Loans

If you apply for financial aid, you may be offered federal loans as part of your GCC financial aid offer. A loan is money you borrow and must pay back with interest.

Federal Student Loans

Federal Direct Subsidized Loan

This is a federally financed student loan made to undergraduates who meet specific eligibility requirements. You may borrow up to the cost of attendance minus any other financial aid received and may not borrow more than the maximum annual or lifetime amount. Interest is charged throughout the life of the loan. You may choose to pay the interest charged on the loan or allow the interest to be added to the loan principal.

Description

- - Federally funded.
  - Based on need.
  - The fixed interest rate for loans in the deferment or six-month grace period is as follows:

Disbursement date	Undergraduate %	Loan Origination Fee (Oct. 1 each year)
July 1, 2023 - June 30, 2024	5.50%	1.057%
July 1, 2022 - June 30, 2023	4.99%	1.057%
July 1, 2021 - June 30, 2022	3.73%	1.057%
July 1, 2020 - June 30, 2021	2.75%	1.057%
July 1, 2019 - June 30, 2020	4.53%	1.059%

- - Interest rates are adjusted yearly based on the 10-year U.S. Treasury note index rate. The interest rate cap for undergraduate federal Direct Subsidized and Unsubsidized Loans is 8.25%.
  - The federal government pays the interest on the loan until repayment begins.
  - Subject to annual and aggregate loan limits.
  - This is a loan you must repay to the U.S. Department of Education.
  - Complete the Financial Aid Adjustment Form if you wish to cancel or reduce a loan that has not been disbursed to your GCC account. If the loan has already been disbursed, you must complete the Financial Aid Adjustment Form within 30 days of the date of disbursement. Please note: Canceling or reducing a disbursed loan may result in a balance due on your GCC student account.
  - After you have been offered a federal Direct Unsubsidized Loan, you will receive a federal Loan Disclosure Statement from the Direct Loan Servicing Center. The disclosure statement identifies anticipated disbursement dates, gross and net disbursement amounts, and loan fee amounts for all your federal loans for the academic year.

Annual Maximum and Aggregate Loan Limits

Annual Maximum Loan Limits

Type of Student	Dependent	Independent
Freshman: 0-28 credit hours	$5,500 (no more than $3500 subsidized)	$9,500 (no more than $3,500 subsidized
Sophomore: 29-63 hours	$6,500 (no more than $4,500 subsidized)	$10,500 (no more than $4,500 subsidized)

Aggregate Maximum Loan Limits

Type of Student	Amount
Dependent Student	$31,000 (no more than $23,000 subsidized)
Independent Student	$57,500 (no more than $23,000 subsidized

Eligibility

- - Completed Federal Master Promissory Note required for first-time borrowers.
  - Federal loan Entrance Counseling Session required for first-time borrowers at GCC.
  - Offer eligibility based upon estimated Student Aid Index (SAI), cost of attendance, enrollment status and other resources.
  - Must be enrolled at least half time. The loan offer will be canceled if enrolled less than half time.
  - The loan offer may be adjusted or canceled if there is a change to cost of attendance, enrollment, graduation or if you receive additional resources.
  - Must be making Satisfactory Academic Progress.
  - U.S. Citizen or eligible non-citizen.
  - Not in default on prior educational loans.

Repayment

- - Accrued interest is billed quarterly and may be deferred (will be added to principal balance).
  - You will begin to repay your loan six months after you cease to be enrolled at least half time. During this six-month grace period, interest will accrue on your loan. Once the grace period expires, you will begin to repay your loan.
  - Complete an Exit Counseling Session so you are aware of all the information you will need to know about repaying your loan.
  - If you drop to less than half time, withdraw, drop out, graduate or simply do not return to school, this information will be reported to the servicer, and they will begin to count your grace period. You are responsible for notifying GCC immediately if your enrollment changes as described above.
  - Payments will be made to the U.S. Department of Education.
  - To obtain information about consolidating your federal loans, visit studentaid.gov. The interest rate for a consolidation loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.
  - It is important that you maintain all important files and keep copies of your offer notices, Master Promissory Note, borrower's rights and responsibilities and the Loan Disclosure Statement in one place as they provide the details of your loans and your rights and responsibilities as a student loan recipient.

Federal Direct Unsubsidized Loan

This is a federally financed student loan made to undergraduate students who meet specific eligibility requirements. You may borrow up to the cost of attendance minus any other financial aid received and may not borrow more than the maximum annual or lifetime amount. Interest is charged throughout the life of the loan. You may choose to pay the interest charged on the loan or allow the interest to be added to the loan principal.

Description

- - Federally funded.
  - Not based on need.
  - The fixed interest rate for loans in the deferment or six-month grace period is as follows:

Disbursement Date	Undergraduate %	Loan Origination Fee (Oct. 1 each year)
July 1, 2023 - June 30, 2024	5.50%	1.057%
July 1, 2022 - June 30, 2023	4.99%	1.057%
July 1, 2021 - June 30, 2022	3.73%	1.057%
July 1, 2020 - June 30, 2021	2.75%	1.057%
July 1, 2019 - June 30, 2020	4.53%	1.059%

- - Interest rates are adjusted yearly based on the 10-year U.S. Treasury note index rate. The interest rate cap for undergraduate federal Direct Subsidized and Unsubsidized Loans is 8.25%.
  - Interest starts accruing upon disbursement.
  - Subject to annual and aggregate loan limits.
  - This is a loan you must repay to the U.S. Department of Education.
  - Complete the Financial Aid Change Form if you wish to cancel or reduce a loan that has not been disbursed to your GCC account. If the loan has already been disbursed, you must complete the student financial aid adjustment form within 30 days of the date of disbursement. Please note: Canceling or reducing a disbursed loan may result in a balance due on your GCC account.
  - After you have been offered a federal Direct Unsubsidized Loan, you will receive a Federal Loan Disclosure Statement from the Direct Loan Servicing Center. The disclosure statement identifies anticipated disbursement dates, gross and net disbursement amounts, and loan fee amounts for all your federal loans for the academic year.

Annual Maximum and Aggregate Loan Limits

Annual Maximum Loan Limits

Type of Student	Dependent	Independent
Freshman: 0-28 credit hours	$5,500 (no more than $3500 subsidized)	$9,500 (no more than $3,500 subsidized
Sophomore: 29-63 hours	$6,500 (no more than $4,500 subsidized)	$10,500 (no more than $4,500 subsidized)

Aggregate Maximum Loan Limits

Type of Student	Amount
Dependent Student	$31,000 (no more than $23,000 subsidized)
Independent Student	$57,500 (no more than $23,000 subsidized)

Eligibility

- - Completed Federal Master Promissory Note required for first-time borrowers.
  - Federal loan Entrance Counseling Session required for first-time borrowers at GCC.
  - Eligibility based upon estimated Student Aid Index (SAI), cost of attendance, enrollment status and other resources.
  - Must be enrolled at least half time. The loan offer will be canceled if enrolled less than half time.
  - The loan offer may be adjusted or canceled if there is a change to cost of attendance, enrollment, graduation or if you receive additional resources.
  - Must be making Satisfactory Academic Progress.
  - U.S. Citizen or eligible non-citizen.
  - Not in default on prior educational loans.

Repayment

- - Accrued interest is billed quarterly and may be deferred (will be added to principal balance).
  - You will begin to repay your loan six months after you cease to be enrolled at least half time. During this six-month grace period, interest will accrue on your loan. Once the grace period expires, you will begin to repay your loan.
  - Complete an Exit Counseling Session so you are aware of all the information you will need to know about repaying your loan.
  - If you drop to less than half time, withdraw, drop out, graduate or simply do not return to school, this information will be reported to the servicer, and they will begin to count your grace period. You are responsible for notifying GCC immediately if your enrollment changes as described above.
  - Payments will be made to the U.S. Department of Education.
  - To obtain information about consolidating your federal loans, visit studentaid.gov. The interest rate for a consolidation loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.
  - It is important that you maintain all important files and keep copies of your offer notices, Master Promissory Note, borrower's rights and responsibilities and the Loan Disclosure Statement in one place as they provide the details of your loans and your rights and responsibilities as a student loan recipient.

Federal Parent PLUS Loan

The Federal Parent PLUS Loan allows a parent to borrow money for the educational expenses of a child who is a dependent undergraduate student enrolled at least half time.

Description

- - Federally funded.
  - Not based on need.
  - Parent borrows on behalf of student.
  - The fixed interest rate for loans in the deferment or six-month grace period is as follows:

Disbursement Date	Undergraduate %	Loan Origination Fee (Oct. 1 each year)
July 1, 2023 - June 30, 2024	8.05%	4.228%
July 1, 2022 - June 30, 2023	7.54%	4.228%
July 1, 2021 - June 30, 2022	6.28%	4.228%
July 1, 2020 - June 30, 2021	5.3%	4.228%
July 1, 2019 - June 30, 2020	7.08%	4.236%

- - Interest rates are adjusted yearly based on the 10-year U.S. Treasury note index rate. The interest rate cap for federal Parent PLUS Loans is 10.5%.
  - Offered up to the cost of attendance minus other financial aid received.
  - This is a loan your parent must repay to the U.S. Department of Education.

Eligibility

- - Undergraduate, dependent students only.
  - Must be enrolled at least half time. The loan offer will be canceled if enrollment falls below half time.
  - Eligibility based on estimated Student Aid Index (SAI), cost of attendance, enrollment status and other resources.
  - The loan offer may be adjusted or canceled if there is a change to estimated family contribution, cost of attendance, enrollment or if you receive additional resources.
  - Students must be making Satisfactory Academic Progress.

Application process

- - A parent (biological, adoptive or stepparent) must complete the federal Parent PLUS Loan application. We suggest beginning this process at least 4 weeks prior to the start of classes.
  - The Department of Education will perform a credit check. Applications may be denied, approved, or pending.
    - Denials: If denied, the borrower will be notified by the Department of Education and may appeal the credit decision or find an endorser. Or the student may apply for an additional federal Direct Unsubsidized Loan due to the federal Parent PLUS Loan denial.
    - Approvals: The parent borrower will receive the Federal Loan Disclosure Statement from the Direct Loan Servicing Center. The disclosure statement identifies anticipated disbursement dates, gross and net disbursement amounts and loan fee amounts.
    - Pending: The application may be delayed if there is an error on the application or if a credit agency requests additional verification. If additional information is needed, the borrower will be notified via mail.
  - Parent borrowers must complete the federal Parent PLUS Master Promissory Note required for first-time borrowers. The MPN will be sent to GCC automatically once it's completed. If the parent borrower completed the MPN for a federal Parent PLUS Loan without an endorser but then secured one, the borrower will need to submit a new MPN.
  - Once all requirements have been met, the federal Parent PLUS Loan is ready to pay toward the student's account.
  - If there is an excess of funds once the loan pays to the student's GCC account, a refund will be issued to whomever the borrower selected on the Federal Parent PLUS Loan application.
    - Borrower: If the parent selected "borrower," a refund check will be mailed to the parent.
    - Student: If the parent selected "student," a refund may be issued to the student electronically or through the mail depending on whether the student has signed up for direct deposit.

Changes to the Parent PLUS Loan

- - The parent borrower may complete the Financial Aid Adjustment Form if he or she wishes to cancel or reduce a loan that has not been disbursed to the student's GCC account.
  - If the loan has already been disbursed, the borrower must complete the Financial Aid Change Form within 30 days of the date of disbursement. Please note: Canceling or reducing a disbursed loan may result in a balance due on the student's GCC account.

Repayment

- - Federal Parent PLUS Loans can be deferred if the student is enrolled at least half time or during the six-month period after the student ceases to be enrolled at least half time. For more information, you can request a deferment based on the student's enrollment status. Interest will accrue during the deferment period.
  - Interest begins accruing upon disbursement.
  - Repayment of principal and interest begins 60 days after the loan is fully disbursed.
  - The parent borrower will make payments to the loan servicer.
  - The interest rate for a direct consolidation loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.
  - It is important that borrowers maintain important files and keep copies of the Master Promissory Note, borrower's rights and responsibilities and the Loan Disclosure Statement in one place as they provide loan details and a borrower's rights and responsibilities.

National Student Loan Data System (NSLDS)

All federal student loans obtained by a student or parent are reported to and tracked on the National Student Loan Data System (NSLDS). NSLDS loan records are accessible to all authorized NSLDS users, including schools, student loan guaranty agencies, lenders, federal agencies, and other authorized users.

Alternative and private education loan information is not reported to NSLDS.

Student and parent loan borrowers may view their federal loan information at NSLDS. Borrowers access the system using their federal PIN. Students can also access prior federal grant information at NSLDS.

Exit Counseling and Federal Loan Repayment

Exit Counseling

Exit counseling provides individual assessments to student borrowers about the type and total amount of their personal indebtedness, as well as information on repayment plans, and deferment, forbearance, and loan consolidation options.

Every student who has received a Federal Direct Stafford Loan is required to receive exit counseling at the time of graduation, withdrawal, or dropping below at least half-time enrollment.

On-line exit counseling for Federal Loan recipients is available at any time at studentaid.gov. Students must have their FSA-ID and password available to complete exit loan counseling.

Access Exit Counseling

Loan Repayment

When a student graduates, withdraws or stops attending on at least a half-time basis, a six-month grace period begins before the student must start repaying the Federal Direct Stafford Loans. At that time, Exit Loan Counseling is required to explain the student's debt and repayment options.

At the end of the grace period, the student must begin repaying the loans directly to their Direct Loan Servicer. The U.S. Department of Education (ED) uses several loan servicers to handle the billing and other services on loans for the William D. Ford Federal Direct Loan Program. Learn about loan servicers and how to determine who your loan servicer is here: Loan Servicer. The monthly payment amount will depend on the size of the debt and the Repayment Plan. (See Repaying Your Loan for an explanation of Repayment Plans and examples of monthly repayment amounts.) The student will receive repayment information from their Direct Loan Servicer and be notified of the date repayment begins. However, even if this information isn't received, the student is still responsible for beginning repayment at the end of the grace period.

To find out more about repayment options contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you would like the exact payment amount of your Direct Loans you can find it out by contacting your loan service.

Loan payments can sometimes be postponed (i.e., a deferment or forbearance may be granted) for specific reasons. A deferment allows the borrower to temporarily postpone payments on a loan. (See Repaying Your Loan for information on available deferments for Direct Stafford Loans.)

Federal Loan Forgiveness Programs

There are a number of loan forgiveness programs available to federal student loan borrowers. Eligibility may be based on loan type, employment, or other factors.

Public Service Loan Forgiveness

The Public Service Loan Forgiveness program was created under the College Cost Reduction and Access Act of 2007 to provide forgiveness to borrowers employed full-time in public service jobs. The remaining balance on eligible Direct Loans is forgiven after 120 on-time monthly payments, under certain repayment plans, while employed in qualifying public service. For more information please review the Department of Education’s Federal Student Aid Public Service Loan Forgiveness overview.

Teacher Loan Forgiveness

This loan forgiveness program is provided to full-time teachers who have taught for five complete and consecutive academic years in a school serving students from low-income families. For more information, please review the Department of Education's Teacher Loan Forgiveness overview. (Does not include PLUS loans.)

For More Information

You can visit the Federal Student Aid website's chart for a listing of the forgiveness and cancellation options that are available. Information is also outlined regarding all eligibility requirements.