Federal Direct Loan Program

Stafford Loans

There are two types of Federal Stafford Loans:

  • Subsidized: based on financial need; government pays interest while the student is enrolled for six or more credits.
  • Unsubsidized: not based on need; interest accrues while student attends school

The interest rate is 4.45% for undergraduate subsidized and unsubsidized loans first disbursed on or after July 1, 2017 and before July 1, 2018.

Students may qualify for either of the above types of Stafford Loans, or a combination of the above. To be eligible for the Stafford Loans, students must be enrolled for a minimum of six credits per semester.

To receive student loan funds at HCC, you must complete the following three steps:

  1. Complete the FAFSA at
    When the FAFSA asks for a school code, please enter 002074.
  2. Complete the Entrance Counseling and the Master Promissory Note (MPN) at
    You will need to sign into this site with your FSA ID. HCC will receive notification that you have completed these items in 24 to 48 hours.
  3. Sign the HCC Financial Aid Award Letter.
    Your Award Letter will be available on WebAdvisor once your loan has been processed.  On WebAdvisor click on Financial Aid Award Letter and print. Make any adjustments to your aid by correcting the award letter (decrease loan amounts, etc.), and submit your letter to the Student Financial Aid Office.  

Awarding for the Federal Stafford Loans will be as follows:

  • Freshman students will be awarded $5500 ($3500 subsidized/$2000 unsubsidized). 
  • Sophomore students, who have completed at least 30 credit hours, will be awarded $6500 ($4500 subsidized/$2000 unsubsidized). 

Loans are usually distributed evenly between the fall and spring semesters.  

  • Two disbursements of the Stafford Loan will occur each semester for students taking a one semester loan.
  • For students taking the loan for more than one semester of the financial aid year, one disbursement will occur each semester.
  • Students are notified by email regarding the disbursement schedule.

Tracking Your Financial Aid

Parent Loan for Undergraduate Students (PLUS)

  • Parent loans are designed for parents who want to borrow to help pay for their dependent children’s educational expenses. Parent borrowers generally must begin repaying the principal and interest within 60 days after the loan is completely disbursed. The interest rate is 7.00% for loans first disbursed on or after July 1, 2017 and before July 1, 2018.
  • Students and parents wishing to apply for education loans must meet all requirements for federal financial aid, complete the FAFSA, and complete a PLUS Borrower Information sheet, which is available on the Financial Aid Office's Forms Page.

Stafford Loan Consolidation

  • If you have borrowed Stafford Loans in the past and are nearing the end of your student career, you may wish to consolidate your federal student loans in order to reduce the number and amount of student loan payments that you must make per month.
  • For more information on this option, visit: Federal Student Aid: Consolidation Loans.