The following terms will help you to understand the Federal Loan Program:

Subsidized Stafford Loan - A need-based loan on which the interest is paid by the government while you are in school at least half time, during the grace period and during periods of deferment.

Unsubsidized Stafford Loan - You are responsible for paying the interest on an unsubsidized loan while you are in school, during the grace period, during deferment periods and during repayment. Interest can either be
paid while you are in school, or it can be postponed until graduation or withdrawal from school. If you have postponed paying interest, it will be capitalized once you enter repayment (for example, after your grace
period). Both the Subsidized and Unsubsidized Stafford Loans have a variable interest rate that adjusts every July 1 and cannot exceed 8.25%.

Capitalizing Interest - This is a process where a lender adds any unpaid interest on a loan to the principal, thereby increasing the outstanding balance on which interest accrues daily.

Parent Loan for Undergraduate Students (PLUS) - A PLUS Loan is a low-cost federal loan taken out in the parent’s name to cover the cost of education that is not satisfied by other aid, for instance Stafford Loans. It
has a variable interest rate that is adjusted every July 1 and cannot exceed 9%. Parents are eligible based on their credit history, not income.

Entrance Counseling - First-time borrowers of Stafford Loans must complete Entrance Counseling. Entrance Counseling educates borrowers on their rights and responsibilities as Stafford Loan borrowers. Miami Dade
College now offers online Stafford Loan Counseling. You can complete your entrance counseling online by accessing the following website: www.mapping-your-future.org/entrancecounseling.

Exit Counseling - Borrowers who withdraw, graduate or drop to less than half-time enrollment must complete Exit Counseling. You can complete Exit Counseling online at www.mapping-your-future.org/exitcounseling.

Default - Failure to pay your loan back according to the terms disclosed in your promissory note results in default. You are in default on your student loan if your payments are 270 days past due or if you fail to comply
with other terms of the loan.

Stafford Loan Limits

Annual Dependent Loan Limits Freshman $2,625 Sophomore $3,500 Students in a Bachelor’s Program $5,500

Annual Independent Loan Limits Maximum Subsidized Amount Maximum Unsubsidized Amount Maximum Total Amount Freshman $2,625 $4,000 $ 6,625 Sophomore $3,500 $4,000 $ 7,500 Students in a Bachelor’s Program $5,500 $5,000 $10,500

Lifetime Loan Limits
Dependent Undergraduates - $23,000
Independent Undergraduates - $46,000

We urge you to borrow conservatively. Borrow only what you need.
You may obtain Federal Stafford Loan information through the NSLDS website: www.nslds.ed.gov.

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Everything You Need to Know About a Stafford Loan

Eligibility Requirements
To be eligible for a Subsidized or Unsubsidized Stafford Loan, you must:
• Be a U.S. Citizen, U.S. National or eligible noncitizen
• Be enrolled or accepted for enrollment at least half time for the entire loan period
• Be in good standing and making satisfactory academic progress if currently enrolled
• Not be in default or owe a refund on any federal education grant or loan unless satisfactory arrangements have been made to repay the outstanding debt
• Not be incarcerated

Students who complete their program in one semester of an academic year are subject to proration of their loan eligibility. Loan amounts may also be prorated for students enrolled in short-term training programs.

Application Procedures
• Complete a Loan Request Form for each new loan.
• Complete the loan’s Master Promissory Note (MPN) and submit it to your lender. Check with your lender to see if they offer eSignature where you can apply and sign your MPN online for faster
processing.
• Your lender will forward the loan proceeds to MDC based on the recommended disbursement dates.
• Stafford Loan funds will be released by your campus Bursar’s Office.
• Any obligation owed to the school will be deducted from your Stafford Loan check.

Loan Fees
An origination fee of up to 3% and a guarantee fee of 1% may be charged to the borrower of a Federal Family Education Loan. These fees are based on the amount borrowed and are deducted proportionately from each
disbursement. The Notice of Loan Guarantee and Disclosure Statement will itemize fees and the net amount the loan. Some lenders may offer discounted fees and interest rates. Check with your lender for more details.

Loan Disbursement
Federal regulations require multiple disbursements of Federal Stafford Loans. At a minimum, there will be one disbursement for each semester/trimester in the loan period. Federal regulations also require that first-year, firsttime
undergraduate borrowers wait 30 days after classes begin before their loan funds can be released.
Note: You may cancel any loan disbursement at any time prior to receiving the funds by contacting the Financial Aid Office.

Helpful Hints
• Apply early for Financial Aid (application forms are available January 1st).
• Make copies of all tax returns before you mail them to the IRS.
• Put your name and SSN on all documents submitted to your campus office.
• Communicate any questions, concerns or changes in your financial status to a financial aid administrator.
• Never borrow more than absolutely necessary. Take the time now to make the right decision.
• Borrow all your Federal Stafford Loans from the same lender to simplify the repayment process in the future.
• Respond promptly to all information requests.
• Keep your address current with the Records Office.
• Keep a file for all correspondence regarding your financial aid.
• To access your loan history, visit www.nslds.ed.gov.
• Contact the Student Financial Aid ombudsman at www.sfahelp.ed.gov

Sample Repayment Chart
The chart below gives you estimates of what your monthly payment may be once you leave school and enter your repayment period. Certain lenders offer various repayment plans and deferment or forbearance options.
Check with your lender for more information about repaying your student loan(s).

Note: These are only estimates.

Consequences of Default

• Your wages may be garnished.
• You’ll have a negative credit report for at least seven years.
• The entire loan balance becomes due and payable.
• You may lose your professional license and/or your job.
• Your state and federal tax refunds may be withheld.
• Collection charges of up to 25% will be added to the amount you owe.
• You will lose your rights to deferment, forbearance
  and repayment options.