Direct Student Loan Program

On March 30, 2010, President Barack Obama signed the Heath Care and Education Reconciliation Act of 2010, requiring all Federal Stafford, PLUS and Graduate PLUS loans previously processed as Federal Family Education Loans (FFEL), through private lenders, now be processed through the Federal Direct Student Loan Program effective no later than July 1, 2010.

Starting July 1, 2010, Meridian Community College became an active participant in the William D. Ford Federal Direct Loan Program.

Federal Direct Student Loan Program
The Federal Direct Student Loan Program offers three types of student loans:

  • Subsidized Loan
  • Unsubsidized Loan
  • PLUS (parent) loan

To be eligible for a Direct loan, the student must:

  • Complete the Free Application for Federal Student Aid (FAFSA),
  • Enroll in at least six (6) semester credit hours (half-time) at MCC,
  • Meet requirements of MCC’s Satisfactory Academic Progress Policy (SAPP)*, and
  • Have a need as determined by the FAFSA and the Cost of Attendance minus other aid.

*Other criteria may also apply.

Subsidized Federal Direct Loan Summary
Students must have an unmet need, as determined by the FAFSA to qualify for a Subsidized Direct Student Loan. The federal government will pay the interest owed on a subsidized loan while the student is enrolled in at least six credit hours and during the student’s grace period.

Unsubsidized Federal Direct Loan Summary
Before MCC can certify an Unsubsidized Direct Loan, eligibility for a Subsidized Direct Loan will be determined. The Unsubsidized Loan is not a need-based loan. The borrower is responsible for paying the interest accrued on the loan after disbursement as well as during the life of the loan.

To Apply for a Federal Direct Student Loan
Once a student’s eligibility criteria has been met, the student must call or come by MCC’s Financial Aid Office and request a Federal Student Loan Application packet.  The packet outlines in detail the requirements that a student must complete in order to apply for the loan.  When the requirements are completed and the information returned to MCC, the loan will be processed and awarded to the student, if eligible.  The student should check MCC’s EagleNet site for award information or documents requested.

Disbursement of Loan Money
The Department of Education will disburse the student loan funds to MCC in two separate and equal disbursements within the loan period.  All charges owed to MCC will be taken out of the student’s loan disbursement prior to the student receiving a refund.  Student loan refunds will not be available to any student until at least eight (8) weeks after the first day of the semester.  If, when the student loan funds are disbursed or the student comes to pick up his/her loan refund check, the student is not attending at least six (6) credit hours, the loan funds will be returned to The Department of Education.

Loan Repayment
Repayment of the loan begins six (6) months after the student ceases to be enrolled at least half time. Students may visit The National Student Loan Data System (NSLDS) at for a complete history regarding their student loan(s).

Exit Counseling
Exit counseling is required to be provided to any student who has either:

  • Withdrawn from our school,
  • Transferred to another school,
  • Dropped to less than half-time, or
  • Graduated

Please click here in order to complete online exit counseling. You will need your driver’s license (if applicable), Employer information (if available), addresses, name, and phone number for next of kin and two personal references that live in the United States in order to complete the counseling session.