SPSCC participates in the William D. Ford Federal Direct Loan Program. Direct Loans are low-interest federal loans that help cover the cost of your education. Unlike grants, loans must be repaid — with interest. Before accepting a loan, make sure you understand the terms and explore all grant and scholarship options first.

New for 2026-27

Per updated federal regulations due to the "One Big Beautiful Bill Act (OBBBA)," loans in the 2026-27 academic year will be prorated based on enrollment intensity. This may affect your loan funds accordingly:

  • Students enrolled less-than-full-time (11 credits or less in any quarter) will receive a prorated loan amount which may differ from original loan amount(s) offered. 
  • Students that decrease enrollment after being awarded loans may be charged overpayment or be eligible for decreased loan amounts in subsequent quarters. 

Types of Direct Loans

Direct Subsidized Loan

Need-based  •  Interest paid by the government while you’re enrolled

Eligibility is based on financial need as determined by your FAFSA. While you are enrolled at least half-time (6 or more credits), the federal government pays the interest on your behalf. You will not owe interest that built up during school. After you graduate, leave school, or drop below half-time, you have a six-month grace period before repayment begins, at which point interest accrues at a fixed rate.

Direct Unsubsidized Loan

Not need-based  •  Interest accrues immediately

Eligibility is based on your cost of attendance minus other aid received — financial need is not required. Interest begins accruing at a fixed rate from the date funds are disbursed. You may pay interest while in school or allow it to capitalize (be added to your principal balance) at repayment. After you graduate, leave school, or drop below half-time, you have a six-month grace period before repayment begins.

Tip: Borrow only what you need. You can request a partial loan amount by raising your hand in EAB Navigate 360 or decline your loan offer entirely in ctcLink. Any amount not accepted will not be disbursed to your account.

Eligibility Requirements

To receive a Direct Loan at SPSCC you must:

  • Be enrolled in an eligible degree or certificate program

  • Be enrolled in at least 6 credits (half-time) that are required for your program of study in the quarter for which you are requesting a loan

  • Have a valid 2026–27 FAFSA on file

  • Not be in default on any prior federal student loan or owe an overpayment on a federal grant

  • Complete all required steps below before funds can be released

How to Apply for a Direct Loan

Complete all four steps below. Funds will not disburse until each step is finished.

1

Accept Your Loan in ctcLink

Log in to ctcLink to view your financial aid award. Loan offers will appear in your award package. You can accept the full amount, request a reduced amount by contacting your FA Specialist in EAB Navigate 360, or decline the loan entirely. Loans you do not accept will not disburse.

2

Complete Entrance Counseling

First-time borrowers must complete Entrance Counseling at StudentAid.gov. This is a one-time requirement that covers your loan terms, repayment options, and borrower rights and responsibilities. If you have previously received a Direct Loan at SPSCC or another school, you may skip this step.

3

Sign Your Master Promissory Note (MPN)

Sign your Master Promissory Note at StudentAid.gov. The MPN is the legal agreement in which you promise to repay your loan. A signed MPN is valid for up to 10 years, so returning borrowers typically only need to complete this once.

4

Complete Your Annual Student Loan Acknowledgment

Each year you borrow, you must complete the Annual Student Loan Acknowledgment at StudentAid.gov. This step confirms you understand how much you have borrowed to date and what your estimated monthly payment will be after graduation. This is a federal requirement that must be completed before each year’s loan can be released.

Disbursement Information

Once all steps are complete, your loan funds will be applied to your SPSCC account to cover tuition and fees. Any remaining balance will be refunded to you. Keep the following in mind:

 

Topic What You Need to Know
Minimum enrollment You must be enrolled in at least 6 credits (half-time) at the time of each disbursement. If you drop below 6 credits after a disbursement, no additional loan funds will be released for that quarter.
First-time borrowers If this is your first time borrowing a Direct Loan at any college, your first disbursement will be held for 30 days after the start of the quarter. This is a federal requirement. You will be notified of this hold when your award is processed.
One-quarter loans If you are borrowing a loan for only one quarter, your funds will be split into two disbursements — the first at the start of the quarter and the second at the midpoint. This is required by federal regulations.
Loan amount adjustments Your loan offer may be adjusted after your initial award for reasons such as changes in enrollment, additional scholarships applied to your account, or nearing graduation. Contact your FA Specialist in EAB Navigate with any questions.
Canceling your loan You may cancel future disbursements of your loan at any time by contacting your FA Specialist in EAB Navigate before the disbursement date.

In-School Deferment

While you are enrolled at least half-time (6 or more credits), you are eligible for an in-school deferment on any existing student loans. During deferment, you are not required to make principal or interest payments.

SPSCC automatically reports your enrollment status to the National Student Clearinghouse on the 10th day of each quarter. This report is used to apply deferment to any loans you hold from SPSCC or other schools. No action is required on your part.

Exit Counseling

When you graduate, withdraw, or drop below half-time enrollment, you are required to complete Loan Exit Counseling. Exit counseling reviews your loan balance, repayment options, and your rights and responsibilities as a borrower.

Complete exit counseling at StudentAid.gov. Select “Exit Counseling” from the menu after logging in.

Questions?

Contact your Financial Aid Specialist by raising your hand in EAB Navigate 360. Select "I need help with Direct Loans" and a specialist will get back to you within 48-72 hours, or visit the One Stop office in Bldg 22 for in-person support.

 

Cohort Default Rate Disclosure Statement

A schools Cohort Default Rate (CDR) is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1st to September 30th, and default or meet other specified conditions prior to the end of the second following fiscal year. 

SPSCC Cohort Default Rates 2020, 2021 & 2022

To learn more about the national average CDR at SPSCC or other schools click here:  https://nsldsfap.ed.gov/cdr-searchable-database/school/search You will need to enter the OPEID for any school you wish to search the CDR. SPSCC's OPEID is 005372

Veteran's wishing to have more information regarding SPSCC Cohort Default Rates should contact Michelle Erzen at veteranservices@spscc.edu or the financial aid office directly.

Free Loan Repayment Support — ECMC Solutions

Solutions at ECMC

SPSCC has partnered with ECMC Solutions, a nonprofit organization dedicated to helping students successfully manage and repay their educational loans. ECMC’s services are available to you at no cost and include:

  • One-on-one student loan repayment advising

  • Help understanding your repayment plan options, including income-driven repayment

  • Default prevention counseling

  • Guidance if you are struggling to make payments

 

To reach an ECMC Solutions Student Loan Repayment Advisor:

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