Loans

Central Texas College participates in the William D. Ford Federal Direct Loan Program for Dependent and Independent Undergraduate Students and Federal Direct PLUS Loan Program for parents of Undergraduate Dependent Students.

William D. Ford Federal Direct Loan Program (Direct Loan Program)

The Federal Program that provides loans to eligible student and parent borrowers under Title IV of the Higher Education Act. The loan programs include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans. Funds are provided directly by the federal government to eligible borrowers through participating schools.

Please review the College Default Management plan at https://www.ctcd.edu/students/current-ctc-students/financial-aid/military-students/

Federal Loan Eligibility Requirements

Student must complete the FAFSA.
Student must meet academic progress as determined by the Financial Aid Office.
Student must be enrolled at least half-time (six semester hours per term).
Student must be a citizen or eligible non-citizen.
Student must not be in default on any federal loan or owe a refund back to any federal program.
Student must not have already exceeded aggregate loan limits.
Student must enroll in courses that fit their program of study.

Federal Loan Maximums (for loans first dispersed on or after July 1, 2008)

Classification

Freshman (0 to 30 credit hours)*

Sophomore (31 to 72 credit hours)**

Dependent Undergraduate

$5,500* – No more than $3,500 of this amount may be subsidized*

$6,500 – No more than $4,500 of this amount may be subsidized**

Independent Undergraduate

$9,500 – No more than $3,500 of this amount may be subsidized*

$10,500 – No more than $4,500 of this amount may be subsidized**

NOTE The amounts shown in the chart above are the maximum amounts that you may borrow as a full-time student (12 hours per semester) for the academic year. All annual loan limits are subject to proration and cannot exceed the Cost of Attendance.

Master Promissory Note MPN

The Master Promissory Note (MPN) for Direct Subsidized Loans and direct Unsubsidized Loans is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loans(s). You may receive more than one loan under an MPN over a period of up to 10 years to pay for your educational costs, as long as the school is authorized to use the MPN in this way and chooses to do so. Complete the MPN online at studentaid.gov.

Entrance Loan Counseling

All first-time Federal Direct loan borrowers at Central Texas College must complete entrance counseling before their loan will be accepted and processed. Borrowing a student loan is a serious financial obligation and the entrance counseling will provide you with important information you need to know to be able to make an informed decision about student loan borrowing. Complete your online entrance counseling on the Federal Direct Loan Servicing website at www.studentaid.gov. This session provides additional information regarding loan programs such as monthly repayments, deferments, grace period and cancellation.

Exit Loan Counseling

Federal regulations require all students who received a loan to complete a mandatory exit counseling prior to graduation, withdrawal from college or dropping below half-time attendance. Exit counseling is available by going directly to www.studentaid.gov You will need a list of two different references (relatives or friends) that will always be in contact with you. Include their name, address and phone number.

Repayment

The most important thing you can do during repayment is to stay in close contact with your lender. If you have trouble making your monthly payments and need help, contact your lender to learn more about the many options available to you. Loan servicing information is available at www.studentaid.gov or https://nslds.ed.gov/npas/index.htm.

Sample Loan Repayment Schedule

Loan	Direct Subsidized/Unsubsidized Loan	Direct Parent PLUS Loan
Amount Borrowed	$5,500	$7,000
Interest Rate	4.5%	7.1%
Standard Repayment Plan	120 months, $57 per month	120 months, $82 per month
Interest	$1,340	$2,796
Total Paid	$6,840	$9,796

Here is a brief summary of the repayment guidelines established in your promissory note:

Your payments are expected on a monthly basis.
Unless your lender agrees otherwise, the minimum monthly payment will be at least $50.
Your minimum annual payment will not be less than the amount of interest due and payable.
The maximum time allowed for repayment is usually 10 years.
You may prepay on your loan at any time without penalty. This will reduce the total amount of interest you pay on your loan.
Your lender will give you the opportunity to choose a standard, graduated, income-sensitive, or extended repayment schedule.

Student Loan Advocate

For Washington State residents seeking information and resources about student loan repayment or seeking to submit a complaint relating to your student loans or student loan servicer, please visit the www.wsac.wa.gov/loan-advocacy or contact the Student Loan Advocate at loanadvocate@wsac.wa.gov.