Central Texas College participates in the William D. Ford Federal Direct Loan (Direct Loan) Program.  This program provides students at CTC with the opportunity to borrow Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans to help pay for educational expenses.  Funds are provided directly by the U.S. Department of Education to eligible borrowers through participating schools and must be paid back with interest.

Through Central Texas College’s Financial Aid Office, we process three types of Direct Loans: Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Parent PLUS loans.

For more information regarding the types of direct loans, please review the Types of Direct Loans Offered.

Student loans for the Fall and Spring semesters are applied for by completing and submitting the FAFSA.  The loans for which a student is eligible will be included in their financial aid offer and additional loan requirements listed in the Financial Aid Checklist available in Eagle Self-Service.  Please note the specific types and amounts of the student loans included in your financial aid offer and only borrow what you need.  

Parent PLUS loans are available for eligible parents of dependent undergraduate students to help pay for the cost of the student's education. To apply, parents must complete the Direct PLUS Loan Application for Parents online at https://studentaid.gov/plus-app/.

In addition to the basic eligibility criteria required for all federal student aid programs, direct loan borrowers have specific eligibility requirements that must be met:

• Be enrolled at least half-time (6+ credit hours) in eligible courses simultaneously.
• Complete Entrance Counseling which provides information to ensure that you understand the responsibilities and obligations you are assuming as a student loan borrower. For more information please review the Direct Loan Entrance Counseling Handbook.
• Complete a Master Promissory Note (MPN) which is a legal document in which you promise to repay your student loans and any accrued interest and fees to your lender or loan holder.  It also contains a Borrower's Rights and Responsibilities Statement that explains the terms and conditions of the loans you receive.
• Complete Exit Counseling if status drops below half-time (6 credit hours) in eligible courses or graduates.

The Entrance Counseling and MPN can both be completed online at https://studentaid.gov/.

Fall: October 30^th
Spring: March 30^th
Summer: June 30^th

NOTE: Origination fees and interest rates are subject to change. The above interest rates are for loans disbursed on or after July 1, 2024, and before July 1, 2025. New origination fees go into effect each October 1st.

Students borrowing a Direct Subsidized or Unsubsidized student loan are subject to both annual and aggregate loan limits:

• Annual loan limit: The maximum amount that a student can borrow in an academic year (Fall, Spring and Summer semesters)
• Aggregate loan limit: The total loan amount that a student can borrow during their academic career

The combined total of students' financial aid offers cannot exceed their Cost of Attendance, even if they have not reached their annual or aggregate loan limits.

Dependent students without parental information who have received approval through the Dependent Unsubsidized Loan Request are eligible for an unsubsidized loan only. A dependent freshman will be eligible for up to $5,500 and a dependent sophomore will be eligible for up to $6,500.

Your student loans will disburse two times per semester, the first being 10 days (or the next business day) before the first day of classes for the semester and the second is mid-semester. However, if you have not previously received a federal student loan then your first disbursement will be delayed 30 days after the start date of your classes.

To review your disbursement schedule, please see your Disclosure Statement. On the date of each disbursement, you must be meeting eligibility requirements to receive that disbursement. Your disbursement will release to your student account first.

Per the Department of Education, loans must disburse in two separate payments. You will notice a portion of loan funds will say "ineligible" in your Eagle Self-Service, as you aren't eligible for those funds until it's time for them to release. Please check the disbursement dates.

Refunds are processed within 30 days of your disbursement. Please contact the Business Office for refund questions.

Student and parent loan borrowers have a right to request cancellation of all or part of a loan prior to disbursement or within 14 days of notification that loan funds have been credited to the student account. If loan funds have been refunded to the student or parent then that amount of the loan disbursement cannot be canceled and must instead be repaid to the Department of Education through the loan servicing company.

Please contact our office to request loan cancellation or for further information about the cancellation or repayment process.

Student loan borrowers will have six months after you withdraw, drop below half-time enrollment, or graduate before you must begin repaying your student loans.  Once repayment starts, it is important to make payments on time to avoid delinquency and default.  It is helpful to use your six month grace period to get financially settled and prepare for repayment by:

• Completing Exit Counseling which provides important and helpful information to prepare you to repay your student loans.  For more information please review the Direct Loan Exit Counseling Handbook.
• Reviewing your student loan borrowing history using "My Federal Student Aid" at StudentAid.gov/login

The Department of Education offers several repayment plans to choose from.  If you do not choose one then you will be placed on the standard repayment plan which schedules monthly payments to have your loans paid off in 10 years.  Your loan servicer will provide specific payment information and assist in processing payments as well as with other administrative tasks associated with maintaining your student loans.  You can find your loan servicer by signing in to the National Student Loan Data System (NSLDS).

Sample Loan Repayment Schedule

Additional information can be found in Federal Student Loans: Repaying Your Loans.

• The coronavirus relief package suspends federal student loan payments through June 30, 2023.
• Federal student loan interest rates also drop to 0% during the same period
• The measures apply only to federal student loans and have no effect on private loans

For more information regarding the suspension of federal student loans please click here.

Contact your Central Texas College's Financial Aid Loan Officer

Federal Direct Loans Program
254-526-1519
direct.loans@ctcd.edu