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 to receive a loan. Loan exit counseling is required in the final semester before you leave school. 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

 

Contact Information

 

Upcoming Events

Feb 04 2026
11:00 AM Student Center (2-SC)

Financial Aid Pop Up

Mar 02 2026
6:00 PM Conoyer Hall (12-CH)

A+ Orientation NIght

Apr 14 2026
6:00 PM Conoyer Hall (12-CH)

A+ Orientation NIght

View All Financial Aid Events

 

 

 

 

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. Beginning with the 2026-2027 academic year, federal regulations require loan pro-ration for less than full-time enrollment. Full-time enrollment is defined as 12 credit hours per semester or 24 credit hours in an annual period (Fall + Spring). The chart below displays maximum limits.

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 >>

Loan Pro-Ration for less than full-time enrollment

Loans will be pro-rated for less than full-time enrollment using the formula:  Pro-ration % = Annual credit hours/24. Here are some examples to help you understand the calculation. 

Example 1: A Dependent 1st year student enrolls in 6 credit hours for Fall semester and 6 credit credit hours for Spring semester, for a total of 12 credit annual hours. This student qualifies only for Unsubsidized loans.

  • Annual limit:  12/24 = 50% of $5,500 = $2,750
  • Fall disbursement:  $1,375
  • Spring disbursement: $1,375

Example 2: A Dependent 1st year student enrolls in 6 credit hours for Fall semester and 6 credit credit hours for Spring semester, for a total of 12 credit annual hours. This student declined the Unsubsidized loan portion of their eligibility.

  • Annual limit:  12/24 = 50% of $3,500 = $1,750
  • Fall disbursement:  $875
  • Spring disbursement: $875

Example 3:  An Independent 2nd year student is enrolled in the Nursing program for Fall and Spring. Fall term contains 9 credit hours. Spring term contains 11 credit hours.

  • Annual limit:  20/24 = 83% of $10,500 = $8,715
  • Fall disbursement: $3,990
  • Spring disbursement: $8,715- $3,990 = $4,725

Example 4:  An Independent 2nd year student is enrolled in 12 credit hours for Fall term. The student withdraws from 3 credit hours after receiving their Fall disbursement, leaving only 9 enrolled hours at the end of the Fall term. The student then enrolls in 12 credit hours for the Spring term.

  • Annual limit: 21/24 = 88% of $10,500 = $9,240
  • Fall disbursement: $5,250 (student was enrolled in 12 credit hours at the time of disbursement)
  • Spring disbursement: $9,240 - $5,250 = $3,990 

Loan Pro-Ration in final semester before graduation

Loan pro-ration is required for remaining periods of enrollment that are less than an academic year. Pro-ration will occur if you will be completing your degree program and borrowing a loan for one final semester. Pro-ration % = term credit hours/24. Here is an example to help you understand the calculation. 

Example 1: An Independent 2nd year student is enrolled in 9 hours in their final semester.

  • Term limit: 9/24 = 38% x 10,500 = $3,990
  • Subsidized portion: 9/24 = 38% x $4,500 = $1,710
  • Unsubsidized portion: 9/24 = 38% x $6,000 = $2,280

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 for the appropriate academic year. Remember, an academic year begins in fall and ends in summer. In the eform, you'll select the term for which you'll need the loan and the amount you'd like to borrow.  Don't forget you also need to complete the FAFSA each academic year you are enrolled.

Yes. Your Financial Aid Satisfactory Academic Progress (SAP) status must be in one of the following statuses in order to qualify for a loan: Good Standing, Warning or Probation. The following statuses will not qualify for a loan:  Suspension, Maximum Hours, Dismissal. Your SAP status is displayed at the top of your FA Checklist in the MySCC portal.

Interest rates for Federal Direct Loans are based upon a market factor and can change annually. The interest rate for the period of July 1, 2024 - June 30, 2025 is 6.53%. The interest rate for the period of July 1, 2025 - June 30, 2026 is 6.39%.Visit studentaid.gov for updated rates.

Yes, The Department of Education charges a processing fee called an origination fee. The fee comes out of the money that is disbursed to you. This means the money you receive will be less than the amount you borrow. You will be responsible for repaying the entire amount you borrowed and not just the amount you received. The current loan origination fee is 1.057%. For example, if you borrow a $3,500 loan, you would receive a disbursement of $3,463 and must repay the full $3,500 once you enter the repayment period. Visit studentaid.gov for complete information on loan fees.

Yes, it may be possible to borrow a loan if you have not yet met annual or aggregate (lifetime) loan limits.  However, if your transferred credits from your prior degree total more than 150% of the credit required for your new SCC degree, you will be in a Maximum Hours status which is not an eligible SAP status for loans. You must submit a Maximum Hours Appeal and the appeal must be approved before your eligibility for a loan can be determined.

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. When you return to school, you can ask your loan servicer to postpone payments with a 'deferment'. You will need to be enrolled half-time in order to qualify for an 'in-school deferment'.

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.

Loan repayment will begin 6 months after you drop below half-time enrollment (below 6 credit hours). You are required to complete Loan Exit Counseling if you drop below half-time, withdraw or graduate from SCC.