Maximum eligibility period to receive Direct Subsidized Loans
Subsidy Eliminated at 150% of Academic Program
Congress has made permanent changes to the Federal Subsidized Direct Loan Program.
New borrowers, as of July 1, 2013, receiving a subsidized student loan will be limited
to receiving the subsidy to 150% of their academic program. The borrower who reaches
the 150% limitation will have their interest subsidy end for all outstanding subsidized
loans. Repayment does not begin, but like unsubsidized loans, the student (rather
than the government) would become responsible for interest accumulation at this point.
If student is enrolled in a 2-year associate degree program, the maximum
period for which he/she can receive Direct Subsidized Loans is 3 years
(150% of 2 years = 3 years).
Students are encouraged to complete their academic program within the prescribed time
frame. Students who cannot complete the program within the time period can borrow
unsubsidize student loans.
- The Direct Subsidized Loans are available only to undergraduate students with financial
- The subsidized loan is considered a need-based loan which means it is only awarded
to those students who can demonstrate a financial need on the FAFSA.
- The government pays the interest on the loan while you’re in school at least half-time,
for the first six months after you leave school, and during certain other periods
(postponement of loan payments.)
Unsubsidized (No Subsidy)
- The unsubsidized loan is available to both undergraduates and graduate or professional
degree students; there is no requirement to demonstrate financial need.
- Student is responsible for paying the interest on Direct Unsubsidized Loans during
- If you choose not to pay the interest while you are in school and during grace periods
and deferment or forbearance periods, the interest will be capitalized at the end
of the grace, deferment, or forbearance period. That is, the unpaid interest will
be added to the principal amount of your loan.
Loan Disbursement Information
Student loans must be accepted, rejected or modified (one time only) before being
scheduled for disbursement. Loans are processed based on expected or actual enrollment.
Any changes in enrollment status may result in the reduction or cancellation of the
loan. Students must be enrolled for at least 6 credits before the loan will disburse.
Enrollment status will be verified before releasing funds. Receipt of other financial
assistance unknown at the time of awarding may also affect the amount of the student
The Notice of Loan Guarantee and Disclosure Statement, which comes from the federal
government, will list the approximate dates of disbursement to the school.
Students may cancel or reduce the amount of loan(s) by submitting a written request
to the campus SFRS before the disbursement date.
Students who want to choose the Federal Work-Study Program, student loans may be reduced
or cancelled. Contact your campus SFRS office.
Title IV Credit Arrangements
Oakland Community College does not have a contractual agreement with financial services
providers/third-party vendors to offer Tier One and/or Tier Two Arrangements. Student
refunds are processed as follows:
- deposited into the student's banking account,
- processed as a paper check and mailed to the address on file, or
- credited back to the credit card used for payment.
National Student Loan Data Systems (NSLDS)
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's
(ED's) central database for student aid. NSLDS receives data from schools, guaranty
agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student
Access provides a centralized, integrated view of Title IV loans and grants so that
recipients of Title IV Aid can access and inquire about their Title IV loans and/or
grant data. Student information is available at NSLDS.
Students must log in with their Federal Student Aid (FSA) ID.
Entrance Loan Counseling and a Master Promissory Note (MPN) are required for new,
first-time borrowers. Loans will not disburse without these documents being completed.
Complete Direct Loan Entrance Counseling and /or the Direct Loan Master Promissory
Note by going to Student Loans.
For video tutorials on Entrance Loan Counseling and the Master Promissory Note select
the following links:
Entrance Loan Counseling
Master Promissory Note
Direct PLUS Loans (Parent Loans)
For parents of dependent undergraduate students and for graduate or professional students;
borrower is responsible for all interest; student must be enrolled at least half-time;
financial need is not required; visit Federal Student Aid for current interest rates.
Private Education Loans (Alternative Loans)
Private student loans are offered through a variety of banks and other lenders. Students
wanting private loan must apply separately from their financial aid application through
an individual lender. The best rates on these loans are generally offered to borrowers
with good credit and/or who have a cosigner with good credit.
Preferred Lender Arrangements/Preferred Lender List
Oakland Community College does not recommend or endorse any bank or lender. Oakland
Community College does not have a Preferred Lender Arrangement and/or a Preferred
Lender List. Oakland Community College does not provide assistance to students and
families in their search for, or review of, private student loans. Students and/or
parents must conduct their research independently.
The loan amount will be limited to the Cost of Attendance minus student financial
assistance offered during the loan period of the private loan application. Oakland
Community College’s responsibility is to certify the loan.
Oakland Community College uses an electronic process administered by ELM Resources
to process loans from any lender. ELMNet is an internet-based system that helps
schools and loan providers manage student data. ELMNet offers an open and lender-neutral
platform. ELM is not affiliated with any lender.
Students apply to the lender of their choice. The lenders determine eligibility for
a credit-worthy loan. The lender can choose to:
- Send student data to ELM who sends approved loan records to OCC to verify enrollment
and eligibility, or
- Send a paper application to OCC to verify and certify the loan
Loan Disbursements records are sent to ELM from lenders to be disbursed to Oakland
Community College electronically. Disbursements occur every other Thursday; these
dates coincide with Oakland Community College disbursement dates. Loan funds are
deposited into the OCC account to be disbursed to recipients.
For paper applications, disbursements from the banks are sent via paper checks co-payable
to OCC and the student.
Code of Conduct for Student Loans
Oakland Community College adheres to a Code of Conduct for Student Loans that prohibits
inducements or incentives by private lenders.
Allows you to combine loans so that you make only one monthly payment. You can consolidate
any or all of your loans — you choose. There is no cost to you to consolidate. You
can lower the interest rate on your Loans if you consolidate during your grace period.
The Loan Servicer will assist you with the loan consolidation process.
Managing Your Loan Repayments
Basics of managing your loan repayments once you leave OCC:
Students who withdraw, graduate or enroll for less than six (6) credits must complete
an exit counseling as required federal regulations.
The purpose of exit counseling is to provide students with the information needed
to manage student loan debt. Exit Counseling is available for online completion
at Federal Student Aid. To access the online counseling, students will need an FSA ID. The counseling
session should take about 30 minutes to complete. When asked to select a school be
sure to choose Oakland Community College.
Exit Loan Counseling Tutorial
If you have any questions regarding your Exit Loan Counseling requirement, please contact the Student Financial Resources and Scholarships Office
at any campus.
Your Grace Period (Before You Repay Your Loan)
The grace period begins when you graduate, drop to below half-time or withdraw from
the College. It will last for 6 consecutive months. If you do not use the full 6 months
and return to school, you can regain your entire grace period if you immediately file
a deferment form at your new school. The next time you complete a program or stop
attending school, you will have the full 6-month grace period available to you. Once
you use the entire 6 consecutive months of your grace period, it is gone forever.
If you begin repayment and return to school, you can obtain deferment of principal
payments by filing a deferment form. However, when you complete your next academic
program or cease attendance, you will not have a grace period and repayment will begin