Direct Loan Program
Loan applications may be completed after you enroll for classes for the applicable semester. Loans will be certified after your financial aid award is determined. When applying for a student loan, you must understand that this is a loan that must be repaid.
Students must be enrolled in an eligible program leading to a certificate or degree and be enrolled for at least six eligible credit hours to borrow a Federal Direct Loan for any semester of attendance. Students that are in default on students loans are not eligible for student loans or any financial aid in the future.
Federal Direct Loan Acceptance
Students must submit a Federal Direct Loan Acceptance Form for the appropriate aid year if they wish to borrow federal loan funds. Forms can be found on the Financial Aid Forms page. Students must also complete loan entrance counseling and a Master Promissory Note (MPN) online at StudentAid.gov if they have not borrowed previously.
Processing Loan Acceptance Forms
Loans will be certified for the amount requested or for the amount you are eligible, if less than the requested amount. If you are enrolled in less than 12 credit hours and/or have a period of enrollment shorter than the full semester, your cost of attendance is adjusted to reflect your actual credit hours enrolled / period of enrollment and your loan award will be recalculated. Any change in enrollment status after your loan is certified by ICC may require additional recalculation and revision of your original loan amount. If you decide not to attend ICC, you must officially withdraw from your classes prior to the refund date of each class or you will be responsible for payment of your tuition. Please refer to your class schedule for the refund dates of your classes.
Federal Direct Student Loan Interest Rates & Origination Fees
Direct Loan interest rates for undergraduate students in the 2021-2022 academic year are 3.73%. Loan origination fees total 1.057% of the loan amount for loans that have a first disbursement on or after October 1, 2020 and before October 1, 2022.
Federal Direct Student Loan Annual Limits
These amounts are the annual maximums set by Federal regulations. Students attending Illinois Central College may not qualify for the total amounts if they are receiving grants, scholarships, Federal Work Study, waivers or other educational assistance.
Lifetime Loan Limits
Undergraduate Dependent Students = $31,000 (no more than $23,000 of which can be subsidized)
Undergraduate Independent Students = $57,500 (no more than $23,000 of which can be subsidized)
Disbursement of Loan Funds
Loan disbursements are completed in two payments during the loan period. If the student has requested a two semester loan (i.e. fall and spring loan), the student will receive one disbursement in each of the semesters after the census date. If the student has requested a one semester loan (i.e. fall only loan), the student will receive two disbursements in the semester. The second disbursement is processed after the midterm.
Per Federal Regulations, disbursements for first time loan borrowers are not processed until 30 days after the start of the semester (approximately the 5th week of the academic semester)
Situations that may Delay or Cancel Your Loan
- Enrollment in late start (12-Week and 2nd 8-Week) courses may delay your loan until after these classes start
- Change in your enrollment status may require a recalculation of your loan eligibility
- Dropping below six credit hours will result in cancellation of undisbursed loan funds
Return of Title IV Aid
If a recipient of Federal financial aid withdraws during a payment period (or a period of enrollment), the school must calculate the amount of aid the student earned through the date of last attendance. Unearned aid, including loans, must be returned to the Federal financial aid programs.
Find out all the information on Return of Title IV Aid.
Student Loan Default
Student loan default, or not repaying your student loan debt, carries serious consequences. When taking out a student loan, you want to exhaust all other possible funding methods and borrow conservatively. Students that do not repay their student loans become ineligible for any financial aid and loans in the future. Defaulted loans prevent students from renewing professional licenses. The Federal Government can collect on defaulted loans by confiscating federal tax refunds and wage garnishment. It is the student’s responsibility to always stay in contact with the loan servicing center to stay current with address and enrollment information to help avoid default.
If you and your loan servicer disagree about the balance or status of your student loan and you have done everything you can to resolve the issue you can contact the Federal Student Aid Ombudsman Group. They can help you find some resolution to the matter.
Please use the following information to contact the FSA Student Loan Ombudsman Group:
FSA Ombudsman Group
830 First Street, N.E., Mail Stop 5144
Washington, DC 20202-5144
(202) 275-0549 — Fax
Cohort Default Rate
A cohort default rate is the percentage of a school’s borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the second following fiscal year.
|FY 2017 National Average – 9.7||FY 2017 ICC Average – 12.5|
Estimating Your Monthly Payments
The minimum monthly payment is $50 and the standard repayment period is 10 years.
The Loan Simulator helps you calculate student loan payments and choose a loan repayment option that best meets your needs and goals. You can also use it to decide whether to consolidate your student loans.
Loan Exit Counseling and Repayment
Student loan borrowers are required to complete Student Loan Exit Counseling after ceasing at least half-time enrollment at Illinois Central College (this includes graduating, withdrawing, dropping courses, and leaving or transferring from ICC).
Student loans enter repayment six months after ceasing enrollment in at least six credit hours. The six month grace period for repayment is a one-time grace period. If the student has used the six month grace period in the past, repayment will begin immediately after falling below an enrollment level of at least six credit hours. You will receive notification regarding loan repayment from your loan servicer during your grace period. In order to look up your loan servicer’s name and contact information, as well as specific information on all of your student loans, go to StudentAid.gov and sign in to view your loan information.
Direct PLUS Loans
Parents of dependent undergraduate students may borrow this loan on their student’s behalf. Student’s must be enrolled at least half-time (6 hours). Financial need is not required but the loan is limited to the school’s cost of attendance, which varies depending on number of credit hours enrolled, minus other aid the student is receiving. FAFSA filing is required and parents must not have an adverse credit history.
The Direct PLUS loan origination fee is 4.228% of the total loan amount borrowed. The fee is deducted from the loan amount prior to disbursement to the borrower. The interest rate is 6.28% for the 2021-2022 academic year and is charged beginning on the date of the first loan disbursement.
Direct PLUS loan repayment begins on the date the loan is fully disbursed as there is no grace period. Payments may be deferred while the dependent student is enrolled at least half-time. A parent borrower who is also a student may defer repayment while he or she is enrolled at least half-time. Deferments must be requested by contacting the agency that services your loan.