Loans are an effective and reliable method of funding higher education; however there are a few things that should be considered before you borrow:
Important information about your student loans while attending ACC:
You should carefully review your situation before you borrow. Consideration should be given to other sources of funding prior to accepting a loan. You need to calculate exactly how much loan is necessary to meet your educational needs and review your repayment obligations thoroughly before assuming added debt.
The William D. Ford Federal Direct Loan Program – ACC participates in the following programs. Interest rates on these loans are set annually. For more information on interest rates, contact the Financial Aid Office.
Federal Direct Loan – There are two types of Federal Direct Loans. Federal Direct Subsidized Loans are based on a student’s financial need unmet by other financial aid. Federal Direct Unsubsidized Loans are used to replace the family contribution. With a Federal Direct Subsidized loan, the federal government pays the interest on the loan while the student is attending college at least half-time (6 credit hours) or in a grace period up to six months after the student leaves college. If a student receives a Federal Direct Unsubsidized Loan, the student has the option to either pay the accruing interest quarterly, or to have it capitalized at the point repayment begins. Freshman students may borrow up to $3,500 per year. Sophomore loan limits are $4,500 per year. (A sophomore is defined as a student who has thirty (30) credit hours, either earned or transferred to ACC).
First time borrowers at ACC are required by law to complete an Entrance Loan counseling session and sign a Master Promissory Note prior to receiving their first loan disbursement. Additional information concerning student’s rights and responsibilities regarding their loan(s) will be provided through this process. The two additional requirements must be completed at the studentloans.gov website.
Federal Direct PLUS Loan – This loan is for the parents of dependent students. The parent(s) may borrow up to the cost of education less any estimated financial aid the student will receive. The Federal Direct Plus Loan is credit based and requires a credit approval.
Student Loan Payments - Student loan funds borrowed through The William D. Ford Federal Direct Loan Program are sent electronically to ACC and paid to student accounts. No loan(s) will be released prior to scheduled disbursement dates for any reason. First time borrower loan disbursements are made 30 days from the beginning of the term, any balance remaining after the loan has disbursed will be mailed to the student.