Student Loan Information
There are two types of federal student loans. The type and amount that a student can receive is based on their financial need (determined by completing the FAFA), degree sought, credit hours completed, and previous borrowing history.
Types
- Subsidized Loans are based on financial need (determined by the FAFSA). Interest does not accrue on the loan while the student is enrolled half-time. This type of loan will be offered to students automatically if eligible.
- Unsubsidized Loans are not based on financial need, though a FAFSA is still required. Interest grows on the loan while the student is enrolled, so they are more expensive to borrow over time. Except for higher-cost programs such as aviation and electrical distribution systems, students must request an unsubsidized loan through their MyOTC portal.
Grade Level
- Certificate programs are always considered ‘grade level 1. The maximum loan amount per academic year (fall/spring/summer):
- Dependent student – $5,500 with no more than $3,500 as Subsidized Loan
- Independent student – $9,500 with no more than $3,500 as Subsidized Loan
- Associate degree programs for students with fewer than 30 credit hours completed are considered grade level 1. The maximum loan amount per academic year (fall/spring/summer):
- Dependent student – $5,500 with no more than $3,500 as Subsidized Loan
- Independent student – $9,500 with no more than $3,500 as Subsidized Loan
- Associate degree programs for students with 30+ credit hours completed are considered grade level 2. The maximum loan amount per academic year (fall/spring/summer):
- Dependent student – $6,500 with no more than $4.500 as Subsidized Loan
- Independent student – $10,500 with no more than $4.500 as Subsidized Loan
Note: Loan amounts awarded must also be within a student’s overall Cost of Attendance.
Interest Rate
6.53%. This is the interest rate for loans borrowed for the 2024-2025 academic year, and is a fixed rate (will not go up or down as long as money is owed on the loan).
See the helpful links below:
Difference between a Subsidized Loan and an Unsubsidized Loan
First Time Students Receiving Student Loans
How Your Student Loan Will Disburse
Direct Student Loan Interest Rates