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Student Loan Information

General Information

The Financial Aid Office will certify your loan electronically when your financial aid file is complete. You may complete your promissory note at any time.

New loan applications will be certified after July 15 each year. Student loan borrowers must be enrolled at least part-time (six semester hours) to receive student loans.

All loans must be made in two disbursements. Students attending both fall and spring semesters will have loan disbursements made in two equal parts to correspond with the beginning of fall term and the beginning of spring term. Students attending one term will have the loan equally divided, with one half
of the loan paid at the beginning of the term and the remaining half paid in the middle of the term. All summer students will receive their loan in two equal installments. All new borrowers at Mountwest will receive student loan disbursement after mid-term grades have been evaluated. Generally, in order to receive student loans, you must complete the FAFSA, be accepted for admission into a degree or one year certificate program, be eligible to receive federal financial aid, be enrolled and attending at least half time, complete loan entrance counseling and promissory notes as required, and be making academic progress as defined by Mountwest.

All new loan borrowers must complete required entrance counseling.

New loan applications should be completed no later than August 10 for the fall semester, or December 20 for the spring semester in order to ensure that loan funds are available. No new loan requests will be processed after November 10 for Fall semester, April 10 for Spring Semester or June 10 for Summer Semester.

You will be required to use your U.S. Department of Education issued FSA User ID to complete an electronic MPN.

Federal Direct Student Loans 2019-2020 Interest Rates

Subsidized Student Loan – fixed rate 4.53%
Unsubsidized Student Loan — fixed rate 4.53%*
Parent PLUS Loan — fixed rate 7.08%* (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 are responsible for repaying the entire amount you borrowed and not just the amount you received in your refund.

Direct Subsidized Loans and Direct Unsubsidized Loans

First Disbursement Date Loan Fee
On or after 10/1/18 and before 10/1/19 1.062%
On or after 10/1/19 and before 10/1/20 1.059%

Direct PLUS Loans

First Disbursement Date Loan Fee
On or after 10/1/18 and before 10/1/19 4.248%
On or after 10/1/19 and before 10/1/20 4.236%

Current official 3 year default rates on student loans:

  • 2015 Cohort Default Rate 21.9%
  • 2014 Cohort Default Rate 24.5%
  • 2013 Cohort Default Rate 22.4%
  • 2012 Cohort Default Rate 24.2%

 

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 Title IV aid eligible degree or certificate.

Students are sent a loan disclosure statement within thirty days of loan payment to your student account, 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.

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. There is a time limit on subsidized loan usage. For more information please visit the subsidized loan usage page.

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.

Annual 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 independent undergraduate student. Dependent undergraduates may borrow up to $31,000 ($23,000 may be subsidized).
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Effective February 28, 2016, please use the following information to contact the FSA Student Loan Ombudsman Group.

Online assistance: https://studentaid.ed.gov/sa/repay-loans/disputes/prepare

Telephone: 877-557-2575 * Fax: 606-396-4821

Mail: FSA Ombudsman Group, PO Box 1843, Monticello, KY 42633
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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.

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