How to apply for student loans?

Before requesting a student loan, be sure to read and understand all the information about maintaining your loan eligibility.

Beginning with the 2021-22 year, student loan borrowers are required to complete the Annual Student Loan Acknowledgment each year to be eligible for loans. Delay or failure to meet this requirement may result in a delay or cancellation of your student loan. This is in addition to the requirement of students completing Entrance Loan Counseling and a Master Promissory Note.

Login using your FSA ID to complete this requirement at Annual Student Loan Acknowledgment | Federal Student Aid. First time borrowers will review information about loan debt and repayment of loans. Returning borrowers will review their current loan debt and loan servicer information.

Direct Student Loans

Complete the FAFSA application. Fall 2021, Winter 22 and Spring/Summer 2022 are included in the 2021-22 FAFSA year.

  1. Please note that your FAFSA is not complete until you have received an email from Schoolcraft.
  2. Complete both your Entrance Loan Counseling AND Master Promissory Note (MPN) online at
    • If you have had a loan previously at Schoolcraft, you do not need to complete this step.
    • Wait 24 – 48 hours after this step to complete step 3.
  3. Submit the Loan Request form to the Financial Aid Office.
Please note that Schoolcraft College does not certify PLUS loans or private alternative student loans.

What is a Student Loan?

There are two types of Direct Loans:

  • Subsidized - If you meet certain financial need (results of the FAFSA) criteria, the federal government will pay the interest on your loan while you attend school at least half-time and during the times when you qualify for an authorized deferment.
  • Unsubsidized - If you do not meet the financial need criteria to qualify for a subsidized loan, you may be eligible for the unsubsidized loan.You are responsible for all the interest on the loan. You may choose to pay it as you go or let it accrue (build up) and pay it back when you begin paying your loan back.

Failure to repay a student loan jeopardizes your future eligibility for financial aid and also impacts your credit worthiness for any future borrowing, including car loans, home mortgages or other consumer loans.

Maintaining Your Eligibility

  1. Maintain Satisfactory Academic Progress
    • Cumulative Schoolcraft GPA minimum of 2.0,
    • Cumulative Schoolcraft Completion Rate* of 67% or better,
    • Attempted fewer than 150% of the student’s official Schoolcraft College academic program requirements, including Schoolcraft credits and those transferred in.

      *Completion Rate is calculated by dividing the number of credits completed by the number attempted. For example, if a student registers for 12 credit hours, withdraws from 4 credits and passes the other 8 credit hours, their completion rate would be 8 out of 12 credits  = 66%.

  2. Remain in a valid program of study
    • Invalid programs include: Non-Degree Seeking, Undecided, Education Transfer, Health Transfer, and Guest.
    • All registered classes must fall within your valid program of study.
    • Programs can be updated at the Registration Center.

  3. Maintain at least 6 credit hours
    • In order to qualify for federal student loans, students must be in at least 6 credits hours each semester they are receiving a loan.
    • Always check with the Office of Financial Aid before dropping or withdrawing from a class.

  4. Attend your classes
    • Instructors are required to report attendance to the Office of Financial Aid to meet federal requirements. If you are reported as not attending one or more of your courses, your federal aid may be reduced or declined. You will be responsible for any balance to the college this adjustment causes.

  5.  Loan Reduction or Cancellation 
    • Student loans may be re-calculated at any time based on certain situations. Some of these situations (not all inclusive) are:
      • You enroll in only late start courses
      • You fall below 6 credit hours
      • It is reported you are not attending class(es)
      • You receive additional assistance (ex: scholarship, employee tuition grants)
      • You withdraw from courses

Important Loan Information

  • Per federal regulations Schoolcraft College is now required to begin disbursing all federal student loans in two equal disbursements. If you are eligible for a loan refund, you won’t be getting the full amount until the middle of the semester. Please see Schoolcraft's current disbursement dates in the first section under, Loan Disbursement Dates.
  • You have the right to cancel all or a portion of the loan funds you have been awarded. To cancel a loan, submit a written or emailed request to the Office of Financial Aid prior to the disbursement date to avoid any loan fees. After the disbursement date, please contact the Office of Financial Aid within 14 days of the disbursement date for assistance on cancelling loans funds.
  • In addition, we recommend that all borrowers complete the Financial Awareness Counseling located at after receiving their first loan disbursement at Schoolcraft College.
  • Once students have borrowed more than $31,000, Schoolcraft College requires the student to complete a process called Debt Management. The form can be found under the financial aid form section of the website.
  • Interest Rates for 2020-2021:
    • Subsidized Direct Loan: 5.05%
    • Unsubsidized Direct Loan: 5.05%
Annual Loan Limits
Dependent Independent
Freshman $5,500 $9,500
Sophomore* $6,500 $10,500

*You are considered a sophomore once you have successfully completed and/or transferred in 26 or more credits at the 100 level or above AND you are in a 2 year degree/transfer program.

Undergraduate Total/Lifetime Loan limits
  Dependent Independent
Subsidized $23,000 $23,000
Total (including subsidized) $31,000 $57,000

How to Repay

Understanding the repayment process for your federal student loans can go a long way toward building a solid financial foundation.

Remember, Federal student loans are real loans, just like car loans or mortgages. You must repay a student loan even if your financial circumstances become difficult. Your student loans cannot be canceled because you didn’t get the education or job you expected, or because you didn’t complete your education (unless you couldn’t complete your education because your school closed).

  • Loan Servicers
  • Repayment Plans
  • Loan Consolidation
  • Deferment and Forbearance
  • Forgiveness, Cancellation, and Discharge
  • Understanding Default
  • Resolving Default