Loans are a source of financial aid that must be repaid.  Students are not required to borrow their Federal Direct Loan eligibility. We strongly encourage students to assess their educational expenses for the year after they have received their Financial Aid Award Offer letters and only borrow what they need.

QCC students who choose to do so may borrow student loans to assist them with educationally-related expenses, including tuition and fees, educational technology, housing and food, transportation and other miscellaneous expenses. Many of these costs are not paid to the College directly. 

The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025 made significant changes to federal student loan eligibility that went into effect for the 2026-2027 academic year. The most significant requirements that affect QCC students are:

Loan Proration

  • Your federal student loan eligibility may be reduced according to your enrollment status. This reduction is called loan proration.
  • Students who are enrolled full-time are eligible to be considered for the maximum annual loan limits.  For most programs, full-time enrollment is defined as 12 credits per semester, or 24 credits per academic year. If your program requires summer enrollment, the full-time definition is 36 credits per academic year.
  • Students who are not enrolled full-time during the academic year will have their maximum annual loan eligibility reduced based on their enrollment.
  • The amount of any loan disbursement will be based on your academic year enrollment (or expected enrollment) at the time each disbursement is processed. If your enrollment changes, your loan amounts may be adjusted.
  • If you withdraw from or fail to complete a class after your loans have been disbursed, the funds may be returned to the government or may result in a reduced future disbursement. You may have a balance due to the college as a result. Please speak to the Financial Aid Office before making enrollment decisions, particularly withdrawing, to see how your financial aid may be impacted.
  • Students cannot borrow the full annual loan amount in any one semester.

  • The calculation to prorate loan eligibility is:

    illustration: (Number of credit hours per year divided by number of credit hours considered full time year for that year for that program) times 100.

    Example:  A first-year dependent student is enrolled in 6 credits for Fall and 6 credits for Spring in a program that does not require summer enrollment.  If this student were full-time, their maximum annual federal student loan would be $3,500 in Subsidized and $2,000 in Unsubsidized funding.

             The Loan Proration Calculation is:  

             12 credits divided by 24 = 50%

              Subsidized:       $3,500 x 50% = $1,750

              Unsubsidized:   $2,000 x 50% = $1,000

    This student's maximum federal student loan eligibility for 2026-2027 is $1,750 Subsidized and $1,000 Unsubsidized, to be split between the Fall and Spring semesters.

    This same student's annual eligibility prior to 2026-2027 would have been for the full $3,500 Subsidized and $2,000 Unsubsidized federal student loans.

Lifetime Loan Limits

  • The OBBBA added a Lifetime Loan Limit of $257,500- the maximum amount of federal loans a student may borrow over the course of their educational lifetime.  Repayment of loans borrowed does not affect this limit.  
  • Students who plan to continue their education after QCC to pursue a bachelor's degree or even graduate degree should be mindful that loans they borrow at QCC will affect the eligibility they will have available for those later pursuits.
  • A limited exception applies.

QCC Federal Direct Student Loan Information

The final regulations regarding the changes made to 2026-2027 federal student loan eligibility by the One Big Beautiful Bill Act (OBBBA) were published in May 2026 and institutions and software vendors continue to seek and receive guidance on implementation. 

QCC will award full annual federal student loan eligibility up front to students who are only eligible for federal student loans.  

Other students who are interested in borrowing a federal student loan may submit the Federal Direct Loan Request Form.

More information on federal student loan borrowing is available at studentaid.gov by clicking on Grant and Loans and selecting Undergraduate and Graduate Loans.

2026-2027 Federal Direct Loan Guide

Please review the 2026-2027 QCC Federal Direct Loan Guide for detailed information on Federal Direct Loans disbursed between July 1, 2026 and June 30, 2027.  

Request a Federal Direct Student Loan

Students who are interested in borrowing a federal student loan may submit the:

      2026-2027 Federal Direct Loan Request Form

Be sure to consider your expenses for the full academic year when making your request. 

Before submitting this form, confirm you have:

      Submitted the 2026-2027 Free Application for Federal Student Aid (FAFSA),

      Are enrolled in (or are planning to enrolled in) at least 6 credits each semester, and 

      Have received an Award Offer letter -OR- have a complete financial aid file.

Financial Aid staff will review your request within 2 weeks and notify you of your eligibility.  If you are eligible, a federal student loan will be added to your Financial Aid Award Offer.

Reduce or decline the Direct Loan

If you have been awarded a federal student loan and you wish to reduce or decline the amount you have been offered, submit the 2026-2027 Direct Student Loan Decline Form to the Financial Aid Office.  If your loan has already disbursed to your student account, QCC may only be able to reduce or cancel a future disbursement.  

 

How to accept any portion of Federal Direct Student Loan(s) Offered

A completed Loan Entrance Counseling AND Master Promissory Note (MPN) must be on file before a loan can be disbursed to your student account.

Complete Loan Entrance Counseling

All first time student borrowers at QCC must complete Loan Entrance Counseling which provides you with important information regarding your rights and responsibilities as a Direct Loan borrower. You can easily fulfill this requirement by going to studentaid.gov. Sign in using your FSA ID. Click on Menu, Grants and Loans, and then click on Loan Entrance Counseling. Please be sure to select QCC to receive the information.

Complete a Master Promissory Note (MPN)

A promissory note is a legally binding contract between you, the borrower of a Federal Direct Stafford Loan, and the federal government. It contains the terms and conditions of the loan and explains how and when it should be repaid. Therefore, it is very important that you completely read and understand all of the information on the promissory note. MPN's are also signed at studentaid.gov. Log in using your FSA ID. Click on Menu, Grants and Loans, and then click on Master Promissory Note (MPN). 

Direct Loan Requirements and Repayment Information

Repayment of federal student educational loans begin after a student graduates, stops attending, or is enrolled less than half time. Student loan borrowers must complete Student Loan Exit Counseling when they separate from a school to ensure they understand their responsibilities and are prepared for repayment.

Borrowers can choose from different repayment plans to make payments more affordable.

Use the loan payment calculator to estimate your monthly loan payments.

Information about student loan debt, repayment, and QCC's cohort default rate can be found on the U.S. Department of Education College Scorecard. 

Effective September 2024, QCC's Cohort Default Rate (CDR) is 0.1% and the three-year federal student loan repayment rate is 52.1%. The CDR is 0.1% due to the student loan repayment pause in effect from 2020 through September 2023.

Other Types of Loans

Other loan types are available, if needed, to cover educational expenses.  QCC recommends maximizing federal student loan eligibility before considering these options.  These loans are rarely borrowed by QCC students.

Federal Direct PLUS (Parent) Loans: A federal loan that must be repaid under the terms of a promissory note. The borrower is the parent of a student. Before borrowing, it is recommended that the parent complete the PLUS loan credit counseling to learn more about this type of loan and what to consider before borrowing.  Direct PLUS loans accrue interest upon disbursement. Repayment begins sooner than federal student loans, but a parent may request a deferment of repayment while the student is in school and up to 6 months after. Direct PLUS loans are not guaranteed- the parent borrower must pass a credit check to qualify.  Eligibility is limited to a maximum of $20,000 per academic year and $65,000 over the course of a student's undergraduate studies. The loan amount also may not exceed the student's Cost of Attendance minus all other sources of financial assistance. 

Private Education Loans: Private education loans must be repaid by the borrower under the terms of a promissory note. The borrower may be a parent or the student.  Borrowers must pass a credit check to qualify and may need a cosigner (another individual who agrees to be responsible for the repayment of the loan). Terms and conditions, as well as interest rates, vary among lenders and are often less advantageous than federal loans. The loan amount may not exceed the student's Cost of Attendance minus all other sources of financial assistance. QCC does not have a preferred lenders list. We recommend you research more than one lender to determine which loan is the best for you.    

IGrad - Financial Resources Management

To view content related to Federal Student Loans, including loan repayment and debt management, visit iGrad and sign up for an account. iGrad is an award-winning financial literacy tool that is free for QCC students. It has up to date financial education resources and an active community of members and users. Through articles, calculators, videos, and quizzes, you’ll learn how to improve your overall financial wellness.