Direct Student Loans
Student loans must be processed and awarded prior to the last day of the loan period. Note: typical office processing times apply; documents submitted close to this deadline are not guaranteed to be approved in time. Loan applications submitted after this date will be automatically denied.
Eligibility and Application
Schoolcraft College does not process any loans other than the direct student loans (subsidized and unsubsidized) offered through the Department of Education. Additionally, the college does not certify private loans or parent loans.
Student loans are not automatically awarded or offered at Schoolcraft. Students must meet all criteria, and complete all required steps, then can submit a Loan Request on Ocelot Access.
Eligibility includes but is not limited to:
- Have earned a high school diploma or eligible equivalency.
- Be admitted to Schoolcraft in a valid academic program.
- Not be in default or have an overpayment on federal aid.
- Be meeting SAP (including approved appeals)
Required steps includes but is not limited to:
- Complete the applicable year FAFSA, including all requested documents.
- Complete the Loan Entrance Counseling and Master Promissory Note on studentaid.gov.
- Students must be enrolled at least half-time (six TIV credits per semester) at the time of each disbursement to be eligible to receive a loan.
Other Loan Information
By federal regulation, Schoolcraft must disburse loans in two payments. Disbursement dates will be affected by the timing of the student’s courses and/or the timing of the loan request.
Annual (includes loans at any institutions during the academic year) and lifetime loan limits apply and are set by the Department of Education. These include the following:
Annual (Fall – Spring/Summer) Limits
| Dependent Students | Independent Students | |
|---|---|---|
| Freshman (0-25 credits) | $5,500 No more than $3,500 in subsidized loans | $9,500 No more than $3,500 in subsidized loans |
| Sophomore (26+ credits, including transfers) | $6,500 No more than $4,500 in subsidized loans | $10,500 No more than $4,500 in subsidized loans |
Aggregate (Lifetime) Limits
| Dependent Students | Independent Students | |
|---|---|---|
| Aggregate (lifetime) limit | $31,000 No more than $23,000 in subsidized loans | $57,500 No more than $23,000 in subsidized loans $138,500 for graduate students (includes all loans borrowed as undergraduates) No more than $65,500 in subsidized loans |
Loan Servicer & Repayment Information
Direct loans are federal loans, and you will be assigned a loan servicer after disbursement of your loan. The Department of Education charges a fee called an Origination Fee to all loans. The current fee amount can be found at studentaid.gov (for loans serviced between 10/1/2020 and 10/1/2025 the fee is 1.057%).
Direct loans accrue interest. Unsubsidized loans accrue interest beginning when the loan is disbursed. Subsidized loans accrue interest beginning six months after students graduate or stop attending at least halftime. Current interest rates can be found on studentaid.gov (the 2024-25 interest rate is 6.53%).
Loans must be repaid; payments will be made through your loan service. To find out who your loan servicer(s) is, login to studentaid.gov. All questions regarding repayment options including deferments and forbearances should be directed to your loan servicer.