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. 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).

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:

Undergraduate
LoanCalculation2020-20212019-2020
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


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.

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.

The fiscal Year 2017 Student Loan Cohort Default Rate:

  • ECC:  9.9%
  • National Average for Public, 2-3 year institutions is 15.2%