Student Loans

Borrowing from the Federal Government

 

By completing the FAFSA a student is automatically applying for federal student loans. Students must meet all eligibility criteria in order to receive a federal loan. Once the loan has been accepted, if the student is a first time loan borrower at MMA, he/she must complete Loan Entrance Counseling as well as sign a Direct Loan Master Promissory Note, promising to repay the loan.

 

  • must be repaid
  • based on financial need
  • no interest charged while you are in school at least half-time
  • Variable interest rate based on the 10 year Treasury bill
  • Interest rate typically changes every July 1st for the upcoming academic year
  • Interest rate remains fixed for the life of that loan
  • Interest rate is capped at 8.25%
  • Rate for 2020-2021 is 2.75%
  • Must complete DL Entrance Counseling
  • Must sign DL Master Promissory Note
  • Repayment begins six months after graduation, withdrawal or dropping below half-time enrollment
  • 6 month grace period before loan goes into repayment and interest begins
  • Borrower information is submitted to the National Student Loan Data System (NSLDS) accessible by guaranty agencies, lender and schools.  This system is used nationally to maintain records of all federal loan borrowers. 
  • must be repaid
  • not based on financial need
  • interest charged while you are in school
  • Variable interest rate is based on the 10 year Treasury bill
  • Interest rate typically changes every July 1st for the upcoming academic year
  • Interest rate remains fixed for the life of that loan
  • Interest rate is capped at 8.25%
  • Rate for 20-21 is 2.75%
  • Must complete DL Entrance Counseling
  • Must sign DL Master Promissory Note
  • Repayment begins six months after graduation, withdrawal or dropping below half-time enrollment
  • 6 month grace period before loan goes into repayment
  • Borrower information is submitted to the National Student Loan Data System (NSLDS) accessible by guaranty agencies, lender and schools.  This system is used nationally to maintain records of all federal loan borrowers. 

Some families also borrow through other loan programs (Federal Direct Parent PLUS Loan; Private, state-funded alternative loan; private lender-funded alternative loan)

  • These are credit based loans
  • Require a credit-worthy borrower and/or co-signer
  • Co-signer is equally responsible for repayment
  • Can not be consolidated into a Federal Consolidation Loan with student's other Federal Loan
  • Can be consolidated with federal student loans through a private loan consolidation program
  • You should stay with the same lender each year to reduce number of different loan bills each month

VIEW OTHER FUNDING OPTIONS

Federal Direct Stafford Loan limits
 

Year in School Dependent Students Independent Students
First Year (0 - 30 credits) $5,500 – no more than $3,500 of this amount may be subsidized $9,500 – no more than $3,500 of this amount may be subsidized
Second Year (31 - 60 credits) $6,500 – no more than $4,500 of this amount may be subsidized $10,500 – no more than $6,500 of this amount may be subsidized
Third and beyond (each year) (61+ credits) $7,500 – no more than $5,500 of this amount may be subsidized $12,500 – no more than $5,500 of this amount may be subsidized
Max. total debt allowed as undergrad when you graduate $31,000 – no more than $23,000 of this amount may be subsidized $57,500 – no more than $23,000 of this amount may be subsidized

 

Students enrolled in a 4 year degree program, who take longer than 4 years to achieve their undergraduate degree

  • May receive the Federal Direct Subsidized Stafford Loan for up to the equivalent of 6 years of full time study. 
  • After 6 years, the student may only receive funding through the Federal Direct Unsubsidized Stafford Loan, even if s/he has not borrowed the aggregate limit through the Subsidized Loan ($23,000)
  • For a student who received Subsidized Stafford Loan and does not finish their undergraduate program in 6 years, not only will they no longer qualify for any additional Subsidized Loan, but they will also lose the subsidy on all prior Subsidized Loan after the 6 year point.

How to Use Your federal Loan
 

There are required steps prior to and after using your loan. If you have any problems completing this information, please contact the MMA Loan Coordinator, Marissa Barros at 508-830-5222 or mbarros@maritime.edu.

All first time MMA borrowers must complete Direct Loan Entrance Counseling before their loan can be finalized. 

Visit Studentaid.gov and log in using the box in the upper right corner of the page.  Once signed in, you can select 'complete entrance counseling' and follow the on line instructions to complete the counseling session.  This counseling will provide the student with important information about borrowing through the federal student loan program. The Office of Student Financial Services at MMA will receive an electronic notification when the counseling has been completed.  Students are encouraged to maintain a copy of the confirmation that they receive once the process has been completed.

Studentaid.gov

If your financial aid award includes a Federal Direct Subsidized and/or Unsubsidized Stafford Loan, you are required to sign a Direct Loan Master Promissory Note in order to finalize your loan(s).  Parents who are borrowing through the Federal Direct Parent PLUS Loan program must also sign a Master Promissory Note to finalize the PLUS Loan.  

All first time loan borrowers at MMA are required to fulfill this requirement.  Once a student has completed the Entrance Counseling and signed the Master Promissory Note, there is no need for the student to repeat this process in future years at MMA.

Go to  studentaid.gov and log in using the box located in the top right section of the page.  You should log in using your (student) FSA user id and password (the same one that you used to file your FAFSA each year).

Studentaid.gov

Any student who has had a Federal Direct Subsidized and/or Unsubsidized Stafford Loan as part of their financial aid award is required to complete Federal Loan Exit Counseling before they graduate or withdraw from MMA. The counseling session is performed online. This process will take you through your detailed loan summary for the years you were enrolled, as well as give important information regarding repayment, consolidation, and other loan options. 

Complete Exit Counseling at Studentaid.gov. You will need an SFA User ID in order to complete the exit counseling.   You may already have this ID, as it is required to file the FAFSA.  It is very important that you complete this before you leave the Academy. If a student does not complete Exit Counseling, the student will automatically be assigned a standard repayment term and not be given the option to select the plan that best fits the student's individual situation. 

Studentaid.gov


Please note:  This Exit Counseling Process only covers any Federal Loans that you have borrowed.  It does not include any private, alternative loans that you and/or your parents have borrowed in addition to the Federal Loans that you were awarded as part of the financial aid application process.  Students are welcome to contact our office to determine if you have borrowed any loans in addition to these federal loans.

Loan Debt
 

Approximately 82% of MMA Graduates in the class of 2020 used federal and private loans to help meet their college expenses. Students from the class of 2020 borrowed, on average $22,680 in Federal Direct Stafford Loans (Subsidized and Unsubsidized). Combined with private, non-federal education loans, the total average loan debt for the class of 2020 was $43,069. This loan debt includes all loans with the exception of the Federal Parent PLUS Loan, as this is a loan strictly in the parent's name. Students are encouraged to borrow through the Federal Direct Stafford Loan Program before seeking additional funding through any private, non-federal education loan program.

You can calculate your monthly loan payments by using the Federal Student  Aid Loan Repayment Calculator.

Loan Repayment calculator