Loans

Who Is Eligible?

• Students must complete a FAFSA application.
• Must be enrolled at least half-time (6 or more credits per semester).
• Must be enrolled in a financial aid eligible program.
• Not be in default on a previous federal student loan.
• Maintain Satisfactory Academic Progress.

Types of Federal Direct Loans

• Federal Direct Subsidized Loan is a need-based loan awarded to undergraduate students. No interest accrues while the student is enrolled at least half-time. For more information on current interest rate, origination fees, loan limits and repayment options, please visit the U.S. Department of Education’s website.  
• Federal Direct Unsubsidized Loan  is a non-need-based loan awarded to undergraduate students.  Interest starts accruing after the first disbursement. For more information on current interest rate, origination fees, loan limits and repayment options, please visit the U.S. Department of Education’s website.

Checklist To Complete Federal Direct Loan Process

1. Accept Your Loan(s) – To receive federal loans, you must log into MATC Self-Service to accept your loan(s). You will need your MATC username and password to log in.
2. Complete Federal Direct Loan Entrance Counseling – Federal law requires all students who have not previously received a subsidized or unsubsidized loan to complete entrance counseling. 
3. Complete Master Promissory Note (MPN) – The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).  Complete MPN.

Loan Proration

Loan proration impacts undergraduate students applying for graduation who are receiving Federal Direct Subsidized and Unsubsidized Loans.

Federal regulations require schools to prorate the Federal Direct Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year. The loan limit proration determines the loan amount that a student may borrow for the final term of study based on the degree they are earning.

Graduating undergraduate students who are only attending one semester of the academic year will have their Federal Direct Loans prorated based on the number of credit hours they are enrolled.

How Is It Calculated?

The formula provided by the federal government is below.

Direct Loan Exit Counseling

You must complete exit counseling when you graduate, leave school or drop below half-time enrollment (5 or fewer eligible credits per semester). The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment.

Please visit StudentAid.gov to complete exit counseling. You will need your Federal Student Aid account information to log in.  

Parent PLUS Loans

The Federal Direct PLUS Loan is a fixed rate loan for parents to borrow funds for a student’s tuition, fees, and other charges related to their education. Eligibility is based on a credit check, regardless of income or assets. This loan can be used to help pay for costs not covered by other financial aid. For more information on this loan, please visit Direct PLUS Loans for Parents on the Department of Education website.

Who Is Eligible?

• Student must complete a FAFSA application.
• Student must be enrolled half-time (6 or more credits).
• The borrower must be a parent (including non-custodial parent) or stepparent of a dependent student.
• The borrower must not have an adverse credit history.
• The borrower is not in default on any federal education loans.
• The borrower is a U.S. citizen or eligible non-citizen.
• Student must maintain Satisfactory Academic Progress.

Checklist To Complete Federal Direct Parent PLUS Loan Process

1. Determine requested amount – The amount to request annually is limited to the cost of attendance (a.k.a. the "budget”) minus financial aid already received. If the requested amount is too high, it will be reduced to fit within the student's budget.
2. Apply for the PLUS Loan for Parents – Parent must complete the PLUS application annually. Parent will need their Federal Student Aid account information to log into the Departmentt. of Education website. Complete PLUS loan
3. Complete Master Promissory Note (MPN) – The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department. of Education. It also explains the terms and conditions of your loan(s). Complete MPN.

Next Steps - Parent PLUS Loan Processing

• Once the loan application is completed, the Department of Education will perform a credit check.
• The Department of Education will notify the parent of acceptance or denial of the loan application.
• If the PLUS loan is approved, loan funds will be posted to the student’s MATC account no earlier than 30 days after the beginning of every semester.
• Any PLUS funds that exceed MATC charges are given as a refund by MATC’s Student Accounts office.

PLUS Loan Repayment Options

The repayment period for a Direct PLUS Loan begins immediately after you’ve received the last disbursement of the loan, while your child is still in school. However, you may be able to defer making payments while your child is enrolled at least half-time, and for an additional six months after your child graduates or drops below half-time enrollment status. To request a school deferment, please visit Get Temporary Relief: Deferment and Forbearance.

Parent PLUS Loan Denial Options

If the Department of Education notified you that you didn’t qualify for a PLUS loan based on adverse credit, there are other options available. Here are four options to consider that may help you pay for college expenses.

1. Obtain an endorser – An endorser is similar to a cosigner. An endorser is someone who doesn’t have adverse credit and agrees to pay back your Direct PLUS Loan if you don’t. For more information, please visit PLUS Loans: What to Do if You’re Denied Based on Adverse Credit History.
2. File an appeal – You have the right to appeal an adverse credit decision if you think it was made in error, is missing important information, or is based on data that is now out of date. For more information, please visit PLUS Loans: What to Do if You’re Denied Based on Adverse Credit History.
3. Get additional Direct Unsubsidized Loan – If you’re a parent and didn’t qualify for a PLUS loan based on your adverse credit, your child may be able to get additional unsubsidized loan funds. Your child can email MATC’s Financial Aid office to request up to $4,000 in a Federal Direct Unsubsidized loan. The request should include the student’s name, student ID, and the amount requested to loans@matc.edu.
4. Apply for Private/Alternative Loan – This is another financing option available to your child. Your child can apply but may require a credit- worthy co-signer. Please visit the Private/Alternative loan section on this webpage.

Private/Alternative Loans

Private/alternative Loans are available to help bridge the gap between the cost of attendance and any other financial aid received. Private loans may carry higher interest rates, require a co-signer, and/or offer different repayment options than federal loans. Each loan program will differ, so it is important that you know the terms and conditions of the loan, as well as your rights and responsibilities as a borrower.

Who Is Eligible?

• Student must complete a FAFSA application.
• Student must be admitted in a financial aid eligible degree program.
• The borrower is a U.S. citizen, eligible non-citizen or non-resident ( international).
• Student may be required to maintain Satisfactory Academic Progress.
• Student may be required to complete application with a co-signer.

How To apply?

Please visit our Alternative Loan FAST Choice page to apply for a private/alternative loan. You will have the option to learn more about alternative loans, view our historical lender list from the previous academic year, compare loan options before applying for a private loan.

When Can I apply?

You should begin the application process about 4-6 weeks before the start of your requested semester. After a lending institution approves your loan application, your lender will notify MATC of your loan request. MATC will complete a school certification based on your cost of attendance and notify the lender of the amount and dates to disburse the loan funds to MATC. You will be notified via MATC email when the approved loan has been added to your financial aid award. You can view your award at MATC Self Service.

When Will the Loan Be Disbursed to My MATC Student Account?

Disbursement of funds can depend on when the loan is approved. To view common disbursement dates for the semester, see the dates of importance. Refunds to students will be processed through MATC’s Student Accounts office.

Wisconsin Student Nursing Loan

Eligibility

There are Federal Loan Programs for nursing students, which should not be confused with this Wisconsin Nursing Student Loan program (Wisconsin statute 39.393)

To be eligible for the Wisconsin Nursing Student Loan program, the student must:

• Be a Wisconsin resident;
• Be enrolled at least half-time in a degree or certificate program leading to a nursing license (RN or LPN);
• Make satisfactory academic progress (per federal student financial aid criteria);
  Iintend to graduate within two years;
• Intend to graduate within two years;
• Demonstrate financial need; and
• Agree to practice full-time as a licensed nurse and/or as a nurse educator in Wisconsin for the term of the forgiveness period.

How does a student apply for the Nursing Student Loan?

To apply for this loan, students must complete and file a FAFSA. They should then contact MATC’s Financial Aid office that they are interested in receiving a loan. Based on program eligibility criteria, the MATC Financial Aid office will select students who show eligibility for the Nursing Student Loan and award the loan. After the State of Wisconsin receives and approves the completed Nursing Student Loan Program application, the loan will be disbursed directly to MATC. Subsequent academic year loans are subject to this process.

How much may a student receive through this program?

There is a minimum loan of $250 and a maximum of $3,000 per school year. There is a cumulative total of $15,000.

Can this loan be forgiven?

This loan is forgiven at the rate of 25% in each of the first two years of full-time work as a nurse in Wisconsin, for a maximum of 50%.

More information on forgiveness and repayment

1. This is NOT a full forgiveness program. The maximum forgivable amount is 50% of the amount borrowed.
2. To earn the forgiveness available under this program, you must (1) complete the program for which the loan was awarded and (2) obtain licensure from the Wisconsin Department of Safety and Professional Services Health Services (if applicable). Thereafter, for each of the first two years the student practices nursing teaching full -time in the State of Wisconsin, 25% of the loan will be forgiven. If the student does not practice nursing/teaching full -time, the amount forgiven will be proportional to the time spent practicing. (If the student practices 50% of the time, then half of 25% will be forgiven.)
3. If the student does not practice nursing/teaching in the State of Wisconsin and/or meet the eligibility criteria, the loan(s) must be repaid. The interest rate will not exceed 5%.
4. If the nursing student falls below half-time enrollment, repayment will commence no sooner than six months after falling below half-time.
5. If a student transfers to another program other than nursing, repayment will commence no sooner than six months after transfer, unless the student qualifies for deferment (attending full time).

When must a student repay this loan?

Borrowers go into repayment on the remaining 50% of the loan when the forgiveness period is completed. If the borrower does not practice as a nurse in Wisconsin upon graduation, the borrower will have a six-month grace period and then repayment will begin on the outstanding balance.

Borrower Defense

If you believe your school has misled you or engaged in other misconduct in violation of certain state laws, you may be eligible for “borrower defense to loan repayment forgiveness,” sometimes abbreviated to “borrower defense.” This is the forgiveness of some or all of your federal student loan debt. Click on the following link for more information and how to apply: https://studentaid.gov/borrower-defense/

Cohort Default Rates

The cohort default rate is calculated using actual payment records of the student borrower. A 3-year 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. Repayment begins 6 months after a student is no longer enrolled for at least 6 credit hours. Default occurs when a student is in repayment, but fails to make their payment for 270 days or more. Student loan defaults impact both borrowers and schools.

MATC's most recent cohort default rates (CDR):

• Fiscal year 2021 (Published September 2024): 0.0%
• Fiscal year 2020 (Published October 2023): 0.0%
• Fiscal year 2019 (Published October 2022): 4.2%
• Fiscal year 2018 (Published September 2021): 14.3%
• Fiscal Year 2017 (Published September 2020): 19.4%