Federal Direct Student Loans
Direct Student Loans are low interest loans available to students to help pay for their school expenses. Unlike other loans, a Direct Loan is funded by the U.S. Department of Education rather than a bank or credit union. The Department of Education disburses the money directly to the school and the funds are applied to the student's college costs. Just like other loans, Direct Loans must be repaid by the borrower.
Direct Loan eligibility requirements.
•Student is enrolled at least half-time (6 credit hours)
•Student must have a high school diploma or equivalent
•Student must be matriculated (enrolled and working towards a degree or certificate program)
•Must be a U.S. citizen or eligible non-citizen
•Have a valid Social Security Number
•Students must be making satisfactory academic progress
•Male students over the age of 18 must be registered with Selective Service
•Student's existing Direct Loans should be in good standing, not in default.
•Students cannot exceed their aggregate loan limit
There are two types of Direct Loans for students:
Subsidized student loan
Direct Subsidized Loans are available to students that are enrolled at least half-time (6 credit hours), have financial need, and have not received financial aid exceeding their cost of attendance. The loan does not accrue interest while the student is enrolled at least half-time, during the 6 month grace period after graduation, and during deferment periods.
Unsubsidized student loan
Direct Unsubsidized Loans are available to students that are enrolled at least half-time (6 credit hours) and have not received financial aid exceeding their cost of attendance. Unlike the subsidized loan, the unsubsidized loan does accrue interest while the student is in school, during their grace period, and during deferment.
For a Dependent Student
Freshmen (0-29.5 credits earned) Maximum subsidized $3500 Maximum unsubsidized $2000
Sophomore (30-59.5 credits earned) Maximum subsidized $4500 Maximum unsubsidized $2000 (HCCC only has Freshmen and Sophomores)
Junior and Seniors(60+ credits earned) Maximum subsidized $5500 Maximum unsubsidized $2000
For an Independent Student
Freshmen (0-29.5 credits earned) Maximum subsidized $3500 Maximum unsubsidized $6000
Sophomore (30-59.5 credits earned) Maximum subsidized $4500 Maximum unsubsidized $6000 (HCCC only has Freshmen and Sophomores)
Junior and Seniors(60+ credits earned) Maximum subsidized $5500 Maximum unsubsidized $6000
How to apply: Complete the FAFSA form www.fafsa.gov
Duration: Awarded Annually
Repayment: All Federal Direct Student Loans are assigned to a servicer that will assist the student in the loan repayment process. Students can access the NSLDS website to determine which servicer handles their loan.
The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for all federal student aid. Students can access and view all federal loans and grants previously awarded to them. Information regarding a student’s loan amount, loan type and loan servicer will be submitted to the National Student Loan Data System (NSLDS). The NSLDS allows other guaranty agencies, lenders and other authorized users to access their database
Loan Contact Information
General Information about loans and applying for them
Federal Student Aid Information Center
Information on Consolidating your loans
Direct Loan Consolidation Center
Direct Loan Servicing Center
PHEAA Federal Loan Servicing
Great Lakes Educational Loan Services