Information Regarding Federal Student Aid
Federal Direct Loans
Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources. A student who wishes to receive a Federal Direct Loan must complete a Free Application for Federal Student Aid (FAFSA) and must sign a Master Promissory Note (MPN) — a legally binding agreement to repay the loan. Loan recipients are also required to complete loan entrance and loan exit counseling sessions — both are tools to ensure the student understands his/her obligation to repay the loan. Entrance counseling must be completed prior to the student receiving the loan proceeds. Exit counseling must be completed prior to the final loan disbursement or when a student leaves school. Loan counseling can be completed at studentaid.gov. Loans are either subsidized or unsubsidized. Maximum subsidized and unsubsidized amount is $5,500 (1st year) for dependent students and $9,500 (1st year) for independent students. Maximum loan amounts are prorated for all programs 600-899 hours.
Direct Subsidized Loan
Based on need, repayment normally begins six months after the student leaves school. The Federal Government pays the interest while the student is in school. The maximum amount is $3,500 (1st year) for both dependent and independent students.
Direct Unsubsidized Loan
Not need-based and repayment normally begins six months after you leave school. The borrower is responsible for interest during the entire life of the loan. The maximum amount is $2,000 (1st year) for dependent student and $6,000 (1st year) independent student.
For loans disbursed between July 1, 2022 and June 30, 2023:
- Subsidized - 4.99% fixed
- Unsubsidized - 4.99% fixed
Interest rates change every year on July 1. For more information contact the Financial Aid Administrator or refer to studentloans.gov.
Direct Loan Fees
Direct Subsidized and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2022 and before September 30, 2023 will have a loan fee of 1.057%.
Considering a Federal Direct Student Loan? Click here for additional information to "Help You Borrow Wisely
Code of Conduct for Education Loans
34 CFR 601.2; 34 CFR 601.21; 34 CFR 668.14(b)(27)
The Mahoning County Career & Technical Center maintains a code of conduct for education loans that prohibits a conflict of interest with the responsibilities of an agent of the school with respect to FFELP or private education loans. Further all agents with responsibility for loans at the MCCTC Adult Career Center adhere to the provisions of the code established. The code of conduct for education loans prohibits the following actions / behaviors:
- Revenue-sharing arrangements with any lender
- Receiving gifts from a lender, a guarantor, or a loan servicer
- Contracting arrangement providing financial benefit from any lender or affiliate of a lender
- Directing borrowers to particular lenders, or refusing or delaying loan certifications
- Offers of funds for private loans
- Call center or financial aid office staffing assistance
- Advisory board compensation