CCC participates in the Federal Direct Loan Program. Parents of dependent students may also be eligible for the Federal Direct Parent Loans for Undergraduate Students (Direct PLUS). Funding for your student loan and/or parent loan will come directly from the U.S. Department of Education. Direct Loans may be used for any related educational expense. Students must be accepted in a program (matriculated) and registered for at least 6 credits of degree/program requirements in their primary program of study each semester. All federal student loans must be repaid. Not doing so can impact your credit and have negative consequences long term, which include the possibility of your tax refund being held and wages garnished.
Federal Direct Loans (Subsidized/Unsubsidized):
“Subsidized” loans up to $3,500 for freshmen and $4,500 for sophomores (26 or more credit hours earned) per year are available depending on financial need. The federal government will pay the interest on “subsidized” loans while the student is in school. Additional “unsubsidized” loan funds may be available up to $2,000 per year for dependent students and $4,000 per year for independent students, however, interest accrues to the student from the time of disbursement of the loan. Annual loan limits will be adjusted for students that are enrolled less than full time. Loans are subject to an origination fee which is deducted from the proceeds of the loan. The interest rate is fixed for each loan, and repayment begins six months after leaving school or dropping below half-time. Minimum repayment will vary based on your chosen repayment plan. Complete the FAFSA to apply. For more information about these programs and to complete the Direct Loan Master Promissory Note and Entrance Counseling for first-time borrowers go to studentaid.gov.
Loan Repayment Example - 10 years (120 months)
| Loan Amount | Monthly Payment at 5% interest | Total repaid |
|---|---|---|
| $5,000 | $53 | $6,364 |
| $10,000 | $106 | $12,728 |
| $15,000 | $159 | $19,092 |
| $20,000 | $212 | $25,456 |
Key Repayment Changes (Effective July 1, 2026)
- New Repayment Options: All federal student loans will be streamlined into a new Repayment Assistance Plan (RAP), which is income-driven.
- RAP Structure: Payments under RAP will range from 1% to 10% of the borrower’s adjusted gross income, with a minimum payment of $10 per month.
- Longer Forgiveness Timeline: Loans under the new RAP plan can be forgiven after 30 years of qualifying payments.
- Standard Repayment: A 10–25 year standard repayment plan remains, with terms based on debt size (e.g., <$25k = 10 years; >$100k = 25 years).
- Interest/Forbearance: Forbearance time will be considered taxable income starting July 1, 2026.
- Parent PLUS Loans: These will not be eligible for the new RAP plan, forcing borrowers into a tiered standard plan which also means they are no longer eliigible for Public Service Loan Forgiveness.
Direct Parent Loans for Undergraduate Students (Direct PLUS):
Parents of dependent undergraduate students can borrow up to $20,000/student annually with a lifetime cap of $65,000/student. Direct Parent loans are credit based and a credit check will be run at the time of application. Interest rate is fixed for each loan, and there is an origination fee. Repayment begins immediately after receipt of second disbursement of the loan. To apply, the parent must complete the Direct Plus Loan Application for Parents and the Direct Loan PLUS Master Promissory Note (MPN) online at studentaid.gov. Student must have completed a FAFSA prior to this application. Please note, the parent will need their StudentAid.gov login information to complete online application and MPN.