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Direct Loans

Federal Direct Loans are low-interest federal student loans that can help you pay for higher educational expenses and are offered by the U.S. Department of Education (ED). These educational loans must be repaid and will enter repayment after a student graduates, withdraws from all classes, or is enrolled for fewer than six credits in a semester.

Types of Loans

Federal Direct Subsidized Loans have slightly better terms than a Federal Direct Unsubsidized Loan to help you with financial need.

  • CCC determines the amount you can borrow, and the amount may not exceed your financial need. (Not all students are eligible for a Direct Subsidized Loan.)
  • The U.S. Department of Education pays the interest on a Federal Direct Subsidized Loan:
    • While you’re enrolled in classes at least half-time status (6 or more credits) a semester,
    • For the first six months after you leave school (referred to as a grace period), and
    • During a period of deferment (a postponement of loan payments).
  • A freshman student may be eligible to borrow up to a maximum of $3,500, and a sophomore student may be eligible to borrow up to $4,500 within one academic school year.
  • The repayment period begins six months after you are no longer enrolled at least half-time (half-time is six or more credits a semester).
  • The loan interest rate varies depending on the loan’s first disbursement date. Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2026, and before July 1, 2027, have a fixed interest rate of 6.52%.
  • A first-time loan borrower must complete a Master Promissory Note and Entrance Counseling, which can be found on the U.S. Department of Education’s website.

Federal Direct Unsubsidized Loans are not based on financial need, unlike the Direct Subsidized Loans.

  • CCC determines the amount you can borrow based on your cost of attendance and other financial assistance you receive.
  • Interest will accrue on the Federal Direct Unsubsidized Loan while you are enrolled in school.
  • If you choose not to pay the interest while you are in school, during grace periods, or deferment or forbearance periods, your interest will accrue (build) and be capitalized (that is, your interest will be added to the principal amount of your loan).

*Note: Interest payments to a Federal Direct Unsubsidized Loan do not have to be made while in school. However, CCC encourages borrowers to begin making the interest payments to minimize the total debt owed when finishing school. Making the interest payments keeps the loan debt from inflating beyond the original principal amount borrowed.

  • The repayment period begins six months after you are no longer enrolled at least half-time (half-time is six or more credits a semester).
  • The loan interest rate varies depending on the loan’s first disbursement date. Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2026, and before July 1, 2027, have a fixed interest rate of 6.52%.
  • A first-time loan borrower must complete a Master Promissory Note and Entrance Counseling and can be found on the U.S. Department of Education’s website.

The U.S. Department of Education makes Direct PLUS Loans to eligible parents through the Direct Loan Program. A Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent borrower.

To receive a Parent PLUS Loan, you must:

  • Be the biological or adoptive parent (or in some cases, the stepparent) of a dependent student enrolled at least half-time status (6 or more credits) a semester.
  • Not have an adverse credit history (unless you meet certain additional requirements) and
  • Meet the general eligibility requirements for federal student aid.

The Parent PLUS Loan interest rate varies based on the loan’s first disbursement date. Direct PLUS Loans first disbursed on or after July 1, 2026, and before July 1, 2027, have a fixed interest rate of 9.07%.

The maximum Parent PLUS loan available for an academic year is whichever is less:

  • $20,000; or
  • The student’s cost of attendance (COA) at CCC, minus all other financial aid received.

The parent applicant can request a deferment to delay payments until your child graduates, withdraws from all classes or drops below half-time status. If the parent does not request a deferment, loan repayment will begin once all loan funds have been disbursed.

Contact the CCC’s Financial Aid Office if you are interested in applying for a Parent PLUS Loan.

Should the parent be denied the Parent PLUS Loan due to credit history, the student can request additional Direct Unsubsidized Loan funds.

Annual and Aggregate Loan Limits

Below is a chart that provides a breakdown of the amount of Federal Direct Loans a student is eligible to receive per academic year, as well as the maximum total a student may borrow, including the maximum subsidized limit.

Freshman

  • Dependent Student: $5,500 of which no more than $3,500 may be subsidized
  • Independent Student: $9,500 of which no more than $3,500 may be subsidized

Sophomore

  • Dependent Student: $6,500 of which no more than $4,500 may be subsidized
  • Independent Student: $10,500 of which no more than $4,500 may be subsidized

Aggregate Undergraduate limits

  • Dependent Student: $31,000 of which no more than $23,000 may be subsidized
  • Independent Student: $57,500 of which no more than $23,000 may be subsidized

Entrance Counseling and Master Promissory Note

As you begin to borrow for your educational expenses, it is important that you are aware of the loan’s terms and conditions. These stipulations govern the rights and responsibilities you have as a borrower. If you wish to borrow a Federal Direct Student Loan, you must complete Entrance Loan Counseling and a Master Promissory Note.

Complete your Entrance Counseling

Complete Master Promissory Note

First-time borrowers at Central Community College (CCC) – Please note that your loans will not be disbursed to your CCC account until 30 days after your official start date of the semester.

Exit Counseling

If you have borrowed student loans to help pay for your education, you will be notified by CCC of the requirement to complete Exit Loan Counseling if you:

The purpose of Exit Loan Counseling is to help you become well prepared and knowledgeable regarding the repayment of the student loans you have borrowed.

Complete Exit Loan Counseling

Contact Financial Aid

The CCC Financial Aid Office is available to help you with your financial aid and scholarship questions.

Office Hours

Monday – Friday
8 a.m. – 5 p.m.

Contact Us

308-398-7555
Email Financial Aid