Many students rely on student loans to finance their educations. The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender.
These loans have low interest rates and do not require credit checks or collateral. Student loans also provide a variety of deferment options and extended repayment terms. There are limits to the amount students can borrow from the Direct Loan programs. There are separate limits for dependent vs. independent and first-year (earned less than 30 hours) vs. second-year (earned more than 30 hours) undergraduate students. All Direct Loans are either subsidized or unsubsidized.
- Direct Subsidized Loans are loans made to students who demonstrate financial need to help cover the costs of higher education; the government pays the interest on these loans while you’re in school.
- Direct Unsubsidized Loans are not based on financial need; you pay all the interest accrued on these loans of which you can pay while enrolled or you can allow the interest to capitalize before entering repayment.
Repayment on federal loans begins six months after the student graduates or drops below half-time enrollment. The standard repayment term is 10 years, although one can get access to alternate repayment terms such as extended, graduates, and income-based repayment plans. Find out more information at studentaid.gov under the “Manage Loans” tab.
As the Department of Education reported on September 22, 2022, the fiscal year (FY) 2019 official Cohort Default Rate (CDR) for Central Carolina Technical College is 5.3% and exceeds the current national average of 2.3%. The federal default rate is to maintain the capability to provide federal student loans, colleges must maintain a CDR of less than 30%.
**IMPORTANT INFORMATION REGARDING YOUR STUDENT LOANS**
Your eligibility for federal financial aid is subject to specific terms and conditions; this includes student loans. We are required to follow federal regulations even if funding has already been awarded and/or disbursed when new information regarding your eligibility becomes available. If you are awarded loans and subsequently fail to maintain eligibility, or we become aware of additional information that affects our initial determination of your award eligibility, adjustments to your award may be required. If adjustments are necessary, you may be required to repay some or all of your funding. Federal Direct Loan funds are split into two payments and are paid directly to a student’s account. Please contact the Business Office for disbursement dates.
Note about Private Students Loans – Due to the low tuition cost at CCTC and the high default rate on private loans, we feel it is in the best interest of our students to NOT certify private student loans.
Note about Parent PLUS Loans – Due to the low tuition cost at CCTC, it is never necessary for parents of dependent students to apply for parent PLUS loans, which do involved a credit check and have a much larger interest rate than the student loans. Therefore, we do not participate in this program.
Effective July 1, 2021, the FAFSA Simplification Act, part of the Consolidated Appropriations Act of 2021, repealed the 150% Subsidized Usage Limits requirements. This means that if the first disbursement of your Direct Subsidized loans is on or after July 1, 2021, there is no time limitation on how long you can receive a Direct Subsidized loan. Additionally, you cannot lose Direct Subsidized loan eligibility based on your continued enrollment in a program beyond the 150% published length of your program.
Annual and Aggregate Loan limits still apply to both Subsidized and Unsubsidized Direct Loans. See Annual Limits (per academic year) and Aggregated Limits (total max loan debt) in the chart below:
Annual Loan Limits – Per Academic Year
| Year | Dependent Students | Independent Students |
|---|---|---|
| First-Year (classified as earned less than 30 credit hours) | $5,500 | $9,500 |
*No more than $3,500 of the above totals may be awarded in subsidized loan funding per academic year.
| Year | Dependent Students | Independent Students |
|---|---|---|
| Second-Year (classified as earned 30 or more credits hours | $6,500 | $10,500 |
*No more than $4,500 of the above totals may be awarded in subsidized loan funding per academic year.
Aggregate Loan Limits – Total Max Loan Debt
| Dependent Students | Independent Students | |
|---|---|---|
| Undergraduate Aggregate Loan Limits | $31,000 | $57,500 |
*No more than $23,000 of the above totals may be in subsidized loans.
How to receive Direct Loans at CCTC:
- Complete the Free Application for Federal Student Aid (FAFSA). The FAFSA and any and all other missing information must be completed and processed successfully before a student can receive any federal funds, this includes federal student loans. The FAFSA is completed once per academic year.
- Enroll in classes. Students must be enrolled at least half-time (6 credit hours) to be eligible to receive federal student loans for that semester.
- Access and complete the Direct Loan Affirmation Form. In an attempt to minimize unnecessary student debt, we require that students request to receive loan funding for each semester that they wish to receive loans for. There are deadlines in which we will process loan requests for specific terms. Please see these dates at the top of the Direct Loan Affirmation Form.
- The affirmation form will ask for proof of completion of the following requirements in order to be processed:
- Annual Student Loan Acknowledgement.
- Master Promissory Note (for first-time borrowers).
- Entrance Counseling (for first-time borrowers).
- See below for information on each of these requirements.
- 23-24 Direct Loan Affirmation Form
- The affirmation form will ask for proof of completion of the following requirements in order to be processed:
- Upon graduating, dropping below half-time (6 credits) or withdrawing from a program, complete the Exit Counseling. The Exit Counseling is an attempt to make you aware of your approaching loan repayment, terms and available options. It is a requirement that students complete this after graduating or dropping below half-time status (see below).
Annual Student Loan Acknowledgement:
Effective starting with the 2021-2022 Academic Year, all students requesting loan funds must complete the Annual Student Loan Acknowledgement prior to submitting the Direct Loan Affirmation Form.
Central Carolina Technical College will request that you complete a new Acknowledgement for each semester that you complete a Direct Loan Affirmation Form to request loan funds for that term. Our goal is to help you understand your loans and how they affect your financial future.
If this is your first time accepting a federal student loan, you are acknowledging that you understand your responsibility to repay your loan.
If you have existing federal student loans, you are acknowledging that you understand how much you owe and how much more you are eligible to borrow.
You’ll also see other federal student aid information, including the interest rates and repayment options to make managing your student loans easier, such as your assigned loan servicer.
You can complete the Annual Student Loan Acknowledgement at studentaid.gov under the “Complete Aid Process” tab, also available at the following link: https://studentaid.gov/asla/
You must have your FSA ID to log in, which is the same username/email/phone number and password you use to sign in and complete the FAFSA.
All student enrolled at Central Carolina Technical College are Undergraduate Students, as we do not offer any graduate or professional programs.
Entrance Counseling:
If you are a first-time loan borrower at Central Carolina Technical College, you must complete the Entrance Counseling prior to submitting the Direct Loan Affirmation Form.
You can complete the Entrance Counseling at studentaid.gov under the “Complete Aid Process” tab, also available at the following link: https://studentaid.gov/entrance-counseling/
You must have your FSA ID to log in, which is the same username/email/phone number and password you use to sign in and complete the FAFSA.
All students enrolled at Central Carolina Technical College are Undergraduate Students, as we do not offer any graduate or professional programs.
Master Promissory Note (MPN):
If you are a first-time loan borrow at Central Carolina Technical College, you must complete a Master Promissory Note (MPN) prior to submitting the Direct Loan Affirmation Form.
You must also complete a new MPN if it has been 10 years since the original completed MPN, or the original MPN has otherwise expired.
You can complete the MPN at studentaid.gov under the “Complete Aid Process” tab, also available at the following link: https://studentaid.gov/mpn/subunsub/landing
You must have you FSA ID to log in, which is the same username/email/phone number and password you use to sign in and complete the FAFSA.
All students enrolled at Central Carolina Technical College are Undergraduate Students, as we do not offer any graduate or professional programs.
Exit Counseling:
All graduating students who borrowed from the Federal Direct Loan Program, and students who have dropped below half-time or cease attending, must complete an exit counseling session to learn about the rights and responsibilities of repaying the loan. You are also informed of different potential repayment plans that can reduce your loan payment.
Exit Counseling can be completed at studentaid.gov under the “Manage Loans” tab, also available at the following link: https://studentaid.gov/exit-counseling/
You must have your FSA ID to log in, which is the same username/email/phone number and password you use to sign in and complete the FAFSA.
All students enrolled at Central Carolina Technical College are Undergraduate Students as we do not offer any graduate or professional programs.
Managing Student Loans, no matter where you are in the process:
Federal Student Aid does its best to make all information about federal student loans easily accessible and easy to understand.
Studentaid.gov is the hub of all things federal funding related, especially federal student loans. The “Manage Loans” tab gives you quick options to learn more about or complete for your benefit whether you are just starting out, graduating or in repayment. Stay on top of your debt! https://studentaid.gov/h/manage-loans
Check out the ‘myStudentAid’ Mobile App:
Find information about federal student aid (loans and grants) at your fingertips.
Conveniently manage your student aid
- Apply for financial aid using the Free Application for Federal Student Aid form
- View your student aid (loans and grants)
- Track your loan progress
Get the mobile app now
Federal Student Aid continuously adds features and improvements to the mobile app. Download it on your device for the latest version.
