Student Loans
Loans are borrowed money which must be repaid. They are available to most U.S. citizens and permanent residents. Each loan program has certain maximum limits for borrowing; however, students may not borrow more than the cost of attendance less any other financial aid received. Accepted students are automatically considered for loans if their FAFSA results are released to Michigan Tech and they have indicated on the FAFSA an interest in receiving loans. Students must apply for loan renewal each year.
Federal Direct Loans
There are two types of Federal Direct Loans. The subsidized loan is based on financial need, and the federal government pays the interest on the loan while the student is enrolled at least half-time, during the six-month grace period and during periods of deferment. The unsubsidized loan is not need based, and the student must pay the interest during periods of enrollment and/or deferment. However, the student may choose to allow the interest to capitalize. Students may have eligibility for both subsidized and unsubsidized Direct Loans.
Criteria : enrolled at least half time; meeting the Satisfactory Progress Policy requirements.
Amount : a dependent student may borrow up to $3,500 per academic year as a freshman, $4,500 per academic year as a sophomore, and $5,500 per academic year as a junior or senior; the cumulative maximum is $23,000. An independent student may borrow up to $7,500 per academic year as a freshman, $8,500 per academic year as a sophomore, and $10,500 per academic year as a junior or senior; the cumulative maximum is $46,000.
Interest : fixed at 6.8 percent for loans disbursed on or after July 1, 2006.
Repayment : of principal begins six months after the student graduates, leaves school or drops below half-time enrollment.
Other : More information about Direct Loan Entrance Counseling and Direct Loan Exit Counseling.
Federal Perkins Loans
Criteria : exceptional financial need; enrolled at least half time; meeting the Satisfactory Progress Policy requirements.
Amount : up to $4,000 for each year of undergraduate study; the cumulative maximum is $20,000.
Interest : 5 percent; does not accumulate until repayment period begins. Nine month grace period; up to ten years to repay. No interest on repayment as long as the borrower is enrolled in at least half time study. Deferment or repayment is permitted for certain kinds of federal or volunteer service.
Other : for additional information on Perkins loans please visit the Accounting Services web site.
TECHAID Student Loans
Criteria : financial need; enrolled at least half time.
Amount : variable.
Interest : 5 percent; does not accumulate until repayment period begins. Six month grace period; up to 5 years to repay.
Other : for additional information on TechAid loans please visit the Accounting Services web site.
Federal Direct PLUS (Parent) Loans
Criteria : available to parents with good credit histories to pay the educational costs of their dependent students enrolled at least half time and meeting the Satisfactory Progress Policy requirements.
Amount : variable up to cost of attendance.
Interest : fixed at 7.9 percent for loans disbursed on or after July 1, 2006.
Repayment : of principal begins 60 days after the final loan disbursement.
Other : obtain application from the Financial Aid Office or print one from the Federal Direct PLUS (Parent) Loans page.
