Morton College, along with thousands of US colleges and universities, participates in the William D. Ford Federal Direct Loan Program. The program provides government funds directly to a student's college or university without the involvement of a third party.
Direct Loan funds come directly from the U.S. Department of Education. Processing of any Direct Loans includes an origination fee that is deducted from the total amount disbursed. Effective October 1, 2016, the origination fee is 1.069%.
Loans can be either subsidized or unsubsidized.
Interest rates on Direct Loans disbursed on or after July 1, 2016 is 3.76% for both subsidized and unsubsidized loans.
There is a limit on the maximum period of time that students can receive Direct Subsidized Loans. If this limit applies, you may not receive Direct Subsidized Loans for more than 150% of the length of your academic program. The maximum eligibility period is based on the published length of your current academic program (available in the course catalog).
If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150% of 2 years = 3 years). If you are a part-time student or enrolled for only one term, your maximum eligibility period will be adjusted based on your enrollment.
Because your maximum eligibility period is based on the length of your current program of study, the maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and change to another program, the Direct Subsidized Loans received for the earlier program will generally count toward your new maximum eligibility period.
If you do not complete your program within your maximum eligibility period and you enroll in the same program, you will become responsible for the interest that accrues on your Direct Subsidized Loans, from the date of your enrollment after meeting the 150% limit. For a more detailed explanation of the 150% Subsidized Usage Limit, please refer to information these guidelines from the Department of Education.
Defaulting, or failing to repay a student-loan according to the terms of the promissory note can have serious legal consequences. Learn how to avoid them by attending a Loan Default Prevention Seminar. Contact the Financial Aid Office to reserve your seat at (708) 656-8000 Ext. 2428.
For more information regarding loans, please visit the Federal Student Aid website.
You may also visit studentloans.gov.