Loan Information

Types of Federal Direct Loans

Two Types of Loans

The Direct Subsidized Loan is based upon financial need. The government subsidizes (or pays) the interest for you while you are enrolled at least half time (six credits) in an eligible, degree-seeking program. You will have six months once you graduate or drop below half time attendance before you must begin repayment at which point interest will begin accruing at a fixed rate.

The Direct Unsubsidized Loan is not need-based, eligibility is based on the cost of attendance and other aid received. Interest accrues at a fixed rate as soon as you receive the loan funds. You have six months once you graduate or drop below half time attendance before you must begin repayment.

Eligibility & Disbursement

  • You may cancel future disbursements of your loan at any time.
  • You must enroll in a minimum of 6 credits to be eligible for Direct Loans.
  • First-time college students borrowing a Direct Loan may be required to have their loan funds held for the first 30 days of the quarter before funds can be disbursed.
  • One-quarter loans are disbursed in two payments, one at the beginning of the quarter and one at the midpoint.
  • Direct Student Loan offers are subject to change from the original offer for a variety of reasons, including impending graduation status, incoming scholarships or other aid applied to a students account. Questions about why a loan offer was reduced from the original award amount offered can be directed to your FA Specialist in Compass.


While you are at least half time (taking 6 or more credits), you can receive an in-school deferment on your existing student loans. You will not be required to make any principal or interest payments while you are enrolled at least half time in school. SPSCC will automatically report your enrollment information on the 10th day of the quarter to the National Student Loan Clearinghouse.

Exit Counseling

When you graduate or cease to be enrolled at least half time at SPSCC, you must complete Loan Exit Counseling. This will review the terms and conditions of your loan, provide an overview of the repayment process, and give details about available repayment options. You can fulfill this requirement by visiting and following the links to Exit Counseling.

SPSCC has partnered with Solutions at ECMC a non-profit organization dedicated to helping students manage their educational loans. Their resources are available to you free of charge. To contact a Solutions Student Loan Repayment Advisor, email ECMC Solutions or call 1-877-331-3262.

Steps to Apply for Direct Federal Student Loans

  1. Receive and review your Financial Aid Award Letter
    Once you have been awarded, you can view award information and accept your loan award(s) in ctcLink. If you would like a reduced loan amount from what is being offered, you can contact your FA Specialist in compass to request a reduction in the award. Decline the loan offer if you are not interested in loans and no loan funds will disburse to your account.
  2. Complete Student Loan Entrance Counseling
    New students requesting a loan may be required to complete loan Entrance Counseling online at If you have received a Direct student loan here at SPSCC or at another school, you can proceed to step 3.
  3. Complete Master Promissory Note
    Complete Master Promissory Note at
  4. Review Revised Award Letter and Receive Loan Disbursements
    Review the Disbursement Schedule for Direct Student Loans. Note: First time borrowers may be required to have a 30-day delay for their first disbursement. 1 Quarter loans are disbursed in two disbursements, 1st portion at the regular disbursement date and the 2nd  midway through the quarter.

Current Loan Interest Rates

Federal Student Aid