All Federal Direct Subsidized and Unsubsidized Loans for the 2022-2023 award year have a 4.99% interest rate fixed for the life of the loan with a 1.057% up-front loan fee deducted from each disbursement.

Interest rates on future year Federal Direct Loans will be indexed to the 10-year U.S. Treasure Note rate. The total of all financial aid, including loans, cannot exceed the standard budget of the institution. Students are limited to the federal maximums for each grade level. To receive a Federal Direct Loan, you are required to:

  • be enrolled at least half time.
  • meet institutional satisfactory academic progress standards.
  • have completed the financial aid process.

First time borrowers are required to have the first disbursement of their Federal Direct Loan delayed for 30 days. If attending one semester, the loan is disbursed in two equal disbursements; the first disbursement will be 30 days after the start of the semester (if a first time borrower) and the second disbursement at mid-semester.

There are two types of Federal Direct Loans: subsidized and unsubsidized.

Subsidized Loans

Subsidized loans are available to students who demonstrate financial need remaining after all scholarships, grants, work study, tuition waivers and applicable resources. A first year student may borrow up to $3500 depending upon eligibility. The maximum loan amount for a student with at least 30 completed credits towards a two-year program is $4500. If your need has been met with other types of assistance, you will not receive a subsidized loan. If you do qualify, the U.S. Department of Education will pay the interest on your loan while you are enrolled in college at least half time. Loan recipients may also apply for periods of deferment after leaving school if hardships or low income prevent repayment.

Unsubsidized Loans

The Federal Direct Loan Program also makes available to students, an unsubsidized loan that is non-need based and accrues interest while the student is attending college. It is recommended that students pay the interest while in school rather than let the interest accrue (and eventually capitalize) until they begin making payments. Letting interest accrue will increase the total amount that must be repaid.

Maximums for Federal Direct Loans

These are the maximum amounts a student can receive from Federal Direct Loans.

Year based on earned credits Dependent
Undergraduate Student
Undergraduate Student
Freshman (0-29) $5,500
($3,500 max sub)
($3,500 max sub)
Sophomore (30-59) $6,500
($4,500 max sub)
($4,500 max sub)
Aggregate Limit $31,000
($23,000 max sub)
($23,000 max sub)

Loan Repayment

Borrowing student loans to help fund your higher education expenses is an investment in your future that must be repaid. Failing to repay your student loans can have serious financial consequences; however, repaying your student loans with on-time monthly payments can help establish a positive credit history.

To access your Federal student loan information at any time during your college education, visit the U.S. Department of Education’s National Student Loan Data System (NSLDS). You may also access NSLDS just prior to entering repayment to see what loan servicer you have been assigned by the U.S. Department of Education as well as to view a listing of all your Federal student loans. If you have private or state student loans, you may also want to obtain a free credit report that will provide an entire student loan history at .

A Loan Repayment Estimator will help you to determine how much interest you will pay and the estimated amount of your monthly payments based upon your total loan indebtedness. Depending upon the type of loans you have borrowed, you may have choices to make concerning the best repayment plan for you. You may also elect to consolidate multiple Federal loans into one new consolidated loan to reduce your monthly payments. For the most comprehensive source of information concerning repayment plans, consolidation, deferment or forbearance, forgiveness, cancellation and discharge of your Federal student loans, see the “Repay Your Loans” section of the Federal Student Aid website.

Exit Loan Counseling

Students must complete exit loan counseling if they drop below half-time enrollment or graduate. The exit counseling can be completed online at The session will provide important information regarding repayment, deferment, loan cancellation and the consequences of student loan default. Please contact the Financial Aid Office if you have questions in regards to exit loan counseling.

To ensure the integrity and the best interests of our students NTC employees are subject to the Student Loan Code of Conduct.