial need that can not be covered solely by grants and scholarships.
Students may apply for loans only after they have been reviewed for grant eligibility.
The interest rate for subsidized Stafford loans is fixed at 6.0% effective July 1, 2008.The Unsubsidized Stafford Loan for
2008 - 2009 is fixed at a 6.8% interest rate. Loans prior to this date have a variable interest rate.
The accumulated interest while you are in school or while your loan is in postponement is paid by the Federal Government, if you have a subsidized loan.
You will only pay interest on the subsidized loan when you go into repayment which is six (6) months after you graduate or drop below half time enrollment. If you have an unsubsidized loan, you must pay the accumulated interest on the loan ( capitalized interest) . You can pay the interest while your loan is in postponement, or wait until you go into repayment on the amount you borrowed ( capitalized interest).
To receive a Stafford loan, you must fill out the loan processing form and you may choose a lender that is listed on the form. If you choose a lender that is not listed on the form, you must supply the name, address and lender code on the processing form. For more detailed information, please contact a financial aid representative.
Federal Parent Loan for
Undergraduate Student (PLUS Loans)
To apply for a PLUS loan, a Free Application for Federal Student Aid (FAFSA) must be on file. This loan is available to parents of dependent students to borrow on behalf of their child. Contact the lenders who work with Montgomery College for a comparison of their services. A Plus Loan Processing form is required by Montgomery College. Forms are usually available from any MC campus financial aid office from July preceding the academic year of enrollment. The interest rate for PLUS loans is fixed at 8.5% effective July 1, 2006. Loans prior to this date are a variable interest rate.
This loan is based on credit-worthiness and the parent starts repayment 60 days after the second disbursement of the loan. The parent may borrow up to the student's cost of education, excluding awarded financial aid.
Federal Perkins Loan (formerly NDSL) . A Federal Perkins Loan is a low-interest (5%) loan for students with exceptional financial need. The loans are made by Montgomery College with funds that are distributed by the Federal government. You must demonstrate financial need and be registered for at least half time enrollment to receive this loan.
You will not be charged a fee to borrow the loan and you do not have to pay it back until nine months after you graduate or drop below half time enrollment.
Repayment
Loan funds must be repaid, generally after attending college. Interest rates for educational loans may be lower than commercial interest rates. There are special loans for parents and independent students who are not eligible for grants.
When you accept the money from the loan, you are agreeing to repay the loan. If you fail to repay the loan under the terms of the promissory note, you will have defaulted on your loan. Defaulting on your student loan could damage your credit rating for a very long time.
The SFA Ombudsman is working with student loan borrowers to informally resolve loan disputes and problems with federal loans. Please call the Ombudsman (877) 557-2575 or visit the web site.
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The accumulated interest while you are in school or while your loan is in postponement is paid by the Federal Government, if you have a subsidized loan.
You will only pay interest on the subsidized loan when you go into repayment which is six (6) months after you graduate or drop below half time enrollment. If you have an unsubsidized loan, you must pay the accumulated interest on the loan ( capitalized interest) . You can pay the interest while your loan is in postponement, or wait until you go into repayment on the amount you borrowed ( capitalized interest).
Federal Parent Loan for
Undergraduate Student (PLUS Loans)