DIRECT LOAN
Information
OTC will participate in the Federal Direct Loan Program that allows students to borrow money at a low interest
rate for educational expenses. OTC will participate in Subsidized and Unsubsidized loans only. Loans are funds
that have to be
REPAID
and students must meet loan eligibility requirements.
STUDENT LOANS
A
SUBSIDIZED
Federal Direct Loan is a need-based loan, which means the amount you may be eligible to
receive is based on your financial need. The federal government pays the interest that accrues on a loan while
you are in school at least half-time (6 credit hours), during your grace period after you leave school or
graduate, and during eligible deferment periods.
An
UNSUBSIDIZED
Federal Direct loan is a non-need based loan, which means the amount you may be eligible
to borrow is not based on your financial need. If you receive an unsubsidized Direct Loan, you will be
responsible for all interest that accrues on the loan from the date of disbursement forward.
STUDENTS MUST MEET LOAN ELIGIBILTY REQUIREMENTS
Citizenship-
You must be a U.S. Citizen or an eligible non-citizen
Enrollment-
You must be accepted for enrollment and enrolled at least half-time (6 hours)
in an eligible program leading to an associate degree, diploma or eligible certificate
program.
Academic-
You must be maintaining satisfactory academic progress.
Non-Default-
You must not be in default on an educational loan or owe a refund on an
educational grant.
High School-
You must have a high school diploma or GED
Law-
You must meet all of the other Federal Direct Loan program eligibility requirements
prescribed by law at the time your loan application is processed.
Financial Need-
You must successfully complete the
FAFSA
(Free Application For Federal
Student Aid) and submit any required documentation to the OTC Financial Aid Office to
complete your student financial aid file.
Loan Counseling-
You must complete Loan ENTRANCE Counseling before student loan
funds can be disbursed to your account. In addition, you must complete EXIT Counseling
upon leaving school or dropping below half-time (6 hours) enrollment.
Master Promissory Note (MPN)-
All students must have a signed MPN.
FOLLOW THESE STEPS TO APPLY FOR FEDERAL
SUBSIDIZED/UNSUBSIDIZED LOANS
1.
Complete the FAFSA (Free Application for Federal Student Aid) at www.fafsa.ed.gov using your four-digit
federal PIN number. Ogeechee Technical College’s school code is 030300.
*
If you do not have a federal PIN number, go to www.pin.ed.gov to apply
2. If chosen for Verification, submit all missing information.
*Loans cannot be determined and will not be processed until the verification process is complete.
3. Complete in full the OTC loan application in blue or black ink and return to the Financial
Aid Office.
*Incomplete forms or forms not completed in ink will not be processed.
4. Complete the online ENTRANCE Counseling at https://studentloans.gov
*If you have completed ENTRANCE Counseling for a prior school year or for a prior school, the site will
alert you of this. HOWEVER
..
.you must continue and complete the ENTRANCE Counseling for OTC.
Inside the “Manage my Direct Loan” box, click the “Sign In” tab
Enter your personal information. Use your FAFSA PIN to sign in
Click the “Entrance Counseling” link on the left of screen
Click “Complete Entrance Counseling”
Select “Undergraduate Student”
Read the material and answer the questions
Follow all instructions until you receive a confirmation message
5. Complete the MPN (Master Promissory Note) at https://studentloans.gov
*If you have completed an MPN within the last ten years, you should not have to complete another
MPN at this time. However, if there has been a year or more of loan inactivity, your MPN may be in an
inactive status and further action may be required.
Inside the “Manage my Direct Loan” box, click the “Sign In” tab
Enter your personal information. Use your FAFSA four-digit PIN to sign in
Click the “Complete MPN” link
Click the “Subsidized and Unsubsidized” link (please note that all OTC students are “Undergraduate”
students)
Enter your information and click “Continue” at the end of each page. When completing step 3, you must
open and read all 4 items before you can proceed.
Review and sign your Master Promissory Note
Follow all steps until you receive a confirmation message
6. EXIT Counseling can be completed at https//studentloans.gov or
www.nslds.ed.gov
You will be required to complete EXIT Counseling if your enrollment falls below 6 credit
hours. This may occur because of dropped classes or graduation. A hold will be placed on
your account until this is completed.
After completing the above steps, we can process your loan application. Please be aware that loan processing is a process that may take 4-6 weeks to complete. Once your application is processed, your award will be posted to your Banner account and you may view it under your Authorized Aid. The disbursement dates on Banner are the dates that your information is released from Financial Aid to the Business Office. The Business Office then has 14 days to issue you a refund if your file is complete and all requirements have been met. Refunds are processed approximately every two weeks after the first refund issuance of the term.
Direct Loan
FAQ’s
What is a subsidized federal direct loan?
A
SUBSIDIZED
Federal Direct Loan is a need-based loan, which means the amount you may be
eligible to receive is based on your financial need. The federal government pays the interest
that accrues on a loan while you are in school at least half-time (6 credit hours), during your
grace period after you leave school or graduate, and during eligible deferment periods.
What is an unsubsidized federal direct loan?
An
UNSUBSIDIZED
Federal Direct loan is a non-need based loan, which means the amount you
may be eligible to borrow is not based on your financial need. If you receive an unsubsidized
Direct Loan, you will be responsible for all interest that accrues on the loan from the date of
disbursement forward.
Is there a fee for a Stafford loan?
Yes, there is a 1% fee that is deducted from each disbursement.
What do I have to do to get a loan?
Complete the FAFSA for the appropriate academic year using your four-digit federal PIN
number and supply any requested documentation to the financial aid office. You will need to
complete an OTC Direct Loan application and return to the Financial Aid office. Complete the
Direct Loan Entrance Counseling and Master Promissory Note (MPN) .
Do I need to be enrolled in a specific number of credit hours to
qualify for a loan?
Yes, students must be enrolled in at least 6 or more credit hours to qualify for a student loan.
What do I need to do to get an in-school deferment form sent to my
lender?
You do not need to do anything. The Registrar’s Office automatically notifies the National
Clearinghouse of a student’s enrollment status. The first notification will be sent
approximately two weeks after the semester starts.
I am transferring to Ogeechee Technical College and I already have
loans in place at another school, Will that loan transfer to otc?
No, financial aid does not transfer from one institution to another. You must reapply for loans
at OTC using our Direct Loan Application. You must also request that your current school
cancel your loan with them. OTC will not be able to certify a loan for you if you have pending
disbursements at your current school.
How much can I borrow?
Eligibility for the Federal Stafford Loan Program is determined by the Financial Aid Office. The loan
amount is based upon the student’s eligibility and is determined by the college’s cost of attendance
minus any other financial aid you may receive. The totals below are the annual maximum amounts.
$5,500 for dependent freshman students (no more than $3,500 may be subsidized)
$9,500 for independent freshman students (no more than $3,500 may be subsidized)
$6,500 for dependent sophomore students (no more than $4,500 may be subsidized)
$10,500 for independent sophomore students (no more than $4,500 may be subsidized)
Do I have to accept the full loan amount offered?
No. You do not have to accept the full amount and may choose only a partial amount. You will need
to complete a loan reduction/cancelation form. Remember, ALL loans are funds that have to be
REPAID.
What can my loan money be used for?
Any expense incurred as it relates to education. This can include, but is not limited to, tuition, fees,
books, supplies, transportation, living expenses, etc.
When do I have to pay back my loan?
Repayment will start six months after you graduate, leave school or drop below half time enrollment.
How long does it take to process my request?
It can take 4-6 weeks for Financial Aid to process your loan application and transmit the information
to the Department of Education.
Please allow additional time for loan requests to be processed
during peak times.
Do I have to complete a Master Promissory Note (MPN)?
You must sign a Direct Loan Master Promissory Note (MPN) if you have not previously borrowed in
the Direct Loan Program. You will need your FAFSA PIN number to sign the Master Promissory Note
(MPN). If you don’t know your FAFSA pin number, go to http://www.pin.ed.gov/. Students have to
complete an MPN electronically at
https://studentloans.gov
. If you have signed an MPN within the
last ten years, you probably will not need a new one.
Do I need to complete Entrance Counseling?
Yes, all students will be required to complete the online Entrance Counseling. You may complete
Direct Loan Entrance Counseling electronically via the StudentLoans.gov Web site at
https://studentloans.gov
.
Where can I find information on who services my federal loans?
Information on all of your federal loan debt can be accessed via National Student Loan Data System
(NSLDS) at http://www.nslds.ed.gov.
How do I contact the Direct Loan Program?
The U.S. Department of Education Direct Loan Program Customer Service phone number is
1-800-848-0979
.
P
ROGRAMS OF
S
TUDY
Title IV Eligible
(PELL, SEOG, Federal Work Study & Loans)
Accounting
Accounting AAS Degree Accounting Diploma
Agribusiness
Agribusiness AAS Degree Agribusiness Diploma
Air Conditioning Technology
Air Conditioning Technology Diploma
Automotive Technology
Automotive Fundamentals Diploma Automotive Technology Diploma
Basic Law Enforcement
Basic Law Enforcement Certificate
Business Administrative Technology
Business Administrative Technology AAS Degree Business Administrative Technology Diploma
Business Management
Business Management Diploma
Human Resource Management Specialist Certificate
Computer Information Systems
Computer Support Specialist AAS Degree Computer Support Specialist Diploma Networking Specialist AAS Degree Networking Specialist Diploma
Construction
Commercial Construction Management AAS Degree Construction Management Diploma
Cosmetology
Cosmetology Diploma Esthetician Certificate
Criminal Justice
Criminal Justice Technology AAS Degree Criminal Justice Technology Diploma
Culinary Arts
Culinary Arts AAS Degree) Culinary Arts Diploma
Dental Assisting
Dental Assisting Diploma
Early Childhood Care & Education
Early Childhood Care and Education AAS Degree Early Childhood Care and Education Diploma
Echocardiography
Echocardiography Diploma
Health Care Assistant Cert. (Echocardiography Track)
Electrical Systems Technology
Electrical Systems Technology Diploma
Photovoltaic Systems Installation and Repair Certificate
Fish and Wildlife Management
Fish and Wildlife Management Degree Fish and Wildlife Management Diploma
Forensics
Forensic Science Technology AAS Degree Forensic Science Technology Diploma
Funeral Service
Funeral Service Education AAS Degree
Geographic Information Systems
Geographic Information Systems AAS Degree
Geographic Information Systems Technology Diploma
Health Information Technology
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P
ROGRAMS OF
S
TUDY
Title IV Eligible Cont’d
(PELL, SEOG, Federal Work Study & Loans)
Hotel/Restaurant/Tourism
Hotel/Restaurant/Tourism Management AAS Degree Hotel/Restaurant/Tourism Management Diploma
Marketing Management
Marketing Management AAS Degree Marketing Management Diploma
Medical Assisting
Medical Assisting Diploma
Opticianry
Opticianry AAS Degree Opticianry Diploma
Paramedicine Technology
EMS Professions Diploma
Pharmacy Technology
Pharmacy Technology Diploma*
Practical Nursing
Practical Nursing Diploma
Health Care Assistant Certificate (Nursing Track)
Radiologic Technology
Radiologic Technology Diploma
Computed Tomography Specialist Certificate
Radiology Picture Archiving
Radiology PACS Specialist Diploma
Sonography
Diagnostic Medical Sonography Diploma Health Care Assistant Certificate
(Sonography Track)
Surgical Technology
Surgical Technology Diploma
Veterinary Technology
Veterinary Technology AAS Degree Veterinary Technician Assistant Certificate
To be eligible to receive Student Financial Aid (SFA) funds (PELL, SEOG, FWS ,Student Loans, HOPE), students must maintain satisfactory academic progress. Ogeechee Technical College (OTC) is required by the U.S. Department of Education to establish minimum standards of satisfactory academic progress. Satisfactory Academic Progress (SAP) means the student is proceeding in a positive manner toward fulfilling educational requirements. Students attending OTC must be in good academic standing and making satisfactory progress. OTC uses the following standards to monitor student’s progress toward their diploma, degree, or certificate.
Grade Point Average
Students must maintain a cumulative grade point average (GPA) of at least 2.0 to remain in good standing. A student’s GPA will be monitored at the end of each term. A student whose cumulative GPA falls below a 2.0 is placed on financial aid warning for their next term of attendance. This will allow the student one term to increase the cumulative GPA to the satisfactory level. If, after one term, the GPA remains below 2.0, the student will lose financial aid eligibility (placed on financial aid suspension). Students may receive financial aid while on warning. The student will not receive financial aid while on suspension.
Maximum Time Frame
There are a maximum number of hours that students may attempt in pursuing their program of study. All students must complete their educational objective within a maximum time frame of one and one half (150 percent) times the length of the program in which they are enrolled. This means that once a student has attempted one and one half times the minimum number of credit hours necessary for completing program requirements, the student is ineligible to receive financial aid.
Completion Rate
In order for students to graduate within this maximum “time frame” of hours, at the end of each term they are expected to have cumulatively completed at least 66.6% of their credit hours attempted. A student, who, at the end of any term, has not successfully completed 66.6% of his cumulative hours attempted, will be placed on financial aid warning for their next term of attendance. This will allow the student one term to increase the cumulative completion rate to the
satisfactory level. If, after one term, the cumulative completion rate remains below 66.6% the student will lose financial aid eligibility (placed on financial aid suspension). Students may receive financial aid while on warning. The student will not receive financial aid while on suspension.
Grades
The following grades are calculated in the completion rate but do not count toward successfully completion: IP (in progress), I (incomplete), W, WP, F, or WF. Repeat courses will be considered as any other class and both grades will be counted in both the GPA and completion rate. A grade of A*, B*, C*, or D* will be considered satisfactory completion of a learning support course. A grade of F* will be considered unsatisfactory. Grades received for learning support courses are not calculated in the GPA, but the hours are calculated in the 66.6% cumulative completion rate.
Transfer Students
Transfer students accepted by OTC, not previously enrolled at OTC, will be classified as maintaining Satisfactory
Academic Progress for the first term enrolled. Only classes transferred in will be used in the completion rate calculation. At the end of the first term, the student’s grades will be measured in accordance with the college’s Satisfactory
Academic requirements. Students who previously attended OTC, transferred to another school, then returned to OTC, will have all OTC courses and courses transferred from other institutions calculated in the cumulative completion rate.
WARNING/SUSPENSION
If a student fails to meet the cumulative GPA, cumulative completion rate, or the maximum time frame standards at the end of a term, the student will be placed on Financial Aid Warning. The student will continue to receive financial aid while on financial aid warning. However, if the student does not meet the satisfactory academic progress standards by the end of the warning period, he will be placed on Financial Aid Suspension. The student can continue taking courses while on suspension at the student’s expense.
Appeal of Financial Aid Suspension
Students have the right to appeal their suspension of financial aid if they have mitigating circumstances that prevented them from making satisfactory academic progress. A student wishing to appeal financial aid suspension must do so in writing with supportive documentation. The form may be obtained from the Financial Aid Office or the financial aid website. The SAP Appeal form must be submitted at the Financial Aid Appeals Briefing. Dates and times of all Financial Aid Briefings are posted in the Financial Aid Office and at http://www.ogeecheetech.edu/workshops. The SAP Appeals Reviewer will review the appeals. The SAP Appeals Reviewer will notify the student of the decision. A student can appeal two times. The Reviewer’s decision is final.
A student is expected to know the Satisfactory Academic Progress Policy. The Financial Aid Office attempts to notify students when they are suspended from the financial aid programs, however, sometimes students do not receive notification due to circumstances beyond the control of the Financial Aid Office. If a student is not notified of the suspension, that in itself does not excuse a student from the financial aid suspension, nor does it exempt a student from appealing in a timely manner. A student status is available at all times via Banner Web by clicking Financial Aid, My Eligibility, and Academic Progress.
SAP STATUS
WARNING: Financial aid warning is a status assigned to a student who fails to make satisfactory academic progress at the end of the term. Students will be allowed to continue on financial aid (our old Probation – no appeal is necessary).
SUSPENSION: Financial aid suspension is a status assigned to a student who fails to make satisfactory academic progress for two consecutive terms, or at the end of a probationary/AP period. The student has now lost financial aid and must pay until he/she meets the current SAP standard.
PROBATION - OT: Financial aid probation is a status assigned to a student who fails to make satisfactory academic progress (after a warning period) and who has appealed and has his/her Financial Aid reinstated for one term.
PROBATION - AP(ACADEMIC PLAN): Financial aid AP-probation is a status assigned to a student who fails to make satisfactory academic progress (after a warning period) and who has appealed and who has completed an academic plan and has his/her Financial Aid reinstated for more than one term, but not to exceed three terms.
Revised 07/01/2011
2012-2013 Direct Loan Application
This application is merely a request for the Financial Aid Office to process a student loan for you. Completion of this application does not guarantee that you will receive a student loan. In addition to this application, you will need to complete all of the loan
requirements on the OTC website prior to receiving loan proceeds. Loan processing time is 4-6 weeks. Incomplete or applications not completed in ink will not be processed.
Student Information (Please Print using Blue or Black Ink)
SS#
OTC ID#
DOB
Last Name
First Name
MI MI
Home Phone
Cell Phone
Work Phone
Personal Email Address
Contacts (Please Print using Blue or Black ink)
Please complete the information below for three people that you have known for at least five years. Please include one contact that is closely related to you (parent/guardian, spouse, child, brother/sister, aunt/uncle, etc).
