Types of Loans
Find out more information on specific loans.
More information on the differences between:
- Subsidized
- Unsubsidized dependent
- Unsubsidized independent loans
| Loan Type |
Federal Direct Subsidized |
Federal Direct Unsubsidized Dependent |
Federal Direct Unsubsidized Independent |
|
Eligible Borrowers |
- Enrolled in at least 6 credits per term |
- Enrolled in at least 6 credits per term |
- Enrolled in at least 6 credits per term |
|
Annual Limits |
By Grade Level: * |
By Grade Level: * 1st $5,500 minus Direct Subsidized 2nd $6,500 minus Direct Unsubsidized |
By Grade Level: * 1st $9,500 minus Direct Subsidized 2nd $10,500 minus Direct Subsidized |
|
Aggregate Limits |
Undergraduate $23,000 |
Undergraduate $31,000 minus total Subsidized Stafford or Direct Loans previously borrowed |
Undergraduate $57,500 minus total Subsidized Stafford or Direct Loans previously borrowed |
|
Disbursement |
Loan funds will be applied to the student’s account. Excess funds will be disbursed through the Business Office via Direct Deposit or a mailed check. |
Loan funds will be applied to the student’s account. Excess funds will be disbursed through the Business Office via Direct Deposit or a mailed check. |
Loan funds will be applied to the student’s account. Excess funds will be disbursed through the Business Office via Direct Deposit or a mailed check. |
|
Repayment |
Repayment begins six months after the student drops below half-time (6 credits) or graduates. Interest is charged during repayment and forbearance periods. |
Repayment begins six months after the student drops below half-time (6 credits) or graduates. Interest is charged to the student is payable from the date of disbursement. If the interest payments are deferred the amount will be capitalized (added to the loan balance) when the in-school and grace periods end. |
Repayment begins six months after the student drops below half-time (6 credits) or graduates. Interest is charged to the student is payable from the date of disbursement. If the interest payments are deferred the amount will be capitalized (added to the loan balance) when the in-school and grace periods end. |
* Grade level is determined by the number of credits completed in your major at the start of the loan period.
Grade level 1 = 0-29 credits
Grade level 2 = 30+ credits
Download a PDF with information.
If you’ve received your Financial Aid Award Notification indicating you are eligible to receive loans as part of your financial aid package, you have loan eligibility and you need to borrow loan funds. At this point, you have to complete a few more steps to accept your loan.
- Complete Direct Loan Entrance Counseling
- Complete your Master Promissory Note
- Accept your loan
- Log in
- Click on: Financial Aid
- Click on: Loans
Federal Direct PLUS Loans are loans that a parent borrows to help their child pay for educational expenses. The borrower must have acceptable credit. To apply for a Federal Direct PLUS Loan, click on www.studentaid.gov. Parent borrower logs in using their FSA ID, not the student's information. Then complete the following two steps:
- Complete an online PLUS Loan application with the Department of Education. Click on "Apply for a PLUS Loan" and select type "Direct PLUS Loan Request for Parent Borrowers".
- Complete an online PLUS Master Promissory Note (MPN). Under the heading "Master Promissory Note", click on "Complete MPN" and select "PLUS MPN for Parents".
Dependent students whose parents are denied the Federal Direct PLUS Loan may be eligible to receive additional funds from the Federal Direct Unsubsidized Loan Program. A denial notice from the Department of Education will be provided to the school.
Private loans are an additional way to finance the costs of higher education when federal student loan options are exhausted. They are offered through private lenders whose loans are not associated with any federal student loan program so the eligibility criteria, loan limits, interest rates, and repayment terms will vary from one program and lender to the next. Typically, private loans are credit-based, which means that borrowers are required to pass a credit check and a credit-worthy cosigner may be required.
These loans generally should be considered as a borrowing option after you have considered federal loans. St. Cloud Technical and Community College does not endorse any one lender, nor does it or its employees receive any compensation or benefits from any lender. We do provide FASTChoice as a way for you to compare private loan options. Please note that should you decide to borrow under the private loan program, you may select any lender of your choosing and are not required to select one from this list of lenders.
Under the Truth-in Lending Act (TILA) rules, private education loans are subject to self-certification, three consumer disclosures at specific times in the application process, and a three day delay in disbursement. Due to the number of steps involved in the private loan application process, applicants should allow a minimum of 3-4 weeks for processing.
Loan Repayment Calculator
To get an idea of how much you'll pay each month on your Federal Direct, Direct PLUS Loan or private student loans -- and how different interest rates affect your future monthly payments -- use an online loan repayment calculator.
Locate/Repay Your Federal Student Loan
Depending on the type of federal loan you have, you have different options for repayment. To find out what's best for you, or to learn more about your college loan and your repayment options.
Upon graduation or termination of enrollment, you need to complete your Exit Counseling (William D. Ford Direct Loan).
Student Loan Advocate
If you are having issues with your student loan lender or servicer, the Student Loan Advocate with the Minnesota Department of Commerce is available to help.
To file a complaint, visit the Minnesota Dept. of Commerce web page. For general questions, contact Student Loan Advocate at jabra.kawas@state.mn.us or 651-539-1022.
College Loan Default Rate
Federal student loans are borrowed funds that must be repaid with interest. Failure to repay a loan can result in default. You can check SCTCC's numbers for the past three years on the Federal Student Aid site.