Federal Direct Loan Program Repayment
All Direct Subsidized and Unsubsidized loans are solely in the student's name, which means you are the only individual responsible for repayment.
You will receive information from the Department of Education regarding the servicer of your loans. The servicer is responsible for collecting payments for your loan(s). You should receive periodic notifications from the servicer once you enter your grace period and then when you begin repayment. You should visit the National Student Loan Database for Students (NSLDS) to review your loans and to identify your servicer. All federal loan information will be submitted to NSLDS and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
When you graduate, withdraw or drop below part-time status your direct loans will enter into your six month grace period, in which no payment from you is required. When you graduate, drop below full-time or cease to attend, you will need to complete exit counseling at Studentloans.gov website. When exhaust your grace period, you must begin repayment toward your direct loans.
The standard repayment period for direct loans is 10 years. The Department of Education does offer several different types of repayment for special circumstances that may change the terms of repayment and/or change the required payment amount. It is recommended that you review all the repayment options available at to you at the Studentloans.gov website.
Please see the Federal Stafford Loan Sample Repayment Page for sample repayment chart.
Institutional Loan Repayment
All institutional loans are solely in the student's name. You are the only individual responsible for repayment. All repayment of institutional loans is to MCCN as detailed in the MCCN Master Promissory Note and reviewed during “in-person” exit counseling with a MCCN Financial Services representative.
Borrowers must make all payments to MCCN as directed at the exit counseling session.
For additional information, contact the MCCN Financial Services Office.
Excessive student loan debt is a significant issue for today's society. Before you graduate or leave MCCN, you should consider the management of any debt you have accumulated. MCCN Financial Services representatives are available to assist you with financial literacy and planning tools. You should consider the following when making plans to repay your student loan debt:
- Calculate your Monthly Payment: The payment calculator at the Federal Student Aid website is a very useful tool.
- Create a Budget: Smart financing planning involves creating a budget that allows you to map out your bills and income for a week, month or longer. You should include all your student loan debt and all other bills and obligations to pay in your budget plan.
- Consider Federal Loan Consolidation: Consolidation of federal loans allows you to collapse your individual federal loans into a single loan, with a new interest rate and repayment options and a single payment. Consolidation may make the repayment of your federal loans easier. You can review information about federal loan consolidation at the Federal Student Aid website.
- Pay more than the minimum: Sometimes you may only have enough to pay the minimum amount due; however, the longer you take to pay off a loan, the more you will pay. The length of your loan repayment period directly affects the amount of interest that accumulates. If possible, consider paying more than the minimum due each month. You should always contact your Servicer/Lender if you intend to pay more than the minimum due to ensure your extra payments are being applied to principal loan balances. Additionally, you want to ensure that there are no penalties or fees for paying more or early on your loans.
Trouble Repaying Loans
Making the appropriate on-time payments for your loans is extremely important to your overall financial status. Defaulting on one or more student loans can have severe consequences for you.
If you are having difficulty making payments, you should immediately contact your lender/servicer and discuss the situation. You may be eligible for temporary deferment, forbearance of loan repayment or income based repayment (IBR) depending on you circumstances.
For Federal Direct Loans, visit the Studentloans.gov website for additional information on deferments, forbearances and IBR. Contacting your loan servicer directly for information is also recommended.
For institutional loans, you should contact MCCN.
For Private Education Loans, contact your lender directly.
Completing Entrance and Exit Counseling
First-time borrowers at MCCN need to complete Entrance Counseling. Loan funds will not post to your student account until you have completed this requirement. Entrance Counseling details your rights and responsibilities as loan borrower and reviews the regulations governing each loan program. This includes interest rates, grace periods, deferment/forbearance options, prepayment, consolidation, and other general repayment obligations. You are also informed of the consequences of not repaying your student loans (default) and of various repayment strategies.
- You can complete entrance counseling for Direct Subsidized, Unsubsidized and Graduate PLUS Loans at the studentloans.gov website.
- Students entering in a MCCN graduate program must complete a new Entrance Counseling session.
- Contact Office of Financial Aid at (614) 234-1842 regarding questions about the borrower’s rights and responsibilities or the terms and conditions of the loan.
As a borrower of a federal loan, you are required to complete exit counseling once you graduate, drop below part-time or stop enrollment at MCCN. Exit counseling covers all Entrance Counseling topics with an emphasis on repayment strategies. A hold will be placed on your transcripts until Exit Counseling is completed.
Exit Counseling requires the following:
- Complete exit counseling for Direct Subsidized and Unsubsidized loans at the studentloans.gov website
- Your Social Security number
- Your driver's license number and state of issuance
- Name, address, and telephone number of your next of kin (nearest relative)
- Name, address, and telephone number for two references whom the holders of your loans could contact if they should lose contact with you
- Name, address, and telephone number of your expected employer (if known)
- You should know how much you owe on each loan, your lender(s), and date repayment begins. Your lender (or servicer) will give you this information, but if you do not receive this information from your lender, you are still obligated to pay.
The Federal Student Aid Ombudsman Group of the U.S. Department of Education is dedicated to helping resolve disputes related to Direct Loans, Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans. The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about your federal student loans. The Ombudsman Group may be contacted at:
U.S. Department of Education
FSA Ombudsman Group
830 First Street, N.E., Mail Stop 5144
Washington, DC 20202-5144
Additional information may be found at: https://studentaid.ed.gov/repay-loans/disputes/prepare/contact-ombudsman.
Institutional Loan Programs
Mount Carmel College of Nursing has institutional loan programs that are reserved for students with extenuating circumstances and who meet specific criteria. MCCN Financial Services will make determinations on a case-by-case basis for students who request additional financial assistance.
The following apply to institutional loans:
- Student must demonstrate significant financial need and be unable to utilize Direct PLUS or Private Education Loans or other financing options to pay an outstanding balance
- Interest rates vary
- Repayment begins after your enrollment has ended
- Interest does not accrue until the start of your repayment period
If you are selected to receive an institutional loan, you will be contacted by Student Services with further information.
Completing the Master Promissory Note
A promissory note is the contract between you and your lender that sets the terms of the loan you are taking. It is very important that you carefully read through each promissory note before signing so that you fully understanding your rights and responsibilities as a borrower.
Direct Subsidized and Unsubsidized Loans
If you are offered a Subsidized or Unsubsidized Direct loan, you will need to complete a Master Promissory Note electronically at the Studentloans.gov website. You will need your FAFSA PIN and at least two references to complete your Master Promissory Note. The Note is valid for 10 years and will only need to be completed once for all Direct Subsidized and Unsubsidized loans you receive for your program at MCCN. If you continue your education to one of MCCN’s graduate programs, a new Master Promissory Note must be completed for that program of study.
Parent PLUS Loan
If your parent is approved for a Parent PLUS Loan, they will need to complete a Master Promissory Note electronically at the Studentloans.gov website. They will need their FAFSA PIN and at least two references to complete their Master Promissory Note. A Master Promissory Note will need to be completed every year that your parent borrows PLUS Loan for your attendance at MCCN.
Graduate PLUS Loan
If you're approved for a Graduate PLUS loan, you need to complete a Master Promissory Note electronically at the Studentloans.gov website. You will need your FAFSA PIN and at least two references to complete your Master Promissory Note. A Master Promissory Note will need to be completed every year that you borrow a Graduate PLUS for your attendance at MCCN.
If you're offered an Institutional Loan you need to complete a Promissory Note in person with a Financial Services representative. The Promissory Note is valid for the Institutional Loan you are accepting. A new promissory note is required for each Institutional Loan accepted and must be completed every year that an institutional loan is utilized.
Loans are a financial aid resource and most students at some point in their college careers need to borrow loan funds. Loans are available through many sources including the federal government, the state, the institution and private lenders.
Students that borrow should research the terms and agreement of any loan, including Federal Stafford loans, before borrowing. Borrowing requires a commitment/obligation to repay and therefore it is important to understand your responsibilities and rights as a student loan borrower.
The Federal Government is the largest education loan lender. The US Department of Education offers three different types of Federal Direct Loans depending upon your student type: Subsidized, Unsubsidized and PLUS (Graduate and Parent). Students must be enrolled at least half-time to be eligible for federal student loans. Repayment of student loans begins six months after graduation or six months after dropping below half-time status. Parents have the option of entering repayment immediately after the loan is fully disbursed or deferring repayment until the student graduates or drops below a half-time status.
There are two types of Federal Direct Stafford Loans:
Federal Direct Subsidized Stafford Loan
This is a need-based loan for which the interest is paid by the government while the student is in school at least half-time. Interest will begin to accumulate at the start of the student’s 6 month grace period (the period of time before repayment, which occurs after the student is no longer in school at least half time). Students who are new borrowers beginning July 1, 2013, may receive the Federal Direct Subsidized Stafford Loan for a timeframe equivalent to 150% of the length of the student’s degree or certificate, provided that all other eligibility criteria are met. In addition, any previously-borrowed subsidized loan will begin to accrue interest at the time that the student reaches the 150% timeframe. Click here for more information about this limit.
Federal Direct Unsubsidized Stafford Loan
There is no financial need requirement to be eligible for an Unsubsidized Loan. However, total financial aid, which includes the Unsubsidized Loan, cannot exceed the cost of education. Unlike the Subsidized Stafford Loan, interest accumulates while the student is attending school and can be paid monthly or capitalized (added to the total loan balance) until the student leaves school.
Federal Direct PLUS (Parent and Graduate)
Parents may borrow funds to cover educational costs for their dependent students. There is no financial need required to be eligible; however, total financial aid cannot exceed cost of education. The applicant’s credit history will be evaluated in determining loan eligibility. The maximum award amount is the student's cost of attendance less other financial aid, subject to credit approval. Application for the PLUS includes the Free Application for Federal Student Aid (FAFSA) and the Federal Direct Parent PLUS application and Master Promissory Note (MPN). The application and MPN may be completed at studentloans.gov.
Ohio State Loan Program
The Nurse Education Assistance Loan Program (NEALP) is a state program for nursing students who, upon completion of their education, plan to practice nursing in the state of Ohio. Students must be admitted to the nursing program to be considered. The loan is based on financial need. After graduation, the student may be eligible for loan forgiveness at the rate of 20 percent per year and a maximum loan cancellation of 100 percent. For more information, refer to the NEALP website listed below or call the Ohio Board of Regents State Grants & Scholarships Office at 1-888-833-1133. The award amount is up to $1,500 per year and may be renewed for a maximum of four years. Students must be enrolled at least half-time. Students apply directly from the state of Ohio. The NEALP application forms are available on the Ohio Board of Regents website. Applications are available beginning January 1 and must be submitted by July 15 preceding the fall semester. Students must complete the Free Application for Federal Student Aid before submitting the NEALP application.
It is also important to plan for your future now. Only borrow what you need. Over borrowing has become an epidemic in the United States. Responsible borrow demands responsible decisions. The following pages provide important information on loan programs, the necessary paperwork and repayment.
Additionally, the FinAid.org website is a useful resource for students and parents regarding borrow for college.
Private Loan Programs
A private education loan is a credit-based consumer loan that can be used to pay any education-related expenses, including tuition and fees, housing, meals, books, personal/miscellaneous and transportation.
Federal regulations require that a student’s eligibility for federal aid be reviewed prior to processing a private loan. To determine your eligibility for the private loan, complete and submit a FAFSA. If you do not intend to use any federal aid, you must send notification to MCCN electronically indicating that you are not accepting any federal funds for the academic year.
Eligibility for a private education loan is made by the financial institution you select and may be based on the following:
- U.S. Citizen or permanent resident
- Credit History
- FICO Score
- Debt-to-income ratio
Once the loan is approved, your lender will issue three separate disclosure statements detailing the loan agreement. All three must be processed by the lender before a loan certification request will be sent to MCCN.For additional information regarding the self-certification process please see Private Loan Self Certification Process.
A co-signer may be required in order to be approved for a private loan; please refer to your lender for details. A co-signer release may apply once you enter into repayment. Refer to your lender for additional details.
The annual limit of a private education loan is determined by the amount of your Cost of Attendance budget not covered by your financial aid and other financial resources. See COA on your financial aid award notification, the MCCN website or CARMELink.
Interest rates and repayment options vary by lender. Typically interest rates are variable and interest starts to accrue upon disbursement of your loan.
The first step in applying for a private education loan is to become an educated consumer. Review all of your options for a private loan. Since there are many different lenders available for you to choose from, MCCN recommends that you review carefully the options/terms that each lender is providing.
While MCCN does not recommend one specific lender for you to use, we have assembled a list of private education loan providers that have been vetted and used by previous MCCN private loan borrowers within the past three years. These lenders may offer you the best options and services. To review information on these lenders, please go to FAST Choice - Private/Alternate Loan application.
If you would like to choose a lender not listed on the FAST Choice website, complete the loan application directly with your chosen lender. The lender will then forward your application to MCCN for certification.
Many scholarships and grants are offered by private sources, such as fraternal and religious organizations, labor unions, professional associations, social groups, and ethnic associations.
Because they are private and therefore not administered by MCCN, it is up to you to research and apply for them on your own. The best place to start your research is with any organization you or a family member has an affiliation with (such as your or your parents' employer, church or religious organization). If you're a current high school student, you should contact your guidance office for information on local scholarships.
Much of your research will involve using the internet. It is important to be careful when reviewing information online. MCCN recommends that you do not use any fee-based service to look for private scholarships. Below are a few scholarship search engines that are free:
Report Your Private Funding
Any outside funding you receive must be taken into account when your eligibility is determined for need-based financial aid. If you have been offered funding from a source outside the college, you must submit all information to MCCN Financial Services. Outside funding you are receiving may result in a change to your eligibility for the financial offered by MCCN.