Loans

Loans are available for students and/or parents. This type of funding must be repaid according to the terms specified by the loan program.

Federal Direct Stafford Student Loan


ECC participates in the federal Direct Stafford Student Loan Program. Loans are originated, processed and disbursed directly by the federal government.

Subsidized Federal Direct Stafford Student Loan

  • Based on financial need.
  • Interest is subsidized (paid by the government while the student is enrolled or in an approved grace or deferment period).

Limits on First-Time Borrower's Eligibility for Subsidized Stafford Loans

There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period." You can usually find the published length of any program of study in your school's catalog.

For example, if you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years).

Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.

The periods of time that count against your maximum eligibility period are periods of enrollment (also known as "loan periods") for which you received Direct Subsidized Loans. For example, if you are a full-time student and you receive a Direct Subsidized Loan that covers the fall and spring semesters (a full academic year), this will count as one year against your maximum eligibility period.

If you receive a Direct Subsidized Loan for a period of enrollment that is shorter than a full academic year, the period that counts against your maximum usage period will generally be reduced accordingly. For example, if you are a full-time student and you receive a Direct Subsidized Loan that covers the fall semester but not the spring semester, this will count as one-half of a year against your maximum eligibility period.

The new policy affects only first–time borrowers as of July 1, 2013.

Unsubsidized Federal Direct Stafford Student Loan

  • Not based on financial need.
  • Interest accrues from the time of disbursement and is capitalized (added to the repayment amount) after the six-month grace period. Learn how to apply for Direct Stafford Student Loan.

Stafford Loan Limits

The amount you can borrow at ECC is based on your dependency status (dependent or independent), cost of attendance budget, financial need and grade level.

Interest Rate for Stafford Loans

Interest rate for loans disbursed during an award year will be set according to the 10-year Treasury note, plus a set percentage. The following table is an overview of the rates:

Undergraduate
LoanCalculation2018-20192017-2018
Subsidized Stafford 10-year Treasury note + 2.05% or 8.25% (whichever is lower) 5.05% 4.45%
Unsubsidized Stafford 10-year Treasury note + 2.05% or 8.25% (whichever is lower) 5.05% 4.45%

Rates are "fixed" for the life of the loan, but loans borrowed in subsequent award years will carry the prevailing interest rates at that time. The 10-year Treasury note component is determined by the high yield of the 10-year Treasury note auctioned at the final auction held prior to June 1. Rates apply retroactively to loans disbursed on or after July 1, 2018.

Federal Parent PLUS Loan


Parents of dependent students have the option of using a federal education loan. Please contact the Financial Aid and Scholarships Office for more information about the Federal Parent PLUS Loan.