Paying For School

Federal Loans

Federal loans

Learn more about federal loans.

What is a Direct Stafford Loan?

There are two types of Direct Stafford Loan:

  1. Subsidized
  2. Unsubsidized

The Office of Financial Aid Services will determine which type of loan you are eligible to receive. We determine this based on federal guidelines.

How do you determine my award amount?

We determine award amounts based on the number of credits you have earned.

  • Freshman —  0-29.9 earned credits — $3,500/year and the maximum level for Diploma Programs
  • Sophomore —  >29.9 earned credits —$4,500/year  

Is there a grace period?

All Direct Loans have a six-month grace period. You do not need to repay your loan during this grace period.

What is a Direct Subsidized Stafford Loan?

The government awards Direct Subsidized Stafford loans based on financial need. The federal government pays the interest while you are enrolled in school.

The interest rates are:

 Made on or after And made before
 July 1, 2011 July 1, 2012 3.4%
 July 1, 2012 July 1, 2013 3.4%
 July 1, 2013 July 1, 2014 3.9%

What is a Direct Unsubsidized Stafford Loan?

The government does not award Unsubsidized Stafford loans on financial need.

You will be charged interest. This interest accrues from the disbursement date until you pay it in full. Direct Unsubsidized Stafford Loans have a fixed interest rate of 3.9%.

  • Independent students may be eligible for up to an additional $6,000 in Direct Unsubsidized Stafford Loan funds.
  • Dependent students are eligible for an additional $2,000.
  • Single term students may receive up to half of their yearly loan eligibility.
  • Students who receive loans at a prior college in the same aid year could have your HACC loans reduced.

What is loan proration?

HACC must prorate the loan amounts. We must do this for:

  • Graduates who are attending only one term of an academic year.
  • Students enrolled in diploma programs that are less than 24 credits.

We do this according to federal regulation. This federal regulation may:

  • Affect the eligibility amount of your subsidized and/or Unsubsidized Federal Direct Stafford Loan.
  • Limit the amount of subsidized/Unsubsidized loan a student who is graduating can borrow.

What is a Direct PLUS Loan?

Parents of a dependent undergraduate student are eligible to apply for a PLUS Loan. For a Direct PLUS Loan:

  • You must file a FAFSA with your information and your parents'.
  • The government performs a credit check.

Parents of dependent students must: 

The PLUS Loan has a fixed interest rate of 7.9%.

If your parents are denied a Direct PLUS Loan, you may be eligible to borrow an additional $4,000 as a Direct Unsubsidized Stafford Loan.

What are Clock Hour Loans?

Practical Nursing, Massage Therapy and Police Academy are "clock hour" programs. We perform loan and Pell Grant calculations differently than credit programs.