Student Loan Programs
William D. Ford Federal Direct Loan Program
TSC provides loan funds directly from the Federal Government under the William D. Ford Federal Direct Loan Program.
To receive a Direct Loan, all students must complete the following requirements available online:
Direct Student Loan Programs (Subsidized and Unsubsidized)
Direct Student Loans are low-interest student loans certified by TSC and guaranteed by the federal government.
For subsidized loans, the federal government pays the interest while the student is enrolled at least half- time. Unsubsidized loans, on the other hand, require students to make interest payments or to agree to capitalize the interest, which is deferred but becomes part of the principle. Dependent students may borrow subsidized loans up to $3,500 during their grade level one year and up to $4,500 in grade level two in addition to $2,000 of unsubsidized loans each year. Independent students can borrow up to the same level of subsidized amounts per grade level, and an additional $6,000 in unsubsidized loans per year. Because subsidized loans are based on financial need, the Financial Aid Office establishes the amount students are eligible to borrow. Students must complete a counseling session concerning the loan, repayment of which begins six months after the student leaves school or drops below half-time status.
There is a limit to the maximum time period (measured in academic years) for students who are borrowing subsidized loan for the first time starting July 2013 and before July1, 2021. In general, students may not receive Direct Subsidized Loans for more than 150% of the published length of the program of study. This is called the “maximum eligibility period.”
For example, if a student enrolls in a two-year associate degree program, the maximum period for which the student can receive Direct Subsidized Loans is three years (150% of 2 years = 3 years). If a student enrolls in a one-year certificate degree program, the maximum period for which the student can receive Direct Subsidized Loans is 1.5 years (150% of 1 year = 1.5 years).
The maximum eligibility period is based on the published length of the student’s current program of study. This means that the maximum eligibility period can change if a student changes programs. In addition, if a student received Direct Subsidized Loans for one program and then changes to another program, the Direct Subsidized Loans received for the earlier program will generally count against the new maximum eligibility period.
After July 1, 2021, the maximum time period no longer applies to new borrowers.