Loan Information

Student Loans

Student loans, unlike grants and work-study, are borrowed money that must be repaid with interest. You cannot have these loans canceled because you didn’t like the education you received, didn’t get a job in your field of study or because you’re having financial difficulty. Loans are legal obligations, so before you take out a student loan, think about amount you’ll repay over the years. Learn the basics and manage your loan debt. Visit www.StudentLoans.gov and then click on Managing Repayment at the top of the page.

• The Direct Subsidized Loan enables undergraduate or graduate students who show financial need to borrow money to help pay for their educational expenses. Interest does not accrue until the student graduates, withdraws from school or drops below half-time enrollment status. 
• The Direct Unsubsidized Loan enables undergraduate or graduate students to borrow money to pay for their educational expenses regardless of financial need. Interest accrues on an unsubsidized loan while a student is in school. The student may choose to pay the interest while in school to avoid paying interest on interest. 
• A Parent Plus Loan (PLUS) enables parents with good credit history to borrow to help pay the expenses of each child who is a dependent, undergraduate student. Interest accrues beginning with the 1st disbursement. Repayment of principal and interest begins while the student is in school – within 60 days after the final loan disbursement is made for the period of enrollment for which the funds were borrowed.
• To request a loan, log in to MyDelta and complete the Federal Stafford Loan Application found in the Financial Aid section.

Stafford Loan Limits

The Federal Stafford Subsidized and Unsubsidized Loan programs carry both annual and cumulative (lifetime) limits. Your SAR (Student Aid Report) lists your cumulative loans, but it is important that you also keep records of all your loan transactions. You can also look up your loan history online at: www.nslds.ed.gov.

If you reach your lifetime loan limit, you cannot receive any more of that type of loan. If you exceed your limit, aid already disbursed will be billed back. You will have to find alternate ways to finance your education. Therefore it is to your advantage to borrow only what you need for educational expenses, and to keep track of your cumulative debt. OFA advisors are happy to work with you to find ways to minimize your borrowing.

Interest Rates

Direct Stafford Loan interest rate is a fixed 3.4% for undergrad subsidized, and 6.8% for undergrad unsubsidized.

Direct Parent Plus Loan interest rate is a fixed 7.9%

Loan Fees

Stafford Loans require a 1% origination fee. There’s an up-front rebate of 0.5%, so the net disbursement is 99.5% of the gross loan amount. The borrower must make the first 12 payments on time to keep the rebate.

Federal Direct PLUS Loan Program requires a 3% origination fee and a 1% default fee.  There's an up-front rebate of 1.5%, so the net disbursement is 97.5% of the gross loan amount. The borrower must make the first 12 payments on time to keep the rebate.

Additional Information

Average Stafford loan debt for a Delta College student is $2,590.31 as of 6/30/10.

Helpful Links

National Student Loan Data System (NSLDS) - Your loan history

Loan Calculator