Loans | SCC


Somerset Community College participates in the William D. Ford Federal Direct Loan Program. Loans made through this program are referred to as Direct Loans, because eligible students and parents borrow directly from the U.S. Department of Education, rather than private lenders.

Students must be enrolled at least half-time (6 credit hours or more) to be eligible to borrow a student loan. The maximum amount of loans you can borrow is determined by 1) how many credit hours you have successfully completed, 2) whether you are a dependent or independent student, as determined by the FAFSA, and 3) your Cost of Attendance at SCC.

All loans borrowed will be submitted to the National Student Loan Data System (NSLDS). Students can access their loan information, as well as keep track of how much they have borrowed, on their account. The information on this website will also be accessible by loan guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

We offer the following types of Direct Loans. Depending on your financial need, you may be eligible to receive a combination of the following loans; however, the borrower must not exceed the annual loan limits set forth by the U.S. Department of Education.

A cohort default rate is the percentage of a school's borrowers who enter repayment on certain Federal Student Loans during a particular federal fiscal year, October 1 to September 30, and default prior to the end of the second following fiscal year. Please see the Cohort Default Rate Database for SCC’s current cohort default rate.

Subsidized Direct Stafford Loan

Subsidized loans are available to students who demonstrate financial need. The U.S. Department of Education pays the interest on a subsidized loan while the borrower is enrolled at least half-time and during the loan grace period. The amount of subsidized loan you borrow cannot exceed your financial need. Repayment begins 6 months after 1) you drop below half-time, 2) leave school, or 3) graduate, whichever happens first.

Unsubsidized Direct Stafford Loan

The borrower is responsible for paying the interest that accrues on an unsubsidized loan from the time the loan is disbursed, and until the loan is paid in full. The borrower can pay the interest while in school or can allow the interest to accrue and have the interest added to the principal amount of the loan. If the borrower chooses not to pay the interest while in school, this will increase the total amount of loan that the borrower will have to repay because it will be charged interest on a higher principal amount. Repayment begins 6 months after 1) you drop below half-time, 2) leave school, or 3) graduate, whichever happens first.

Direct PLUS Loan

Parents of dependent students can borrow from the PLUS loan program. Loan funds are borrowed from the U.S. Department of Education. The dependent student must complete a current FAFSA in order to determine eligibility. A PLUS loan applicant must not have an adverse credit history, as a credit check will be conducted. A PLUS loan is borrowed in the parent's name (unlike Direct Subsidized and Unsubsidized loans) and repayment begins 60 days after the final disbursement of the loan has been made. Find out more information about the PLUS loan program from the Federal Student Aid office.

To borrow a loan at Somerset Community College, please see Steps to Borrow a Student Loan.

Please note: Our school does not participate in the Federal Perkins Loan program.