William D. Ford Federal Direct Loan Program

The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest federal student loan program. Under this program, the U.S. Department of Education is the lender and loans are then assigned to be managed by an approved Student Loan Servicer.

Students must be enrolled in and attending at least 6 credit hours/semester to be eligible for Federal Direct Loans.

Cloud County Community College does not participate in alternative loan programs such as Sallie Mae or personal bank loans.

CCCC requires the student to complete a FAFSA before originating all loans. Entrance Counseling and a Master Promissory Note (MPN) are required under the federal default-reduction regulations before disbursing any loan funds.

The Department of Education recommends students complete the Annual Student Loan Acknowledgement each year the student requests/accepts a new federal student loan.  The goal is to help the student understand their current loan balance(s) and how they can affect their financial future.  

Exit Counseling is also required when a student borrower ceases at least half-time enrollment (6 credit hours) at CCCC. This includes graduates and transfer students. Exit Counseling should be completed at each institution that you attend. Exit Counseling can assist you in making arrangements with your assigned Loan Servicer.

Subsidized vs. Unsubsidized Loans

Direct Subsidized Loans: For undergraduate students who have financial need as determined by the FAFSA and school's Cost of Attendance; US Department of Education pays the interest while the borrower is in school and during grace and deferment periods.  The current Subsidized Loan Interest Rate is 4.99%. 
Direct Unsubsidized Loans: For undergraduate, graduate, and professional students; financial need is not required; borrower is responsible for all interest.  The current Unsubsidized Loan Interest Rate is 4.99%.

Subsidized & Unsubsidized Loan Limits:

All students can borrow up to their Max Annual Limit.  Subsidized Loan eligibility will be assessed prior to Unsubsidized Loan eligibility.  Borrowers not eligible for Subsidized Loans can receive up to their Max Annual Limit as an Unsubsidized Loan.

Credits Hours Earned

Dependent Student Subsidized + Unsubsidized

Independent Student   Subsidized + Unsubsidized

First Year (Freshman)


$3,500 + $2,000 =

Max Annual Limit $5,500

$3,500 + $6,000 =      

Max Annual Limit $9,500

Second Year (Sophomore)


$4,500 + $2,000 =

Max Annual Limit $6,500

$4,500 + $6,000 =

Max Annual Limit $10,500


Aggregate Loan Limits


Student Type

Total Aggregate Limit

Maximum Subsidized Limit Within the Aggregate

Dependent Student



Dependent Student whose parent is ineligible for PLUS



Independent Undergraduate Student



These amounts are based on full time enrollment status and all federal aid may not exceed the school’s budget or cost of attendance. The maximum annual loan limit that an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year.

The Federal Student Aid website has tools including a Loan Simulator that can assist you in calculating what loan repayment may look like for you.

Direct PLUS Loans

Parents of dependent undergraduate students can apply for funds to help with education-related expenses; Financial need is not required; Credit check will be performed; Borrower is responsible for all interest. Parent PLUS Loan application is required to be completed as well as a complete FAFSA. The current Parent PLUS Loan interest rate is 7.54%.

If a Dependent Parent's PLUS Loan application is denied, the Dependent Student may be eligible to receive additional Direct Loans.  Please contact the CCCC Financial Aid office for assistance.

Preparatory Coursework 

Preparatory Coursework loans allow a student to attend CCCC and receive a Direct Loan for a maximum of one consecutive 12-month period to take pre-arranged program coursework required to gain admission to a program at another institution.

You are not alone when it comes to Student Loans.  Cloud County Community College has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with FREE assistance on your Federal student loan obligations to ensure successful and comfortable loan repayment. Inceptia's friendly customer representatives may reach out to you during your grace period to answer any questions you may have about your loan obligations and/or repayment options.  They will also contact you if your loan(s) become delinquent or defaulted.

Inceptia is NOT a collection agency!

For additional resources including information on repayment options, please visit Inceptia's Student Loan Knowledge HQ website at HeroKnowl.org.

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