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Apply for a Stafford Loan

Direct Loans are low-interest loans for students to help pay for the cost of a student’s education. The lender is the U.S. Department of Education rather than a bank or other financial institution. With Direct Loans, you borrow directly from the federal government and have a single contact for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.

Loans are assigned to a loan servicer by the U.S. Department of Education after the loan is disbursed (paid out). The loan servicer is the company which handles the billing and other services including repayment plans and loan consolidation for the federal student loans.

Types of Direct Stafford Loans

  • Subsidized Loan: This type of loan is based on financial need. The interest rate for a subsidized loan at Highland Community College is fixed at 3.86% for the 2013-2014 academic year, 4.66% for the 2014-2015 academic year, 4.29% for the 2015-2016 academic year, 3.76% for the 2016-2017 academic year, 4.45% for the 2017-2018 academic year, 5.05% for the 2018-2019 academic year, 4.53% for the 2019-2020 academic year, 2.75% for the 2020-2021 academic year, 3.73% for the 2021-2022 academic year, 4.99% for the 2022-2023 academic year, 5.50% for the 2023-2024 academic year, 6.53% for the 2024-2025 academic year, and 6.39% for the 2025-2026 academic year for undergraduate students. The financial aid office will do a calculation to determine whether or not a student is eligible to receive a subsidized loan once the student has completed the loan application process.
  • Unsubsidized Loan: This loan is not based on financial need. Interest accrues from the date of disbursement until the final payment. The borrower can choose to pay the interest periodically while in school and during the grace period or can have the interest capitalized and added to the principal amount of the loan. The interest rate for an unsubsidized loan is fixed at 3.86% for the 2013-2014 academic year, 4.66% for the 2014-2015 academic year, 4.29% for the 2015-2016 academic year, 3.76% for the 2016-2017 academic year, 4.45% for the 2017-2018 academic year, 5.05% for the 2018-2019 academic year, 4.53% for the 2019-2020 academic year, 2.75% for the 2020-2021 academic year, 3.73% for the 2021-2022 academic year, 4.99% for the 2022-2023 academic year, 5.50% for the 2023-2024 academic year, 6.53% for the 2024-2025 academic year, and 6.39% for the 2025-2026 academic year for undergraduate students.

Repayment

  • Repayment begins 6 months after graduating, dropping below half-time, or withdrawing from your academic program.
  • The Standard Repayment Plan is 10 years.
  • There are other payment options for borrowers who may need more time to repay or who need to make lower payments at the beginning of the repayment period.
  • If you have multiple federal education loans, you can consolidate them into a single Direct Consolidation Loan.
  • There may be a .25% interest rate reduction for auto debit.

Fees

By law, the total origination fee is 1.072% with the first loan disbursement after December 1, 2013, for the 2013-2014 academic year. The total origination fee is 1.072% for loans with the first loan disbursement prior to October 1, 2014, and 1.073% for loans with the first loan disbursement after October 1, 2014, for the 2014-2015 academic year. The total origination fee is 1.073% for loans with the first loan disbursement prior to October 1, 2015, and 1.068% for loans with the first loan disbursement after October 1, 2015, for the 2015-2016 academic year. The total origination fee is 1.068% for loans with the first loan disbursement prior to October 1, 2016, and 1.069% for loans with the first loan disbursement after October 1, 2016, for the 2016-2017 academic year. The total origination fee is 1.069% for loans with the first loan disbursement prior to October 1, 2017, and 1.066% for loans with the first loan disbursement after October 1, 2017, for the 2017-2018 academic year. The total origination fee is 1.066% for loans with the first loan disbursement prior to October 1, 2018, and 1.062% for loans with the first loan disbursement after October 1, 2018, for the 2018-2019 academic year. The total origination fee is 1.062% for loans with the first loan disbursement prior to October 1, 2019, and 1.059% for loans with the first loan disbursement after October 1, 2019 for the 2019-2020 academic year. The total origination fee is 1.059% for loans with the first loan disbursement prior to October 1, 2020, and 1.057% for loans with the first loan disbursement after October 1, 2020 for the 2020-2021 through the 2024-2025 academic years.

Disbursement

Loan proceeds will be applied to all outstanding charges on the student account before a refund will be processed.

Application Process

Students must be enrolled at least half-time (6 credits for fall and spring semesters), in a financial aid eligible degree program and in ‘good standing’ according to the Standards of Academic Progress at Highland. Students on Financial Aid Termination are not eligible for a student loan.

  • Complete the Free Application for Federal Student Aid (FAFSA)
  • Check with Highland’s financial aid office 815.599.3519 to see what other forms and documents you may need to complete in order to finish your financial aid file.
  • Complete the Loan Entrance Counseling online. ALL first-time direct loan borrowers must complete this online counseling.
  • Complete the Master Promissory Note online. ALL first-time direct loan borrowers must complete this online MPN.
  • Print and complete the Stafford Request Form [PDF, 1.19 MB]. To assist with prudent loan borrowing, a budget worksheet is available [PDF, 386.46 KB]. First-time loan borrowers are asked to bring this form with them to their loan appointments for discussion purposes. For assistance in completing the top section on page 2 of the loan request form, please follow the Checklist for Completing the Prior Loan Information Section below in the dropdown section.
  • If you are a returning student who has taken out a loan while at Highland Community College within the last two years you may turn in your Stafford Request Form to the Financial Aid Office once all of the preceding steps have been completed.
  • If it is your first time borrowing at Highland Community College you MUST make an appointment with the Loan Advisor at 815.599.3519. We will answer questions and determine eligibility at that time.
Checklist for Completing the Prior Loan Information Section

Steps to Complete the Prior Loan Information Section of the 2025–2026 Loan Request Form

These steps explain how to complete the Prior Loan Information section of the 2025–2026 loan request form using https://studentaid.gov.

  1. Go to https://studentaid.gov. This site was previously accessed through nslds.ed.gov and studentloans.gov.
  2. Log in using your FSA ID, which includes your username or verified email address or phone number, and your password.
  3. Your loan servicer is located on the right side of the screen. Enter your loan servicer information above the chart on the back of the loan request form.
  4. Your total aid, including loans and grants, will appear in a box on the left side of the screen. Click “View Details” in the upper right corner of the “My Aid” box. Your loan summary will appear. Print this page and remain logged in.
  5. Using the printed page from step 4, enter the total subsidized loan amount on line “a” in the Loan Type section of the chart on the back page of the loan request form. Enter the total unsubsidized loan amount on line “b.” On lines “c” and “d,” enter the loan amounts you are requesting for the 2025–2026 academic year. Add the amounts from all four lines and enter the total on line “e.”
  6. While remaining logged into https://studentaid.gov, complete the following steps to determine your monthly repayment amount using the Loan Simulator option.
    • The Loan Simulator option appears in a box on the right side of the screen titled “Estimate Monthly Loan Payments and Compare Repayment Plans,” or in the box at the bottom right of the screen titled “Figure out which repayment plan is best for you.”
    • In the section labeled “I Want to Find the Best Repayment Strategy,” click “Guide Me.” In the top right corner of the screen, you may choose “Skip Guided Questions” unless you wish to answer them. For the question “What is your primary repayment goal,” select “Pay Off My Loans As Fast As Possible.”
    • On the right side of the screen, select the Loan Information section, then choose “View and Add Loans,” followed by “Add a Loan.” Using the process in step d, add the loan information for your new fall, spring, or full-year loan request.
    • Choose either Direct Subsidized Loan or Direct Unsubsidized Loan from the loan type drop-down menu. Enter the loan amount and the interest rate. If the interest rate is not shown, enter 6.39 percent. Click Save for each loan entered.
    • If you have a loan that does not yet appear on the Student Aid website, such as a Fall 2025 loan or a Summer 2025 loan that has not yet disbursed, click “Add a Loan” again and enter the loan information using the same process in step d.
    • After entering all additional loan information, click Continue. This will return you to the prior screen referenced in step b. Choose “Skip Guided Questions” at the top right of the screen.
    • The Loan Simulator Results page will appear. The loan balance should now reflect your prior loan total, your requested 2025–2026 loan amount, and any additional loan amounts entered in step e that were not included on the original Student Aid printout.
    • Print the Loan Simulator Results page and attach it to the loan request form. Enter the monthly payment amount from the Standard Repayment section onto the loan request form. Log off the website.
  7. Attach both printouts from https://studentaid.gov to your completed 2025–2026 loan request form before submitting.

More Information

Loan Servicer Contact Information

Student Loan Ombudsman Information

FSA Student Loan Ombudsman Group or 1-800-433-3243

Update Regarding Limitation on Direct Subsidized Loan Eligibility

As of July 1, 2013, the U.S. Department of Education introduced a maximum period of time limitation (measured in academic years) on Direct Subsidized loan eligibility for first-time borrowers. A first-time borrower is a borrower who did not have an outstanding balance of principal or interest on a Direct Loan or FFEL loan on July 1, 2013. In general, a first-time borrower may not receive Direct Subsidized Loans for more than 150% of the published length of the borrower’s educational program. Only first-time borrowers on or after July 1, 2013, are subject to this new provision.

Highland Community College does not discriminate on the basis of race, color, national origin, gender or disability.