Federal Loan Programs
TCC participates in the William D. Ford Federal Direct Loan Program (DL). Federal Direct Loans are a form of financial aid available to help undergraduate students attending college at least half-time.
Students may use the funds to pay for tuition, books, and living expenses.
Loan options must be repaid at a low fixed-rate and can either be Direct Subsidized or Direct Unsubsidized.
Quick Facts About the Federal Direct Loan Program
| Description | Percentage |
|---|---|
| TCC students who take out a federal direct loan | 7% |
| 2019 Cohort default rate for TCC students with a federal direct loan(s)* | 5.1% |
| 2019 Cohort default rate national average* | 2.3% |
*The federally calculated cohort default rate (CDR) measures how many federal student loan borrowers default within a specified period of time after entering repayment.
What is a Direct Subsidized Loan and how much can I borrow?
Eligibility
Direct Subsidized Loans are a type of federal student loan available to undergraduate students who are enrolled in at least 6 credit hours required for their current degree plan.
You are required to demonstrate financial need to qualify.
How Much You Can Borrow
Student Financial Aid Services determines the amount you can borrow in a single academic year.
The amount awarded may not exceed your financial need. As a result, your loan amount may be adjusted down based on your Cost of Attendance (COA).
| Grade Level | Dependent Students Max. Amount | Independent Students Max. Amount |
|---|---|---|
| First-Year Undergraduate (less than 30 hours completed) |
$3,500 | $3,500 |
| Second-Year Undergraduate (30 hours or more completed) |
$4,500 | $4,500 |
Fees
All direct loans are funded by the Federal government. A loan fee of 1.057% is taken from your disbursement for each time a portion of your loan is disbursed.
Who Pays the Interest on Your Loan
The U.S. Department of Education pays the interest on a Direct Subsidized Loan during periods of enrollment (at least half-time or 6 credit hours).
Learn More
Visit the U.S. Department of Education website for more information on Subsidized and Unsubsidized Loans.
What is a Direct Unsubsidized Loan and how much can I borrow?
Eligibility
Direct Unsubsidized Loans are a type of federal student loan available to undergraduate students who are enrolled in at least 6 credit hours required for their current degree plan.
You are not required to demonstrate financial need to qualify.
How Much You Can Borrow
Student Financial Aid Services determines the amount you can borrow in a single academic year based on your coast of attendance and other financial aid you receive.
Your loan amount may be adjusted down based on your Cost of Attendance (COA).
| Grade Level | Dependent Students Max. Amount | Independent Students Max. Amount |
|---|---|---|
| First-Year Undergraduate (less than 30 hours completed) |
$2,000 | $6,000 |
| Second-Year Undergraduate (30 hours or more completed) |
$2,000 | $6,000 |
Fees
All direct loans are funded by the Federal government. A loan fee of 1.057% is taken from your disbursement for each time a portion of your loan is disbursed.
Who Pays the Interest on Your Loan
You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
Learn More
Visit the U.S. Department of Education website for more information on Subsidized and Unsubsidized Loans.
Do I have to be enrolled in classes to get my loan?
Yes. You must be enrolled at least half-time or 6 credit hours that are required by your current degree plan for your student loan to disburse.
How do I apply for a federal student loan?
To apply for a federal student aid direct loan, you must:
- Be fully admitted to TCC.
- Submit your FAFSA application and have it fully processed.
- Submit a loan request through MyTCCTrack.
- Expand the Financial Information menu.
- Go to Financial Aid then Request a New Loan.
- Complete and submit the Request a New Loan form.
Estimated Time for Loan Request Review
Allow up to 10 working days for your loan request to be completed.
Additional Steps for First-Time Borrowers
If you are a first-time student loan borrower, you will need to complete two additional steps before your loan(s) can be disbursed:
- Complete Loan Entrance Counseling, which explains the obligations you agree to meet as a condition of receiving a federal direct student loan.
- Complete Your Master Promissory Note (MPN) after your loan has been added to your My Awards and has an Accepted status.
When will my federal student loan disburse?
First-Time Federal Student Loan Borrowers
You are required to wait 30 days before your first disbursement.
If you have delayed disbursement or do not have additional resources to cover your tuition fees by the first day of class, you must make payment arrangements to ensure your classes are not dropped.
Previous Federal Student Loan Borrowers
The first disbursement of the semester will be issued after one of the following, whichever is later:
- Approximately 7 days prior to the start of your first 6 credit hours of the semester,
or - Approximately 2 weeks from the date awarded and all requirements are met.
One-Semester Loans
Loans that have been awarded as a one-semester loan (e.g., fall only, or spring only) are disbursed in two payments. However, the 30-day wait period will be applied if you are a first-time borrower (see above).
- First disbursement: Approximately 7 days prior to the start of your first 6 credit hours of the semester, or approximately 2 weeks from the date awarded and all requirements are met, whichever is later.
- Second disbursement: Disbursed halfway through the semester.
How much do I owe on my loan and who's my loan servicer?
Find How Much You Owe
Your StudentAid.gov account gives you a centralized, integrated view of your Title IV loan and grant information.
You can access all of your information, managed by the U.S. Department of Education, by logging in to your StudentAid.gov account.
Find Your Loan Servicer
Student loan debt and federal loan servicer contact information can be found on your Student Aid account dashboard, available by logging in to your StudentAid.gov account.
When do I have to pay back my loan?
Loan repayment starts after you:
- Graduate,
- Leave school, or
- Drop below half-time enrollment.
You will have a six-month grace period before you are required to begin repayment.
During this time, your federal loan servicer will contact you with repayment information and notification of your first payment due date.
Visit the U.S. Department of Education website to learn more about student loan servicers.
How can I get information on deferment, repayment, and forgiveness?
Under certain situations, your loan may be delayed, forgiven, canceled, or discharged.
If you've fallen behind with your loan repayment, there are many options to help you, such as lowering your payments or temporary deferment.
Visit StudentAid.gov to learn more about:
Questions?
Contact Student Financial Aid Services.
Updated February 01, 2024