Loans

What types of federal student loans are there?

Direct Stafford Loan Program

  • Subsidized
  • Unsubsidized

Direct Stafford Loans (DL) are financial aid funds that must be repaid after completing a program of study or being enrolled less than half time. These federal educational loans have moderate fixed interest rates and multiple repayment options, which make them easier to repay than most non-educational loans and other forms of credit. But because loans must be repaid from future earnings, Cañada College recommends that students use all other possible resources first and borrow only when it is absolutely necessary.

Students who are planning to transfer to four-year colleges should be aware that loans are often the largest portion of a financial aid package and should consider total educational indebtedness before borrowing at the community college level.

Students may request a loan by completing the FAFSA and a Loan Request Packet.

To learn the steps for applying for a Federal Direct Student Loan, please visit our Loan Page.

Subsidized: for undergraduate students with demonstrated financial need, as determined by federal methodology. The U.S. Department of Education pays the interest while you are enrolled in school at least half-time, during the grace period, and during deferment periods.

Loan Proration Policy:

Federal regulations require schools to prorate the Federal Direct Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year. For more information visit.

Repaying Student Loans? Avoid Scams

  • Only "bad actors" promise fast loan forgiveness
  • Never pay a fee up front for help
  • "Bad actors" can fake a government seal
  • Don't share your FSA ID with anyone

Report scams to ftc.gov/complaint. Looking for free help? Start with studentaid.gov.