Student Loan FAQs

master promissory note

"What is the master promissory note? "

The master promissory note is a document stating that you agree to repay all loans taken out under this master promissory note.

"Why do I need it?"

The MPN allows you to take out federal student loans. It also allows you to take out multiple loans under the same MPN for up to 10 years.

"When do I fill it out?"
You fill it out once before applying for a student loan. It’s good for up to 10 years.

“What if I don’t have an FSA ID?”
You are required to have an FSA ID to complete it electronically. To request a PIN visit the FSA ID site.

“Can it be signed electronically?”
Yes using your federal PIN.

direct stafford loans

“What is the difference between subsidized and unsubsidized?”
Subsidized loans are based on need, and the students aren’t charged interest while in school, grace period, and deferment. Unsubsidized loans aren’t based on need, and the student is charged interest from the time the loan is received.

“How do I apply for a Stafford loan?”
To apply for student loans, follow Montcalm Community College’s financial aid guide above to help you with the process.

“How will I get my loan money?”
After the loan is awarded your participation is verified during the semester.  Your loan money will then be disbursed in two payments. Your first payment will be disbursed shortly after you are verified and the second payment will follow 30 days after the first or the next semester of enrollment.

“What are the interest rates?”
For direct subsidized and unsubsidized loans, the 2023/2024 interest rates are 5.50 percent for undergraduates. The amount is limited depending which year of study you are (freshmen, sophomore, etc.).

“How much can I borrow?”
At Montcalm Community College, the maximum amount you can borrow is $57,500 as an independent student, with the maximum of $23,000 in a subsidized loan. As a dependent student, the amount you can borrow is $31,000 with the maximum of $23,000 in a subsidized loan. The amount is limited depending on which year of study you are (freshmen, sophomore, etc.)

“I didn’t take out enough money to cover my expenses. Can I take out more?”
Yes. You will need to fill out an Loan Request Form.

“Who is my loan servicer?”
To figure out who your loan servicer is, you need to go to National Student Loan Data System and log in using your federal PIN. Once you get on there, click on which loan to check to your loan servicer.

repayment of loans

“How do I repay my loan?”
Contact your loan servicer to set up a payment plan, and make full on time payments for the duration.

“When do I begin repaying?”
Repayments of loans begin six months after you exit schooling or drop below half time enrollment.

“What if I have trouble repaying?”
The best thing to do if you have trouble repaying your loans is to contact your loan servicer. They can provide you with options to help you avoid default.

“What are the best debt management resources?”
The college offers some online resources that can help with debt management. To view, visit: Debt Management Resources.