Student Loan Information

There are two types of federal student loans. The type and amount that a student can receive is based on their financial need (determined by completing the FAFA), degree sought, credit hours completed, and previous borrowing history.


  • Subsidized Loans are based on financial need (determined by the FAFSA). Interest does not accrue on the loan while the student is enrolled half-time. This type of loan will be offered to students automatically if eligible.
  • Unsubsidized Loans are not based on financial need, though a FAFSA is still required. Interest grows on the loan while the student is enrolled, so they are more expensive to borrow over time. Except for higher-cost programs such as aviation and electrical distribution systems, students must request an unsubsidized loan through their MyOTC portal.

Grade Level

  • Certificate programs are always considered ‘grade level 1. The maximum loan amount per academic year (fall/spring/summer):
    • Dependent student – $5,500 with no more than $3,500 as Subsidized Loan
    • Independent student – $9,500 with no more than $3,500 as Subsidized Loan
  • Associate degree programs for students with fewer than 30 credit hours completed are considered grade level 1. The maximum loan amount per academic year (fall/spring/summer):
    • Dependent student – $5,500 with no more than $3,500 as Subsidized Loan
    • Independent student – $9,500 with no more than $3,500 as Subsidized Loan
  • Associate degree programs for students with 30+ credit hours completed are considered grade level 2. The maximum loan amount per academic year (fall/spring/summer):
    • Dependent student – $6,500 with no more than $4.500 as Subsidized Loan
    • Independent student – $10,500 with no more than $4.500 as Subsidized Loan

Note: Loan amounts awarded must also be within a student’s overall Cost of Attendance.

Interest Rate

6.53%. This is the interest rate for loans borrowed for the 2024-2025 academic year, and is a fixed rate (will not go up or down as long as money is owed on the loan).

See the helpful links below:

Difference between a Subsidized Loan and an Unsubsidized Loan

How Much Can I Borrow?

First Time Students Receiving Student Loans
How Your Student Loan Will Disburse
Direct Student Loan Interest Rates

How to Apply for a Student Loan

In myOTC, view My Awards through the financial aid menu. If you do not have any awards showing or additional documents are needed or currently under review, you will need to wait until your file is complete to view student loan eligibility.

If you wish to request a new or additional loan, go to myOTC and select Request a New Loan through the financial aid menu.

You must have a completed MPN and Entrance counseling through

Federal Parent Plus Loans

Ozarks Technical Community College does not participate in any of the Federal Plus Loan Programs. The Federal Direct Loan Program is the only student loan program the college participates in for students.

Information Disclosure

When a student borrows money through the Federal Direct Student Loan Program, the college provides information to the National Student Loan Data System and its authorized users such as guaranty agencies, lenders and educational institutions.

You can view your loan borrowing history at  Federal Student Aid.

Private Student Loans

In our effort to reduce student debt, Ozarks Technical Community College only permits students active in select programs which have a higher-than-average cost to borrow private student loans.

  1. Aviation Flight Technology (A.A.S – AVI). Students must be enrolled in aviation lab courses (i.e., flight instruction) during the semester in which they receive a private student loan. Students who are only pursuing a certificate of study, such as Instructor, Instrument Rating or Private Pilot, are not eligible to borrow a private loan even though they may be enrolled in flight labs.
  2. Electrical Distribution Systems (A.A.S – EDS)
  3. Bachelor of Science in Respiratory Therapy (B.S – RT)

OTC requires students to use all institutional, federal, and state aid options available before borrowing a private education loan. Contact your College Navigator for more information on private loan options.

OTC Borrower Rights and Responsibilities
(Rev. 9/2022)

I, the student borrower, have the right to information about my federal student loans in order to make informed decisions which will impact my financial wellness. Specifically:

  • Written information on my loan obligations and information on my rights and responsibilities as borrower;
  • A copy of my MPN either before or at the time my loan is disbursed;
  • A grace period and an explanation of what this means;
  • Notification, if ED transfers my loan to another servicer without my consent;
  • A disclosure statement, received before I begin to repay my loan, that includes information; about interest rates, fees, the balance I owe, and a loan repayment schedule;
  • Deferment or forbearance of repayment for certain defined periods, if I qualify and if I request it;
  • Prepay my loan in whole or in part any time without an early repayment penalty; and
  • Documentation when my loan is paid in full.


In addition, I, the student borrower, have certain responsibilities associated with the receipt of federal student loans:

  • Complete exit counseling before I graduate, leave school, or drop below half-time enrollment;
  • Repay my loan according to my repayment schedule even if I do not complete my academic program; I am dissatisfied with the education I received, or I am unable to find employment after I graduate;
  • Notify my lender or loan servicer if I:
    • Move or change my address
    • Change my telephone number
    • Change my name
    • Change my Social Security number, or
    • Change employers, or if my employer’s address or telephone number changes;
  • Make monthly payments on my loan after my grace period ends, unless I have a deferment or forbearance; and
  • Notify my lender or loan servicer of anything that might alter my eligibility for an existing deferment or forbearance.