Direct Loan FAQs | BSCTC

Direct Loan FAQs

Big Sandy Community and Technical College (BSCTC) participates in the Stafford 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.

Students must be enrolled at least half-time (6 credit hours) 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 completed, 2) whether you are a dependent or independent student, as determined by the FAFSA, being enrolled in classes needed for your credential at BSCTC and 3) your Cost of Attendance at BSCTC.

BSCTC offers 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.

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 the website. 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.

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 earlier.

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 earlier.

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.

Loans-Interest Rates

The interest rate for federal student loans first disbursed on or after July 1, 2021 and before July 1, 2022 are as follows: Subsidized Loans 3.73%; Unsubsidized Loans 5.28%, and PLUS Loans 6.28%.


If you are graduating, dropping below half-time enrollment, or leaving school you must complete Student Loan Exit Counseling. Please click here to complete your required student loan exit counseling.

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