Federal Student Loan Programs

Direct Loans are low- interest loans for students and parents to help pay for the cost of a student's education. The lender is the U.S Department of Education rather than a bank or other financial institution.

Direct Subsidized Loan

Awarded to students who have a financial need
Interest of this loan is paid by the federal government while student is enrolled in school at least half-time (6 credits fall, spring and summer) during authorized periods of deferment , and through the grace period
This is a LOAN and must be REPAID
The payments start 6 months after student leaves, graduates from program, or drops below part-time (less than 6 hrs)
Fixed interest rate not to exceed 5.6%
1.5% Loan Origination Fee DOES apply
Amount offered is determined by grade level or hours earned at DCC

Direct Unsubsidized Loan

Financial need not required to receive this loan
Interest begins to accrue once the first disbursement is made
Payments on the principal may be deferred while students are enrolled at least half- time, during authorized periods of deferment and through the grace period. Students may choose to capitalize the interest, have it added to the principal, capitalization increases the total cost of the loan
Payments on total amount of loan start 6 months after student leaves, graduates from program, or drops below part-time (less than 6 hours)
Fixed interest rate not to exceed 6.8%
1.5% Loan Origination Fee DOES apply
Amount offered is determined by dependency status

Direct Parent PLUS

Must be repaid
Available only to parents of dependent undergraduate students
Fixed interest rate of 7.9%, interest begins to accrue when the funds are disbursed
4% Loan Origination fee DOES apply
Borrower has the option to start repayment 60 days after the loan is fully disbursed OR
6 months after student leaves school, graduates from program, or drops below part-time( less than 6 hours)
Subject to a credit check

Delgado does not release Direct Loan funds prior to the first day of classes.

If student is a first-time undergraduate borrower, the loans cannot be disbursed (or credited to their accounts) before the 30^th day of class. In addition, before first-time borrowers can receive a Direct Subsidized or Unsubsidized Loan disbursement, they must complete the Master Promissory Note and the Entrance counseling on www.studentloans.gov.

Each year, funds from Subsidized and Unsubsidized loans are disbursed in at least two payments.

The maximum amounts students may borrow per academic year are:

First- year Undergraduate (earned less than 30 credits): Base Direct Loan eligibility Subsidized- $3500 per school year, Unsubsidized Direct Loan eligibility- $2000 for dependent students, $6000 for independent students or dependent student whose parents are ineligible for PLUS Loan.

Second Year Undergraduates( earned at least 30 credit hours): Base Direct Loan eligibility (subsidized and unsubsidized) - $4500; Addition unsubsidized Direct Loan eligibility - $2000 for dependent students, $6000 for independent students or dependent students whose parent is ineligible for PLUS Loan.
For Parent PLUS Loans, the maximum is equal to the student's total cost of education less any other aid received.
You must be enrolled in 6 hours when the loan funds are received.

FINANCIAL AID