• William D. Ford Federal Direct Loan Program

    Morton College, along with thousands of US colleges and universities, participates in the William D. Ford Federal Direct Loan Program. The program provides government funds directly to a student's college or university without the involvement of a third party.

    Federal Direct Education Loans

    Direct Loan funds come directly from the U.S. Department of Education. Processing of any Direct Loans includes an origination fee that is deducted from the total amount disbursed. Effective October 1, 2016, the origination fee is 1.069%.

    Loans can be either subsidized or unsubsidized.

    • Subsidized loans are based on financial need. Subsidized loans charge no interest while a student is in school at least half-time (6 hours), during the grace period, and during deferment periods. The maximum subsidized loan is $3,500 for freshmen and $4,500 for sophomores per academic year. Students can request additional unsubsidized loans up to the maximums.
    • Unsubsidized loans are not based on financial need. Interest is charged starting the date the loan is disbursed. The maximum loan amounts available per academic year are shown in the table below. Loans are based on a student's grade level and whether a student is dependent or independent.

    Loan Limits per Academic Year

    Subsidized & Unsub
    Dependent/1st Year
    (0-29 Credits earned)
          $3,500             $2,000           $5,500
    Dependent/2nd Year
    (30 or more credits earned)
          $4,500             $2,000           $6,500
    Independent/1st year
    (0-29 credits earned)
          $3,500             $6,000           $9,500
    Independent 2nd year
    (30 or more credits earned)
          $4,500             $6,000           $10,500


    Interest rates on Direct Loans disbursed on or after July 1, 2016 is 3.76% for both subsidized and unsubsidized loans.


    1. Complete the Free Application for Federal Student Aid (FAFSA)
    2. Student must attend the Loan Default Seminar.  Please visit the Financial Aid Office for details.
    3. Complete the Morton College Loan Request Form provided at the Loan Default Seminar
    4. Complete the Master Promissory Note online at
    5. Complete the Entrance Interview online at

    Important Information for New Borrowers (Students with No Outstanding Federal Loan Balance as of July 1, 2013)

    There is a limit on the maximum period of time that students can receive Direct Subsidized Loans. If this limit applies, you may not receive Direct Subsidized Loans for more than 150% of the length of your academic program. The maximum eligibility period is based on the published length of your current academic program (available in the course catalog).

    150% Subsidized Usage Limit

    If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150% of 2 years = 3 years). If you are a part-time student or enrolled for only one term, your maximum eligibility period will be adjusted based on your enrollment.

    Because your maximum eligibility period is based on the length of your current program of study, the maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and change to another program, the Direct Subsidized Loans received for the earlier program will generally count toward your new maximum eligibility period.

    If you do not complete your program within your maximum eligibility period and you enroll in the same program, you will become responsible for the interest that accrues on your Direct Subsidized Loans, from the date of your enrollment after meeting the 150% limit. For a more detailed explanation of the 150% Subsidized Usage Limit, please refer to information these guidelines from the Department of Education.

    Loan Default Prevention Seminar

    Defaulting, or failing to repay a student-loan according to the terms of the promissory note can have serious legal consequences.

    Learn how to avoid them by attending a Loan Default Prevention Seminar. To reserve your seat, e-mail Jennifer Klementzos or call her at (708) 656-8000 Ext. 2229.

    Download Schedule of Summer/Fall 2018 Student Loan Default Prevention Seminars (PDF)


    For more information regarding loans, please visit the Federal Student Aid website.

    You may also visit