Student Loans

A student loan is a form of financial aid that must be repaid with interest. OCC participates in the Federal Family Education Loan Program (FFEL).  Under the FFEL Program, funds for your loans are lent to you from a private lender (a bank, credit union, or other lender) that participates in the FFEL Program.

Stafford Loans

The federal loan for students is called the Stafford Loan. All Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need. Many students combine subsidized loans with unsubsidized loans to borrow the maximum amount permitted each year. Stafford Loans have variable interest rates. All lenders offer the same rate for the Stafford Loan, although some give discounts for on-time and electronic payment.

Parent Loans

Parents of dependent students can take out loans to supplement their children’s aid packages. The federal Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by the student’s financial aid package, up to the full cost of attendance. Like the Stafford Loan, PLUS loans are either FFELP (provided by private lenders, such as banks) or Direct (funds provided by the government).

Private Loans

Private Loans, also known as Alternative Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete.

Loan Consolidation

Allows you to combine loans so that you make only one monthly payment. You can consolidate any or all of your loans — you choose. There is no cost to you to consolidate. You can lower the interest rate on your Loans if you consolidate during your grace period. The Loan Servicer will assist you with the loan consolidation process.

Managing Your Loan Repayments

Basics of managing your loan repayments once you leave OCC:

Exit Loan Interview

If you have graduated or plan to transfer to another institution you are required by federal law to have an exit loan interview before leaving Oakland Community College. If you have questions regarding this matter, please contact the office of the Director of Financial Assistance and Scholarships at (248) 341-2181.

Your Grace Period (Before You Repay Your Loan)

The grace period begins when you graduate, drop to below half-time or withdraw from the College. It will last for 6 consecutive months. If you do not use the full 6 months and return to school, you can regain your entire grace period if you immediately file a deferment form at your new school. The next time you complete a program or stop attending school, you will have the full 6-month grace period available to you. Once you use the entire 6 consecutive months of your grace period, it is gone forever. If you begin repayment and return to school, you can obtain deferment of principal payments by filing a deferment form. However, when you complete your next academic program or cease attendance, you will not have a grace period and repayment will begin immediately.

Student Financial Resources

Deferment and Forbearance Options

There are many options. If you’re having a problem repaying your loan, the Loan Servicer can assist you with deferment or forbearance options. You Can Change Repayment Plans at Any Time: Just contact the Loan Servicer and request a change. As your financial situation changes, you can adjust your loan payments. Borrowers who repay their loans electronically will have a lower interest rate (by .25%) than those who don’t.