Applying for Federal Direct Student Loans

Atlantic Cape Community College currently participates in Federal Direct Student Loan Programs which consists of the Federal Direct Stafford Loan and the Federal Direct Parent Loan for Undergraduate Students (PLUS).

To be considered for Federal Direct Student Loans students must complete the following forms:

  • Free Application for Federal Student Aid (FAFSA)You must complete the FAFSA in one of the following ways:
    • FAFSA on the web (www.fafsa.ed.gov).  If you choose to complete the FAFSA on the web and do not have a pin, you may go to www.pin.ed.gov to request one.
    • A paper application (available by calling 1.800.433.3243 and having one mailed to you directly)
    • Call our office at 609.343.5082 and schedule an appointment to file your FAFSA electronically.
  • Atlantic Cape’s Direct Student Loan Request Form. The Student Loan Request Form can be picked up and turned to any of our three campuses. You can also download the form from the Internet Links and Documents section on the left of this page. Processing can take up to 4 weeks and will begin only after your FAFSA is completed and reviewed by the Financial Aid Office.                    
  • Direct Loan Master Promissory Note (MPN). This step must be done on the web at www.dlenote.ed.gov/.  You will need your Federal PIN in order to sign your MPN online. Signing the MPN electronically will shorten the time frame needed to get your loan funds to you. Once you have a Direct Loan Master Promissory Note (MPN) on file with the United States Department of Education, you are no longer required to complete a new promissory note for each new loan. You will only have to complete the Student Loan Request form.
  • Entrance Interview (The Entrance Interview form is required by the US Dept. of Education to make you aware of your rights and responsibilities as a borrower). Students who have previously borrowed a Federal Direct Loan and have completed an Entrance Interview are not required to complete a second interview. First time loan borrowers and persons who have borrowed from the Direct Loan Program more than 10 years ago must complete an Entrance Interview before your loan request will be processed. The interview may be completed by following the steps below.
    • Sign on to www.ed.gov/directloan
    • Click on “Students” (on the left), then “Loan counseling” and “Take the Entrance Counseling Session”. This online entrance counseling session will take about 20-30 minutes to complete.
    • Read all of the loan information page by page.
    • Take the quiz (you must pass) the “Rights & Responsibilities” quiz.

You only have to complete the Entrance Interview one time at Atlantic Cape Community college. 

How much you can borrow?

 The amount students can borrow each year for subsidized and unsubsidized Stafford loans depends on their grade level and on whether they are dependent students or independent students.

 

Effective Date

Dependent Students

Subsidized and Unsubsidized loans

July 1, 2008 -June 30, 2009

Freshman (less then 32 credits)

$3,500 combined subsidized and/or unsubsidized plus

$2,000 additional unsubsidized for dependent first-year undergraduates. Total of $5,500.

 

Sophomore (32 credits or more)

$4,500 combined subsidized and/or unsubsidized plus

$2,000 additional unsubsidized for dependent second-year undergraduates. Total of $6,500.

 

 

Effective Date

Independent Students*

Subsidized and Unsubsidized loans

July 1, 2008 -June 30, 2009

Freshman (less then 32 credits)

$3,500 combined subsidized and/or unsubsidized plus

$6,000 additional unsubsidized for independent first-year undergraduates. Total of $9,500.

 

Sophomore (32 credits or more)

$4,500 combined subsidized and/or unsubsidized plus

$6,000 additional unsubsidized for independent second-year undergraduates. Total of $10,500.

*Includes students whose parents have been denied a PLUS loan

 

The amount a student can borrow is also limited by the student's school costs, other financial aid the student may receive, and (in the case of subsidized loans) the student's expected family contribution.

Listed below are the aggregate (total) limits for all subsidized and unsubsidized Stafford loans, whether solely from the Direct Loan Program or in combination with FFEL Stafford loans:

  • $31,000 for a dependent undergraduate student (no more than $23,000 may be subsidized)
  • $57,500 for an independent undergraduate student1 (no more than $23,000 may be subsidized) 

With a PLUS loan, the parent of a dependent student can borrow up to the cost of the student's education minus other financial aid the student receives.

The maximum loan limits are based on the academic year.  In most cases, the amount that you borrow will be split between two semesters.

Default

Please take care to borrow only what is necessary.  If you plan to transfer to a four year institution after Atlantic Cape your expenses may increase and the need for borrowing may be greater.  If you borrow above your means and cannot repay your loan you may enter into default.  Defaulted students will lose all eligibility for aid, including loans. (Until you repay the loan in full)  A default can also hurt your credit score and prevent you from future purchases, like a car or mortgage.