Federal Stafford Loan Program

COCC participates in the Federal Family Education Loan Program (FFELP). To be eligible for a FFELP, students must be enrolled in at least six credit hours and may not be in default on a prior loan or owe a grant repayment. All loans must be repaid. Students must sign a promissory note (a legal agreement to repay) with a lender before any loan money can be received. The promissory note contains detailed information about the terms, responsibilities and repayment of the loan. Because students must repay educational loans, this kind of assistance is generally referred to as self-help aid. Loan entrance and exit counseling are required.

Subsidized Federal Stafford Loan Program (sub)
The subsidized loan program provides fixed interest, long-term federal loans through lending institutions in cooperation with a guarantee agency and Financial Aid. Maximum limits are based on financial need, but cannot exceed $3,500 for freshmen and students in certificate programs and $4,500 for sophomores for an academic year. Loans are interest-free until repayment begins, which begins six months after a student ceases to be enrolled at least half time. The interest rate for 2008-2009 loans are fixed at 6.0 percent. Monthly payment amount and length of repayment depend on the cumulative amount of loans, with a 10-year repayment time limit.

Unsubsidized Federal Stafford Loan Program (unsub)
The unsubsidized loan program provides fixed interest, long-term federal loans through lending institutions in cooperation with a guarantee agency and Financial Aid. The unsubsidized loan is available to students who do not qualify for need-based subsidized loans or who are not eligible for the full subsidized loan amount, but cannot exceed $5,500 for freshmen and students in certificate programs and $6,500 for sophomores for an academic year. Independent students, as defined by the Department of Education, are eligible to borrow up to an additional $6,000 unsubsidized loan. Student borrowers will be responsible for payment of the interest that accrues on these loans while they are in school and during periods of deferment. The interest rate for 2008-2009 loans are fixed at 6.8 percent. Loan repayment begins six months after a student ceases to be enrolled at least half time. Monthly payment amount and length of repayment depend on the cumulative amount of loans, with a 10-year repayment time limit.

Maximum Annual Limits for Loans
Year	Dependent	Indepenent
Freshman 1-44 credits at COCC	$5,500 No more than $3,500 of this may be in sub loans.	$9,500 No more than $3,500 of this may be in sub loans.
Sophomore 45+ credits at COCC	$6,500 No more than $4,500 of this may be in sub loans.	$10,500 No more than $4,500 of this may be in sub loans.

Maximum Undergraduate Aggregate Limits for Sub and Unsub Loans
Dependent	Independent
$23,000	$57,500