Federal Direct Stafford Loans

The Federal Direct Stafford loan program allows students to borrow low-cost educational loans from the federal government. To be eligible for a Direct Stafford loan, students must be enrolled at least 6 hours. Repayment of these loans begins 6 months after students leave school or fall below half time enrollment.

There are two types of Federal Direct Stafford loans: subsidized and unsubsidized. For detailed information about Federal Direct Stafford loans, visit the U.S. Department of Education.

  1. Subsidized Loans (Undergraduates Only)
    Federal Subsidized Direct Stafford loans are need based loans. They are subsidized in that the federal government pays the interest on the loan until repayment begins.
  2. Unsubsidized Loans
    Federal Unsubsidized Direct Stafford loans are not need based. Interest begins accruing from the date of first disbursement. You can choose to pay the interest quarterly while in school, or you can allow it to accumulate and be capitalized when repayment begins.

FTCC has teamed up with Solutions at ECMC to answer all of your student loan repayment questions. Solutions is a service of the non-profit organization ECMC and is dedicated to helping students manage educational loans. Their resources are available to you free of charge. To contact a Solutions Student Loan Repayment Advisor, you can email or web chat or call them at 1-877-331-3262.  (NOTE: ECMC’s website may not be ADA compliant).

Department of Education Student Loan Repayment Estimator
The Department of Education provides a student loan repayment estimator to help students plan for loan repayment: Loan Repayment Estimator


If students choose to use an outside lender, FTCC is prohibited from selecting or recommending any specific outside lenders to students. Students can search for a complete list of national lenders who participate in the Federal Stafford Loan Programs through the Department of Education website at www.ed.gov.


Accept My Loans
A Minute to Learn It - Federal Direct Student Loans for Undergrads A Minute to Learn It – Before You Borrow
Federal Direct Student Loans for Undergrads Before You Borrow


Interest Rates

There are a variety of interest rates for Federal Direct Stafford loans, depending on date of disbursement, subsidized/unsubsidized, undergraduate/graduate, fixed/variable rates. The rates can range from around 3%-8%.

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Origination Fees

There is a 1% origination fee for Federal Direct Stafford loans. So, if you borrow $1,000 in Federal Direct Stafford loans, you will receive a net disbursement of $990.

In order to receive a loan disbursement, the following must be complete:

  1. Student Entrance Counseling Module
  2. Master Promissory Note
  3. Enrolled in at Least 6 Credit Hours

Loans are dispersed in three installments. Receipt of loans will vary depending on the update policies of your personal bank. Please allow 2-3 business days for the refund to arrive at your bank.

Things to Remember

  1. Your financial aid amount is based on the number of hours you are reported attending. If you have a course that begins later in the semester, your financial aid amount will be reduced until attendance is reported in that course.
  2. Loans are disbursed in three installments each semester for those participating in the William D. Ford Subsidized and Unsubsidized loan program.
  3. Loan disbursement amounts are affected by the number of credit hours taken plus the start dates of the courses taken. Adding or withdrawing from courses may affect your disbursement dates and amount.

For more information, please visit the Financial Aid Service Center in Room 2 of the Tony Rand Student Center.