Federal Direct Loans

The Higher Education Opportunity Act was signed into law on Aug. 18, 2008, in the interest of providing students and families with full, fair, and effective information. In order to comply with this act and all federal and state law standards, the College has prepared a Prince George’s Community College Code of Conduct for Education Loans link:

Prince George’s Community College Code of Conduct for Education Loans

William D. Ford Federal Direct Loan Program

Prince George’s Community College is a full participant in the William D. Ford Federal Direct Loan program.

The Federal Direct Loan program offers many benefits to Prince George’s Community College student and parent borrowers, including:

• Consistent access to loan funds directly from the U.S. Department of Education;
• Competitive rates and repayment options;
• A simple application process;
• Quick receipt of funds; and
• Excellent customer service.

The rules for awarding Direct Subsidized and Unsubsidized Loans are different from Pell Grants and other Federal Student Aid (FSA) programs. There are annual loan limits that vary by grade level and aggregate loan total for Direct Subsidized and Unsubsidized loans. The loan period, payment period, and disbursements within that period may not always correspond to the payment periods used for Pell Grants. The requirement to prorate Direct Subsidized and Unsubsidized Loan limits under certain circumstances is different from the requirements for calculating Pell Grants.

Subsidized Loan Eligibility Time Limitation (150 percent rule)

First-time borrowers (those who have no principal or interest balance on any Direct or Federal Family Education Loan (FFEL) on the date they receive a direct loan) may not receive direct subsidized loans for a period that exceeds 150 percent of the published length of the academic program in which they are currently enrolled. This length of time is also known as the "maximum eligibility period." For example, a first-time borrower in a four-year program would have six years of direct subsidized loan eligibility, and a borrower in a one-year program would have one and a half years of direct subsidized loan eligibility.

Note: To receive federal direct loan funds, all students must complete the Free Application for Federal Student Aid (FAFSA) at fafsa.gov. The Prince George’s Community College school code is 002089.

Application Procedures for Completing Federal Direct Loan Process

First-Time Borrowers

1. Accept loans on Student Self-Service via Owl Link 
2. Complete Entrance Counseling using Manage My Direct Loan at studentaid.gov/entrance-counseling/
3. Complete Master Promissory Note (MPN) using Manage My Direct Loan at studentaid.gov/mpn/

Note: For more information about federal direct loan programs and repayment terms, visit Learn More studentaid.gov.

All Other Federal Direct Loan Borrowers

1. Accept loans on Student Self-Service via Owl Link
2. Complete Master Promissory Note (MPN) using Manage My Direct Loan at studentaid.gov

Note: For more information about federal direct loan programs and repayment terms, visit Learn More at StudentLoans.gov.

Annual and Aggregate Loan Limits for Federal Direct Loans

Dependent Student Annual Loan Limit

Independent and Dependent With Parent PLUS Loan Denial Annual Limit

Federal Direct Loan Aggregate Limits

Federal Direct Loan Entrance and Exit Counseling

If you are awarded a Federal Direct Loan, you must complete a loan entrance counseling. An easy and fun way to complete this requirement is to visit the website studentaid.gov.

Undergraduate students who have received a federal direct loan during their attendance at Prince George’s Community College are required to attend a federal loan exit counseling interview or complete an online exit counseling session using the link below. This must be done at the time of graduation or when dropping below half-time attendance. An easy and fun way to complete the exit interview is to visit the website studentaid.gov.

If you have any questions, feel free to contact the Financial Aid Office at 301-546-0822 or finaid@pgcc.edu. 

Application Procedures for Completing the Federal Parent Direct PLUS Loan Process

1. Student and Parent must complete the FAFSA application.
2. The parent must complete the PLUS MPN at studentaid.gov
3. Complete a Federal Direct PLUS Loan Master Promissory note (MPN) at studentaid.gov
   • Prince George’s Community College's school code is 002089. 

For more information on Federal Direct Student Loan Program or Federal Direct PLUS Loan, visit Learn More at studentaid.gov. To receive a Federal Direct PLUS Loan, you must complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov. Prince George’s Community College's school code is 002089.

How to Apply for a Private Educational Loan

We suggest completing a Free Application for Federal Student Aid (FAFSA) and considering the Federal Direct Student Loan Program or Federal Direct PLUS Loan before applying for a private educational loan.

Note: The Federal Reserve and Department of Education have implemented rules and regulations that impact student borrowers who use private educational loans. All private lenders to whom the regulations apply must be in compliance. 

• Please borrow wisely.
• Your award notification lists the maximum amount you are eligible to borrow from each loan program.
• Please borrow only what is needed to cover your educational and living expenses for the academic year.
• If you choose to borrow less than what you are offered, you will be eligible to request the remaining funds later in the semester.
• Requests for additional loans should be submitted at least 30 days before the last day of classes. Set a realistic budget and stick to it.
• Exhaust all alternatives before borrowing.
• Only borrow what you really need.
• Understand the features and benefits of your loan.
• Stay in touch with your lender and the Financial Aid Office.
• Avoid interest accrual on unsubsidized loans.
• Keep a log of whom you talk to about your loan..
• Keep records of all correspondence with your lender.
• Contact your lender about payment options if you can't make a payment.
• Borrow for the year, not the semester.
• PLUS Loan information should be with the Direct Loan information and there is not a lender providing the loans. Origination fees for private lenders can range from 1%-8%. PLUS Loan origination fee is 4.248% before 10/1/19.
• Credit approved application for the PLUS Loan is required. Information should be with the Direct Loans.
• Learn to control and manage your debt.

Resources for Student Loan Borrowers

1. Studentaid.gov
2. Student Loan Borrower Assistance
3. Credit Counseling Services
4. MyMoney.gov
5. The Institute for Access and Success

National Student Loan Data System (NSLDS)

Students receiving a Federal Direct Loan, PLUS, while attending Prince George’s Community College may access their information at any time using studentaid.gov and the Free Application for Federal Student Aid personal identification number. This information includes the type of loan, amount, status of the student loan, and lender information.

Contact Us

Office of Student Financial Aid
Bladen Hall, Room 121
Monday–Thursday: 8:30 a.m.–6:00 p.m.
Friday: 12:00–6:00 p.m. 
Email: finaid@pgcc.edu 
Phone: 301-546-0822