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Federal direct loans are debts that must be repaid: they cannot be discharged through bankruptcy and the federal government can garnish your future income tax refunds or wages if you default. You must pay back the loan even if you do not complete your program or are unhappy with your education experience. The federal government offers different repayment options that may help if you are going through a difficult financial period

Direct Subsidized Loans

Eligibility for Direct Subsidized Loans is based on financial need. No interest is charged while you are enrolled in at least 6 credits, during your grace period, or during deferment periods.

Direct Unsubsidized Loans

Eligibility for Direct Unsubsidized Loans is NOT based on financial need. You do not have to make payments on unsubsidized loans while you are enrolled in at least 6 credits, during your grace period, or during deferment periods, but 6.8 percent interest is charged on this loan even during nonpayment periods. You will save money if you pay the interest as it accrues on your loan.

*Half-time as determined by the school

Every direct student loan, whether subsidized or unsubsidized, has a one-time, six-month grace period that begins when you drop below 6 credits of enrollment at an eligible school. You do not have to make payments during the grace period.

PLUS Loans

The PLUS Loan is for parents of dependent students. Contact the Anne Arundel Community College loan specialist for information.

To apply for any federal student loans, including for unsubsidized or PLUS Loans, submit a FAFSA.

If your award letter includes a direct loan, you must confirm that you want the loan by submitting a completed Loan Request Form. Only students who have been awarded the direct loan may submit a Loan Request Form, and the form is available only through the college.

Federal student loan ombudsman

If you are having problems applying for a loan or receiving a current loan disbursement, contact the AACC loan specialist. For federal loan issues you cannot resolve through the loan servicer or through the AACC loan specialist, you may contact the Federal Student Aid Ombudsman.


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