Financial Aid

Loans

William D. Ford Federal Direct Loan Programs

Federal SUBSIDIZED Stafford Loan

Awarded on the basis of financial need. The federal government pays your interest while you are in school, for the first six months after you leave school, and if you qualify to have your payments deferred.

Federal UNSUBSIDIZED Stafford Loan

Not awarded on the basis on financial need. The federal government does not pay the interest. You are responsible for paying the interest on an unsubsidized loan while in school, during the 6 month grace period, during deferment periods and during repayment. You have the option of postponing interest payments while in school. However, be advised that the interest continues to accrue and any unpaid interest will be capitalized (added to the principal of loan) as you enter repayment.

Direct PLUS Loan (Parent Loan)

Parents of dependent undergraduate students with a good credit history may apply for the PLUS loan. Loan amount cannot exceed cost of attendance minus other financial aid. Repayment starts within 60 days after the loan is fully disbursed.

How to Apply

  1. Apply for Financial Aid (FAFSA) online at www.fafsa.ed.gov
  2. You must be attending at least half-time status (6 credit hours eligible for Title IV purposes) in order to be eligible to receive a student loan.
  3. Complete the Direct Loan Request Form and return to the Financial Aid Office. Click here and open the "Forms" drop down menu then select number 12 to access the form.
  4. After being notified by the Financial Aid Office you must complete Direct Loan Entrance Counseling and complete a Direct Loan Master Promissory Note by signing in to StudentLoans.gov before your Direct Loan will be disbursed.
Instructions for Direct Loan Entrance Counseling
  1. Go to StudentLoans.gov
  2. Click on the green sign in button located under “Manage My Direct Loan” on the top left side of the page
  3. Input your credentials:
    • Social Security Number,
    • first two letters of your last name,
    • your date of birth,
    • and your personal identification number (same PIN you used to sign your FAFSA)
  4. Click on “Complete Entrance Counseling
  5. Click on “Complete Entrance Counseling” again
  6. Check the “I am an undergraduate student” button
  7. Continue to read and answer the questions until you get to the end
Instructions for Direct Loan Master Promissory Note
  1. Go to StudentLoans.gov
  2. Click on the green sign in button located under “Manage My Direct Loan” on the top left side of the page
  3. Input your credentials:
    • Social Security Number,
    • first two letters of your last name,
    • your date of birth,
    • and your personal identification number (same PIN you used to sign your FAFSA)
  4. Click on “Complete Master Promissory Note
  5. Click on Subsidized/Unsubsidized
  6. Input the required information and submit

Annual and Aggregate Loan Limits

Annual Loan Limits

A degree seeking student enrolled in six credit hours or more is eligible to apply for a student loan.

Dependent Undergraduates
  Freshman (0-29 hrs) Sophomore (30+ hrs)
Maximum Subsidized $3,500 $4,500
Unsubsidized $2,000 $2,000
Total $5,500 $6,500
Independent Undergraduates
  Freshman (0-29 hrs) Sophomore (30+ hrs)
Maximum Subsidized $3,500 $4,500
Unsubsidized $6,000 $6,000
Total $9,500 $10,500
Federal Direct Maximum Aggregate Limits
Dependent Undergraduate $31,000 (no more than $23,000 of which can be subsidized)
Independent Undergraduate $57,500 (no more than $23,000 of which can be subsidized)
Sample Repayment and Interest Chart

Estimated Loan Repayment Chart (10 Yr Term)

This chart provides only estimated payments and assumes that the interest rate stays the same each year. Under Federal regulations, the interest rates for the William D. Ford Direct Loan programs are subject to change once a year.

Total Loan Amount Monthly Payment at 3% Interest Monthly Payment at 4% Interest Monthly Payment at 5% Interest Monthly Payment at 6% Interest Monthly Payment at 7% Interest Monthly Payment at 8.25% Interest
$1,000 $50 $50 $50 $50 $50 $50
$1,500 $50 $50 $50 $50 $50 $50
$2,000 $50 $50 $50 $50 $50 $50
$2,625 $50 $50 $50 $50 $50 $50
$3,000 $50 $50 $50 $50 $50 $50
$3,500 $50 $50 $50 $50 $50 $50
$4,000 $50 $50 $50 $50 $50 $50
$4,500 $50 $50 $50 $51.79 $52.25 $55.19
$5,000 $50 $50.62 $53.03 $57.54 $58.05 $61.33
$5,500 $53.11 $55.68 $58.34 $63.29 $63.86 $67.46
$6,000 $57.94 $60.75 $63.64 $69.05 $69.67 $73.59
$7,000 $67.59 $70.87 $74.25 $80.56 $81.28 $85.86
$8,000 $77.25 $81.00 $84.85 $92.06 $92.89 $98.12
$8,500 $82.08 $86.06 $90.16 $97.82 $98.69 $104.25
$9,000 $86.90 $91.12 $95.46 $103.57 $104.50 $110.39
$10,000 $96.56 $101.25 $106.07 $115.08 $116.11 $122.65
$11,000 $106.22 $111.37 $116.67 $126.59 $127.72 $126.59
$12,000 $115.87 $121.49 $127.28 $138.10 $139.33 $147.18
$13,000 $125.53 $131.62 $137.89 $149.65 $150.94 $159.45
$14,000 $135.19 $141.74 $148.49 $161.11 $162.55 $171.71
$15,000 $144.84 $151.87 $159.10 $172.62 $174.16 $183.98
$16,000 $154.50 $161.99 $169.70 $184.13 $185.77 $196.24

Based on a 10 year repayment period. Minimum monthly payment is $50.00

Estimated Monthly Interest Chart for Unsubsidized Loans

This chart provides the estimated monthly interest payments for unsubsidized loans. You may elect to pay this interest on a quarterly basis or let the interest capitalize which is added to the loan principal.

Loan Amount Monthly Payment at 5% Interest Monthly Payment at 6% Interest Monthly Payment at 6.8% Interest Monthly Payment at 7% Interest Monthly Payment at 8.25% Interest
500 $2.08 $2.50 $2.83 $2.92 $3.44
1,000 $4.17 $5.00 $5.67 $5.83 $6.88
2,000 $8.33 $10.00 $11.33 $11.67 $13.75
3,000 $12.50 $15.00 $17.00 $17.50 $20.63
3,500 $14.58 $17.50 $19.83 $20.42 $24.06
4,000 $16.67 $20.00 $22.67 $23.33 $27.50
4,500 $18.75 $22.50 $25.50 $26.25 $30.94
5,000 $20.83 $25.00 $28.33 $29.17 $34.38
6,000 $25.00 $30.00 $34.00 $35.00 $41.25
7,000 $29.17 $35.00 $39.67 $40.83 $48.13
8,000 $33.33 $40.00 $45.33 $46.67 $55.00
9,000 $37.50 $45.00 $51.00 $52.50 $61.88
10,000 $41.67 $50.00 $56.67 $58.33 $68.75
15,000 $62.50 $75.00 $85.00 $87.50 $103.13
16,000 $66.67 $80.00 $90.67 $93.33 $110.00

Your Loan History

The National Student Loan Data System (NSLDS) is the US Department of Education’s central database for student aid. It provides a centralized, integrated view of federal student loans and Pell Grants that are tracked through your entire cycle of financial aid, from approval through closure. You may access your information through the Internet by visiting the NSLDS Student Access website.

Exit Interview

Federal regulations require all student loan borrowers to participate in an exit interview whenever you drop below half time enrollment status, withdraw, graduate, or at the end of spring semester each school year (as required by Volunteer State Community College). To complete this requirement, visit the Loan Exit Counseling Link