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Federal Loans

Loans provide financial assistance for educational expenses, but unlike grants or scholarships, they must be repaid. Student loans are a common component of most financial aid packages, and students should learn about borrowing before deciding to accept a loan.

Responsible borrowing and understanding the terms of loans are essential to managing your educational debt. You should explore all options and borrow only what is necessary to minimize future financial burdens.

For the 2024-2025 academic year, a total of 34,441 students were enrolled at Pima Community College.  Of those students, 5.1% (1,741) borrowed student loans.  On average, these borrowers took out about $7,812 over a three-year period.  Based on this average loan amount, the estimated monthly payment is about $88 over a 10-year repayment term.

Types of Loans

There are two main types: Federal Direct Loans and private loans. Understanding each type of loan will help you make an informed financial decision.

Federal Direct Loans

All federal student loans obtained by a student or parent are reported to and tracked on the National Student Loan Data System (NSLDS). NSLDS loan records are accessible to all authorized NSLDS users, including schools, student loan guaranty agencies, lenders, federal agencies, and other authorized users. Learn more about Federal Student Loans here. 

The Federal Direct Subsidized Loan is awarded to eligible undergraduate students who demonstrate financial need.

  • Interest will not accrue while you’re enrolled in school or during your six-month grace period.

The Federal Direct Unsubsidized Loan is awarded to eligible students who do not demonstrate financial need.

  • Interest will accrue on unsubsidized loans while you are in school.
  • Any accrued interest will be capitalized when your loan enters repayment.

Federal Direct PLUS Loans, for graduate students and parents, are not based on financial need, but a credit check is required. Apply for the PLUS Loan and then complete our Undergraduate PLUS Application (under Student Initiated Forms).

  • PLUS Loans are considered unsubsidized and interest will accrue while you're in school.
  • You must be enrolled at least half-time (6 credit hours) and meet all other compliance requirements for the loan funds to be credited to your student account.

All loans borrowed through Pima Community College will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by authorized agencies, lenders and institutions (HEOA 489 amended HEA Sec. 485B).

Loan Details Direct Subsidized Loan Direct Unsubsidized Loan Parent PLUS Loan
Need Based Yes No No
Credit Based No No Yes
Interest Rates See the federal website for up-to-date interest information
Origination Fees See the federal website for up-to-date fee information
Minimum Enrollment 6 credit hours 6 credit hours 6 credit hours
Annual Loan Limits - Dependent Undergraduate Students $3,500 $2,000 $10,000
Annual Loan Limits - Independent Undergraduate Students $3,500 $6,000 NA
Lifetime Limits $23,000 $57,500 (including sub eligibility) $65,000 lifetime cap per student, along with an annual cap of $20,000 per student.

Applying for Student Loans

In most cases, loan offers will be made automatically for you to accept or decline from your Financial Aid Dashboard. You must have a loan offered and accepted by the semester deadline for your loan to be approved. The deadlines are as follows:

  • Fall - December 1st
  • Spring - May 1st
  • Summer - July 1st

The above deadlines apply to requests for loan increases as well.

Loan Reduction or Cancellation

Student loan borrowers may return or cancel any portion of a loan as long as it has not been disbursed. The request to cancel the loan disbursement must be received within 14 days of the loan disbursement. Borrowers must complete the Federal Aid Cancellation/Reduction Form.

Loan amounts may be reduced from the original amount requested or approved due to enrollment change activity.  If you are attending less than full time (at least 12 credit hours) your annual loan limit is required to be reduced based on the actual number of credits you are attending.

Schedule of Reduction (SOR) Formula:

Number of credit hours enrolled attending for the year ÷ 24 credits (full time) for that year x 100 = reduced annual loan limit percentage (rounded to the nearest whole percentage point)

Example: attending fall semester 6 credits & spring semester 6 credits (12 credits)  ÷ 24 (annual enrollment) credits = 50% 

Annual loan limit $5500 x 50% = $2750 or $1375 per semester

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