It is important to know the basics about student loans before borrowing. Students should remain aware of their total loan debts as they progress through school. Borrow only what is necessary and what is affordable to repay based on expected income and future goals.
Federal undergraduate loans are part of the overall financial aid that is available to help pay for the cost of one's higher education.
In order to be eligible for Federal Direct Student Loans, students must meet the following requirements:
- Complete the Free Application for Federal Student Aid (FAFSA) available at: www.fafsa.gov
- Be enrolled in an eligible degree or certificate program
- Be enrolled at least half-time (6 credits)
- Maintain Satisfactory Academic Progress standards
- A 2.0 GPA
- 67% completion rate
- Graduate within 150% of degree or certificate program's length
- Be a U.S. citizen, national, permanent resident or eligible non-citizen
- Be free from default on any federal student loans
- Be free from any obligation to repay a federal or state grant
- Male students: satisfy the Selective Service requirement
- Meet any requirement(s) specified by the Financial Aid Office
Subsidized Federal Loans: The Federal government pays the interest on this type of loan while a student is in school, during the grace period, and during any period of loan deferment.
Unsubsidized Federal Loans: The student is responsible for paying the interest on this type of loan while a student is in school, during the grace period, and during any period of loan deferment. Interest may also be deferred until repayment begins, but doing so will cause the interest to capitalize on the principal balance, thus increasing the student's overall loan amount to be repaid. All eligible students can borrow a Federal Unsubsidized Loan regardless of income.
The interest rate is fixed at 5.6% for subsidized loan funds and 6.8% for unsubsidized loan funds.The amount of loans a student is eligible to borrow varies depending on the year in school, length of academic program, dependency status, and what other types of financial aid is awarded.
The loan limits below are listed as maximums and the Financial Aid Office will make the final determination of actual amounts that can be borrowed. Due to federal regulation, all CCD loans are split evenly into two disbursements across two semesters.
| TYPE OF STUDENT |
Dependent Student |
Independent Student |
| Freshman |
$5,500
(maximum of $3,500 in subsidized funds) |
$9,500
(maximum of $3,500 in subsidized funds) |
| Sophomore |
$6,500
(maximum of $4,500 in subsidized funds) |
$10,500
(maximum of $4,500 in subsidized funds) |
MONEY MANAGEMENT TIPS
- Think about your budget and borrow only what you need
- Explore all other financial aid options (i.e. scholarships, FACTS payment plan, etc.)
- Work full or part-time while in school
- Utilize tuition reimbursement offered by your employer
- Make interest payments on unsubsidized loan while in school
- Determine how much of a repayment you'll be able to afford after graduation. Be realistic!
- If you do not need to borrow loan funds, don’t
GENERAL STUDENT LOAN QUESTIONS
Federal Student Aid Information Center
1-800-4-FEDAID (333243)
(TTY 1-800-730-8913)
www.FederalStudentAid.ed.gov
Department of Education's Direct Loan Program
www.direct.ed.gov
Current borrowers may contact the Department of Education's Direct Loan Servicing Center
1-800-848-0979
(TTY 1-800-848-0983)
loanconsolidation.ed.gov
APPLY FOR A FEDERAL DIRECT LOAN
PARENTS ONLY! APPLY FOR A PARENT PLUS LOAN
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