Financial Aid

Loans

Federal Stafford Loan

The Federal Stafford Loan is part of the Federal Family Education Loan Program (FFELP). As an educational loan, it provides a low interest rate and repayment does not begin until six months after the student graduates or drops below half-time enrollment status. This six-month period is called a grace period.

There are two types of Federal Stafford loans and the college determines what combination of the two the student is eligible to receive.

• Subsidized Federal Stafford loans are based on financial need as determined by the FAFSA and the Financial Aid Office. The federal government pays the interest on this loan while the student is enrolled at least half time and during the grace period.

• Unsubsidized Federal Stafford loans are not based on financial need; however a FAFSA must still be completed. Students who do not qualify for the subsidized loans or need to supplement additional educational costs may use the Unsubsidized Federal Stafford Loan. However, the borrower is responsible for paying all of the interest on this loan at all times.

Students must be admitted to an eligible program and enrolled in at least six credits to be eligible to receive a Federal Stafford Loan.

To Apply

The first step is to complete a FAFSA. Applicants should be sure to check “yes” to the question on the FAFSA that asks if they are interested in student loans.

With the receipt of the award letter, the student will be directed how to complete the required Master Promissory Note (MPN).

For additional information on student loans and the student’s online account, visit Great Lakes Higher Education Corporation website.

PLUS Loan

The Federal PLUS (Parent Loan for Undergraduate Student Program) makes loans available to parents of dependent students. All borrowers under the PLUS Program must use loan funds solely to pay educational costs.

Parents borrowing under the PLUS Program may be required by the lender to provide evidence of credit worthiness, and some borrowers may be required by the lender to secure an endorser or co-maker for the Federal PLUS loan. Parents may borrow the full cost of education for an eligible dependent student less any other financial aid for which the student may be eligible. However, the amount of the Plus Loan amount can not exceed $10,000 for the school year.

PLUS loans are the financial responsibility of the parents, not the student. If the student agrees to make payments on the PLUS loan, but fails to make the payments on time, the parent will be held responsible. The first payment is due within 60 days of disbursement. Interest rates are fixed at 8.5%.

Completing the PLUS Master Promissory Note

To receive a Federal PLUS Loan at Madison Area Technical College for your son or daughter, you must be able to answer yes to all of the following statements:

1. Your son or daughter has been accepted into an eligible program at MATC and is enrolled for at least six credits. To apply for admission to MATC, please refer to MATC Admission Procedures.
2. Your son or daughter has applied for Federal Financial Aid through the FAFSA form. If no, please refer to Financial Aid Office.
3. Your son’s or daughter’s financial aid application has been reviewed and your son or daughter have received their 2008-09 Financial Aid Award Notice from the MATC Financial Aid Office and it states that they are eligible for a Federal PLUS loan.
   If a Financial Aid Award Notice has been received and a PLUS loan was not listed, please contact the MATC at (608) 246-6170.
   
4. You understand that if your PLUS loan application is approved, the proceeds will be disbursed to your son’s or daughter’s account at MATC.  Any remaining funds will be mailed to you, the parent.

If you have answered yes to all the above statements, you may click on: FASTPLUS Online Loan Application.

Alternative Loan Program

Alternative loans are non-federal educational loans available from a variety of lending institutions.  These types of loans should only be considered when the student and/or parents have exhausted all other avenues of financial aid.

To receive an Alternative Loan at Madison Area Technical College, you must be able to answer yes to all of the following statements:

1. You must have been accepted into an eligible program at MATC.  To apply for admission to MATC, please refer to MATC Admission Procedures.
2. You must have applied for Federal Financial Aid through the FAFSA form.  If no, please refer to Financial Aid Office.
3. Your financial aid application must have been reviewed and you have received your 2008-09 Financial Aid Award Notice from the MATC Financial Aid Office.

The amount of an Alternative Loan will be limited to the cost of attendance minus other financial aid.  However, the loan amount can not exceed $10,000 per school year. In addition, these loans require that the borrower be credit worthy or have a credit worthy cosigner, as they go through a normal bank credit process.

If you are ready to learn more about Alternative Loans and apply for an Alternative Loan, you may click on:  Alternative Loans.

Your application will then be sent to the MATC Financial Aid Office for school certification after you have signed/”e-signed” the promissory note and your loan has been credit-approved.

If you have additional questions, visit Ask MATC to view frequently asked Financial Aid questions, or phone the Financial Aid Office at (608) 246-6170.

Last Modified: February 18, 2008

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