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Federal Student Loans

Invest in your future—responsibly!

SCC is here to help you understand how to help fund your education through federal student loans. We will walk you through the borrowing process from application to repayment. 

All students applying for loans must receive loan entrance counseling and loan exit counseling to receive a loan. Complete information about the process can be found on the Federal Student Aid (FSA) website. 

 

Types of Federal Direct Loans

There are two types of federal student loans that you may qualify for at SCC: a Federal Direct Subsidized Loan and a Federal Direct Unsubsidized Loan. SCC will determine the type of loan and the amount of your award, but students may always borrow less than what they are offered. 

Federal Direct Subsidized Loan
Federal Direct Unsubsidized Loan
Awarded on the basis of financial need Not need-based
Interest accrued during grace and deferment periods is paid for by the Department of Education Students are responsible for all interest payments from the moment the loan is disbursed

 

How to begin borrowing

To qualify for a loan, you must be a degree-seeking at SCC in good standing and enrolled in a minimum of 6 credit hours. Follow these steps to initiate a request for a loan.

A staff member and a student converse across a desk in an SCC office

Three students sit outside studying on a sunny day

How much can I borrow?

SCC will calculate the amount you may borrow based on your FAFSA results, your cost of attendance, and other financial aid you have received. 

The Department of Education sets loan limits based on your dependency status and college grade level.

Completed Hours Dependent Independent Subsidized
0-29 $5,500 per year $9,500 per year $3,500 per year
30-96 $6,500 per year $10,500 per year $4,500 per year
Lifetime Limit $31,000 $57,500 $23,000

more about Federal Direct Loans >>

 

When do I start repaying my loans?

You’ll have six months from the time you graduate, withdraw from school, transfer, or drop below half-time enrollment to begin repaypent. Depending on the type of loan you have received, interest may already be accruing and/or capitalizing. Students may elect to pay the interest on this type loan before the first official payment is due.

A complete list of Federal Direct Loan repayment terms can be found in the master promissory note that you sign before taking out a student loan. A summary of borrower rights and responsibilities is also included on the Loan Request eform that you submit via the MySCC portal.  

 

Frequently Asked Questions

Students must submit their FAFSA by these dates in order to be eligible to apply for a loan.

Semester
Avoid Pre-payment
Final Submissions
Fall July 1st December 1st
Spring December 1st May 1st
Summer May 1st June 30th

You must be enrolled in at least 6 credit hours per semester to achieve half-time enrollment status and qualify for a loan. This includes the summer term. Courses must be requirements of your active SCC degree program.

Yes. You must actively confirm that you want to borrow a new student loan by completing the Loan Request eform and indicating how much you would like to borrow.  Don't forget you also need to complete the FAFSA each academic year you are enrolled.

Yes, but if your transferred credits from your prior degree total more than 150% of the credit required for your new SCC degree, you must complete a Maximum Hours Appeal and be approved to apply for a loan.

Sign into your FSA account and view your dashboard, which will show the principal, interest, and all other information about your federal student loans.

Yes. In fact, you will save money on interest by getting a head start. There are no pre-payment penalties.

A loan servicer will be assigned to you when you take out a loan. Their name and contact information can be found in your FSA dashboard. 

Loan exit counseling is an informational session that addresses the details of your loan, from how much you owe to repayment plans. Loan exit counseling is required for any student leaving SCC, whether you’re graduating, transferring, withdrawing, or need to drop below half-time enrollment. 

Watch this FSA video for an overview of  how to complete loan exit counseling. 

No, not on your existing loan(s). Once you have used your grace period on a particular student loan, you will not get another. However, any new loans that you acquire are entitled to a six-month grace period.

You must be enrolled in at least 6 credit hours in order to achieve half-time enrollment and qualify for a deferment to postpone your payments.