As part of your financial aid award, you may be offered student loan options. Student loans are money that you borrow and have to pay back (most with interest). ACC participates in the student loan programs below.
Types of Student Loans
The William D. Ford Federal Direct Loan Program provides the following types of student loans:
Federal Direct Subsidized Stafford Loans
These need-based loans are interest-free. To be eligible, you must be enrolled at least half-time (6 credit hours each semester) and be in a degree-seeking program.
Federal Direct Unsubsidized Stafford Loans
These low-interest loans accrue interest while you are enrolled in school and during the entire repayment period.
To be eligible, you must be enrolled at least half-time (6 credit hours each semester) and be in a degree-seeking program.
Both Federal Direct Subsidized and Unsubsidized Loans have the following in common:
- Must be repaid by the student
- Origination fees are not to exceed 1.5% of the loan
- Used for education-related expenses such as tuition, fees, books, living costs, transportation, and childcare
- Repayment begins immediately after graduation or if you stop attending at least half-time
Federal Direct Parent PLUS Loans
This loan is available to parents of dependent students. The parent(s) may borrow up to the cost of education less any estimated financial aid received.
The Federal Direct PLUS Loan is credit based and requires a credit approval.
Interest rates and fees vary by lender and year. For more detailed information about student loan interest rates, fees and borrowing visit the Federal Student Aid website.
Applying for Loans
The process to apply for student loans can be complicated. We have provided the steps needed to secure your loans, as well as additional information regarding loan increases, distribution, and cancellation.
Fill out the Free Application for Federal Student Aid (FAFSA) on the FAFSA website. Once complete, the ACC Financial Aid Office will send an award letter to your ACC student email account, which will include a loan offer alongside of any other eligible federal aid.
You must accept the loan offer if you want to take out the loan. If necessary, the amount can be decreased prior to accepting.
First-Time Borrowers at ACC
First-time ACC borrowers must also complete the additional steps listed below.
Entrance counseling is required before you can receive your first Federal Direct Loan. Entrance counseling explains the obligations you agree to meet as a condition of receiving the loan.
How to complete Entrance Counseling
- Sign in* to the Federal Student Loans website and select the “Complete Counseling” option found in the left navigation bar.
- Then select “Entrance Counseling” under “Choose Counseling Type”.
*You will need your Federal Student Aid ID (FSA ID) in order to sign in.
Master Promissory Note
The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education.
There are two types of MPNs, one for Direct Subsidized/Unsubsidized Stafford Loans and one for Direct Parent PLUS Loans.
How to complete the Master Promissory Note
- Sign in* to the Federal Student Loans website and select “Complete Direct Subsidized/Unsubsidized Loan Master Promissory Note (MPN)” option found in the left navigation bar. The entire MPN process must be completed in a single session, so be sure you have enough time before you start. Each MPN takes approximately 30 minutes to complete.
- *You will need your Federal Student Aid ID (FSA ID) in order to sign in. If you are a parent completing a Direct Parent PLUS Loan MPNe, you must use your own PIN and not your child’s PIN.
To request an increase to your initial loan amount, please complete a Direct Loan Increase Request form and submit to the Financial Aid Office.
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 after the beginning of the term.
Any loan funds remaining after the tuition and fee balance has been paid in full, will be disbursed to you via your chosen method within 14 days.
Right to Cancel
You have the right to cancel a loan disbursement within 14 days of disbursement by completing a Cancellation / Reduction of Aid Request form.