In order to qualify, students must:

• Have completed FAFSA results on file
• Be enrolled at least half-time (6 financial aid eligible hours)
• Meet all other eligibility criteria for receiving Federal Student Aid.
• Have financial need.

Interest rates

       For loans first disbursed on or after 7/1/25 and before 7/1/26, the interest rate is 6.39%.

 The U.S. Department of Education pays the interest on a Direct Subsidized Loan

• while you’re in school at least half-time
• for the first six months after you leave school (referred to as a grace period)
• during a period of deferment (a postponement of loan payments).

Repayment

Begins when the student graduates or ceases to be enrolled at least half-time for a period of at least 6 months.

• For repayment plan options, visit studentaid.gov.

Eligibility Amounts

• First-year students (30 semester credit hours or less): $3,500 per academic year.
• Second-year students (students who have completed more than 30 semester credit hours): $4,500 per academic year.
• The allowable aggregate amount of Direct Loans for an undergraduate student is $23,000.

      Loan Fees

• A loan fee is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as noted below:

Origination Fee:
First disbursement on or after October 1, 2020, and before October 1, 2025	Fee = 1.057%

In order to qualify, students must:

• Have completed FAFSA results on file.
• Be enrolled at least half-time (6 financial aid eligible credit hours)
• Meet all other eligibility criteria for receiving Federal Student Aid
• Not need-based. All students may be eligible for unsubsidized loans.

Interest rates and repayment options:

For loans first disbursed on or after 7/1/25 and before 7/1/26, the interest rate is 6.39%.

The student is responsible for paying the interest on a Direct Unsubsidized Loan during all periods.

• Repayment begins when the student graduates or ceases to be enrolled at least half-time for a period of at least 6 months.
• For repayment plan options, visit studentaid.gov.

Eligibility Amounts:

• First year independent students (students who have completed less than 30 semester credit hours): $6,000
• Second year students (students who have completed more than 30 credit hours): $6,000
• Dependent students are eligible for up to $2,000 in unsubsidized loans annually, but must submit an Offer Revision Form requesting the additional loan funding.
• Dependent students whose parents have applied for and been denied a PLUS loan are eligible for Unsubsidized Loans in the same amounts.
• If the student is not eligible for Subsidized loans, those amounts may be added to the eligible unsubsidized amounts.
• The allowable aggregate amount of Subsidized and Unsubsidized Loans for an undergraduate student is $57,500.

Loan Fees

A loan fee is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as noted below:

Origination Fee:
First disbursement on or after October 1, 2020, and before October 1, 2025	Fee = 1.057%

Federal Student Loan Exit Counseling

If you borrowed a Federal Student Loan (Federal Direct Subsidized or Federal Direct Unsubsidized loan) while attending Marion Technical College and graduated, dropped below half-time status, or are no longer taking classes, the Department of Education requires you to complete Exit Counseling. Students who do not complete the Exit Counseling will not receive their diplomas or academic transcripts from MTC. Failure to complete Exit Counseling may also delay future disbursement of aid at MTC.

Exit Counseling can be completed online in about 30 minutes.  The counseling session will ensure you understand your student loan obligations and are prepared for repayment. You'll learn about what your federal student loan payments will look like after school and explain your payment options.

For additional information, visit  https://studentaid.gov/exit-counseling/

The Federal Direct PLUS (Parent Loan for Undergraduate Students) Loan is available for a parent who wishes to access additional resources above what the student is currently eligible to receive. The loan option may cover up to the Cost of Attendance. The PLUS loan may be borrowed by the natural, adoptive, or step parent of a DEPENDENT student. In order for the parent to receive a Federal PLUS loan, the parent may not be in default on a prior education loan and must pass a mandatory credit check performed by the Direct Loan Servicing Center.

How to Apply for a Direct PLUS Loan

Step 1: The student must have completed FAFSA on file, be registered at least half-time, and meet all other eligibility criteria for receiving Federal Student Aid.  

Step 2: Parent borrower must complete the Direct PLUS Loan Application by logging in to the Federal Student Aid website.  The parent will need to complete the Direct PLUS Loan Master Promissory Note (MPN) also. These documents are required to apply for the loan.

Step 3: Complete MTC’s Parent Plus Loan request form and return it to the Financial Aid Office.

Students have the right to request a lower loan amount or cancel any Direct or Parent Plus loan.

If you would like to cancel a portion of or the entire loan amount before funds are disbursed, please use the Student Loan Decline Form. 

If students or parents wish to cancel a loan after 30 days from the date of the first disbursement, they must contact the servicing agency handling their loan. Students can determine the appropriate agency and obtain contact information for that agency by visiting this site. This site will provide information about all of the federal student loans and provide contact information to the loan servicer for the student's loans. You may also contact the Financial Aid Office.