After you have applied for scholarship and grants, you still might need a little extra money to pay for college. Student loans can help. Like other loans, these must be paid back with interest (more money in addition to what you borrowed).
Types of Loans
There are two types of student loans: Federal and Private
Federal Loans
Federal loans are borrowed from the US Department of Education. The interest rate is the same for all students. There are two types with one subtle difference. Ozarks Tech will always offer as much federal loan as you qualify for, but you do not have to borrow them unless you want to.
- Unsubsidized federal student loan: The interest on this loan accrues (grows) as you go to college. When you start repaying the loan, your payments are based on the original amount of the loan and the interest that accrued since you received the loan.
- Subsidized federal student loan: There is no interest on this loan while you are in college. Interest starts accruing when you leave college, making this loan cheaper in the long run.
- Federal Parent PLUS Loan: This is a loan parents and stepparents of students can borrow to supplement their child’s education. The student must be dependent on the FAFSA. Interest on this loan is higher than the student’s loans, and interest starts accruing immediately after the loan is disbursed.
Private Loans
Banks, credit unions, and student loan lenders offer loans to help students attend college. Interest rates are decided by the lender. Only students in select programs can borrow private loans at Ozarks Tech.
Loan Comparison
| Federal Subsidized | Federal Unsubsidized | Federal Parent PLUS | Private | |
|---|---|---|---|---|
| Eligible Degrees | Certificate of Achievement Associate degree Bachelor of Science in Respiratory Therapy | Certificate of Achievement Associate degree Bachelor of Science in Respiratory Therapy | Electrical Distribution Systems (Associate degree) Aviation (Associate or Certificate of Achievement) Respiratory Therapy (Bachelor of Science) | |
| Interest While Enrolled | No (If 6+ credit hours) | Yes | Yes | Yes |
| Yearly Limit | See chart | Electrical Distribution Systems (Associate degree) Aviation (Associate or Certificate of Achievement) Respiratory Therapy (Bachelor of Science): Cost of Attendance or $20,000 per year ($10,000 per semester), whichever is lower All other programs: Cost of Attendance or up to $4,000 per year ($2,000 per semester) If the soft credit check determines a parent is not eligible, they may apply again with a cosigner, or the student may borrow up to $4,000 per year ($2,000 per semester) of additional unsubsidized federal loans | Cost of Attendance | |
| Lifetime Limit | Yes (see chart) | Yes – $65,000 per child over the course of their undergraduate study | No | |
| Interest Rate | 6.52% Fixed | 9.07% Fixed | Varies | |
| Origination Fee | 1.059% | 4.228% | Varies | |
| Minimum Enrollment | 6 credit hours | 6 credit hours | Varies | |
| Borrower | Student | Parent or stepparent | Student, parent, or spouse | |
| Repayments Start | 6 months after you graduate, leave school, or are no longer enrolled half-time | Immediately after loan disbursement | Varies | |
| Requirements | Accept loans in your MyOTC Complete Entrance Counseling Sign a Master Promissory Note | The student must borrow all federal loans before their parent may borrow a PLUS loan. The student must borrow all federal loans before their parent may borrow a PLUS loan. Parent or stepparent must apply for a loan at StudentAid.gov and sign a Master Promissory Note The student must accept the Parent PLUS loan in MyOTC Loans are applied directly to the student’s OTC balance. Any refund of the Parent PLUS loan may be sent to the parent (by default) or the student | ||
| Credit Check | No | Yes | Yes | |
| Cosigner Required | No | Sometimes | Sometimes | |
| Loan Forgiveness | Yes | No | No | |
How Much Can You Borrow
| Year | Dependent | Independent | ||
|---|---|---|---|---|
| Subsidized | Total | Subsidized | Total | |
| 1st Year Less than 30 credit hours completed, or Your highest degree sought is a certificate program | Up to $3,500 | $5,500 | Up to $3,500 | $9,500 |
| 2nd Year Associate degree or higher, and 30 or more credit hours completed | Up to $4,500 | $6,500 | Up to $4,500 | $10,500 |
| 3rd & 4th Year Bachelors degree only, and 60 or more credit hours completed | Up to $5,500 | $7,500 | Up to $5,500 | $12,500 |
| Lifetime Totals | Up to $23,000 | $31,000 | Up to $23,000 | $57,500 |
Receiving Your Loans
Complete 3 quick steps to receive your loans:
- Accept them in your MyOTC account (You don’t have to accept the entire loan if you won’t need it)
- Complete Entrance Counseling at Studentaid.gov. This is an online lesson about student loans.
- Sign a Master Promissory Note at Studentaid.gov. An MPN is an agreement to repay the loan.
Exit Counseling
If you borrowed a federal student loan, you must complete Federal Loan Exit Counseling when you graduate or if you are no longer enrolled in 6 credit hours (unless you are registered for a future semester). Exit counseling teaches you about your loan repayment options and takes around 30 minutes to complete.
Ozarks Tech Borrower Trends
Less than 1 out of 4 students need to borrow a student loan thanks to our affordability. Our Cohort Default Rate (CDR) is 0% (the national average CDR is 0%). A Cohort Default Rate is the percentage of students who started repaying their federal loans in a given year and defaulted on them within 3 years. This rate is updated annually.
Borrower Rights and Responsibilities
If you borrow a federal student loan, there are things you have a right to know, and things you agree to
do.
Ozarks Tech Borrower Rights and Responsibilities
(Rev. 9/2022)
I, the student borrower, have the right to information about my federal student loans in order to make informed decisions which will impact my financial wellness. Specifically:
- Written information on my loan obligations and information on my rights and responsibilities as borrower;
- A copy of my MPN either before or at the time my loan is disbursed;
- A grace period and an explanation of what this means;
- Notification, if ED transfers my loan to another servicer without my consent;
- A disclosure statement, received before I begin to repay my loan, that includes information; about interest rates, fees, the balance I owe, and a loan repayment schedule;
- Deferment or forbearance of repayment for certain defined periods, if I qualify and if I request it;
- Prepay my loan in whole or in part any time without an early repayment penalty; and
- Documentation when my loan is paid in full.
In addition, I, the student borrower, have certain responsibilities associated with the receipt of federal student loans:
Notify my lender or loan servicer of anything that might alter my eligibility for an existing deferment or forbearance.
Complete exit counseling before I graduate, leave school, or drop below half-time enrollment;
Repay my loan according to my repayment schedule even if I do not complete my academic program; I am dissatisfied with the education I received, or I am unable to find employment after I graduate;
Notify my lender or loan servicer if I:
- Move or change my address
- Change my telephone number
- Change my name
- Change my Social Security number, or
- Change employers, or if my employer’s address or telephone number changes;
- Make monthly payments on my loan after my grace period ends, unless I have a deferment or forbearance; and
- Notify my lender or loan servicer of anything that might alter my eligibility for an existing deferment or forbearance.
Contact Student Success
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