Student Loan Information

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Mountwest Community & Technical College's Financial Aid Office adheres to the NASFAA Ethical Principles and a Student Loan Code of Conduct.

Federal Direct Student Loans 2017-2018 Interest Rates

Subsidized Student Loan - fixed rate 4.45% 
Unsubsidized Student Loan — fixed rate 4.45%*
Parent PLUS Loan — fixed rate 7.00%* (parents may borrow up to the cost of attendance for a dependent student).

*All loans disbursed prior to July 1, 2013 carry a variable interest rate which is capped at 8.25% for student loans and 10.5% for Parent loans.

Loan fees

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

Direct Subsidized Loans and Direct Unsubsidized Loans

First Disbursement Date                                    Loan Fee
On or after 10/1/16 and before 10/1/17                 1.069%
On or after 10/1/17 and before 10/1/18                 1.066%

Direct PLUS Loans

First Disbursement Date                                    Loan Fee
On or after 10/1/16 and before 10/1/17                 4.276%
On or after 10/1/17 and before 10/1/18                 4.264%

Current official 3 year default rates on student loans:
  • 2014 Cohort Default Rate 24.5%
  • 2013 Cohort Default Rate 22.4%
  • 2012 Cohort Default Rate 24.2%
  • 2011 Cohort Default Rate 22.4%

Eligibility for Federal Student Loans

In order to receive student loan funds, enrollment of at least half time (six semester hours) is required and you must be making satisfactory academic progress towards a degree or certificate. Students are sent a loan disclosure statement, with directions to access your MyMCTC account for net disbursement information and cancellation options. The Financial Aid Office will begin certifying loans after July 15, each year.

All first time loan borrowers are subject to a mandatory thirty day delay on the first loan disbursement.  In addition MCTC asks that all first time borrowers at MCTC delay their first loan disbursement until  after mid-term.

In addition, all first time loan borrowers at Mountwest are required to complete  ENTRANCE COUNSELING and sign a  MASTER PROMISSORY NOTE.

A Master Promissory Note is a binding document between the student and the lender in which the student agrees to the obligation of repaying the borrowed loan funds. A Master Promissory Note will be valid for ten years. Students are only required to sign one Master Promissory Note unless there is a change in lenders and/or schools.

Students should be aware of their rights and responsibilities as a loan borrower.  Mountwest CTC submits all student and parent loans to the National Student Loan Data System (NSLDS), as required by federal regulation, and the information will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.

Subsidized loans are need-based aid and interest does not accrue as long as the borrower in enrolled in six or more credit hours. Unsubsidized loans are not need-based and the interest will accrue on a quarterly basis. Quarterly interest statements are mailed directly from the Loan Servicer. Although payments are not required while enrolled at half time, borrowers are able submit payments toward interest charges at any time.

The deadline to accept and complete the requirements for student loan processing is November 10th for the fall term and April 10th for the spring term. Students who do not meet the deadline will be reviewed on a case by case basis.

Loan Limits

A) Freshman ..................$5,500.00* 
B) Sophomore.................$6,500.00* 
*For dependent undergraduate students, the loan limit includes both subsidized and unsubsidized loans.

For Independent students, the student has additional unsubsidized loan eligibility of: 
A) Freshman ..................$4,000.00
B) Sophomore.................$4,000.00

Note on Loan Limits:  Loan amounts combined with other financial aid resources (such as grants and scholarships) cannot exceed a student's Cost of Attendance Budget for the aid year.

When borrowing student loans, try to limit the amounts to direct costs, such as tuition, fees, and books. Remember that each dollar borrowed now, is a loan against future earnings.

Students may borrow an aggregate maximum of $23,000 in subsidized loans and an aggregate maximum of $34,500 in unsubsidized loans or a combined total of $57,500 as an undergraduate student.

Loan Repayment

Federal Direct loans provides a six month grace period after graduation or after enrollment decreases below halftime status before repayment  starts. Learn about the advantages of "Income-Based Repayment"  from IBRinfo and see the sample repayment estimator. All students who graduate, drop to less than half time enrollment, withdraw or cease attendance, must complete student loan  exit counseling.

For additional repayment information:

Get Ready for Repayment

Repayment Plans

Deferment and Forbearance Information

Avoiding Delinquency and Default

Department of Education Student Loan Servicers

Click here to find contact information for  student loan servicing agencies. Students may access the National Student Loan Data System (NSLDS) to retrieve the name of the agency servicing their student loans. In order to access the National Student Loan Data System you will need an FSA User ID.

Effective February 28, 2016, please use the following information to contact the FSA Student Loan Ombudsman Group.

Online assistance:
Telephone:  877-557-2575 * Fax:  606-396-4821
Mail:  FSA Ombudsman Group, PO Box 1843, Monticello, KY 42633