Student Loan Information

Student Loan Information

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Entrance and exit counseling are required of all Federal Direct Loan borrowers. DTC uses studentaid.gov to conduct entrance and exit counseling. Entrance counseling is an online information session explaining rights and responsibilities as a student loan borrower. Exit counseling sessions provide information on loans and when repayment begin.

Students enrolled in eligible certificate, diploma or associate degree programs may apply for a student loan. Students who desire to apply for Direct Loans to attend Denmark Technical College must have a completed Free Application for Federal Student Aid (FAFSA) on file at the college prior to securing a Federal Direct Loan application.

Loans are debt, and students have a financial obligation to repay debt. Students are responsible for repaying loans. A completed FAFSA, DTC Loan Application, Direct Loan Master Promissory Note (MPN) and loan entrance counseling are required before a loan request can be reviewed. Students must be enrolled in at least 6 credit hours at the time of loan disbursement to be eligible for a Direct Loan.

Students must be in good academic standing and meet Satisfactory Academic Progress (SAP) standards to receive a student loan. Students on Financial Aid Probation or Suspension may not receive a student loan until they return to meeting SAP standards. Continuing students who have attempted at least 24 credit hours of college work at any institution must possess a minimum cumulative grade point average of 2.0 to receive a student loan at Denmark Tech. Students who do not meet the 24 credit hour GPA criteria may request a review of their status after attempting and earning 24 credit hours at DTC with a minimum 2.0 GPA.

Estimated Loan Repayment Chart.pdf

Subsidized:

A student must have financial need to receive a subsidized student loan. The U.S. Department of Education will pay (subsidize) the interest that accrues on subsidized Direct Loans during certain periods. However, interest begins accumulating on the loan once the student leaves school. Upon leaving school, the student must repay the loan and interest that will accumulate once the student is no longer enrolled.

Unsubsidized:

Financial need is not a requirement to obtain an unsubsidized Direct Loan. The student will be charged interest from the time the loan is disbursed until it is paid in full. If the student does not pay interest while in school, interest will accumulate or be capitalized until the loan is paid in full. That means the interest will be added to the higher accumulated loan amount each month until the loan is paid in full. If the student chooses to pay the interest as it accumulates, loan repayments will cost less in the long run. Interest rates for loans are variable and determined each year by the federal government. Students who are in a loan deferment status will still have interest capitalized on their student loan(s).

Capitalized interest will be added to the higher accumulated loan amount each month until the loan is paid in full. If the student chooses to pay the interest as it accumulates, loan repayments will cost less in the long run. Interest rates for loans are variable and determined each year by the federal government. Students who are in a loan deferment status will still have interest capitalized on their student loan(s).

Private education loans are non-Federal Student Aid loans that are made to a borrower expressly for postsecondary education expenses, regardless of whether the loans are provided through the educational institution that the student attends or directly to the borrower from the private educational lender. Private loans are considered a “last resort” because their interest rates are higher and all private lenders require credit-worthy individuals to sign for the loan.

How to Apply for Private Loans

  1. Review lenders from the suggested lender list below. (You have the option to use any lender of your choice outside of the suggested lenders that are listed.)
  2. Once a lender has been selected, please follow the link to your choice of lender. You will be redirected to the lender website to complete the application process.
  3. Print and submit the self-certification form to the Financial Aid Office for completion after you have received approval of the loan from your lender. (This form must be submitted to the Financial Aid Office before your loan can be certified.)
  4. Once your loan has been certified, your student account will reflect the amount for which you were approved.