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Federal Direct Loan funds are borrowed directly from the Department of Education. These low interest loans are offered to students who are enrolled at least half-time. Eligibility for these funds is determined using your FAFSA results. JCCC will initially only offer students the amount of their base loan eligibility. 

Direct Loan funds can be categorized as either subsidized or unsubsidized.

As a subsidized loan, the U.S. Department of Education will pay the interest on the loan while you are enrolled in school at least half-time. The interest is also covered during deferment periods. Students must demonstrate financial need to be eligible for the subsidized loan.

For Direct Loans that are unsubsidized, you are responsible for the interest during the entire life of the loan. The student must be enrolled at least half-time. Financial need is not a requirement for unsubsidized loans.


If you're offered a Direct Loan, you'll need to complete Direct Loan entrance counseling online and sign a Master Promissory Note before you can receive your loan money. The loan will be subject to processing fees that are deducted from the loan proceeds prior to disbursement.

After you stop attending school as a half-time student, you have to start making payments.

If you have exhausted your funding through Direct Loans, consider applying for an alternative unsubsidized loan.

Direct Loan Information

The Department of Education site provides current interest rates for Direct Loans. Direct Loan amounts may be limited depending on a student’s individual budget amount stated by JCCC.

Base Direct Loan (Subsidized/Unsubsidized)

  • Grade Level 1 (under 30 hours completed) students are eligible for up to $3,500 per year
  • Grade Level 2 (30 or more hours completed) students are eligible for up to $4,500 per year 

Additional Federal Unsubsidized Loan

  • Independent students are eligible for up to $6,000 per year
  • Dependent Students are eligible for up to $2,000 per year (or up to $6,000 if a Federal Direct PLUS (Parent) Loan has been denied)

If you want to receive any additional loan amounts that you may qualify for, refer to Requests for Additional Federal Aid.