The William D. Ford Direct Loan Program

Forsyth Technical Community College participates in the Federal Direct Loan Program.  Federal Direct Subsidized and Unsubsidized loans will be made available to eligible student borrowers.  Federal Direct PLUS loans will be made available to eligible parent borrowers.  These are loans which must be repaid!

The Federal Direct Loan Program offers the following types of loans:

  • Subsidized: for students with demonstrated financial need.  The government pays the interest due on the loan while a student is enrolled at least half-time (6 credit hours), and during deferment periods.
  • Unsubsidized: for students regardless of financial need.  No payment is required until the student drops below half-time enrollment; however, interest begins accruing from the date of disbursement.   By making interest payments while in school, a student can avoid capitalization of the interest. When interest is capitalized, it is added to the principal amount of the loan upon which further interest charges are based.
  • PLUS:  for parents of dependent students regardless of financial need.  Parents may borrow up to the cost of attendance less any other aid received by the student annually.  PLUS loans feature low interest rates and long-term repayment options.  A credit check will be performed to determine eligibility.

Annual Loan Limits – Dependent Students

Base Amount (may be subsidized, unsubsidized, or both) Additional Unsubsidized Amount Total Subsidized and Unsubsidized Amount
1st year, Fewer than 33 credits earned up to $3,500 per year up to $2,000 per year up to $5,500 per year
2nd year, 33 or more credits earned up to $4,500 per year up to $2,000 per year up to $6,500 per year
Undergraduate aggregate maximum up to $23,000 up to $8,000 up to $31,000

* Maximum Annual Loan Amounts

Annual Loan Limits – Independent Students

Base Amount (may be subsidized, unsubsidized, or both) Additional Unsubsidized Amount Total Subsidized and Unsubsidized Amount
1st year, Fewer than 33 credits earned up to $3,500 per year up to $6,000 per year up to $9,500 per year
2nd year, 33 or more credits earned up to $4,500 per year up to $6,000 per year up to $10,500 per year
Undergraduate aggregate maximum up to $23,000 up to $34,500 up to $57,500

Note: These annual loan limit amounts are the maximum yearly amounts a student can borrow in both subsidized and unsubsidized loans.  Because
a student can not borrow more than the cost of attendance as determined by the school, minus any other financial aid awarded, the actual award amount received may be less than the annual maximum amounts. Also, the annual loan limits assume that the program of study is at least a full academic year and that a student is not receiving a Direct Loan at another school for the same period of
enrollment.

How to Apply

New Forsyth Tech Student Borrowers

To receive a Federal Direct Loan:

  1. Complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov. Be sure Forsyth Tech’s school code 005317 is listed on your application.
  2. Respond promptly to all requests for additional information from the Office of Student Financial Services.
  3. Once your file is complete, we will determine if you are eligible for any state or federal grants.

We will not automatically award a loan to you. Once you have completed your financial aid file, you may then request a Federal Direct Loan by completing the following:

  1. Students must complete Loan Entrance Counseling online at www.studentloans.gov on an annual basis.

  1. Students must complete the Direct Loan Master Promissory Note (MPN) online at www.studentloans.gov for the Subsidized/Unsubsidized Loan. The parent of a dependent student must complete the Direct PLUS Loan Request process online at www.studentloans.gov to determine their eligibility for a PLUS loan.

You will need the Personal Identification Number (PIN) issued to you by the US Department of Education when you completed your FAFSA to sign the MPN. If you have forgotten your PIN, you can retrieve it through www.studentloans.gov.

You are not required to complete a new MPN if you previously borrowed a Federal Direct Loan at another school, and your existing MPN is less than ten years old. Please notify the Office of Student Financial Services
by email to vlenderman@forsythtech.edu if you have completed a Direct Loan MPN previously before completing this step.

  1. The Office of Student Financial Services will notify you of your loan eligibility. You will be awarded the maximum amount you are eligible to borrow.
  2. You have the right to reduce or decline the amount you are offered by completing the “Request to Reduce or Cancel a Direct Loan Award” form. Only borrow what you absolutely need to pay your educational expenses. Remember – this is a loan. It must be repaid! Use available Budget and Repayment Calculator tools to determine how much you need to borrow, and how much you will be repaying later.
  3. Once the loan is processed, you will receive a disclosure statement from the US Department of Education explaining the type of loan, loan amount, and anticipated disbursement dates.
  4. You must be enrolled at least half-time (6 credit hours) to receive the proceeds of the loan.
  5. Your loan will be disbursed in two installments. The first disbursement cannot be more than 1/2 of the total approved loan amount, minus fees. For loans covering more than one semester (i.e. Fall & Spring), one disbursement will be made each semester. For loans covering only one semester, the second disbursement will occur after 50% of the semester has passed.

All steps must be completed before any funds can be disbursed.

Returning Forsyth Tech Student Borrowers

To receive a Federal Direct Loan:

  1. Complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov. Be sure Forsyth Tech’s school code 005317 is listed on your application.
  2. Respond promptly to all requests for additional information from the Office of Student Financial Services.
  3. Once your file is complete, we will determine if you are eligible for any state or federal grants.

We will not automatically award a loan to you. Once you have received your email notification, you may then request a Federal Direct Loan by completing the following:

  1. Students must complete Loan Entrance Counseling annually at www.studentloans.gov to request a Direct Loan.

  1. The parent of a dependent student must complete the Direct PLUS Loan Request process online at www.studentloans.gov to determine their eligibility for a PLUS loan.
  2. The Office of Student Financial Services will notify you of your loan eligibility. You will be awarded the maximum amount you are eligible to borrow.
  3. You have the right to reduce or decline the amount you are offered by completing the “Request to Reduce or Cancel a Direct Loan Award” form. Only borrow what you absolutely need to pay your educational expenses. Remember – this is a loan. It must be repaid! Use available Budget and Repayment Calculator tools to figure out how much you need to borrow, and how much you will be repaying later.
  4. Once the loan is processed, you will receive a disclosure statement from the US Department of Education explaining the type of loan, loan amount, and anticipated disbursement dates.
  5. You must be enrolled at least half-time (6 credit hours) to receive the proceeds of the loan.
  6. Your loan will be disbursed in two installments. The first disbursement cannot be more than 1/2 of the total approved loan amount, minus fees. For loans covering more than one semester (i.e. Fall & Spring), one disbursement will be made each semester. For loans covering only one semester, the second disbursement will occur after 50% of the semester has passed.

All steps must be completed before any funds can be disbursed.

Graduating or Leaving Forsyth Tech

All students who receive a Federal Direct Loan at Forsyth Tech MUST complete Exit Counseling when they drop below half-time enrollment, leave the college or graduate. Click on this link to complete Exit Counseling online.

Resources

  • To determine what type of loan you have, how much your loan balance or total debt is, or who your loan servicer is: Call 1-800-4-FED-AID or check the National Student Loan Data System at NSLDS Student Access.

  • To resolve a problem with your loan, request payment relief, cancellation or discharge, contact your loan servicer.
  • If you have further concerns or complaints, contact the Federal Student Aid at 1-877-557-2575 or at the Federal Student Aid website.
  • When you graduate or leave Forsyth Tech, you may want to consider consolidating your student loans in order to have one single payment, rather than several payments for different loans or to different lenders. For more information on loan consolidation, click this link: Loan Consolidation.

Student Lending Code of Conduct

The Higher Education Opportunity Act of August 14, 2008 includes provisions that campuses participating in Federal Student Aid loan programs publish a code of conduct which describes prohibited practices related to loan programs. To avoid any conflict of interest with the responsibilities of a Forsyth Technical Community College employee with respect to student loans, the Forsyth Tech Code of Conduct prohibits the following:

  • Revenue sharing arrangements with any lender.
  • The solicitation or acceptance of gifts from a lender, guarantor or servicer by anyone with responsibilities with respect to loans at the institution.

A gift is defined as: any gratuity, favor, discount, entertainment, hospitality, loan, or other item having monetary value of more than a de minimus amount.

A gift is NOT: A brochure used for default aversion or financial literacy; food, training, or informational material provided as part of training to improve service; entrance or exit counseling assistance that does not promote a lender; philanthropic contributions unrelated to loans; state education grants or scholarships.

  • Receipt of any fees, payments or other financial benefits (including a stock purchase option) by anyone with responsibilities with respect to loans from a lender as compensation for any type of consulting arrangement or contract to provide services to a lender or on behalf of a lender relating to education loans.
  • The assignment of a first-time borrower’s loan to a particular lender or refusing to certify or otherwise delay certification of any loan regardless of the lender or guaranty agency the borrower selects.
  • The acceptance of any funds to be used for private education loans in exchange for the institution providing concessions to the private lender.
  • Requesting or accepting assistance with call center staffing or financial aid office staffing from any lender.
  • Any employee with responsibilities with respect to financial assistance at the institution who serves on an advisory board or commission of a lender or guarantor may not accept anything of value from the lender or guarantor except reimbursement for the reasonable expenses of serving on the board or commission.

Preferred Lender List

Forsyth Technical Community College does not provide a lender list for private educational loans. Students who choose to borrow privately should contact the student’s bank, credit union, or other lender and carefully compare terms and rates.