Loans

A student may be eligible to borrow if he or she meets the following requirements:

• Is eligible to receive financial aid as described under “Eligibility Requirements”.
• Is enrolled in a degree-seeking program or certain certificate programs.
• Has educational costs not covered by other types of financial aid, as certified by Stark State College Financial Aid Office.
• Is enrolled and maintains at least 6 credit hours during the semester.
• Has shown ability to benefit.
• Is making satisfactory academic progress according to the standards established by federal regulations and Stark State College.
• Is not in default on any federal student loan with the Department of Education or another institution and does not owe a grant overpayment.

First-time borrowers complete the Entrance Counseling and Master Promissory Note found here.

Federal Direct Subsidized Loans

• Eligibility is based on financial need.
• The U.S. Department of Education pays the interest while you are in school at least half time (6 credit hours).

Federal Direct Unsubsidized Loans

• Eligibility is not based on financial need.
• Interest accrues on this loan while you are in school, during grace periods, and during deferment or forbearance periods.
• You can choose to make interest payments while you are in school, grace, deferment, or forbearance or the interest can be added to your loan balance (this is called capitalization)

A student loan can only cover educational costs not met by other sources of financial aid. The table below shows the maximum amount a student at Stark State College can borrow for each academic year along with the aggregate limits. Your loan eligibility is determined by the Financial Aid Office. Factors taken into account are the cost of your attendance for the loan period requested, the student aid index (SAI) as determined by the information you provided on your Free Application for Federal Student Aid (FAFSA) and the total of any other financial aid awarded. Therefore, you may not be eligible for the maximum amounts.

Conservative borrowing is strongly encouraged.

ANNUAL FEDERAL DIRECT LOAN LIMITS
(Maximum combined subsidized and unsubsidized)

AGGREGATE BORROWING LIMITS
(Maximum total outstanding loan debt you can accumulate while attending a two-year or four-year college)

Effective October 1, 2020, there will be a 1.057% origination fee charged on your Federal Direct Subsidized and Unsubsidized Loans. Consult studentaid.gov for the borrower benefits provided by your lender. The origination fee for Parent PLUS loans is 4.228%. The origination fee is subject to change October 1 of each year.

Interest rates on Federal Direct loans are subject to change annually on July 1 of each year. The federal government pays the interest for the subsidized Direct loan while you are in school at least half time. Interest charges for the unsubsidized Direct loan begin accruing once the funds are disbursed.

Federal direct interest rates as of July 1, 2024 and before July 1, 2025:

• 6.53% Federal Direct Loan (subsidized)
• 6.53% Federal Direct Loan (unsubsidized)
• 9.08% Federal PLUS for parents

1. File a FAFSA and complete Verification if required (you will be notified by the Financial Aid Office if you are selected for verification).
2. An award notice will be sent to you via your Stark State email once your aid is processed.
3. Go to mySSC and click on the My Financial Aid >> Financial Aid Home >> Your Financial Aid Dashboard >> Accept award offer
   • First-time borrowers will be required to complete an online Entrance Counseling session and a Master Promissory Note (MPN) via studentaid.gov
4. Direct Loan Servicer processes the loan and sends the loan funds to the school. Also, the Direct Loan Servicer will mail or email (based on your selected preference) you a disclosure statement containing important information regarding your student loan. Keep this statement for future reference.
5. If you still meet the eligibility requirements, Stark State will apply the loan proceeds to your account. Any amount remaining after tuition and fees have been paid can be refunded to you by the Business Office.

• Summer semester: 3rd and 6th week of classes
  *If you are taking a second 5-week course, attendance will be verified prior to receiving your second disbursement.
• Fall and spring semesters: 4th and 9th week of classes
  *If you are taking a second 8-week course, attendance will be verified prior to receiving your second disbursement.

First-time loan borrowers who are subject to the 30-day disbursement delay will not receive a refund of loan proceeds until the fifth week of classes.

All students approved for Federal Direct Loans will have their loan funds paid out in two equal disbursements during each semester. Once the loan funds are disbursed to your student account, it will be used to pay off any outstanding charges. If there are excess loan funds after your student account is paid off, you will be refunded the excess amount by the Business Office. If the first disbursement of your loan funds (combined with other applicable financial aid or out-of-pocket payments) is not enough to cover the full balance of your student account, you will not be issued a refund at that time.

Midterm grades are mandatory as of summer semester 2015 and will be entered for every class in which you are enrolled. You will be notified after all midterm grades have been posted. If your midterm grade is an “F” and you are failing to attend after the initial never attend deadline you will be administratively withdrawn from that course. The second disbursement will be based on midterm grades and continued attendance in registered classes.

Loan funds will only be disbursed if you are registered for 6 or more credit hours in courses required for your major and all student requirements are complete at the time of each disbursement. If you drop below 6 credit hours before either disbursement of your loan is made, it will not be disbursed to you.

What if I stop attending class?
If you do not complete all classes for which you enroll, federal regulations may require that we return a portion, or the full amount of the loan to your lender. In addition, before you stop attending Stark State at least half-time, or you graduate, you must complete an exit interview.

When do I start repayment on the loan?
Repayment of the principal and interest begins six months after you drop below 6 credit hours, withdraw or graduate. Students with an unsubsidized loan have the option of paying the interest while in school and keeping it current, or letting it accrue and having it capitalized. Contact the Direct Loan Servicer for more information.

Give yourself credit and do not default on your loan
Making your student loan payments on time is one of the easiest ways to establish a good credit history. A good credit rating will serve you well as you go forward in life.

If loan payments are not made and the delinquency is not resolved, your loan will go into default. If your loan defaults:

• Your wages can be garnished.
• Your federal income tax refund can be withheld.
• The default will be reported to a National Credit Bureau and make it difficult for you to make major credit purchases such as a new car or home.
• You will be disqualified from receiving any additional federal financial aid.
• You may be denied professional licenses to practice an occupation.

Student Loan Servicer
A loan servicer is a company that the Department of Education assigns to handle the billing and other services on your federal student loan on their behalf, at no cost to you. Your loan servicer will work with you on repayment options (such as income-driven repayment plans and loan consolidation) and will assist you with other tasks related to your federal student loans.

• Contact your Federal Student Loan Servicer

Your loan request cannot be processed after the last day of classes for the semester(s) for which you have requested a loan. Applying early is recommended. Late applicants may not meet all of the eligibility criteria by the deadline.

In order for loan funds to be disbursed, your signed, completed promissory note must be received by the direct loan servicer.

A Federal Direct Loan offers independent freshman students up to $9,500 and sophomores up to $10,500 per year. (Dependent freshmen students may borrow up to $5,500.  Dependent sophomore students may borrow up to $6,500.) 

Students pursuing a one-year certificate will remain at freshman level for borrowing purposes. This is a loan and must be repaid. Interest rates vary annually. If you already have a Direct Loan, borrowing a new loan will not affect the rate or terms of your previous loan(s). You may qualify for a subsidized and/or an unsubsidized Direct Loan up to the amounts listed above. There will be a 1.057% origination fee that will be taken out of the total amount of the loan by the U.S. Department of Education for loans first disbursed on or after Oct. 1, 2025 and before Oct. 1, 2026.

Subsidized Direct Loans
These loans are based on financial need, therefore, some students may not qualify. With a subsidized Direct Loan, no interest accumulates and no repayment is required as long as the student is enrolled in college at least half time. Freshman may borrow up to $3,500.  Sophomores may borrow up to $4,500.

For subsidized loans first disbursed on or after July 1, 2025 and before July 1, 2026, the interest rate will be 6.39%.

Unsubsidized Direct Loans
Students who do not qualify for a subsidized Direct Loan may borrow up to the federal maximum amounts through an unsubsidized Direct Loan. Loan payments can be deferred as long as the student is enrolled at least half-time.  Interest will accrue and can be paid by the borrower while in school and during the grace and repayment period. Independent students have the option of borrowing an additional $4,000 in unsubsidized Direct Loan Funds.

For unsubsidized loans first disbursed on or after July 1, 2025 and before July 1, 2026, the interest rate will be 6.39%.

To determine your eligibility for these programs, you must apply for federal aid, as outlined on the Application Process page. Funds are issued only after tuition and fees have been paid.

Credit records
Student loans can be an excellent way to finance an education and establish a good credit rating at the same time. When it is time for repayment, always communicate with your lender when changing your name, address or phone number or if you have difficulty making payments.

Enrollment required: A minimum of 6 credit hours in classes required for your declared major.

Disbursement
All student loans will be disbursed in two payments during each term. The payments will be based on midterm grade and continued attendance in registered classes. For fall and spring, 16-week classes, disbursements will occur during the fourth and ninth week of classes. If you are taking a second 8-week course, attendance will be verified prior to receiving your second disbursement.  For summer term courses, disbursements will occur during the third and sixth week of classes. If you are taking a second 5-week course, attendance will be verified prior to receiving your second disbursement.  At the time of each disbursement, students must be currently enrolled and attending a minimum of 6 credit hours in courses required for their major.

Applications required: Free application for federal student aid (FAFSA) and if you are a first-time borrower, you are required to complete loan entrance counseling and the online Master Promissory Note.

Students borrowing Federal Direct Loan funds are required to complete the following steps:

• Entrance counseling and master promissory note
• Before you stop attending Stark State at least half-time, or you graduate, you must complete an Online Stafford Loan exit interview.

The Federal Parent Loan for Undergraduate Students (Federal PLUS) program is for biological or adoptive parents of dependent students. This is a credit-based loan that a parent can apply for and borrow on behalf of the student to help with tuition and fees, books and supplies, living expenses and other education-related costs.

For PLUS loans first disbursed on or after July 1, 2025 and before July 1, 2026, the interest rate will be 8.94%. While this is a fixed interest rate for the life of the loan, the interest rate for subsequent PLUS loans borrowed beyond these dates is subject to change July 1 of each year.

There will be a 4.228% origination fee that will be taken out of the total amount of the loan by the U.S. Department of Education for loans first disbursed on or after Oct. 1, 2025 and before Oct. 1, 2026. On the PLUS loan application, parents have the option to select repayment terms that include: immediately beginning repayment while the student is still attending school; deferring payments while the student is attending school at least half time; or deferring payments during school and up to 6 months after the student is no longer attending school at least half time. We encourage parents to only apply for the least amount needed to cover expenses since the PLUS loan must be repaid.

Loan funds are paid in two equal disbursements throughout the semester and any excess that is not used after paying the student’s account balance will be given to the parent in the form of a refund check via US mail.

Maximum award amount: Student’s costs less other financial aid, subject to credit approval
Enrollment required: A minimum of 6 credit hours in classes required for declared major

• Apply for your Federal PLUS
• Parent loan application and instructions (PLUS)

Nurse Education Assistance Loan Program (NEALP)
The Nurse Education Assistance Loan Program (NEALP) provides financial assistance to Ohio students enrolled for at least half-time study (or accepted for enrollment) in an approved Ohio nurse education program.  This is a state program for nursing students who, upon completion of their education, plan to practice nursing in the state of Ohio. The loan is based on financial need. After graduation, the student may be eligible for loan forgiveness at the rate of 20% per year and a maximum loan cancellation of 100%. Recipient must serve as a fulltime nurse in Ohio for five years to qualify for 100 percent loan cancellation.  For more information, call the Ohio Board of Regents State Grants and Scholarships Office at 1-614-466-6000.

Award amount: Up to $1,500 per year, which may be renewed for a maximum of four years and a total loan balance of $6,000.

Enrollment required: A minimum of 6 credit hours

NEALP application forms are available online at www.ohiohighered.org/nealp.  Applications for 2025-26 can be submitted between January 1, 2025 and July 15, 2025 to the Ohio Department of Education. Students must complete the Free Application for Federal Student Aid (FAFSA) and submit the results as part of the application.

For complete program details or to complete your NEALP application, visit www.ohiohighered.org/nealp