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Student Loans
Borrowing from the Federal Government
By completing the FAFSA a student is automatically applying for federal student loans. Loan eligibility will appear in the student's financial aid offer. Once the loan has been accepted, if the student is a first time loan borrower at Massachusetts Maritime Academy, they must complete Loan Entrance Counseling as well as sign a Direct Loan Master Promissory Note, promising to repay the loan. These steps are required to finalize the loan offer.
Federal Direct Subsidized Stafford Loans
- Must be repaid
- Based on financial need
- No interest charged while you are in school at least half-time
- Interest rate for 2024-2025 is 6.53%
- Interest rate based on the 10 year Treasury bill
- 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%
- 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.
Federal Direct Unsubsidized Stafford Loan
- Must be repaid
- Not based on financial need
- Interest is charged while you are in school
- Interest rate for 2024-2025 is 6.53%
- 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%
- 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.
Other, Credit-Based Loans
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
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 $4,500 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)
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 Massachusetts Maritime Academy Loan Coordinator, Marissa Barros at 508-830-5222 or mbarros@maritime.edu.
Step 1: Entrance Counseling
All first time Massachusetts Maritime Academy 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 Massachusetts Maritime Academy 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.
Step 2: Master Promissory Note
If your financial aid offer 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 Massachusetts Maritime Academy 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 Massachusetts Maritime Academy.
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).
Step 3: Exit Counseling
Any student who has had a Federal Direct Subsidized and/or Unsubsidized Stafford Loan as part of their financial aid offer is required to complete Federal Loan Exit Counseling before they graduate or withdraw from Massachusetts Maritime Academy. 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.
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 78% of Massachusetts Maritime Academy Graduates in the class of 2024 used federal and private loans to help meet their college expenses. Students from the class of 2024 borrowed, on average $22,952 in Federal Direct Stafford Loans (Subsidized and Unsubsidized). Combined with private, non-federal education loans, the total average loan debt for class of 2024 was $41,320. 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.
COHORT DEFAULT RATE
Massachusetts Maritime Academy's most recent Three Year Cohort Default Rate was 0.8% (FY18). A cohort default rate is the percentage of a school's borrowers who enter repayment on a Federal Student Loan during a particular fiscal year. Students included in the rate are those who default (don't pay) prior to the end of the second following fiscal year. For example: if a student goes into repayment in June, 2018, and defaults any time between June, 2018 and June, 2020 they would be included in this default rate calculation. The National Average Three Year Cohort Default Rate for FY18 was 7.3.