Tompkins Cortland Community College

Enrollment Services

Financial Aid

170 North St, P.O. Box 139, Dryden, NY 13053

Regular Hours

Monday, 8:30 a.m.–4 p.m.
Tuesday, 8:30 a.m.–6 p.m.
Wednesday, 8:30 a.m.–3 p.m
Thursday, 9 a.m.–4 p.m
Friday, 8:30 a.m.–4 p.m

Room 101
607.844.6580
607.844.6538 (fax)
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Tompkins Cortland

Federal Direct Student Loans

Federal direct student loans are low-interest government loans available to help students defray college costs. Student loans must be repaid. The interest rate is capped for direct student loan programs at 6.8%. The annual rate is determined by congress by July 1st of each year. The government charges you a fee to process the loan on your behalf. This fee is called an origination fee and is withheld from each payment sent to the college. Students must complete a Direct Loan Master Promissory Note and online entrance counseling to receive a federal student loan. Students must enroll in six credits to be eligible for a federal direct loan.

Repayment begins once the student is no longer enrolled in college for a minimum of six credit hours. Students who transfer from Tompkins Cortland to another college may have their loans deferred while they attend another Title IV eligible institution. There are two types of federal direct student loans; subsidized and unsubsidized. 

 

Subsidized

Subsidized direct loans are based on financial need. Interest on a subsidized loan does not accrue until the student drops below half-time enrollment status or stops attending the college. 

 

Unsubsidized

 Unsubsidized direct loans are non-need based. Interest accrues on the loan while the student is enrolled in college. 

The chart below summarizes the maximum student loan eligibility based on dependency status and number of earned credit hours. 

Annual Direct Loan Limits

Status

Earned Credits

Subsidized

Unsubsidized

Dependent

0-29

 $3,500

 $2,000

Dependent

30 or more

 $4,500

 $2,000

Independent

0-29

 $3,500

 $6,000

Independent

30 or more

 $4,500

 $6,000

Aggregate Loan Limits: Maximum Outstanding Loan Debt

Dependent undergraduate students

$31,000
(maximum $23,000 subsidized)

Independent undergraduate students

$57,500
(maximum $23,000 subsidized)

Learn more about federal direct student loans>