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Financial Aid Office

Loan Information

Student Loans

Student loans, unlike grants and work-study, are borrowed money that must be repaid with interest. You cannot have these loans canceled because you didn’t like the education you received, didn’t get a job in your field of study or because you’re having financial difficulty. Loans are legal obligations, so before you take out a student loan, think about the amount you’ll repay over the years. Learn the basics and manage your loan debt. Watch the videos Responsible Borrowing to learn about your responsibilities as a borrower and what you should consider when taking out loans for college and Repayment: How to Manage Your Student Loans to learn more about changing repayment plans, postponing or reducing your payments, or combining your federal student loans. You may also visit StudentLoans.gov and then click on Managing Repayment at the top of the page for more information.

  • The Direct Subsidized Loan enables undergraduate or graduate students who show financial need to borrow money to help pay for their educational expenses.  Generally interest does not accrue until the student graduates, withdraws from school or drops below half-time. Students who receive Direct Stafford Subsidized Loans for the first time on or after July 1, 2013 may start incurring interest while in school.  Learn more about the new 150% rule.

  • The Direct Unsubsidized 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.
  • To request a Direct loan, log in to MyDelta and complete the Federal Stafford Loan Application found in the Financial Aid section.
  • To request a Plus loan, log in to StudentLoans.gov and click on request a Direct Plus Loan.

Federal Direct (Stafford) Loan Limits

The Federal Direct Subsidized and Unsubsidized Loan programs carry both annual and cumulative (lifetime) limits. Your SAR (Student Aid Report) lists your cumulative loans, but it is important that you also keep records of all your loan transactions. You can also look up your loan history online at nslds.ed.gov.

Yearly Maximums (beginning 2008-2009)

Student Level
& Dependency Status

Maximum Stafford
(subsidized and unsubsidized)

Maximum Subsidized

Dependent freshman

$5,500

$3,500

Dependent sophomore

$6,500

$4,500

Independent freshman

$9,500

$3,500

Independent sophomore

$10,500

$4,500

Lifetime limits (beginning 2008-2009)

Student Level
& Dependency Status

Maximum Stafford
(subsidized and unsubsidized)

Maximum Subsidized

Dependent undergraduate

$31,000

$23,000

Independent undergraduate

$57,500

$23,000



If you reach your lifetime loan limit, you cannot receive any more of that type of loan. If you exceed your limit, aid already disbursed will be billed back. You will have to find alternate ways to finance your education. Therefore it is to your advantage to borrow only what you need for educational expenses, and to keep track of your cumulative debt. Financial Aid advisors are happy to work with you to find ways to minimize your borrowing.

Interest Rates

 

The following interest rates are effective for all Direct Loans with a first disbursement on or after July 1, 2014 through June 30, 2015.

 

 

The Federal Direct Loan interest rate of Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students is 4.66%.

 

 

The Federal Direct Loan interest rate for Parent Plus loans is 6.21%.

Interest rates will be a “variable-fixed” rate.  This means that students may receive a new rate with each new loan, but the rate will be fixed for the life of the loan.  New interest rates will be set each July 1 through the following June 30 by the Department of Education.

Loan Fees

As of December 1, 2013, Federal Direct (Stafford) Loans require a 1.072 percent origination fee that students must pay at the time of disbursement. As of October 1, 2014, the Federal Direct loan origination fee will be 1.073 percent.

 

As of December 1, 2013, the Parent PLUS Loan Program requires a 4.288 percent origination fee to be paid at the time of disbursement. As of October 1, 2014, the Parent PLUS Loan origination fee will be 4.292 percent.

 

Additional Information

Average Federal Direct Stafford loan debt for a Delta College student is $4,040 as of the 2012-2013 school year.

Helpful Links

National Student Loan Data System (NSLDS) - Your loan history

Loan Calculator 

Repayment: How to Manage Your Student Loans

Responsible Borrowing

 

Student Loan Handbook (PDF)

 


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