Federal Direct Student Loans
There are two types of Federal Direct Loans students are eligible for:
- A Subsidized Loan: A federal fixed rate loan awarded to students who demonstrate financial need. The loan is funded by the federal government. The federal government pays the interest on the loan until repayment begins and/or while you are in deferment. You must be enrolled at least half-time at Leeward CC to receive this loan.
- An Unsubsidized Loan: A federal fixed rate loan awarded to students who do not demonstrate financial need, but it may also be used to supplement a Subsidized Direct Loan. The federal government does not pay for the interest on this loan. The student is responsible for the interest from the time of disbursement until repayment in full. You must be enrolled at least half-time at Leeward CC to receive this loan.
Annual Loan Limits
The maximum amount a student may borrow each academic year depends on (1) year in college as determined by credits completed toward the program, (2) length of academic program, (3) estimated cost of attendance (COA), and (4) whether the student is dependent or independent. Review the chart below for details.
Dependency Status and Grade Level |
Base |
Additional Unsubsidized |
Maximum Combined |
Dependent Freshmen |
$3,500 |
$2,000 |
$5,500 |
Dependent Sophomore |
$4,500 |
$2,000 |
$6,500 |
Independent Freshmen |
$3,500 |
$6,000 |
$9,500 |
Independent Sophomore |
$4,500 |
$6,000 |
$10,500 |
How to Apply
To apply for one or more Federal Direct Student Loans at Leeward CC students must complete the five items listed below. Loans will NOT be processed until all of these items are completed.
1. The Free Application for Federal Student Aid (FAFSA) and submit all required documents as requested by Leeward CC’s Financial Aid Office.
2. The following three Life Skills modules and accompanying quizzes with a passing score of “100”:
- 101: How Will I Pay For My Higher Education?
- 103: What Do I Need to Know About Repaying My Students Loans?
- 104: What if I Have Trouble Repaying My Student Loans?
3. A Loan Entrance Counseling Session.
4. The 2011-2012 Federal Direct Loan Request Form and return it to the Leeward CC Financial Aid Office.
5. The Master Promissory Note (MPN) online if applicable (see below).
- For continuing Direct Loan Borrowers, your MPN is still valid and you do not need to complete another MPN.
- For new first-time Direct Loan Borrowers, afteryour receive your Financial Aid Award Letter informing you of your loan eligibility, you may then sign your MPN. Funds will not be disbursed until your MPN is completed.
