Federal Student Loans

MCC participates in the Federal Direct Loan Program. At MCC, you may be able to receive subsidized and unsubsidized loans. When considering loans, it is important to remember that loans are a debt that must be repaid. MCC does not recommend borrowing but recognizes that some students will need to take advantage of these programs. When borrowing, you should only borrow the minimum amount that you need to pay for school.

MCC recommends applying for scholarships and signing up for the payment plan before considering student loans.

To qualify for federal student loans, you must meet the basic eligibility criteria and be enrolled at least half-time each semester that you borrow. Half-time is defined as a minimum of six credits, regardless of the semester.

The U.S. Department of Education defines the maximum amounts that you can borrow annually and cumulatively. The amounts are based on the number of credits you’ve completed and your dependency status. The chart below shows the maximum amounts you can borrow each year. The Financial Aid team will determine your individual eligibility based on your FAFSA information and unmet need.

YEARLY MAXIMUM LOAN AMOUNTS – UNDERGRADUATE STUDENTS
Year in School	Dependent Students			Independent Students
Year in School	Subsidized	Unsubsidized	Combined	Subsidized	Unsubsidized	Combined
1st Year (0-28 credits earned)	$3500	$2000	$5500	$3500	$6000	$9500
2nd Year (29 or more 100 level credits earned)	$4500	$2000	$6500	$4500	$6000	$10,500

AGGREGATE MAXIMUM LOAN AMOUNTS – UNDERGRADUATE STUDENTS
Dependent Students	Independent Students
$31,000 – no more than $23,000 may be in subsidized loans	$57,500 – no more than $23,000 may be in subsidized loans

Subsidized Loans

To be eligible to borrow through the subsidized loan program, you must meet the basic eligibility criteria, demonstrate financial need, and be enrolled at least half-time in an eligible program. Subsidized loans do not accrue interest while you are enrolled at least half-time in an eligible program, and repayment begins six months after you drop below half-time enrollment. Interest accrual begins when you drop below half-time enrollment.

Unsubsidized Loans

To be eligible to borrow through the unsubsidized loan program, you must meet the basic eligibility criteria and be enrolled at least half-time in an eligible program. Unsubsidized loans begin to accrue interest when funds are disbursed. You are not required to make payments on the loan or the accrued interest until six months after you are no longer enrolled at least half-time in an eligible program. If you borrow an unsubsidized loan, MCC strongly recommends paying the interest while you are in school. This will reduce the amount you repay over the life of the loan.

Additional Requirements

Receiving a federal student loan at MCC requires you to take additional steps before the funds can be disbursed:

Accept the loan award in Self Service
Complete the Loan Request in Self Service
Submit the Loan Request Form available through myMohave Self-Service
First Time Borrowers must complete Entrance Counseling
All Borrowers must complete Annual Student Loan Acknowledgment
First Time Borrowers must complete the Master Promissory Note (MPN)
First Time Borrowers must submit the Participation Verification Form approximately 30 days after the start of the class or term they are attending – this is sent to you by email after classes begin

You can read more about the different types of loan counseling on our Federal Loan Counseling page.

Interest Rates and Fees

The interest rate on your loan will depend upon when the loan was first disbursed. Rates are adjusted yearly and are set by federal law.

Undergraduate loans are subject to the interest rates below. These rates are fixed for the life of the loan. Rates for older loans can be viewed on the Federal Student Aid website.

First Disbursed Between	Interest Rate
7/1/24 – 6/30/25	6.53%
7/1/23 – 6/30/24	5.5%
7/1/22 – 6/30/23	4.99%
7/1/21 – 6/30/22	3.73%
7/1/20 – 6/30/21	2.75%
7/1/19 – 6/30/20	4.53%
7/1/18 – 6/30/19	5.05%
7/1/17 – 6/30/18	4.45%
7/1/16 – 6/30/17	3.76%
7/1/15 – 6/30/16	4.29%
7/1/14 – 6/30/15	4.66%

Origination fees are charged to the borrower at the time of disbursement. The amount of the fee is set by federal law and is a percentage of the amount borrowed. The dollar amount of the fee depends on the amount borrowed.

First Disbursed Between	Fee Amount
10/1/24 – 9/30/25	1.057%
10/1/23 – 9/30/24	1.057%
10/1/22 – 9/30/23	1.057%
10/1/21 – 9/30/22	1.057%
10/1/20 – 9/30/21	1.057%
10/1/19 – 9/30/20	1.059%
10/1/18 – 9/30/19	1.062%

Because fees are deducted from the amount borrowed, the funds MCC receives on your behalf will be less than the amount that you borrowed.

Amount Borrowed – Loan Fee = Amount Received

Disbursements

Student loan funds are disbursed directly to MCC. Any balance due to the College will be paid before a refund will be made to you. Refunds are made when your financial aid exceeds the amount of your billed charges.

Loan disbursements are made after the start of classes each term. All requested paperwork must be submitted before your disbursement will be made. Additionally, your enrollment will be confirmed before a disbursement is made.

Disbursements for first-time borrowers will be made starting 30 days after the first day of classes. All federal student loans have a minimum of two disbursements; one at the start of the loan period and one at the midpoint of the loan period. For loans that cover the fall and spring terms, the first disbursement is near the start of fall and the second is near the start of spring. For one-semester loans, the first disbursement is near the start of the semester, and the second is near the midpoint of the semester. Disbursements are made once per week and continue throughout the semester.

Once a disbursement is made, you have 120 days to cancel it without penalty. If you wish to cancel all or a portion of your loan disbursement, please submit a written request to the Financial Aid Office. If you have already received a refund from MCC, you will also need to repay the cancellation amount to MCC before your loan will be canceled. The Financial Aid team will arrange the return of funds for you. If you wish to return loan funds after 120 days, you may also do so. For loan cancellations more than 120 days after disbursement, you are responsible for making a payment directly to your loan servicer. You can view your loan servicers’ contact information by logging into www.studentaid.gov using your FSA ID.

All loan amounts disbursed are reported to the National Student Loan Database System (NSLDS). This information is accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system. Information in NSLDS is used when determining your eligibility for future loan disbursements.

Loan Cancellation Requests

If you wish to cancel all or a part of your loan, you may do so up to 120 days after MCC receives the funds. To cancel your loan, send an email to financialaidprocessing@mohave.edu from your student email account. Your email should include:

Your name
The amount you wish to cancel

MCC will always return funds to your unsubsidized loan first if you borrowed through the unsubsidized program. If you have already received a refund from MCC, you will also need to repay the cancellation amount to MCC before your loan will be canceled.

Exit Counseling

Borrowers are required to complete Exit Counseling when they are no longer enrolled at least half-time in a degree-seeking program. You will receive an email notification at the end of each semester reminding you to complete Exit Counseling. This counseling only needs to be completed when you drop below half-time enrollment, drop or withdraw from all classes, graduate, or no longer plan to enroll.

You can read more about the different types of loan counseling on our Federal Loan Counseling page.

Deferment and Grace Period

As long as you are enrolled at least half-time in an eligible program, your loan payments are deferred. This means that you are not required to make payments. However, you can make payments during this time if you choose. MCC recommends that you pay any interest that accrues on unsubsidized loans.

When you drop below half-time enrollment, your loan enters its Grace Period. This period is six months long and no payments are required, although interest will accrue. When you drop below half-time enrollment, you will also be required to complete Exit Counseling. MCC notifies all borrowers of the requirement to complete Exit Counseling at the end of each semester.

If you re-enroll at least half-time in an eligible program before your grace period has ended, your loan payments are put back into a deferred status. The Registrar’s Office reports your enrollment to the National Student Clearinghouse each month. This reporting is used to ensure that your loan status is correct while you are enrolled.

Repayment

Student loans are debts that must be repaid. Standard repayment is 10 years or 120 payments. Repayment of the amount borrowed (principal) and the accrued interest begins six months after you drop below half-time enrollment.

After disbursement, your loan is referred to a loan servicer. Your assigned loan servicer will collect your payments and provide information about your payment options.

You will be able to choose from several repayment plans. Some plans are based on the number of payments, others are based on your income. The Standard Payment plan is the least expensive over time but will have the largest monthly payments. Other payment plans will have smaller monthly payments but will cost more over time. Your monthly payment amount will be based on the amount you borrow and the payment plan you select or your income. Depending on your choices, it is possible to have a monthly payment of $0.

If you choose an Income-Driven Repayment (IDR), you will be required to certify your income with your loan servicer each year.

MCC partners with ECMC Solutions to help you manage and understand your loan repayment. ECMC provides counseling about your repayment plan options and can assist you with completing forms to select a payment plan.

Federal Student Loans