SMCC participates in the Direct Loan Program. Direct Loans are low-interest loans for students to help pay the cost of education. The Lender is the U.S. Department of Education rather than a bank or other financial institution. The following link Direct Student Loans is a view of borrower’s limits & requirements. Students must have a completed FAFSA on file and also complete SMCC’s Loan Packet.
Step 1: Online Entrance Loan Counseling
The federal government requires all new borrowers to complete Entrance Loan Counseling prior to disbursement to review your rights and responsibilities as a borrower.
Click here to complete your loan entrance interview. The results will be forwarded electronically to SMCC.
Step 2: Attend Loan Counseling Session
All first time loan borrowers at SMCC are required to attend a Loan Counseling Session. These sessions are held every Tuesday at 4:00 P.M. In order to attend this session you must have already completed the Entrance Loan Counseling, and also have completed a Loan Packet. Please bring a copy of your completed Entrance Loan Counseling as well as a Degree Check sheet which you can obtain from an academic advisor. Be prepared to bring any questions you may have regarding the loan process and your responsibilities and rights in the loan program.
*If you cannot attend this session at the designated time please contact the financial aid office to discuss an alternative time.
Step 3: Master Promissory Note (MPN)
Once your loan has been processed by the financial aid office, you must complete your portion of the Master Promissory Note online.
The Master Promissory Note (MPN) was designed to simplify the student loan process. Every year that borrow, you will sign an MPN. Additional loans during the same year will be based on the same note.
Enrollment
You must maintain at least half-time enrollment at SMCC to receive the funds. Once you have received your loan funds, you must maintain at least half-time enrollment to avoid going into repayment. You must also maintain satisfactory academic progress toward your certificate or degree.
Disbursement
All Loans are disbursed to the school in two equal disbursements. If you choose a Fall/Spring loan you will get one disbursement at the beginning of each semester. If you choose a one semester only loan you will receive the 1st disbursement at the beginning of the semester and the 2nd disbursement after the mid-point of the semester. If you are a freshman or first-time borrower, there is a 30 day delay on your first disbursement only. Before your second disbursement will be released you must complete the online Exit Counseling session.
Repayment Options
You may repay your loan at any time without penalty. Generally repayment begins 6 months after you graduate, or drop below 6 credits. There are several different repayment options for students. In addition to the materials you will receive during your loan entrance counseling, the following website is an excellent guide for loan repayment options: https://studentloans.gov/myDirectLoan/index.action.
Remember that the #1 default prevention measure is GRADUATION; however, if for some reason you must drop out of school or drop below half time, your lender is willing to work with you regarding repayment options Let us know how we can help you to be successful and a responsible loan borrower.
Step 4: Exit Loan Counseling:
Prior to receiving a 2nd disbursement you MUST complete an online Exit Loan Counseling, even though you may not be leaving SMCC. This is part of our debt management policy. If you do not complete the Exit Counseling, your 2nd disbursement may be cancelled.
Federal Stafford Loan borrower rights and responsibilities
Borrower rights:
Your Stafford loan promissory note details your rights and responsibilities as a borrower. Key things you should know:
It’s Your Right to know…
- your principal loan balance.
- when your 1st payment is due.
- the amount of the payments, including number and frequency.
- your discharge, loan forgiveness, deferment and forbearance options.
- your consolidation options.
You also have the right to...
- a 6 month grace period on your Direct Stafford Loans when you have ceased to be enrolled at least half time. Your first payment is due within 60 days after your grace period ends.
- receive appropriate deferments or forbearance if you qualify and request them.
- apply for an in-school deferment while enrolled at least half-time on your Direct Stafford Loan.
- change your repayment plan at any time.
- prepay all or any part of the amount owed without a penalty.
- decline all or part of your loan money before it is disbursed by notifying your school (as explained on the MPN).
- receive a copy of your MPN either before or at the time your loan is disbursed.
receive documentation that your loans are paid in full.
Borrower responsibilities:
Now is the time to be aware of your Responsibilities as a borrower. Remember, you have a responsibility to attend exit counseling before you leave school or drop below half-time enrollment. While you are in school, you are also responsible for maintaining contact with the financial aid office.
Your responsibility is to contact the Direct Loan Servicing Center and your school if you:
withdraw, graduate or fail to enroll in school.
register for or drop to a less than half-time status.
transfer to another school.
change your name, address, phone number or Social Security Number.
change your expected date of graduation.
You also have the responsibility to:
- make monthly payments on your loan after you leave school, unless you have a deferment or forbearance.
- notify the Direct Loan Servicing Center of anything that might alter your eligibility for an existing deferment.
Additional Alternative Loans
If a family must seek additional long term financing for their educational costs and are deemed creditworthy, they may apply online through their own preferred lender or may contact one of these two sources: