Federal Student Loans

Federal student loans are a form of financial aid that must be repaid, with interest. Glendale Community College offers federal student loans to eligible students upon request.

There are two types of federal Direct Loans: Subsidized and Unsubsidized. Your eligibility and loan amount are based on your financial aid eligibility, enrollment, grade level, remaining federal loan eligibility, cost of attendance, financial need, and federal loan limits.

Subsidized Loans: Available to eligible undergraduate students with financial need. The federal government generally pays the interest during eligible periods.

Unsubsidized Loans: Available to eligible undergraduate students regardless of financial need. Interest begins accruing when the loan is disbursed.

Remember: Federal student loans must be repaid, including applicable interest.

At GCC, your federal student loan amount is based on your Course Applicable credits for each semester. Course Applicable credits are classes that apply toward your declared academic plan or certificate program.

Starting with the 2026-27 award year, federal rules require the annual Direct Loan limit to be reduced for students who are enrolled less than full-time. This reduction is called a Schedule of Reduction (SOR).

The SOR adjusts the annual loan limit based on the percentage of full-time enrollment you are taking during the academic year. At GCC, 12 Course Applicable credits is considered full-time enrollment for purposes of determining your SOR.

How SOR is Calculated

The SOR percentage is calculated by comparing your eligible enrollment to 12 full-time credits:

SOR Percentage = Course Applicable Credits ÷ 12

The SOR percentage is then applied to the applicable annual loan limit:

Reduced Annual Loan Limit = Annual Loan Limit × SOR Percentage

For example, if you are a first-year student with a $3,500 annual subsidized loan limit and you enroll in 6 Course Applicable credits:

• 6 ÷ 12 = 50% SOR
• $3,500 × 50% = $1,750 reduced annual loan limit

If you are enrolled in 6 Course Applicable credits in both fall and spring, the $1,750 reduced annual loan limit would generally be divided between the two semesters:

• Fall: $875
• Spring: $875

How Enrollment Affects Your SOR

• You must be enrolled in at least 6 Course Applicable credits to receive federal student loan funds.
• Students enrolled in 12 or more Course Applicable credits are not subject to an SOR reduction.
• Students enrolled in 6-11 Course Applicable credits will have their annual loan limit reduced based on eligible enrollment.
• Your actual loan amount may be lower based on your remaining federal loan eligibility, cost of attendance, financial need, or other federal requirements.

Examples SOR Adjustments

Full-Time Enrollment (12 credits each semester) | If you are a first-year student enrolled in 12 credits in fall and 12 credits in spring:

• 12 ÷ 12 = 100% SOR
• $3,500 × 100% = $3,500 annual loan limit
• You may qualify for:
  • Fall: $1,750
  • Spring: $1,750

Part-Time Enrollment (6 credits each semester) | If you are a first-year student enrolled in 6 Course Applicable credits in fall and 6 in spring:

• 6 ÷ 12 = 50% SOR
• $3,500 × 50% = $1,750 reduced annual loan limit
• You may qualify for:
  • Fall: $875
  • Spring: $875

These examples are for illustration only. Your actual loan amount may be different based on your eligibility, remaining federal loan eligibility, enrollment, and other federal requirements.

To receive your federal student loan funds, you must:

• Be enrolled in at least 6 Course Applicable credits.
• Meet federal student aid eligibility requirements.
• Accept your loan in your Student Center after it has been awarded.
• Complete Entrance Counseling.
• Complete a Master Promissory Note (MPN).
• Complete any other required financial aid requirements.

Federal student loans are generally disbursed in two payments during the loan period, even if you attend only one semester.

If you would like to request a federal student loan, please complete the AY27 Award Revision Request.

To Access the AY27 Award Revision Request:

1. Log in to your Student Center
2. Click on My Student Forms
3. Click on Financial Aid Forms
4. Click on and Complete AY27 Award Revision Request, and select the "Request Initial Loan" from the drop-down menu.

GCC Financial Aid will review your request and determine your eligibility. The amount you are eligible to receive may be less than the amount you request.

Please submit your request at least 14 business days before the end of your last class for the semester to allow time for processing.

Federal student loan limits are based on your grade level, dependency status, and remaining federal loan eligibility.

These are federal maximums. Your actual GCC loan eligibility may be lower. View current federal student loan limits at Federal Student Aid.

Federal student loans are generally disbursed in multiple payments during the loan period. If you are receiving a loan for only one semester, your loan may be disbursed in two payments during that semester.

If you do not accept your loan within two weeks, your loan may be canceled.

Dropping or adding classes can affect your loan eligibility.

• If your enrollment changes before your loan is disbursed, GCC may recalculate your loan eligibility based on your updated enrollment.
• If your enrollment increases after your loan has been disbursed, your loan amount will not be increased for that semester based on the enrollment increase.
• Changes to your enrollment may also affect your other financial aid and Satisfactory Academic Progress (SAP).
• Please contact the GCC Financial Aid Office before changing your schedule if you have questions about how the change may affect your financial aid.

Need to Reduce Your Loan? If you decide you do not need the full amount of your loan, please submit the AY27 Award Revision Request and select Loan Change from the drop-down menu.

You cannot reduce your loan through the Student Center.

Before requesting a federal student loan, please make sure you understand your responsibilities as a borrower.

• Student loans must be repaid, even if you do not complete your program or find employment after graduation.
• You are responsible for repaying the amount you borrow, plus any applicable interest.
• You are responsible for completing Exit Counseling when you graduate, leave school, or drop below half-time enrollment.
• You will receive information about repayment options and are expected to make payments when your repayment period begins after your applicable grace period.
• Missing payments or failing to repay your loan can result in serious consequences, including default and collection actions.
• You are responsible for keeping your contact information updated with your loan servicer.
• Borrowing federal student loans reduces your remaining federal loan eligibility and may affect how much you can borrow in the future.
• You are responsible for monitoring your enrollment and understanding how changes to your courses may affect your financial aid and loan eligibility.
• You understand that your loan amount may change if your eligible enrollment changes before your loan is disbursed.
• You understand that an increase in enrollment after your loan has been disbursed will not increase your loan amount for that semester.

Student Loan Repayment is the process of repaying the federal student loans you borrowed. Repayment generally begins after you leave school or drop below half-time enrollment, following any applicable grace period.

Exit Counseling must be completed when you graduate, leave school, or drop below half-time enrollment. You must complete Exit Counseling even if you plan to transfer to another school.

We also work with Edamerica to provide information about budgeting, money management, and student loan repayment.

Maricopa's Financial Aid Outreach Team is also available to help. You can email them at [email protected] for more information and assistance.

For information about federal student loans, repayment, and managing your loans, visit Federal Student Aid.

A Cohort Default Rate (CDR) measures the percentage of a school's federal student loan borrowers who enter repayment during a particular federal fiscal year and default on their student loans within the applicable monitoring period.

GCC monitors its CRD to help identify opportunities to educate students about responsible borrowing and successful loan repayment.

The chart below shows GCC's CRD for the past three years.

FY 2020 Draft Cohort Default Rate: 0.0

FY 2021 Draft Cohort Default Rate: 0.0

FY 2022 Draft Cohort Default Rate: 0.0