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Loans

By completing the FAFSA, you will be considered for the Federal Stafford Loan program. Direct Loans are funded by the U.S. Department of Education through your college and are managed by a loan servicer. There are two types of Federal Stafford Loans: Direct Subsidized Loans and Direct Unsubsidized Loans. Find the details about both programs to make an informed decision about funding your college education.


Direct Subsidized Loans

Your eligibility for the Direct Subsidized Loan is based on your financial need and your undergraduate academic level. Repayment is deferred until six months after you graduate or cease to be enrolled at least half-time, and the government pays the interest while you are enrolled in school. Direct Subsidized Loan maximums vary according to academic level and dependency status. In addition, there are lifetime loan limits.

Time Limit to Receive Subsidized Loans
If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.”

For example, if you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years). Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.

Direct Subsidized Loan Limit


Direct Unsubsidized Loans

Your eligibility for the Direct Unsubsidized Loan is not based on financial need. You may borrow the cost of education minus all other financial aid you receive, up to the Direct Loan maximum for your academic level. The interest on the Direct Unsubsidized Loan accrues from the date of disbursement. You have two choices for paying interest: you may pay it while you are enrolled full-time, or it can accrue and become part of the principal that you will owe. You begin making payments six months after you graduate or cease to be enrolled at least half time.

Rates

Direct Loans are low-interest loans to help you pay for the cost of your education after high school. The lender is the U.S. Department of Education, though most of the contact will be with the financial aid office at Fox Valley Tech. 

See Current Interest Rates

The Fox Valley Technical College 3-year Cohort Default Rate is 18.9%

Dependency Status

Dependency is not based on your age, but on a series of questions that you answer on the FAFSA. Dependent students must provide both student and parent information on the FAFSA.

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Loan Limits

Maximum Federal Direct Loan amounts vary according to academic level and dependency status. There is also a maximum lifetime limit that you can borrow in Direct Loans. Once you reach these loan limits, you cannot borrow Direct Loans until the loans are paid down.

View Loan Limits

If you are an independent student, you may request additional loan funds by filling out the Additional Loan Request form. If you request more than your eligibility allows, the loan will be certified to your maximum eligibility.

Loan Requirements

If you are a first-time Direct Loan borrower, you must complete an electronic Master Promissory Note and electronic Loan Entrance Counseling before you can receive funds.

You are also required to complete Direct Loan Exit Counseling when you graduate or leave Fox Valley Technical College. During the exit counseling session, you will review your rights and responsibilities as a borrower.

Starting in the 2021-22 school year, the Dept of Education will require all student loan borrowers and Parent PLUS loan borrowers to complete the Annual Student Loan Acknowledgment every school year at https://studentaid.gov/asla/.

Complete Loan Requirements

Loan Repayment

The Direct Loan program offers a variety of loan repayment plans. You can choose your repayment plan when you begin repayment and can switch your plan if your needs change.

To find out more about repayment options before receiving a Direct Loan, you may call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you currently have a Direct Loan and would like the exact payment amount on your loan, contact your loan servicer.

Visit the Federal Student Aid website to view information about all of the federal student loans you have received and to find contact information for the loan servicer or lender for your loans.

You will need your Federal Student Aid ID and password to access your information.

Learn More About Loan Repayment

graduation cap and education fund

More Loan Options

Direct Plus Loans (for Parents)

The Direct PLUS Loan is a federal loan program for parents of dependent undergraduate students. Generally, parents are eligible if they have a good credit history, are not in default on a federal student loan, and meet the other eligibility requirements outlined in the loan application. Parents may borrow up to the amount of the cost of education minus other financial aid received, including any other educational loans. The interest rate is fixed and there is an origination fee that is deducted from the loan before disbursement.

Your Direct PLUS Loan enters repayment once your loan is fully disbursed (paid out) unless you request a deferment. Parent Direct PLUS Loan borrowers may choose from several repayment options. Your loan servicer will notify you when your first payment is due.

To submit a Direct PLUS Loan application, please visit Financial Aid Forms and find the Federal Direct Parent PLUS Loan Request for the correct school year.

 

Private Loans

Private loans are non-federal educational loans that are typically offered by private lenders to assist with educational and living expenses not covered by other financial aid. In general, you may borrow up to the cost of education minus all other financial aid you receive. Your eligibility for a private loan is determined by the difference between your total Cost of Attendance and any other financial aid.

For many students and parents, private loans represent an important resource to help finance educational expenses. Private loans can help fill the gap between need-based financial aid and your total educational costs.

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