The Federal Direct Stafford Loan
Columbia State participates in the William D. Ford Federal Direct Stafford Loan Program. Direct loan funds come to the school directly from the U.S. Department of Education.
All students who have successfully completed a FAFSA and are determined to be eligible for Federal Title IV assistance by the Office of Financial Aid may receive a William D. Ford Direct Loan.
The Direct loan may come in two types: subsidized and unsubsidized. It is important to remember that both types of Direct Loans are components of the same loan. Both are the Federal Direct Loan. The difference is in the interest rates and repayment benefits.
Not all students are eligible to receive Federal Direct Subsidized Loan. Eligibility for subsidized loan at Columbia State is determined by the results of your FAFSA.
Federal Direct Subsidized Loan
- Need-based financial aid
- Eligibility determined from the results of the FAFSA
- The U.S. Department of Education pays the interest on subsidized loans while the student is in school and in the six month grace period prior to beginning repayment.
- The U.S. Department of Education limits how much a student may receive for the award year (Fall/Spring/Summer) in subsidized loan.
- A student classified as a freshman may not receive more than $3,500 in subsidized loan for the award year.
- A student classified as a sophomore may not receive more than $4,500 in subsidized loan for the award year.
- From July 1, 2015 to June 30, 2016, the interest rate on a subsidized loan will be fixed at 4.29%.
Federal Direct Unsubsidized Loan
- The U.S. Department of Education limits how much a student may receive for the award year (Fall/Spring/Summer) in unsubsidized or combination subsidized and unsubsidized loans for the award year (Fall/Spring/Summer).
- A student classified as a freshman may not receive more than $9,500 in unsubsidized or combination subsidized and unsubsidized loan for the award year.
- A student classified as a sophomore may not receive more than $10,500 in unsubsidized or combination subsidized and unsubsidized loan for the award year.
- The current interest rate on an unsubsidized loan is fixed at 4.29%.
Be aware that the amounts listed above are annual limits but NOT guaranteed amounts. Depending on your cost of attendance and other aid awarded, you may or may not be eligible to receive the maximum annual limit in subsidized and/or unsubsidized loans for any term, or terms, at Columbia State Community College.
NOTICE: THE OFFICE OF FINANCIAL AID AT COLUMBIA STATE COMMUNITY COLLEGE STRONGLY ADVISES YOU NOT TO OVER BORROW, OR TAKE OUT MORE LOAN MONEY THAN YOU MAY LATER BE ABLE TO REPAY. PLEASE BE PRUDENT WHEN REQUESTING LOAN FUNDS.