Direct Loans

You’re not alone when it comes to student loans!

A-B Tech has partnered with Inceptia, a division of the National Student Loan Program (NSLP), to provide you with FREE assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s friendly customer representatives may reach out to you during your grace period to answer questions you have about your loan obligation and/or repayment options. They may also contact you if your loan(s) become delinquent. Inceptia is not a collection agency. We’ve partnered with them to help you explore a wide variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. Inceptia will stay in touch with you via phone calls, letters, and/or emails to help you find answers to your questions and solutions to your issues. For additional resources including information on repayment options, please visit Inceptia’s Federal Student Loan Overview website at Student Knowledge HQ.


Tips for student loan management

  • Do not lose copies of your loan documents and repayment schedules. (And note amount, overall cost, and interest rates).
  • Note the billing cycles of your loans.
  • Remember to give lenders your correct address, telephone number, and email address before leaving school.
  • Know the correct billing services for each lender.
  • Promptly update your lender with any status changes (e.g. school status, unemployment) prior to your payment due date. Look for written acknowledgment.
  • If you return to school, follow up with each lender to ensure that they have received your enrollment verification or deferment. Look for written acknowledgment.
  • Ensure each lender/servicer has your current status (i.e. forbearance, deferment, etc.).
  • Keep deferment status current with each lender.


National Student Loan Data System (NSLDS) Statement

All loans originated and disbursed through A-B Tech will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. HEOA Sec. 489 amended HEA Sec. 485B(d)(4) (20 U.S.C. 1092b)


Helpful Websites

Direct Loan FAQ

Direct Loans are available for students enrolled at least half-time in a qualifying program and who are in good academic standing. Students must be actively participating in the class (i.e. the class must already have started and the student must be attending) in order to be eligible for their funds. Direct Loans may be either subsidized or unsubsidized and must be repaid. The interest rate for Direct Loans is variable. The federal government determines interest rates on July 1 of each year. The amount a student can borrow per academic year will depend upon enrollment, dependency status, and other aid received.

A-B Tech does not certify Sallie Mae loans or private loans.

Direct Subsidized Loan funds are awarded based on financial need. The federal government pays the student's interest while he/she is enrolled in school at least half-time in a qualifying program. The student begins paying interest when the repayment of the loan begins.

Direct Unsubsidized Loan funds are not need-based. The student will be charged interest from the time funds are disbursed until the loan is paid in full. Students may choose to make monthly interest payments while in school, or they can choose to defer interest payments. If the student chooses to defer interest, it will accrue and will be added to the principal amount of the loan. Please note, that if interest is capitalized, it will increase the amount the student has to repay.

Students may receive subsidized and unsubsidized loans for the same enrollment period.

All first-time loan borrowers at A-B Tech must complete the following steps:

  1. Complete the Free Application for Federal Student Aid (FAFSA) at Complete the FAFSA® Form. You, and your parent(s) if applicable, will need an FSA ID in order to complete the application. Apply for an FSA ID at Complete the FAFSA® Form.
  2. Watch the Financial Aid Matters video
  3. Complete the Financial Aid Matters video Questionnaire
  4. Submit your completed Financial Aid Matters video Questionnaire to our secure Financial Aid Office Drop Box
  5. Complete the Master Promissory Note (MPN)
  6. Complete Entrance Counseling
  7. Complete Annual Student Loan Acknowledgment

If you fail to complete all of the steps mentioned on this page to apply for a loan, you will not be awarded loans.

Once these steps are completed, the college will award you loans, if eligible. You will be able to see the total amount for which you are eligible to receive in your Self-Service account. If you would like to reduce the amount of your loans, or decline your loans entirely, complete the Direct Loan Adjustment Form. Submit the completed form to the Financial Aid Office no later than 14 days before the first disbursement date.

Each semester, your loans will be disbursed in multiple payments. Your balance with the school will be subtracted from the first disbursement.

You must be actively attending or have already completed, a minimum of 6 in-program credit hours to receive a loan disbursement.

Anyone who has applied for aid or is interested in potentially applying for aid is encouraged to watch this presentation.

After you have completed these steps, check Self-Service to see if your loans have been awarded.

The amount a student can borrow per academic year will depend upon enrollment and dependency status.

The amounts indicated below are the maximum amounts a student may borrow in both subsidized and unsubsidized loans for the entire academic year, including the summer semester. Students may be eligible for less than these amounts if the student is receiving other financial aid that is used to cover a portion of the cost of attendance.

Please note that if a student transfers to A-B Tech from another school within the same academic year and requests loan funds at A-B Tech, loan funds received at the former school will be included in the yearly maximum total allowed when determining the amount of loan funds available for certification at A-B Tech.


Dependent Student Subsidized Unsubsidized Total
First Year $3,500 $2,000 $5,500
Second Year $4,500 $2,000 $6,500


Independent Student Subsidized Unsubsidized Total
First Year $3,500 $6,000 $9,500
Second Year $4,500 $6,000 $10,500

To find the most up-to-date interest rates on Direct Loans, visit the Federal Student Aid website.

*Interest rates on federal student loans are set by Congress.

Your loan funds will be disbursed in multiple disbursements (per semester). Funds will be posted into your college financial aid account so that you may charge your tuition, fees, and books provided that you applied for a loan early enough to have the money in your account at the time these expenses are due.

You may receive an email approximately a week prior to a scheduled loan disbursement. This is a notice from the Department of Education regarding loan origination. The actual disbursement is anticipated to occur on the date published on our fall, spring, and summer web pages that you can access through our Financial Aid Dates & Deadlines page.

Once a student graduates, leaves school, or drops below half-time status, he/she will have six months before beginning repayment. The student is also required to participate in an exit counseling session online. Loan payments will be made directly to the student's lender.

The Department of Education has created a helpful Repayment Estimator that can help you figure out which repayment options are best for you, your monthly payments, and how much you'll end up paying over the life of your loan. If you are considering taking out a student loan to help pay your education expenses, utilizing this tool is an important first step toward planning for any debt that you incur.

Default means failure to honor the repayment agreement of a loan, including failure to make payments on time; failure to make payments in the correct amount; or failure to file deferment requests properly or on time. When a loan enters default, the lender transfers the loan to a guarantor. The guarantor then owns the loan from the lender. It is our goal to help students keep their student loan(s) out of default and to assist in bringing and/or keeping their accounts current.


Repayment Solutions for Those Who Find Themselves in Repayment Trouble

  • Deferment – you may postpone your payments when certain criteria are met such as unemployment, economic hardship, disability, and school enrollment.
  • Forbearance – permits the reduction of payments, provides an extension of time, or temporarily postpones payments. Financial problems that do not meet the requirements for a deferment might qualify you for forbearance.
  • Consolidation – by consolidating your student loans, you might be able to reduce your monthly payments. Contact your lender or servicer for more information.
  • Alternative Payment Plan – Some borrowers qualify for other special payment plans such as Income Sensitive, Graduated, or Lowered Payment Plans.

Contact your lender or servicer for more information about these options.

Federal regulations provide three options to help borrowers in default on student loans restore their benefits.
The three options are:

  • Reinstated Eligibility - You may still be able to regain your eligibility to participate in federal student financial aid programs even though your loan is in default. You must make six voluntary, on-time, consecutive monthly payments. Your loan will still be considered in default but you will have reinstated your eligibility to apply for federal student aid. The amount you will have to pay will be determined by the amount of your debt and your individual economic circumstance.
  • Rehabilitation – Loan Rehabilitation allows you to remove your loan from default. Under Loan Rehabilitation you make on-time, voluntary, consecutive monthly payments for a minimum of one year (12 consecutive months).
  • Consolidation – Loan Consolidation is available to all borrowers, including those in default. Loan Consolidation allows you to combine several loans into a single account with new repayment options. If your Consolidation application is approved, your loan will no longer be considered in default.

After your student loan has defaulted, the entire balance becomes due and you are no longer eligible for any Title IV financial aid or for any of the options described above.

Other consequences of default may include:

  • Reporting the default to all national credit bureaus.
  • Withholding of a percentage of your wages until the debt is paid in full.
  • Adding collection and attorneys’ fees to the balance of your loan(s).
  • Seizure of your IRS tax refund by the guarantor or U.S. Department of Education.

Contact the Student Loan Support Center at (800) 557-7394 Monday through Friday between the hours of 8:00 a.m. and 11:00 p.m. Eastern time for information about:

  • The FSA ID
  • Entrance Counseling
  • Financial Awareness Counseling
  • PLUS Credit Counseling
  • Exit Counseling
  • Loan Agreement (MPN)
  • PLUS Loan Applications
  • Endorser Addendums
  • Income-Driven Repayment Plan Requests
  • Direct Consolidation Loan Application and Promissory Note
  • Appeal Credit Decision
  • Assistance with the Web site
  • TEACH Counseling
  • TEACH Agreement to Serve

If you were a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your "maximum eligibility period." Your maximum eligibility period is based on the published length of your current program. Your maximum eligibility period can change if you change to a program that has a different length. Direct Subsidized Loans borrowed for a previous program will count toward your current program limit.

Example of Direct Subsidized Loan Time Limitations for First-time Borrowers:

  • Associate Degree Program
  • 3-year Maximum
  • 150 percent of 2 years = 3 years