Student and Parent Loans

Federal Student Loans

  • Subsidized Loans: Based on financial need, interest is paid by the federal government while you’re enrolled at least half-time.
  • Unsubsidized Loans: Interest accrues while in school, you may defer or pay interest during enrollment.

Eligibility

  • Submit a valid FAFSA  
  • Be a U.S. citizen or eligible noncitizen  
  • Enroll at least half-time (6 credits) in a degree or certificate program  
  • Maintain satisfactory academic progress  
  • Not be in default on any federal student loans or owe refunds on grants  

How to Apply

  • Complete Entrance Counseling (required for first-time borrowers)
  • Sign the Master Promissory Note (MPN)
  • Loans are split and disbursed in two installments per academic year; applied first to institutional charges (tuition, fees, etc.).  
  • Any remaining balance is refunded to you via check or direct deposit.  

Repayment & Counseling

  • A six month grace period begins after you graduate, drop below half-time, or leave school.  
  • Exit counseling is required before leaving school to help you understand repayment options.
  • You may consolidate your loans or choose from multiple repayment plans on the Federal Student Aid repayment page.

Federal Parent PLUS Loans

  • A PLUS Loan is in the parent’s name to help bridge gaps between cost of attendance and student aid.  
  • Requires a credit check; if credit is denied, the student may be eligible for an additional unsubsidized loan.  

Eligibility

  • Student must have a FAFSA on file for the academic year  
  • Student must be enrolled at least half-time  
  • Both student and parent must be U.S. citizens or eligible noncitizens  
  • Neither may be in default or owe refunds on federal aid  

Application & Terms

  • Parents complete the PLUS application
  • Each parent or each student requires a separate MPN  
  • If credit is denied, the parent may use a credit-endorsed PLUS, request reconsideration, or decline; this decision does not affect the rest of the student’s aid.

Private (Alternative) Loans

  • A private loan is offered by banks, credit unions, or state agencies rather than the federal government.  
  • Many terms depend on the lender: interest rate (fixed vs. variable), fees, repayment options, and creditworthiness.  
  • Students with limited credit history may need a cosigner.  

Considerations & Tips

  • Borrow only what you truly need
  • Research lenders thoroughly: compare interest, fees, repayment conditions  
  • Understand when interest starts accruing, when payments begin, and what options exist if you face difficulty repaying  

Required Loan Steps

Entrance Counseling is a mandatory, online session for all first-time federal loan borrowers. The purpose of Entrance Counseling is to inform the student borrower of their rights and responsibilities, as well to help educate the student on topics such as interest rates, responsible borrowing, repayment plans, and avoiding default.

Students can check the status of their Entrance Counseling in their MyOCC account.

The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees. It also explains the terms and conditions of your loan(s). By signing the MPN you are agreeing to the terms of your loan(s).

Students can check the status of their Master Promissory Note in their MyOCC account.

Loans are generally awarded for the full academic year and disbursed in two equal installments near the beginning of the Fall and Spring semesters. Funds are disbursed directly to the college and are applied to the student’s account to cover any outstanding charges such as tuition, fees, room and board. Any loan funds in excess of a student’s charges will be refunded to the student via paper check or direct deposit.

Once your loan has been originated, the Department of Education will assign your loan to a federal servicer. The servicer assigned to your loan(s) will send you correspondence including disclosure statements that contain loan amounts, interest rates and disbursement dates, repayment information and options regarding loan consolidation. Always be sure to notify your loan servicer with any changes to your personal information such as name, address, or phone number.

Contact information for your federal loan servicer can also be found by by visiting the Federal Student Aid loan servicer page. 

Exit Counseling helps students understand their rights and responsibilities as student loan borrowers. The exit counseling session will provide useful tips and information to help manage student loans, including repayment plans and estimated monthly payments.

Any student that borrows funds from the Federal Direct Loan program is required to complete exit counseling when

  • The student is no longer enrolled at least half-time (6 credit hours of required coursework in their program of study.)
  • The student graduates.
  • The student transfers to another school.

Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment. For Direct Subsidized and Direct Unsubsidized loans, you have a six-month grace period before you are required to start making regular payments.

The U.S. Department of Education offers several different repayment plan options to help make payments more convenient and affordable. Please visit https://studentaid.gov/manage-loans/repayment for more information. 

Visit Us

No matter where you are in your financial aid journey, we’re committed to helping you access the resources you need to support your education. Stop by the FASC during walk-in hours and let us help you navigate your financial aid process.

Book Appointment

Please come in during walk-in hours. Limited appointments are also available.