Loans | ECTC

Affording College

Loans

ECTC participates in the Federal Direct Loan Program. Direct Loans include Direct Subsidized, Unsubsidized Loans, and Direct PLUS Loans. Borrowers repay these loans directly to the U.S. Department of Education or a servicer appointed by the U. S. Department of Education.

How to request a student loan

  • Visit www.studentaid.gov to complete Entrance Counseling and Master Promissory Note
  • Login with your FSA credentials (same login for FAFSA)
  • Access Loans and Grants menu
  • Complete Entrance Counseling (EC) and Master Promissory Note (MPN)

Notes: On MPN, references cannot share the same address.

  • Access your Student Self-Service
  • Click on the Fin. Aid & Account Balance tile
  • Click on FA Loan Request
  • Verify your Information
    • Make any necessary changes by clicking the edit button
  • Read Loan Request Acknowledge Statements and then continue
  • Confirm if you are interested in a loan and then submit
  • Select the term for which you are requesting the loan (i.e. Fall/Spring, Fall only, Spring only)
  • Enter the amount of student loan you would like to request
    • Note: If you are requesting a loan for Fall and Spring, the amount you request will be split between both semesters (Example, You request $3500, you'll receive $1750 in Fall and $1750 in Spring, minus fees)
    • If requesting for Fall Only or Spring Only, amounts will be sent in 2 disbursements during the semester
  • Submit

federal Direct Loans

Direct Subsidized Loans are based on financial need as well as annual and aggregate loan limits. Interest on this loan does not accrue during eligible periods of enrollment and stated grace periods. Interest accrual and repayment begins six months after graduation or when a student is no longer enrolled at least half time (6 semester hours).

Direct Stafford Unsubsidized Loans are based on annual and aggregate loan limits and is not based on financial need. Unlike the subsidized loan, the borrower must pay all interest that accrues regardless of enrollment status or loan deferments. Interest can be paid monthly or quarterly or be capitalized (added to the principal balance). Principal repayment begins six months after graduation or when the student is no longer enrolled at least half time (6 semester hours).
A loan made by the U.S. Department of Education to parents of dependent undergraduate students. The borrower (the parent) is fully responsible for paying the interest regardless of the loan status.

requirements for federal student loans

Visit www.studentaid.gov.

  • Enroll (and remain enrolled) in 6 program applicable credit hours or more for the term for which you are borrowing the student loan.
  • Student must be enrolled in an eligible academic program offered by ECTC.

You will be required to sign a Master Promissory Note (MPN) prior to your loan funds disbursing to your account. You may E -Sign your MPN here.

*The Terms and Conditions and the Rights and Responsibilities of Federal Student Loans are listed on the Master Promissory Note (MPN), which is signed by the borrower who is accepting the loan. If you would like to review this information before borrowing a loan, view a sample MPN for Federal Stafford or Federal PLUS loans. This MPN also provides a sample loan repayment schedule and the necessity for repaying any loans you borrow. (Please note: If you want to borrow a student loan, and need to sign your MPN, please go to www.studentaid.gov.)

Entrance Counseling is required for all first-time Federal Direct Stafford loan borrowers. Entrance counseling takes approximately 20-30 minutes to complete.

The Office of Student Financial Aid receives results of entrance counseling. Federal Direct Stafford loans will not disburse until entrance counseling has been completed.

  • Review important concepts, tips, and recommendations for repaying your student loans.
  • Who's this for?
    • Borrowers new to repayment or those who want a refresher
  • How long does it take to read?
    • 10 minutes or less
  • Visit the FSA Website for more information.

Loan COUNSELING

Federal Direct Loan student borrowers are required to complete mandatory entrance and exit counseling. The purpose of the counseling is to provide the student with information regarding their rights and responsibilities; the commitment that comes with the acceptance of a student loan; and to help the student understand how to manage their student loans. It is important for all borrowers to realize that student loans are not grants or scholarships; they require repayment.

You will need to have an FSA ID to access the entrance and exit counseling web sites. If you used an FSA ID to apply for federal financial aid, you will use that FSA ID to complete entrance and exit counseling.

Exit Counseling

All student borrowers who leave the Elizabethtown Community and Technical College either by graduating, withdrawing, or failing to return for a subsequent semester are required by Federal Law to complete exit counseling on the web at studentaid.gov. Student borrowers must complete exit counseling. Exit counseling takes approximately 30-40 minutes to complete.

Federal Student Loan Default Information

The 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 1st to September 30th, and default or meet other specified conditions prior to the end of the second following fiscal year.

Elizabethtown Community and Technical College encourages students to borrow responsibly, know their loan repayment options and understand the consequences of defaulting on a student loan.  We have partnered with Kentucky Higher Education Assistance Authority (KHEAA) to provide early intervention and default prevention services to our students and former students who have entered repayment on their federal student loans.

The 2020 default rates were calculated using the cohort of student loan borrowers who entered repayment on their William D. Ford Federal Direct Loans or Federal Family Education Loans (FFEL) between Oct. 1, 2019, and Sept. 30, 2020, and who defaulted between Oct. 1, 2019, and Sept. 30, 2022.

Please refer to the Cohort Default Rate Database to search the current cohort default rate for any college,  university, or other institution that participates in the federal Direct Student Loan program.   The new rates are updated annually each September as information is provided by the U.S. Department of Education. 

Elizabethtown Community and Technical College Most Recent Cohort Default Rates

Year

Default Rate

Number of Borrowers in Cohort

Number of Borrowers in Cohort who Defaulted

National Average

2020

0.0%

816

0

0.0%

2021

0.0%

631

0

0.0%

2022

0.0%

589

0

0.0%

Maximum Annual Loan Limits

Subsidized and Unsubsidized Direct Loans

  • Dependent Undergraduate Student
    • $5,500
    • No more than $3,500 of this amount may be in subsidized loans
  • Independent Undergraduate Student
    • $9,500
    • No more than $3,500 of this amount may be in subsidized loans
  • Dependent Undergraduate Student
    • $6,500
    • No more than $4,500 of this amount may be in subsidized loans
  • Independent Undergraduate Student
    • $10,500
    • No more than $4,500 of this amount may be in subsidized loans

*Loan amounts may be reduced due to other aid offered. Aid may not exceed Cost of Attendance.

For additional information, please visit Subsidized/Unsubsidized Loans.