Federal Loans

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Loans consist of borrowed funds, which must be repaid. Each loan program has certain maximum limits for borrowing; however, students may not borrow more than the cost of attendance less any other financial aid received. Student must apply for a loan each year and make progress in obtaining their degree according to the Satisfactory Progress Policy.

To begin the loan process, students must complete the Free Application for Federal Student Aid (FAFSA) for the academic year they wish to borrow. Once eligible has been determined, students will be offered a Federal Direct Loan. This offer must be accepted or declined through the myFinaid portal. You must login to accept or decline your awards. Be sure to check the missing documents for the online steps for the loan. 

Federal law requires first-time borrowers of Federal Direct Loans to complete an entrance counseling session and a master promissory note before loan funds can be disbursed. Exit counseling is subsequently required when they graduate, withdraw, or otherwise cease to attend school at least half-time.

Types of Federal Loans

There are two types of Federal Direct Loans. The subsidized loan is based on financial need; the federal government pays the interest on the loan while the student is enrolled at least half-time and during periods of deferment. The unsubsidized loan is not need based; the student is responsible for paying the interest that accrues during periods of enrollment and/or deferment. Students may choose to pay the interest as it accrues or to allow the interest to capitalize. Students may have eligibility for subsidized and/or unsubsidized Direct Loans.

  1. Students must have completed their FAFSA form for that academic year.
  2. Students must be enrolled at least half-time (six or more credit hours which apply toward your degree) in the semester in which the loan is received. 
  3. Student must also meet the Satisfactory Progress Policy requirements.


Annual limits are contingent on grade level and dependency status.
Dependent students (include parent information on FAFSA):
Freshman: $5500
Sophomore: $6500
Cumulative maximum is $31,000. No more than $23,000 of which can be subsidized.

Independent students (do not include parent information on FAFSA):
Freshman: $9500
Sophomore: $10500
Cumulative maximum is $57,500. No more than $23,000 of which can be subsidized.

Interest and Fees

For loans disbursed on or after July 1, 2023

Interest rate:
Subsidized & Unsubsidized: fixed at 5.5%

Loan origination fee:
1.057% of amount borrowed; the fee is deducted prior to disbursement, so the actual amount received will be less than the amount to be repaid.

Maximum Eligibility Period

For students borrowing Federal Direct Loans for the first time on/after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that a student can receive Direct Subsidized Loans. In general, students may not receive Direct Subsidized Loans for more than 150% of the published length of their program.


The annual maximum loan amount a student may borrow must be prorated when the student is enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year (For example, student graduating in December). The loan amount is determined by this calculation: Number of credit hours enrolled in the program/24 or 1/2.


Repayment of principal begins six months after the student graduates, leaves school or drops below half-time enrollment. Multiple repayment plans are available. If you don't know who you are paying your student loans to, log into studentaid.gov. 

Bay College participates in the William D. Ford Direct PLUS Loan Program. This program allows a parent of a dependent student to borrow directly from the US Department of Education, through Bay College.

To request a Direct PLUS loan a parent must contact the Assistant Director of Financial Aid at bay College to begin the process. Directions will be given to the student to give to the parent to begin the process.


  1. Available to parents with good credit histories to pay the educational costs of their dependent students.
  2. Student must be registered and attending six or more credit hours that apply toward their major(s) each semester to be eligible to borrow a PLUS loan.
  3. Students must also meet the Satisfactory Progress Policy requirements.

Variable up to the cost of attendance.

Interest and Fees

For loan disbursed on or after July 1, 2023:
Interest Rate
Fixed at 8.05%

Loan fee
4.228% of the amount borrowed. The fee is deducted prior to disbursement, so the actual amount received will be less than the amount to be repaid


Standard-principal begins 60 days after the final loan disbursement.

Deferred-Principle begins after the student graduates, leaves school, or drops below half-time enrollment. Accruing interest could either be paid monthly, quarterly, or be capitalized quarterly.

Repaying Your Student Loans

For most loans, you'll have six months after you graduate, leave school, or drop below half-time enrollment before you must begin making payments. You can use this time to get financially settled, to determine your expected income and expenses, and to select a repayment plan. Once you enter repayment, you must make your payments on time to avoid delinquency and default.

Bay College has partnered with Ascendium Education Solutions® and its Repayment Support Team. We hired them to reach out to our students to help them manage repayment and implement an affordable repayment plan.  

If you have questions or concerns about repaying your federal student loans, contact their Student Loan Success Center™ at (833) 707-1220.

Before you graduate, leave school, or enroll less than half-time make sure you complete the steps below.

  1. Complete Exit Counseling - You are required to complete exit counseling before you graduate, leave school (for any reason), or drop below half-time enrollment. Exit counseling is a mandatory information session that explains your loan repayment responsibilities and when repayment begins. This can be done at studentaid.gov and click on Manage Loans-Exit Counseling.
  2.  Review Your Student Loan Borrowing History - View your federal student loan information using "My Federal Student Aid" at studentaid.gov. Review your loan servicer information
  3. Create a login with your loan servicer. Review and set up repayment. 

Below are things to consider during you grace or deferment period.

  1. Consider Your Income and Expenses and Create a Budget - As you prepare to make your student loan payments, you'll want to have an idea of what your earnings and living expenses will be based on our new job. Once you do, you can create a budget.
  2. Select a Repayment Plan for Your Federal Student Loans - You have a choice of several repayment plans that are designed to meet your needs, including plans that base your payment amount on your income. The amount you pay and the length of time you have to repay your loans will vary depending on the repayment plan you choose. For more detailed repayment plan information and to calculate your estimated repayment amount under each of the different plans, use the Repayment Estimator at studentaid.gov. 

Below are things to consider while making your student loan payments.

  1. Make Your Payments - Your loan servicer will provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment. You may prepay all or part of your federal student loans at any time without penalty.
  2. Stay Out of Default - Don't miss a payment! If you don't pay the full amount due on time or if you start missing payments - even one - your loan may be considered delinquent and late fees can be charged to you. If you are making late or partial payments, contact your loan servicer immediately for help. You may be able to change your repayment plan to one that allows for a longer repayment period or to one that is based on your income. Also, ask your loan servicer about your options for loan consolidation, deferment, or forbearance. NEVER ignore delinquency or default notices from your loan servicer.
  3. Resolve Loan Problems Quickly - If you have a problem related to your federal student loan (for example, if you believe that your account balance is incorrect), you may be able to resolve it by simply contacting your loan servicer and discussing the issue. To learn more about what you can do to be better prepared to resolve a problem, see "Resolving Disputes' at studentaid.gov.

It shall be the policy of the Bay de Noc Community College Board of Trustees to assure the provisions of equal opportunity and equal access in educational acts. These provisions apply in all areas of employment, student services, and instructional programs. Discrimination because of any legally protected status, which includes but is not limited to, race, color, religion, creed, gender, national origin, political affiliation, age, height, weight, disability, marital or veteran status is prohibited.