Types of Loans
*New for the 2026-27 Academic Year: Part-Time Enrollment and Loan Eligibility
Beginning with the 2026–27 academic year, changes to the Federal Direct Loan Program may affect the amount students are eligible to borrow.
Students who are enrolled less than full-time will have their Federal Direct Loan eligibility prorated, which means their annual loan amount will be reduced based on the number of credit hours in which they are enrolled.
To receive the full annual Federal Direct Loan amount, students must be enrolled full-time during both the fall and spring semesters, provided they meet all other federal eligibility requirements.
If you plan to attend part-time, we encourage you to contact the Financial Aid Office to learn how your enrollment may affect your loan eligibility and to discuss all available financial aid options.
Federal Direct Student Loans
Federal student loans can help you pay for college when grants, scholarships, and other financial aid do not cover all of your educational expenses.
At City Colleges of Chicago, we encourage students to borrow responsibly and consider federal student loans only after exploring all other financial aid options. Because our tuition is among the most affordable in the region, borrowing only what you need today may help preserve your federal loan eligibility if you decide to transfer to a four-year college or university in the future.
Types of Federal Direct Loans
Direct Subsidized Loan
A Direct Subsidized Loan is available to undergraduate students who demonstrate financial need, as determined by the Free Application for Federal Student Aid (FAFSA).
Key features:
- Awarded based on financial need.
- The federal government pays the interest while you are enrolled at least half-time, during your grace period, and during approved deferment periods.
- Repayment begins after you leave school or drop below half-time enrollment.
Direct Unsubsidized Loan
A Direct Unsubsidized Loan is available to eligible students regardless of financial need.
Key features:
- Financial need is not required.
- Interest begins accruing when the loan is disbursed.
- You may choose to pay the interest while in school or allow it to accrue until repayment begins.
Direct Parent PLUS Loan
The Direct Parent PLUS Loan is available to parents of dependent undergraduate students. Starting July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
Key features:
- Helps cover educational expenses not paid by other financial aid.
- Parents may borrow up to the student’s cost of attendance, minus all other financial assistance received.
- Interest begins accruing when the loan is disbursed.
- A credit check is required.
Eligibility Requirements
To receive a Federal Direct Loan, you must:
- Be enrolled in at least six (6) credit hours (half-time enrollment).
- Meet all federal financial aid eligibility requirements.
- Complete all required loan counseling and loan documentation before your loan can be disbursed.
How Much Can I Borrow?
Federal law limits the amount you can borrow each academic year. Your loan eligibility depends on several factors, including:
- Your grade level
- Whether you are considered a dependent or independent student
- Your remaining federal lifetime loan eligibility
Please refer to the annual and aggregate loan limit charts below for current borrowing limits.
Annual Borrowing Limits for Dependent Undergraduate Students:
|
Academic Level |
Maximum Federal Direct Stafford Loan Amount |
Additional Unsubsidized Amount |
(Subsidized and Unsubsidized Combined) |
|
Freshman |
$3,500 |
$2,000 |
$5,500 |
|
Sophomore |
$4,500 |
$2,000 |
$6,500 |
|
Junior/Senior |
$5,500 |
$2,000 |
$7,500 |
Annual Borrowing Limits for Independent Undergraduate Students:
|
Academic Level |
Maximum Federal Direct Stafford Loan Amount |
Additional Unsubsidized Amount |
(Subsidized and Unsubsidized Combined) |
|
Freshman |
$3,500 |
$6,000 |
$9,500 |
|
Sophomore |
$4,500 |
$6,000 |
$10,500 |
|
Junior/Senior |
$5,500 |
$6,000 |
$12,500 |
Lifetime Borrowing Limits for Undergraduates:
|
Dependent Students |
$31,000–No more than $23,000 of this amount may be in subsidized loans |
|
Independent Students |
$57,500–No more than $23,000 of this amount may be in subsidized loans |
Exit Counseling
If you graduate, withdraw from school, or enroll in fewer than six (6) credit hours, you are required to complete Federal Loan Exit Counseling. You can complete the exit counseling on the Federal Student Aid website.
Exit counseling helps you understand your rights and responsibilities before you begin repaying your student loans.
During exit counseling, you will learn about:
- Your loan terms and repayment responsibilities.
- Your estimated monthly loan payment.
- Available repayment plan options.
- Deferment and forbearance opportunities.
- Loan forgiveness and cancellation programs.
- How to repay your loans early without penalty.
- The benefits and considerations of loan consolidation.
- The consequences of loan default, including damage to your credit, wage garnishment, tax refund offsets, collection costs, and the loss of certain borrower benefits.
- Potential tax benefits, including the student loan interest deduction.
Completing exit counseling is an important step in preparing for successful repayment and managing your federal student loans responsibly.
