Direct Student Loan Changes
- First-time borrowers taking out federal Direct subsidized loans on or after July 1, 2013, are subject to the 150% Direct Subsidized Loan Limit, which limits the amount of time a student is eligible to borrow subsidized loans to 150% of their published program length.
- Students that reach the subsidy limit will not be eligible to take out any more subsidized
loans for the same program of study.
- This does not affect eligibility for unsubsidized loans.
- The interest on existing subsidized loans is no longer subsidized by the government when a student is in school, deferment, or in certain income-driven repayment plans. This means the student is responsible for all interest that accrues on the subsidized loans moving forward, as of the date of continued or new enrollment.
- Students aren't required to make payments on the interest that accrues while in school. If the student doesn't pay the interest that's accruing on their loans, it will capitalize or be added to the principal balance at the end of the grace period or deferment.
Federal Direct Unsubsidized Loan
A loan available to all students, regardless of family income, who are degree-seeking and enrolled at least half-time (6 credit hours). Eligibility for the subsidized loan must be determined before an unsubsidized loan can be considered. The interest rate changes every July 1st and will be charged from the time the loan is disbursed until it is paid in full. The interest can be paid while the student is still in school. Repayment of principal and interest begins 6 months after enrollment ceases to be at least half-time. The current interest rate on this loan is 6.53%.
Interest Rates for loans disbursed on or after 7/1/24 and before 7/1/25.
Federal regulations require that the College delay delivering the proceeds of educational loans to first-time borrowers until 30 days after the start of classes. In addition, all first-time borrowers must receive loan counseling before loan funds can be disbursed. Students must complete a Master Promissory Note and Entrance Loan counseling.
| Year | Dependent | Independent |
|---|---|---|
| First Year (0 to 29 credits) | $5,500 No more than $3,500 of this amount may be in subsidized loans. |
$9,500 No more than $3,500 of this amount may be in subsidized loans. |
| Second Year (30 or more credits) | $6,500 No more than $4,500 of this amount may be in subsidized loans. |
$10,500 No more than $4,500 of this amount may be in subsidized loans. |
| Lifetime Limits | $31,000 | $57,500 |
- Borrowing the maximum amount for Fall and Spring leaves zero eligibility for Summer at the same grade level.
- The amounts given above are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans, singly or in combination. However, you cannot borrow more than your cost of attendance minus other aid for which you are eligible. This means you may receive less than the annual maximum amounts.
- Loans are awarded per academic year and students are not eligible to receive more than half a year's limit in one semester. For example, a freshman student may not receive more than $1,750 in Subsidized Loans (half of $3,500) during one semester.
- Monitor your loan history on the National Student Loan Data System.
- Additional Student Loan Resources.
Federal Direct Parent Loan for Undergraduate Students (PLUS)
This program allows the parent with a good credit history to borrow to pay the cost of education for a dependent undergraduate student enrolled at least half-time. The yearly limit is equal to the student's cost of attendance minus any other financial assistance expected or received. The interest rate for PLUS loans disbursed between July 1, 2024 - June 30, 2025 is fixed at 9.08%. There is no grace period for this loan. Interest begins to accumulate at the time the first disbursement is made. Repayment of both principal and interest will begin 60 days after the full loan amount has been disbursed.
Parents can apply for the Parent PLUS loan by completing the online application at https://studentaid.gov/plus-app/parent/landing.
Fees for Federal Student Loans
Most federal student loans have loan fees. These fees are a percentage of the total loan amount. A loan fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2019.
| Loan Fees for Direct Subsidized Loans and Direct Unsubsidized Loans | |
| First Disbursement Date | Loan Fee |
| On or after 10/1/20 and before 10/1/25 | 1.057% |
| On or after 10/1/19 and before 10/1/20 | 1.059% |
| Loan Fees for Direct PLUS Loans | |
| On or after 10/1/20 and before 10/1/25 | 4.228% |
| On or after 10/1/19 and before 10/1/20 | 4.236% |
When you complete the Free Application for Federal Student Aid (FAFSA) or the Renewal FAFSA, you are applying for all of the aid programs for which you may be eligible, including Direct Loans.
FSA Student Loan Ombudsman Office
Via online assistance: studentaid.gov/repay-loans/disputes/prepare
Via telephone: 877-557-2575
Via fax: 606-396-4821
Via mail:
FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633
Private Loans
Private loans are options for students (and their parents) who do not show financial aid eligibility for other types of financial aid, or who need additional funds to meet educational expenses. Most private loans require a credit check.
Many of the private loan programs also consider what financial aid you are already receiving for that particular period. Other financial assistance is deducted from the cost of attendance before aid eligibility is determined for other programs.
Note: Our office does NOT endorse any particular lender. This information is only provided for your convenience and can change without notice. You should request current information directly from the lender or company offering the program.
Steps to Apply for Loan Assistance
Log in to the Federal Student Aid Student Loans site at studentloans.gov with your FSA ID Username, Email, or Mobile Phone and FSA ID Password. You will need to complete the following:
- National Student Loan Data System - You must review your aggregate loan amounts at NSLDS.
- Financial Awareness Counseling - You must complete the Financial Awareness Counseling. To complete, click here.
- Repayment Estimator Calculator - Use this tool to learn your anticipated total loan expenses. Click on the "Your Loans" button to add the amount of your loan request. To complete, click here.
- Master Promissory Note (MPN) - You must complete the Master Promissory Note (MPN) for Baton Rouge Community College.
- Direct Loan Counseling - First-time student borrowers must complete entrance counseling
before they can receive the first disbursement of a Direct Loan, and all student Direct
Loan borrowers must complete exit counseling shortly before they cease to be enrolled
on at least a half-time basis.
- You must complete Entrance Counseling for Baton Rouge Community College.
- You must complete Exit Counseling for Baton Rouge Community College (if you received direct student loans and are graduating, dropping below half-time enrollment, or leaving the school).
- Accept offered loan in LoLA self-service - You may accept the offered loan or reduce the loan amount by indicating the amount of loan funds you would like to borrow.
Baton Rouge Community College does not discriminate in its educational and employment policies and procedures with regard to race, color, religion, sex, sexual orientation, national origin, age, disability, genetic information, or veteran status.