Direct Loans

Federal Direct Subsidized Loans have slightly better terms versus 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 loan funds 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 first disbursement date of the loan. Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2023, and before July 1, 2024, have a fixed interest rate of 5.50%.
• 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. Studentaid.gov

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 first disbursement date of the loan. Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2023, and before July 1, 2024, have a fixed interest rate of 5.50%.
• 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. Studentaid.gov

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 the start date of the semester.