Student Loans



Federal Direct Loans: A fixed interest student loan from the federal government for students enrolled at least half time (six credits) each semester.

  • Subsidized: Changes to Direct Stafford Student Loans - Effective, July 1, 2012, the up-front rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered. As a result, the 0.5% origination fee for the Direct Stafford Loans will be 1.0%, resulting in less loan funds applied to student accounts.  The origination fee is the up-front charge by the U.S. Department of Education for processing the loan.  A 1% fee will be charged. As of July 1, 2012, interest on Subsidized Direct Stafford Loans will no longer be deferred during the grace period.
  • Unsubsidized: Loan awarded to students regardless of financial need. The student borrower is responsible for the 6.8% interest while enrolled in school. You may choose to defer the interest payments while in school and during the six-month grace period but the interest will be capitalized. You begin repayment of interest and principal six months after you graduate, leave school, or drop below half-time enrollment.

Annual Maximum Amounts: These loan amounts cannot exceed your cost of attendance minus other financial aid.

Grade Level & Amount

  • Dependent First Year (0 - 30 credits) $5,500
    ($3,500 total subsidized and/or unsubsidized, plus an additional $2,000 unsubsidized)
  • Dependent Second Year (31 or more credits) $6,500
    ($4,500 total subsidized and/or unsubsidized, plus an additional $2,000 unsubsidized)
  • Independent First Year (0 - 30 credits) $9,500
    ($3,500 total subsidized and/or unsubsidized, plus an additional $6,000 unsubsidized)
  • Independent Second Year (31 or more credits) $10,500
    ($4,500 total subsidized and/or unsubsidized, plus an additional $6,000 unsubsidized)

Lifetime Limits: The maximum amount undergraduate students may borrow during their entire academic career is:

  • Dependent Students $31,000 (up to $23,000 may be subsidized)
  • Independent Students $57,500 (up to $23,000 may be subsidized)

Fees: 1.5% origination fee with an immediate 1.0% rebate at disbursement. The rebate is retained if the student makes the first 12 payments on time.

Federal Perkins Loan: Need-based federally subsidized fixed low interest (5%) student loan from the federal government. Interest charges and repayment begin 9 months after you graduate, leave school, or drop below half-time enrollment. All first-time borrowers at MCC must complete a Master Promissory Note (MPN) and Entrance Counseling prior to the end of their period of enrollment. Funds are limited. The maximum annual award amount is $4,000. The maximum amount a student may borrow at a community college is $8,000. Funds are limited.

Loan Repayment Information

Information on loan repayment and the servicer of an existing Federal Student Loan can be found on the following websites:

Last Modified: 8/5/12