What is a Student Loan?
There are two types of Direct Loans:
- Subsidized – If you meet certain financial need (results of the FAFSA) criteria, the federal government will pay the interest on your loan while you attend school at least half-time and during the times when you qualify for an authorized deferment.
- Unsubsidized – If you do not meet the financial need criteria to qualify for a subsidized loan, you may be eligible for the unsubsidized loan.You are responsible for all the interest on the loan. You may choose to pay it as you go or let it accrue (build up) and pay it back when you begin paying your loan back.
Failure to repay a student loan jeopardizes your future eligibility for financial aid and also impacts your credit worthiness for any future borrowing, including car loans, home mortgages or other consumer loans.
Watch Video: What is a Loan?
Important Loan Information
- Per federal regulations Schoolcraft College is now required to begin disbursing all federal student loans in two equal disbursements. If you are eligible for a loan refund, you won’t be getting the full amount until the middle of the semester. Please see Schoolcraft’s current disbursement dates in the first section under, Loan Disbursement Dates.
- You have the right to cancel all or a portion of the loan funds you have been awarded. To cancel a loan, submit a written or emailed request to the Office of Financial Aid prior to the disbursement date to avoid any loan fees. After the disbursement date, please contact the Office of Financial Aid within 14 days of the disbursement date for assistance on cancelling loans funds.
- In addition, we recommend that all borrowers complete the Financial Awareness Counseling located at www.studentloans.gov after receiving their first loan disbursement at Schoolcraft College.
- Once students have borrowed more than $31,000, Schoolcraft College requires the student to complete a process called Debt Management. The form can be found under the financial aid form section of the website.
- Interest Rates for 2022-2023:
- Subsidized Direct Loan: 4.99%
- Unsubsidized Direct Loan: 4.99%
Annual Loan Limits
*You are considered a sophomore once you have successfully completed and/or transferred in 26 or more credits at the 100 level or above AND you are in a 2 year degree/transfer program.
Undergraduate Total/Lifetime Loan limits
|Total (including subsidized)||$31,000||$57,000|