Student Loan Process

To receive a student loan, you must complete the following steps, be enrolled at least six credit hours each quarter, and be making Satisfactory Academic Progress.  Once you complete the Master Promissory Note (MPN), your loan should be certified by a Financial Aid Advisor in 2-4 weeks.  If you wish to change your loan amount after your loan has been processed, you will need to speak to a Financial Aid Advisor to make the necessary adjustments. 

You are required to complete Entrance Counseling before your student loan is released.  This is an annual institutional requirement and may be done by clicking on the link below in Step 2.  Once you complete Entrance Counseling, you will be directed to complete the Master Promissory Note.  If you do not have an account set up with Great Lakes, you will create one by providing your Social Security Number, creating a password, choosing a secret question and providing the answer. 

If you have any questions regarding this process, please feel free to contact the Office of Financial Aid in Hopewell Hall at 740-366-9435 or via email at finaid@cotc.edu. 

 

Step 1	Complete the Free Application for Federal Student Aid (FAFSA).  Students must have a completed FAFSA on file and file complete before any loan will be processed.
Step 2	Complete Loan Entrance Counseling by clicking on the link below.  As a student loan borrower at COTC, all students are required to complete Entrance Counseling each academic year.  The purpose of Loan Entrance Counseling is to explain a student's rights and responsibilities in borrowing a student loan.  At the end of the Entrance Counseling process, you will be directed to the Master Promissory Note (MPN) where you will accept the loan amount you wish to borrow for the academic year.   You may borrow Stafford loan funds from any lender who participates in the Federal Stafford Loan Program.  However, be aware that there are differences in the services the lenders provide.  A lender is selected when completing the MPN.
Step 3	Complete the online Master Promissory Note (MPN).  For the loan request to be guaranteed, students must have a signed MPN on file with the lender of choice and will have the ability to accept the loan amount to borrow for the academic year.   Students may borrow Stafford loan funds from any lender who participates in the Federal Stafford Loan Program.  However, be aware that there are differences in the services the lenders provide.  A lender is selected when completing the MPN. Federal Stafford Loan Master Promissory Note

Federal Regulations for Loan Disbursements

• A minimum enrollment status of half-time (6 credit hours) is required each quarter.  If a student's enrollment drops below half-time, the student's loan and any remaining disbursements may be cancelled.
• Students must maintain Satisfactory Academic Progress (SAP).  Information regarding the SAP policy is available upon request and online. 
• Two Disbursements per Loan Period - Every Stafford loan is required to have two disbursements per loan.  Please check the disclosure statement from Great Lakes Higher Education Corporation for your expected disbursement dates.
• First Time Freshman Borrowers - All first time freshman borrowers are subject to an additional 30 day delay on the first loan disbursement.
• Fees - All Stafford and PLUS loans are subject to up to a 3% origination fee and up to 1% guarantee fee.  (COTC uses Great Lakes Higher Education Corporation (GLHEC) as our servicer and guarantor.  GLHEC is offering COTC students a 0% guarantee fee.)

You will receive a disclosure statement in the mail from Great Lakes of your scheduled loan disbursements. Once the funds have been disbursed to your student account in the Office of Fees & Deposits, you have the right to cancel all or a portion of the loan and have the proceeds returned to the lender.  If you wish to cancel your loan and have received funds, you must return all loan funds received with a written cancellation request within 14 calendar days from the date the funds were applied to your student account.  If the cancellation request is received after this deadline, the school may choose to return the funds but is not required to.

Other helpful websites:

 Great Lakes Alternative Solution for Financing Your Education - Alternative loans, also commonly referred to as private loans, are commercial loans offered by banks and other private lenders to cover the costs of college not covered by financial aid.  (COTC requires a FAFSA on file in order to certify an alternative loan.  Some students may qualify for grants and/or Stafford Loans that would be more beneficial than the alternative loan.)

 Great Lakes Higher Education Corp - to obtain information concerning account balances, repayment options, deferment and forbearance provisions.

 Loan Exit Counseling - before you graduate or when you drop below six credit hours, you are required to complete an exit counseling session if you have used Stafford loan funds for your educational expenses.

 National Student Loan Database System (NSLDS) - review student loan debt

 Repayment Calculator
 

Debt at time of repayment	Standard Payment per month	Total amount repaid*
$2,500	$50	$3,074
$5,000	$61	$7,359
$7,500	$92	$11,039
$10,000	$123	$14,718
$15,000	$184	$22,077
$20,000	$245	$29,437
$25,000	$307	$36,796

*Based upon standard repayment term of ten years (calculated at 8.25% interest).

Have questions about Financial Aid? Email COTC Financial Aid. NOTE: The Office of Financial Aid staff will respond to email via COTC issued email addresses only.

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