Subsidized and Unsubsidized Loans
There are two types of loans available for eligible students through the William D. Ford Federal Direct Loan Program: subsidized and unsubsidized. To be eligible to receive these loans, you must be enrolled in six credit hours that count toward your degree at Seminole State College.
First-Time Borrowers
For first-time borrowers (student borrowers who currently have no outstanding loan balances) who have attemped credits totaling 150 percent or more of their program length, any new loans disbursed on or after July 1, 2013 will be unsubsidized loans only. Once a first-time borrower reaches the 150 percent limitation, eligibility for the interest subsidy ends for all Direct Loans that are disbursed on or after July 1, 2013. Learn more.
Federal Direct Subsidized Loans
A Federal Direct Subsidized Loan is need-based, and is available to help meet financial need after other resources are subtracted or to the annual maximum loan limit, whichever is lower. Interest does not accrue while the student is enrolled at least half-time (six credit hours at Seminole State College) in an eligible program plan or during periods of approved deferments. Repayment begins six months after the student graduates, withdraws or drops below half-time enrollment.** The Federal Direct Subsidized Loan is the U.S. Department of Education's major form of self-help aid. Review the table below for annual and aggregate loan limits.
The interest rate for PLUS loans first disbursed on or after July 1, 2019, is a fixed 7.08 percent.
First Disbursement of a Subsidized/Unsubsidized Loan for Undergraduate Students
| Made on or After... | And Made Before... | Interest Rate on the Unpaid Balance |
|---|---|---|
| July 1, 2019 | July 1, 2020 | 4.53 percent |
| July 1, 2018 | July 1, 2019 | 5.05 percent |
| July 1, 2017 | July 1, 2018 | 4.45 percent |
| July 1, 2016 | July 1, 2017 | 3.76 percent |
| July 1, 2015 | July 1, 2016 | 4.29 percent |
For more information on interest rates, refer to the Federal Student Aid website.
Federal Direct Unsubsidized Loans
A Federal Direct Unsubsidized Loan is not based on your financial need. If your estimated Cost of Attendance (COA) is greater than your financial aid and you have not reached your annual maximum loan limit through the Federal Direct Subsidized Loan. You are charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, the interest will be added to the principal amount of the loan and increase the amount to be repaid. Repayment terms are similar to those of the Federal Direct Subsidized Loan. However, students are responsible for repaying the interest accrued while enrolled in college and during the grace period.**
Fees
By law, the total origination fee for loans made on or after October 1, 2018 is 1.062 percent for Direct Subsidized and Unsubsidized Loans. For more information on interest rates go to the Direct Loan Servicing Center.
How much can I borrow?
The amounts in the chart below are the maximum amounts that you may borrow for an academic year. You might receive less than the maximum if you receive other financial aid that's used to cover a portion of your cost of attendance. Borrow responsibly as the aggregate limits are for your entire undergraduate career up to a bachelor's degree.
You must have earned 30 college-level credit hours, which count toward your current degree program, to be eligible for sophomore-level loans. If you are earning an associate degree, you can not be considered anything higher than a sophomore at Seminole State College. If you have been accepted into a bachelor's degree program at Seminole State, you will be eligible for junior-limit loans once you have completed 60 college-level credit hours toward your bachelor's degree.
Maximum Annual and Lifetime Aggregate Limits Chart
Subsidized and Unsubsidized Direct Loans
College Year | Dependent Students | Independent and Dependent Students whose Parents are denied PLUS Loans |
|---|---|---|
Freshman Annual Limits | $5,500 - No more than $3,500 can be in Subsidized Loans | $9,500 - No more than $3,500 can be in Subsidized Loans |
Sophomore Annual Limits | $6,500 - No more than $4,500 can be in Subsidized Loans | $10,500 - No more than $4,500 can be in Subsidized Loans |
Junior/Senior Annual Limits | $7,500 - No more than $5,500 can be in Subsidized Loans | $12,500 - No more than $5,500 can be in Subsidized Loans |
Maximum Lifetime Limits | $31,000 - No more than $23,000 can be in Subsidized Loans | $57,500 - No more than $23,000 can be in Subsidized Loans |
Loan Repayment
You begin repaying Federal Direct Stafford Loans six months after graduation, leaving school or dropping below half-time enrollment (less than six credit hours). You must complete the federally required Exit Counseling before you graduate from Seminole State if you drop below half-time attendance or withdraw from classes completely. Your academic records will be on hold until this is completed.
The Department of Education offers loan repayment plans and calculators. When your loan is due, the federal loan servicer will mail you a payment schedule with your monthly payment of principal and interest, and the unpaid balance for each month it takes to repay your total debt. If they do not contact you, you are responsible for contacting them at:
U.S. Department of Education
Borrower Services Department
Direct Loan Servicing Center
P.O. Box 4609
Utica, NY 13504-4609
Phone: 800-848-0979 or 800-848-0983 (TYY)
Email: fsa.customer.support@ed.gov
Online: Federal Student Loan Servicing
** Borrowing money for college is a serious financial obligation. In addition to repaying the principle, loan recipients are responsible for paying any interest accrued during the loan term. Students and their parents should carefully consider the amount of debt they will incur before deciding to borrow money.