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William D. Ford Federal Direct Loan Program

Loans are the government's major form of self-help aid. These loans are available through the William D. Ford Federal Direct Loan Program also known as Direct Lending (DL). These loans can be either subsidized or unsubsidized.

A Subsidized Direct Lending Loan is awarded on the basis of financial need. No interest payments are required before repayment begins or during an authorized period of deferment. The federal government "subsidizes" the loan during these periods by paying the interest for the student.

An Unsubsidized Direct Lending Loan is not awarded on the basis of need. The student will be charged interest from the time the loan is disbursed until it is paid in full. If interest is allowed to accumulate, it will be capitalized--that is, the interest will be added to the principal amount of the student's loan and additional interest will be based upon the higher amount. This will increase the amount that has to be repaid. If the student chooses to pay the interest as it accumulates, loan repayments will cost less in the long run.

To qualify for a Direct Lending Loan: Regular students enrolled in an eligible program of study at least half time may receive a Direct Lending Loan. Students must also meet other general eligibility requirements. Amounts You Can Borrow: Undergraduate students can borrow up to

         $3,500 for a first-year student enrolled in a program of study that is at least a full academic year.

         $4,500 for students who have completed their first year of study and for whom the remainder of their academic program is at least a full academic year.

For periods of study that are less than an academic year, the amounts that can be borrowed will be less than those listed. Students should talk to a financial aid counselor to find out how much can be borrowed.

Loan Maximums
As part of our default management plan, MTC's maximum loan is $23,000 for dependent students and $31,500 for independent students (which includes loans received while in attendance at another college).  Dependent students are notified once their loans reach a total indebtedness of $21,500 or higher.   Independent students are notified once their loans reach a total indebtedness of $30,000 or higher.

All dependent students with loan indebtedness of $23,000 or higher requesting additional loan funds for educational purposes are required to submit a Loan Appeal.  Independent students are required to submit a loan appeal when their loan balance exceeds $31,500.  This form can be picked up from the Student Financial Services Office on either the Airport or Beltline campuses, or click the link below to print and/or complete the Loan Appeal form online.

         Online Entrance Counseling

         Online Exit Counseling

         Loan Appeal Form 

         Consumer Credit

         SFA Ombudsman
(The Ombudsman works with student loan borrowers to resolve loan disputes and problems.)