Financial Aid

Federal Direct Loans

This Federal Direct Loan Application is for the 2026-2027 Academic Year.

Significant changes to the federal loan provisions were enacted by the One Big Beautiful Bill Act (OBBBA) for the 2026-2027 aid year. As a result, beginning July 1, 2026, federal student loan rules will change.

If you enroll in fewer than 12 credits, the amount you can borrow may be reduced. Students taking 6–11 credits will no longer automatically qualify for the maximum annual loan amount. Instead, loan eligibility will be calculated based on the number of credits enrolled under a Schedule of Reduction (SOR). If you have questions regarding the loan application or terms and conditions of Federal Direct Student Loans, please contact our office. You can find our contact information on our Contact Us page.

NOTE: It can take up to 14 business days for our office to receive your completed loan application steps. It then takes up to another 8 weeks for your loan application to be processed and for you to receive your loan award notification. Please keep this processing timeline in mind when you are applying for loan funds.


The Federal Direct Loan Program

The Federal Direct Loan is a student loan through Skagit Valley College where the Federal Government is your lender. These loans are low-interest, low-fee loans to help pay for the cost of your education. If you decide to borrow, please understand this is a debt that must be repaid after you stop attending school or drop below six credit enrollment status. After you read the following information, you will have the opportunity to apply for a Federal Direct Loan.

The Direct Loan Program offers two types of low-fee (currently 1.057%), low-interest (6.52%, effective July 1, 2026) loans for student borrowers. These are called Direct Subsidized Loans and Direct Unsubsidized Loans. Interest rates will vary slightly each year you apply for student loans, but the Federal Direct Loans are not variable. The loans you borrow each academic year will keep their interest rates throughout the life of each loan unless you make the decision to consolidate your loans at a later date.

The average loan debt for Skagit Valley College (SVC) students is $7,234. The current default rate of student loans at SVC is 0% as of 2023.

Important: Subsidized and Unsubsidized Direct Loans both require the student:

  • Be enrolled in (and attending) at least six degree-required credits per quarter
  • Submit a FAFSA and fully complete a financial aid file with the college
  • Adhere to the SVC Satisfactory Academic Progress (SAP)
  • Understand that first-time borrowers who are first-time students at SVC cannot have loans disbursed until 30 days into their first quarter. If all file/loan documents are complete, we can hold your tuition. You must be able to purchase your own books to start classes. Contact Financial Aid if you need tuition held.

Direct Subsidized Loans

Direct Subsidized Loans are interest-free while you are attending school. To qualify for a Direct Subsidized Loan, you must demonstrate financial need. Your FAFSA results reveal how much you and your family should be able to contribute toward your education costs. Your SVC Cost of Attendance (established by the Financial Aid Office) minus your Student Aid Index value (derived from your FAFSA) establishes your financial need. Any grants for which you may qualify are taken into consideration before Subsidized Loan eligibility is determined.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are loans where you are responsible for interest payments, even while you are in school. You can choose to make interest payments or postpone them. If you postpone interest payments, interest will be added to your principal balance. This is known as capitalization. Capitalization increases the total amount you will repay. You will save money by making your interest payments. Financial need is not required to qualify for a Direct Unsubsidized Loan, but you still must complete a FAFSA and complete your financial aid file with SVC. The Cost of Education must exceed any other financial aid you have been awarded in order to qualify for this loan.


Borrowing Limits

The Direct Loan Program has limits on the amount you can borrow each year. Your Financial Aid Office will determine how much you are eligible to borrow based on the following chart, as well as your Cost of Attendance, Student Aid Index value, grade level in college, and any other aid you have been awarded. With this in mind, it is a possibility that you may not qualify for the loan maximums. If you have questions once you receive your Direct Loan Award Notification, please contact us for an explanation of your eligibility.

Please keep in mind that you may be repaying your Direct Loan for 10 years or longer. The more you borrow, the higher your monthly payment will be. Borrow only what you need. The size of your monthly payments may make the difference between manageable and unmanageable debt in your future.

Academic Grade Level/Loan Type

Maximum Loan Amount

First-Year
Undergraduates

Dependent
Student

Independent
Student
Base Direct Loan eligibility
(Subsidized and Unsubsidized)

$3,500.00

$3,500.00
Additional Unsubsidized Direct Loan eligibility

$2,000.00

$6,000.00
Maximum First-Year Total

$5,500.00

$9,500.00
Second-Year Undergraduates
Base Direct Loan eligibility
(Subsidized and Unsubsidized)

$4,500.00

$4,500.00
Additional Unsubsidized Direct Loan eligibility

$2,000.00

$6,000.00
Maximum Second-Year Total

$6,500.00

$10,500.00
Aggregate (total)
Undergraduate

$31,000.00
(no more than $23,000 of which may be subsidized)

$57,500.00
(no more than $23,000 of which may be subsidized)


Bachelor in Applied Science (BAS)

3rd and 4th year Borrowing Limits

Totals listed below are strictly for students accepted into a Bachelor of Science (BS) of Bachelor of Applied Science (BAS) program.

 

Dependent
Student

Independent
Student
Base Direct Loan eligibility
(Subsidized and Unsubsidized)

$5,500.00

$5,500.00
Additional Unsubsidized Direct Loan eligibility

$2,000.00

$7,000.00
Maximum BS/BAS Yearly Total

7,500.00

$12,500.00
Aggregate (total)
Undergraduate

$31,000.00
(no more than $23,000 of which may be subsidized)

$57,500.00
(no more than $23,000 of which may be subsidized)


Repayment

When you graduate, leave school, or drop to less than 6 credits, you will have a six-month grace period before repayment begins. Once your grace period ends, you must begin repaying your loan(s). Skagit Valley College asks that you visit StudentAid.gov to log in and complete Direct Loan Exit Counseling once you drop below 6 credits.

Please go to StudentAid.gov for information on repayment options available to you. You may prepay all or part of your loan at any time without penalty. You will save money by paying off your loans early.

For information on available repayment options: Visit StudentAid.gov


Expected Loan Processing Timelines

Please allow 7-14 business days to receive and track your Direct Loan application steps. You can login to ctcLink for any outstanding Direct Loan to-do items. Once you see the “Received” status indicating your loan application is complete, you will know your application is in the queue for processing.

Assuming your loan application is received, and your financial aid file has been fully processed by our office, you can expect to receive a loan award notice as per the schedule listed below:

  • Summer: Students who met our June 1st financial aid file priority completion date and who are enrolled in 6+ program-required credits can expect to receive loan notification by July 29 2026, assuming you fully completed your loan application by June 15 2026.  If you submitted your application later, expect a notice 4 – 6 weeks from your submittal date.
    • Important Note: Summer students must be able to buy their own books to begin classes, as loans are not disbursed until well into the quarter.
  • Fall Start: Students enrolled in 6+ program-required credits can expect to receive notification by August 15 2026, assuming you fully completed your loan application by July 29 2026.  If you submitted your application later,  you can expect to receive a notice within 8 weeks from the date of your submission.
  • Winter Start: Students enrolled in 6+ program-required credits can expect to receive notification by December 1 2026, assuming you fully completed your loan application by October 15 2026. If you submitted your application later,  you can expect to receive a notice within 8 weeks from the date of your submission.
  • Spring Start: Students enrolled in 6+ program-required credits can expect to receive notification by March 15, 2027, assuming you fully completed your loan application by February 1, 2027. If you submitted your application later,  you can expect to receive a notice within 8 weeks from the date of your submission.

Please also note the following:

  • Important:  Funds are generally disbursed via BankMobile disbursement services. Have you set up your funds preference with BankMobile yet? You should receive an email with instructions after you have been awarded. If not, please contact us right away at 360.416.7666.
  • If it appears your application will not be processed by the SVC tuition due date, you can contact our SVC Cashier’s office to inquire about a Tuition Payment Plan. Visit Tuition Rates and Fees for more information regarding payment plans.
  • First-time student loan borrowers who are new students at SVC will be subject to a federally-mandated 30-day disbursal delay. For these students, funds cannot be disbursed until 30 days into the first quarter of enrollment.  SVC can hold classes for unpaid tuition, but students must be able to purchase their own books to begin the quarter. Please contact us if you need a hold placed on your tuition at 360.416.7666.


2026–2027 Direct Loan Application Process

The 2026-2027 academic year includes Summer 2026, Fall 2026, Winter 2027, and Spring 2027.

Step 1: Complete the Federal Direct Loan Request form. Ensure that the form is filled out completely and accurately. You will need to attach a screen shot or .pdf of your most up-to-date education plan and current program of study. This step is a request to determine your eligibility for federal direct subsidized and unsubsidized loans. Please note that completing the Loan Request Form does not guarantee that you will be eligible for student loans.

Loan Request Form

Step 2: Complete Undergraduate Loan Entrance Counseling. Click on the link below, and log in to your Federal Student Aid account. Be sure to complete the Undergraduate option. It will take approximately 20-25 minutes to complete. Entrance counseling for undergraduate students is required if you have not previously received a Direct Subsidized Loan or a Direct Unsubsidized Loan.

Loan Entrance Counseling

Step 3: Complete the Master Promissory Note (MPN). The Master Promissory Note is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).

Master Promissory Note