Federal Family Education Loans

The Federal Family Educational Loan Program (referred to as FFELP) provides low-interest educational loans made by private lending institutions or non-profit agencies to the student or to the student’s parent.  These loans are insured by the Michigan Guaranty Agency and reinsured by the federal government.

No loan consideration will be given until students have completed the on-line Entrance Loan Counseling.

Loan borrowers may select any participating lender of their choice. Delta College cannot and will not select a lender for students. Delta College provides a list of participating lenders as a courtesy to our students and their families. The list does not include all participating lenders in the loan programs. It includes some lenders that Delta College has found provides reliability, efficiency, accuracy, attractive borrower benefits and quality customer service.

Loan applications received prior to November 13, 2009 from students with a remaining balance due for the Winter 2010 semester will be processed prior to payment deadline.

The Financial Aid Office will continue to accept and process loan applications after November 20th, but will be unable to guarantee that your requests will be processed by payment deadline.  Please be prepared to pay for your tuition and fees by December 8, 2009 at 7:00pm in order to retain the classes for which you have registered.

Delta College Loan Code of Conduct

 

 

What Types Of Loans Are Available?

• The Subsidized Stafford 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 Unsubsidized Stafford 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.  

	Federal Subsidized Stafford Loan	Federal Unsubsidized Stafford-Dependent	Federal Unsubsidized Stafford-Independent	Federal PLUS	Federal Additional Unsubsidized Loan Amount (For Students Whose Parents Cannot Borrow PLUS)
Eligible Borrowers	Dependent undergrad students, Independent undergrad students, Graduate or professional students, Based on Financial Need	Dependent undergrad students, Not based on Financial Need	Independent undergrad students, Graduate or professional studies, Not based on Financial Need	Parents of dependent undergrad students Must meet lender’s credit criteria Not based on Financial Need	Dependent undergrad students, Independent undergrad students, Not based on Financial Need
Interest Rate	7/1/09 - 6/30/10 Rate – 5.6% Variable rate capped at 8.25%	7/1/09 - 6/30/10 Rate – 6.8% Variable rate capped at 8.25%	7/1/09 - 6/30/10 Rate – 6.8% Variable rate capped at 8.25%	7/1/09 - 6/30/10 Rate – 8.5% Variable rate capped at 9.0%	7/1/09 - 6/30/10 Rate – 6.8% Variable rate capped at 8.25%
Annual Loan Limits 2008/2009	Borrow up to twice per grade level Level I (0 – 29 credits) - $3,500 Level II (30+ credits) - $4,500	Borrow up to twice per grade level Level I (0 – 29 credits) - $3,500 Level II (30+ credits) - $4,500	Borrow up to twice per grade level Level I (0 – 29 credits) - $7,500 Level II (30+ credits) - $8,500	Cost of education minus aid = Eligible loan amount	Cost of education minus aid = Eligible loan amount $2,000
Aggregate Loan Limits Note: Delta College’s Institutional Loan Limit is $20,000	Dependent undergrad students - $23,000 Independent undergrad students - $23,000 Graduate or professional students - $65,500	Dependent undergrad students - $31,000	Independent undergrad students - $57,500 Graduate or professional students - $138,500
Loan Payments and Maturities	Borrower has 5 to 10 years for repayment with a $50 minimum monthly payment	Same as Federal Subsidized Stafford	Same as Federal Subsidized Stafford	Same as Federal Subsidized Stafford	Same as Federal Subsidized Stafford
Disbursement	Loan proceeds are sent to the school, co-payable to the student and school.	Same as Federal Subsidized Stafford	Same as Federal Subsidized Stafford	Loan proceeds are sent to the school, co-payable to the student and school.
Repayment	Repayment begins 6 months after student drops below ½ time study or graduates	Same as Subsidized Stafford but interest is due from date of disbursement and, if deferred, will be capitalized to the loan balance after the in-school and grace period end	Same as Subsidized Stafford but interest is due from date of disbursement and, if deferred, will be capitalized to the loan balance after the in-school and grace period end	First payment is due within 60 days after disbursement	Same as Subsidized Stafford but interest is due from date of disbursement and, if deferred, will be capitalized to the loan balance after the in-school and grace period end

     
            
How Does A Student Apply For A Student Loan?

• Fill out a Free Application for Federal Student Aid (FAFSA) and indicate Delta College’s school code (002251). If you are eligible for grant assistance, you will receive an e-mail notification from the Delta College Financial Aid Office. Your Financial Aid Award Letter will be viewable through your MyDelta account.
• Next complete Entrance Loan Counseling 
• Print and complete the Fall 2009/Winter 2010 Stafford Loan Request Form. The Financial Aid Office has provided a list of lenders on the loan request form. These lenders were included based on their quality customer service and the borrower benefits offered to students. This list has been provided to assist you with choosing a lender, but you have the right to select any lender you wish.
• Return the completed loan request form by mail, fax or in-person to the Delta College Financial Aid Office located in D101.
• Complete the Master Promissory Note provided by your lender or the guarantor and return to the address provided. If the Master Promissory Note is not completed, your lender will not disburse your loan check(s).

Student Loan Disbursement

• After the Stafford or Parent Plus loan has been certified by Delta College, the student will receive notification by email directing her/him to access their MyDelta Account for approved loan type and amount based on the credits indicated on the loan request form.
• The borrower will also receive information regarding the Stafford and/or Parent Plus Loan approval from the guarantor. This letter will include the approved loan amount and anticipated dates when the check will be released to Delta College for processing.
• According to Federal Regulations, attendance and satisfactory academic progress must be verified before loan disbursement(s) can be released to the student.
• The first disbursement of a two-semester loan funds will be released approximately 8 weeks into the semester after classes have started and the student is enrolled in 6 or more credit hours.
• The second disbursement of a two-semester loan funds will be released approximately 8 weeks into the semester after the second semester begins.
• One-semester loans funds will be released approximately 8 weeks into the semester after the student is enrolled in 6 or more credit hours. One semester loans will be released in a single disbursement.
• A student’s tuition and fees may be charged up to the amount of her/his approved loan less origination fees. If a balance remains after the charges have been deducted from the loan, this must be paid by payment deadline. Books cannot be charged against a student loan.  
• If the student was allowed to delay payment of her/his tuition and fees, the Financial Aid Office will notify you when the check will be available for signature or credited to your account.
• Once the student receives notification that their check is available they must go to the Student Finance Office and sign the check over to Delta College to cover the cost of any tuition and fees charged against the student loan.
• Refunds of loan proceeds will be given to the student once the account has been paid in full.
• If the account is not paid in full by the time registration begins for the next semester Delta College will place a hold/freeze on the student’s account until her/his tuition and fee charges have been paid in full.

Federal Policies for Stafford and Parent Plus Loans

• Students must be registered in a minimum of six credit hours.
• If you drop below 6 credits and have received your loan funds, your grace period will begin immediately.
• Students must be enrolled in a certificate or degree program.
• Students must meet all Delta College Financial Aid Satisfactory Standards of Academic Progress (SAP) policies.
• Delta College Policies for Stafford and Parent Plus Loans
• Student borrowers need to complete Entrance Loan Counseling prior to submitting a Stafford Loan Request Form. Exit Loan Counseling must also be completed once students leave Delta College. Loan counseling is not required for a Parent Plus loan.
• Delta College will not authorize late disbursements after the end of the loan period
• Delta College may not approve a Federal Family Educational Loan for any student who has total loan indebtedness equal to or greater than $20,000. In computing the aggregate indebtedness, all Federal Loans received at Delta College and at other institutions will be considered. You can access information regarding your Federal student loans at www.nslds.ed.gov. You will need your Federal pin number to access this site.
• Loans will be recalculated for eligibility, if you registered for fewer credit hours than indicated on your loan application.
   

Loan Calculator 

Loan Repayment Options

2009 - 2010 Loan Application