Student Loans

Student Loans

Federal Student Loans are loans that can help cover the cost of your education, but they must be repaid (with interest) after school. There are two types of Federal Student Loans - Subsidized and Unsubsidized - and eligibility is based on the FAFSA results.

Subsidized Stafford Loans are awarded based on your financial need. The Interest Rate is lower compared to the other loan and repayment is deferred while you are enrolled in an academic program.

Unsubsidized Stafford Loans are awarded based on your dependency status, cost of attendance, and grade level. While you can take out a lot more funds with the Unsub Loan, the Interest Rate is higher, interest will start accruing immediately, and interest payments start as soon as the money is disbursed. Because of this, the Subsidized Loan is always offered first; and if additional funds are necessary, then you must request to take out an Unsub Loan.

General Requirements and Information

To be eligible for Federal Student Loans:

  • Complete the Free Application for Federal Student Aid (FAFSA) for Glendale Community College (School Code 001076) for the appropriate aid year.
  • You must be enrolled in a minimum of six (6) fundable credit hours per semester at Glendale Community College (GCC).

After you are awarded your Federal Student Loans:

  • If you are borrowing at GCC for the first time, you must complete the online Entrance Counseling and Master Promissory Note (MPN). Failure to do so will prevent your Federal Student Loan from disbursement.
  • At GCC, we offer Federal Student Loans at Direct Loan Base Amounts. You are either Freshman or Sophomore-level, based on the number of credits you've completed above the 100 level, as shown below:
Level Requirements Base Amount per Academic Year
Freshman/First Year 30 or fewer credits earned at the 100 level or transfer hours $3500
Sophomore/Second Year more than 30 credits earned at the 100 level at GCC or transfer credits $4500

Before disbursement:

  • Federal Loans always disburse twice in an academic year (1 for Fall and 1 for Spring). But if you are receiving your loan for just one semester, then they will disburse twice within that semester instead (1 at the start and 1 at Midterm).
  • Unaccepted loans may be canceled after two weeks of inactivity. To reinstate your canceled loan, you must complete the Financial Aid Revision Request form.
  • Visit the Student Loan Borrower Information Page to apply for more loan funds, if your award is not enough. Take caution when you submit your request, as you must read each step to better understand the risks of borrowing more funds. Your request must be received no later than 15 business days before your latest class’s end date.

School Happened, Now What?

STOP! There are a few obligations you must be aware of:

  • When you finish school, you must also complete the online Exit Counseling. The purpose of Exit Counseling is to ensure you understand your student loan obligations and are prepared for payment after school. This also applies even if you plan to transfer to another school. You must complete this item before you “exit”.
  • Student Loan Repayment is the time when you must pay back the student loans that you borrowed. This begins when you stop going to school at least half-time, like dropping below 6 fundable credits. Visit the Federal Student Aid website to learn more information, such as grace periods and payment plans. 
  • We teamed up with Edamerica to help explain budgets, money management, and the Student Loan Repayment process so you understand your options. They can help you prepare for repayment and suggest payment strategies so you won’t fall behind!

Maricopa’s Financial Aid Outreach Team is also available to help! You can email them at for more information and assistance. 

​​​​​​​GCC’s Cohort Default Rate (CDR)

What is a CDR? When students borrow certain William D. Ford Federal Direct Loans (School Loans) and Federal Family Education Loans (FFELs), the school must monitor these students and confirm how many default (or fail to start repaying) their loans in a given year called a cohort fiscal year. This tracking is the school’s Cohort Default Rate (CDR).

The school finds their CDR by looking at two groups of student borrowers: A) all students who have to start repaying their loans during a cohort fiscal year; and B) all students who defaulted or met a specific condition of their loans during the cohort default period, which is 2 years out. This means B/A = CDR %. The chart below shows our CDR for the past 3 years.

Year 2017 2018 2019
Default Rate 14.9% 12.1% 3.4%

To break it down further, the year 2019 has a cohort fiscal year from October 1, 2018, to September 30, 2019. The CDR calculates how many students entered Repayment during 2019; and of those students, how many defaulted on their loans as of September 30th, 2021.