Federal Direct Loans

Financial Aid Handbook

Federal Direct Student Loans

Federal Direct Loans are either Subsidized or Unsubsidized.

Subsidized Loan

This loan is based on financial need for which the federal government pays the interest that accrues while the borrower is in school, grace, or deferment status.  New borrowers are subject to limitations on the amount of subsidized loans received.

Unsubsidized Loan

This is a loan where the borrower is fully responsible for the paying of the interest regardless of loan status. Interest accumulates from the date of disbursement. UCC does not offer this loan at the time of the initial offer. Students have to apply by using the Loan Request & Revision Form and submitting it to the Financial Aid Office for processing.

Student Loan Facts

Students must be enrolled at least half-time (6cr) in an eligible program to qualify for student loans.

First time federal student loan borrowers must complete the following requirements: Entrance Counseling and Master Promissory Note (MPN). There is a 30 day delay for first time federal student loan borrowers from the first term you begin in that specific aid year.

In compliance with federal regulations, loans will be prorated for students attending less than 3 terms.

You must complete exit counseling when you leave school or drop below half-time. The purpose of exit counseling is to ensure you understand your student loan obligation and are prepared for repayment.

To learn about the rights and responsibilities for student loan borrowers click here.

Important Disbursement Information