Financial Aid - How to Apply for Loans  

STARTING FALL 2010 - STUDENT LOAN PROGRAM TO CHANGE! 

On March 30, 2010, President Obama signed the Health Care and Education Reconciliation Act (HCERA).  This new law eliminates effective July 1, 2010, the processing of Stafford Loans through the Federal Family Education Loan Program (FFELP).  Therefore, Muskegon Community College is transitioning to participate in the William D. Ford Federal Direct Loan Program starting the fall semester 2010.  This means that all students, regardless if you have received prior loans through FFELP, will now receive their student loans directly from the U.S. Department of Education.   

BEFORE APPLYING FOR A LOAN

In order for us to approve a loan request, you must...

• have completed the "2010-2011 Free Application for Federal Student Aid" (FAFSA).  
• have a completed financial aid file.
• be in good academic standing (see eligibility policies). 
• have a grade point average (GPA) of 2.0 or better if you have attempted classes at MCC before.

If not, the loan application will be denied and is considered no longer valid.  A new loan application will need to be submitted after you have met the above conditions.

HOW LOANS ARE DISBURSED

• Loans for returning students will be sent to MCC after the end of the 15 week (12 week for summer) course add/drop refund period (census date).  
• Loans for new students at MCC will be delayed at least 30 days after the semester begins.
• Loan funds are sent to MCC once a week after the census date.
• Loans will be sent in at least two disbursements. 

Please note - You must be enrolled for at least 6 credits by the semester's census date (end of the 15-week course add/drop refund period) and pass at least 6 credit hours during each semester of the loan period.  If not, your loan will be canceled.  If you don't establish at least half-time attendance, any monies paid on your account could be refunded to the lender and you may be responsible to repay any refunds received.

LOAN PROCESSING TIME FRAME

Average processing time for a student loan is six weeks.  Processing time may exceed six weeks during peak periods.  The deadline for a fall 2010 loan application to be processed by the first day of class is Monday, August 2, 2010.  However, final loan approval is dependent upon the lender and guaranty agency.  

• Fall 2010: October 15
• Winter 2011: March 1
• Summer 2011: June1

MAXIMUM LOAN AMOUNT

  Dependent Student

• Freshman (0-29 MCC credits):  $3500 Base Stafford  + up to $2000 Additional Unsub
• Sophomore (30 MCC credits and above):  $4500 Base Stafford + up to $2000 Additional Unsub

• Freshman (0-29 MCC credits):  $3500 Base Stafford + up to $6000 Additional Unsub
• Sophomore (30 MCC credits and above):  $4500 Base Stafford + up to $6000 Additional Unsub

Note: Since MCC offers no degree beyond the Associates, no borrower will be classified higher than "sophomore" level.  *Since Muskegon Community College is so concerned about increasing student loan defaults and high debt levels of student borrowers, we have adopted stricter loan eligibility requirements.  If you have less than 30 credit hours completed at MCC, you cannot exceed $7,000 in total base federal student loans.  If you have 30 credit hours or more completed at MCC, you cannot exceed $16,000 in total base federal student loans.

APPLY NOW - FEDERAL DIRECT STUDENT LOAN PROGRAM

Fall 2010-Winter 2011

You should consider a student loan only after your eligibility for all other types of financial aid has been determined.  All students requesting a student loan must complete the following steps: 

1. ENTRANCE COUNSELING:  If this is your first loan at MCC, complete the online Mapping Your Future "Student Loan Entrance Counseling".  You will need to create a user account in order to access this process.  Please record your user name and password.  You will need this information to complete your EXIT COUNSELING before you leave MCC.  Allow 30 minutes to complete this step. 

2. MASTER PROMISSORY NOTE (MPN):  If this is your first Federal Direct Loan, even if you have borrowed before through the FFELP program, you will need to complete an online Direct Loan Master Promissory Note (MPN).  You will need to "Sign In" to the site using your federal PIN number.  This is the same number you used when completing your FAFSA.  Allow 20 minutes to complete this step. 

3. MCC's 2010-2011 FEDERAL DIRECT LOAN REQUEST APPLICATION:  If this is your first loan request with MCC, you will need to create a new user account in order to access this process.  This is a different account than Steps 1 and 2 above.  Please record your user name and password for future loan requests.

APPLY NOW - FEDERAL PARENT "PLUS" LOAN PROGRAM

1. Print, complete and submit a 2010-2011 Direct Parent PLUS Loan Application.
2. Complete the On-line PLUS Master Promissory Note.  Note, the parent borrower will need to "Sign In" to the site using their federal PIN number.  This is the same number you used when completing your son/daughter's FAFSA.  You must complete a credit check within 90 days of your request.

EXCEPTIONS TO LOAN POLICY

*Exceptions to the MCC Loan Policy may be appealed in writing to the Director of Financial Aid, with extenuating circumstances specifically stated and supported with documentation.