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. Please review the process to apply for a Federal Direct Stafford Student Loan.
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 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 a 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
The 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:
|Unsubsidized Stafford||10-year Treasury note + 2.05% or 8.25% (whichever is lower)||2.75%||4.529%|
|Subsidized Stafford||10-year Treasury note + 2.05% or 8.25% (whichever is lower)||2.75%||4.529%|
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. New rates for the 2021-2022 year will be available in June 2021 and apply to loans disbursed on or after July 1, 2021
Federal Parent PLUS Loan
What is a cohort default rate?
Cohort default rates measure federal student loan borrowers who default within a specified period after entering repayment. The United States Department of Education releases cohort default rates once per year.
Fiscal Year 2017 Student Loan Cohort Default Rate:
- ECC: 9.9%
- National Average for Public, 2-3 year institutions is 15.2%