Student Loan Process
When a student borrows money through the Federal Direct Student Loan Program, information is provided by the institution to the National Student Loan Data System, and its authorized users such as guaranty agencies, lenders, and educational institutions.
First Time Students Receiving Direct Loans
In accordance with Federal Student Aid regulations, if you are a first time student at OTC, your student loan disbursement will be delayed for a minimum of 30 days after the semester begins. Therefore, your student loan disbursement will not be included with the initial or first group of disbursements for the semester. A first time borrower is a student who has never received a disbursement of a Federal Student Loan or a student who previously borrowed a Federal Student Loan and successfully repaid the balance to zero.
Federal Direct Student Loan - Required Hours
For fall or spring semester, at least 6 hours is required for student loan. For summer, attending at least 3 hours is required for a student loan. For summer, attending at least 3 hours is required for a student loan. Not meeting this criteria could result in a loss of your Federal Direct Student Loan.
Federal Direct Student Loans - Multiple Disbursements
The Federal Direct Loan disbursements must be made in two equal installments as follows:
|Fall/Spring||one during Fall & one during Spring|
|Spring Only||two during spring (one occurring after mid-semester)|
|Summer Only||two during summer (one occuring after mid-semester)|