Loans
Federal Direct Stafford Loans — Stafford loans are a Title IV financial aid program where federal aid eligibility requirements apply. Loan applicants must be actively enrolled in at least six financial aid eligible credits. Students need to complete the loan application on the HCC website (under Pay for College/Apply for a Loan) to apply for a loan. Grade level progression for student loan eligibility is defined as follows:
Grade 1 = 1-29 completed credits
Grade 2 = 30 or more completed credits
The base loan limit for a Grade 1 borrower in an associate degree program is $3500. The base loan limit for a Grade 2 borrower in an associated degree program is $4500. Dependent students (as defined by the FAFSA) have additional Unsubsidized Direct Stafford Loan eligibility of $2000. Independent students (as defined by the FAFSA) have additional Unsubsidized Direct Stafford Loan eligibility of $6000. Annual and aggregate limits apply. Also, Subsidized loan eligibility limits are based on 150% of program length. Program length in the loan program is defined as the number of years required to complete a program of study as established by the institution. For example, a 150% of an Associates 2 year degree would equate to a program length of 3 years. The interest rate for all new Stafford Loans is a fixed rate of 6.8% (subject to change by Congress). Students enrolled in certain certificate programs may not be eligible for the full loan amount due to the short duration of the program. Please inquire in Financial Aid Services for more information. First time loan borrowers at HCC are required to complete federal loan entrance counseling.
Transfer students to HCC, if a loan borrower, must cancel any remaining loan disbursements at the previously attended college. Please see the HCC website for more information to apply for a loan.
Federal Direct PLUS Loans — Federal Direct PLUS Loans are a Title IV program which enables parents who do not have adverse credit histories to borrow funds to pay the educational expenses of their child if the student is classified as a “dependent” and enrolled at least half-time (6 credits or more). The student and the parent must meet the general eligibility requirements for federal student aid and the student must maintain satisfactory academic progress. The parent must be a citizen or eligible non-citizen and may not be in default or owe a refund to any federal student aid program. The PLUS loan is not a need-based loan. A parent is eligible to borrow up to the cost of attendance less any other financial aid the student is receiving. Currently, the interest rate is fixed at 7.9% (subject to change by Congress).
Dependent students whose parents’ have been denied a PLUS loan may be eligible for additional unsubsidized loan funds.
All originated Federal Direct Stafford Loans and Federal Direct PLUS Loans will be submitted to the National Student Loan Database System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.