Student Loans
Highline participates in the Federal Direct Student Loan Program, which is available to students who complete the Financial Aid Application Process using the FAFSA. Students who are required to use the WASFA application do not qualify for student loans.
Federal Direct Subsidized Loans
The Subsidized Loan is a need-based loan. The US government will pay the interest accruing on the loan while a student is enrolled at least half-time. This is a guaranteed loan, meaning that you do not need to have a good credit score or collateral to obtain this loan.
Federal Direct Unsubsidized Loans
The Unsubsidized Loan is a non-need-based loan. Students are expected to make interest payments on this loan while they are in school, which usually doesn’t exceed $20 per month. This is a guaranteed loan, meaning that you do not need to have a good credit score or collateral to obtain this loan.
Both the Subsidized and Unsubsidized Loan Has Limits
Loan limits are based on dependency status as determined on your FAFSA. Dependent students were required to provide parental information on the FAFSA, while Independent students did not need to provide parental information on the FAFSA.
| Limits | Dependent Student | Independent Student |
|---|---|---|
| Lifetime Limit | $31,000 total, but only $23,000 may be in subsidized loans | $57,500 total, but only $23,000 may be in subsidized loans |
| Year 1 (6-45 credits) | $5,500 only $3,500 in subsidized | $9,500 only $3,500 in subsidized |
| Year 2 (46-90 credits) | $6,500 only $4,500 in subsidized | $10,500 only $4,500 in subsidized |
| Year 3+ (91+ credits) | $7,500 only $5,500 in subsidized | $12,500 only $5,500 in subsidized |
Interest Rates, Grace Period, and Repayment
The current interest rate on both Subsidized and Unsubsidized Loans is: 5.50%
- Students who received the Unsubsidized Loan are responsible for making interest payments each month but do not have to begin repaying the principal until after they graduate or drop below half-time.
- Grace Period is a 6-month period where the student doesn’t have to begin paying on the principal of the loan. The Grace Period allows the borrower to connect with their Loan Servicer, select a repayment option, and prepare for repayment to begin.
- Repayment begins after the Grace Period expires. Borrowers will begin paying back both the interest and principal on the loan. Most loan repayment terms are for 10 years or less, though there are repayment options that can extend longer.
Applying for a Student Loan
After you receive your Financial Aid Offer Letter and attend your mandatory Advisor meeting, you can apply for a student loan by completing the Loan Application online. Loan Request Form
During the online application, you will be taken to the US Department of Education’s website to complete Entrance Counseling and the Master Promissory Note.
Entrance Counseling is mandatory borrower training required by the US Department of Education and will teach you about your rights and responsibilities as a student loan borrower.
The Master Promissory Note is your official and legally binding promise to repay your loans.
Once you submit the Loan Application, the Financial Aid Office will award you student loans based on your requested amount and your eligibility. Unlike other financial aid, you do not need to accept your loans on the ctcLink Student Portal, they will be automatically accepted for you.
Loans are a long-term investment in your education and it is normal to have questions about student loans. After you complete the Entrance Counseling session, if you would like to speak with an Advisor to get your questions about loans answered, you can make an appointment through Watermark/Avis. (How to schedule an appointment.)
Getting Your Loan Funds
Your Loans will disburse like all other types of financial aid. View How Aid is Awarded for more information on how your aid will be disbursed.