Forsyth Technical Community College

Forsyth Technical Community College will participate in the Federal Direct Loan Program beginning with the 2011-12 academic year.  Federal Direct Stafford loans will be made available to eligible student borrowers.  A Direct Stafford loan may be Subsidized, Unsubsidized or both.  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 Stafford:  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), during the grace period, and during deferment periods.
• Unsubsidized Stafford:  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.

* Maximum Annual Loan Amounts

* Maximum Annual Loan Amounts

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. If you are, you will receive an award letter email notification. If you are not, you will receive an email notifying you that you may be eligible to apply for a loan.
   
   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:
4. Watch the Direct Loan Counseling Video 'Entrance Counseling', available in English or Spanish at this link. Also attend one of the Loan Q&A sessions being offered by the Office of Student Financial Services.
5. You must complete Loan Entrance Counseling online at www.studentloans.gov.



6. Complete the Direct Stafford Loan Master Promissory Note (MPN) online at www.studentloans.gov for both Subsidized and Unsubsidized Stafford loans.   The parent of a dependent student completes the Direct PLUS Loan Request process online at www.studentloans.gov 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 if you have completed a MPN previously.
7. The Office of Student Financial Services will notify you of your loan eligibility.  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.
8. 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.
9. You must be enrolled at least half-time (6 credit hours) to receive the proceeds of the loan.
10. 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 75% of the semester has passed.

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

All students who receive a Federal Direct Stafford 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 Ombudsman at 1-877-557-2575 or at Ombudsman.
• 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.

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.