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Student Loans

To be eligible for federal loans, students must be enrolled for at least 6 credits and have completed an entrance interview and a Master Promissory Note (MPN). All new and returning students must complete the entrance interview and MPN online at www.studentloans.gov. Subsidized Direct Loans are based on need, while unsubsidized Direct Loans are not need-based. You may receive a combination of both loans, but the annual aggregate loan limits listed below (by grade level) cannot be exceeded.

Below is a chart that provides a breakdown of what amount of loans may be subsidized. Read further for a description of the kinds of loans that you may be eligible to receive.

Year Dependent Independent

Freshman

(<30 Cr)

$5,500 of which no more than
$3,500 may be subsidized
$9,500 of which no more than
$3,500 may be subsidized

Sophomore

(30+ Cr)

$6,500 of which no more than
$4,500 may be subsidized
$10,500 of which no more than
$4,500 may be subsidized

First-time borrowers at Community College of Philadelphia: Please note that your loans will not be disbursed until 30 days after the start of the semester.

Subsidized Direct Loans

A need-based loan on which the interest is paid by the government while you are in school at least half time (6 credits) during the grace period and during periods of deferment.

Unsubsidized Direct Loans

You are responsible for paying the interest on an unsubsidized loan while you are in school, during the grace period, during deferment periods and during repayment. Interest can either be paid while you are attending school, or it can be postponed until graduation or withdrawal from school. If you have postponed paying interest, it will be capitalized once you enter repayment (for example, after your grace period). Both the subsidized and unsubsidized Stafford loans have a variable interest rate that adjusts every July 1.

Capitalizing Interest

In this process the lender adds any unpaid interest on a loan to the principal balance, which increases the outstanding balance on which interest accrues (builds) daily.

Parent Loan for Undergraduate Students (PLUS)

A federal loan taken out by a parent, in your parent's name to cover the cost of education that is not covered by other aid. It has a variable interest rate that is adjusted every July. Parents PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).

FFELP Stafford Loan Program

The Federal Family Education Loan Program (FFELP), also known as the Stafford Loan Program, is no longer available.
For more information on loans, please refer to the Federal Student Aid publication on ‘Your Federal Student Loans’ available from the Office of Financial Aid or online at www.FederalStudentAid.ed.gov/pubs