Loans

Federal Direct Loans are federal student loans that students borrow and repay with interest. These loans can help cover educational expenses such as tuition, fees, books, supplies, and other education-related costs.

Types of Federal Direct Student Loans

Federal Direct Student Loans are available in two types: Subsidized Loans and Unsubsidized Loans.  Both loan types are borrowed funds that must be repaid, but they differ in how interest is charged and who qualifies.  Understanding these differences can help students make informed borrowing decisions and choose the loan options that best meet their educational needs.

Federal Direct Subsidized Loans

Federal Direct Subsidized Loans are need-based loans available to eligible undergraduate students who demonstrate financial need as determined by the information reported on their FAFSA.  One of the primary benefits of a subsidized loan is that the federal government pays the interest while you are enrolled at least half-time and meet all applicable eligibility requirements.  This can help reduce the overall cost of borrowing. Repayment generally begins after you leave school, graduate, or drop below half-time enrollment.

Federal Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are available to eligible undergraduate students regardless of financial need.  These loans are available to both dependent and independent students who meet federal eligibility requirements.  Unlike subsidized loans, interest begins accruing as soon as the loan is disbursed.  Students may choose to pay the interest while enrolled in school or allow the interest to accumulate and be added to the loan balance.  Repayment generally begins after you leave school, graduate, or drop below half-time enrollment.

Eligibility Requirements for Federal Direct Student Loans

To be considered for a Federal Direct Subsidized or Unsubsidized Loan, you must:

• Meet all general financial aid eligibility requirements based on the completion of your FAFSA.
• Be enrolled in an eligible degree, diploma, or certificate program.
• Be enrolled in and actively attending at least six federal aid-eligible credit hours.
• Meet Satisfactory Academic Progress (SAP) standards.
• Complete any required federal loan requirements, including Entrance Counseling and a Master Promissory Note (MPN), when applicable.
• Additional Requirement for Subsidized Loans--Because Subsidized Loans are need-based, students must also demonstrate financial need as determined by federal regulations and the information reported on the FAFSA.

Student Loan Limits

Federal regulations establish limits on the amount that may be borrowed through the Federal Direct Loan Program.  These limits help ensure that student loan borrowing remains manageable.  The loan limits are divided into two categories: annual loan limits, which determine the maximum amount that may be borrowed during an academic year, and aggregate loan limits, which determine the maximum amount that may be borrowed over a student's educational career.

Because student loans must be repaid with interest, loan limits represent the maximum amount a student may be eligible to borrow, not the amount that should be borrowed.  Students are encouraged to borrow only what is needed to meet educational expenses and to carefully consider future repayment obligations before accepting loan funds.

Annual Loan Limit for Undergraduate Students

Federal regulations determine the maximum amount a student may borrow in Federal Direct Loans during an academic year.  At a two-year college, annual loan limits are based on whether a student is classified as first-year or second-year and whether the student is considered dependent or independent for federal financial aid purposes, as determined by the FAFSA.

Annual loan limits represent the maximum amount a student may be eligible to borrow, not the amount that should be borrowed.  Because student loans must be repaid with interest, students are encouraged to carefully evaluate their educational expenses and borrow only what is necessary to meet those expenses.

Annual loan limits are determined before any Schedule of Reduction (SOR) adjustments are applied.  Under SOR, actual loan eligibility may be lower if a student is not enrolled in enough federal aid-eligible credit hours to be considered full-time for the program's academic year.  Because students typically register one semester at a time and future semester enrollment is not yet known, HGTC may use available enrollment information and projected future enrollment when determining initial loan eligibility.  Loan eligibility may be recalculated as future enrollment becomes known and actual enrollment is reviewed.                 

Maximum Annual Federal Direct Loan Limit for Undergraduate Students: The maximum loan amount that can be borrowed each academic year.
Year/Student Type	Dependent Students (unless your parent is denied a Direct PLUS Loan)	Independent Students
First	$5,500 Up to $3,500 subsidized	$9,500 Up to $3,500 subsidized
Second-Year	$6,500 Up to $4,500 subsidized	$10,500 Up to $4,500 subsidized

 

Aggregate Loan Limits for Undergraduate Students

In addition to annual loan limits, federal regulations place a lifetime maximum, known as an aggregate loan limit, on the total amount a student may borrow through the Federal Direct Loan Program.  Once a student reaches the applicable aggregate limit, additional Federal Direct Subsidized and Unsubsidized Loans cannot be received unless eligibility is restored.

                 

Aggregate Loan Limit for Undergraduate Students: The maximum amount of federal student loans that can be borrowed over a lifetime. This limit includes Federal Direct Subsidized and Unsubsidized Loans received from all colleges attended, not just HGTC.
Student Type	Aggregate Loan Limit	Maximum Subsidized Portion
Dependent Undergraduate Student	$31,000	$23,000
Independent Undergraduate Student (and dependent student whose parent was denied a PLUS Loan)	$57,500	$23,000

 

The aggregate loan limit includes all Federal Direct Subsidized and Unsubsidized Loans borrowed to attend including all colleges and universities, not just HGTC.  Students who have previously borrowed federal student loans at another institution should review their federal loan history through to determine how much eligibility remains available.

As with annual loan limits, aggregate loan limits represent the maximum amount a student may be eligible to borrow, not the amount that should be borrowed.  Students are encouraged to borrow only what is needed to meet educational expenses and to carefully consider future repayment obligations before accepting additional loan funds.

Federal regulations have changed how Federal Direct Subsidized and Federal Direct Unsubsidized Loan eligibility is calculated for undergraduate students.  Beginning with the 2026-27 award year, federal student loan eligibility is based on enrollment intensity, which measures the number of federal aid-eligible credit hours completed during the academic year.  Loan eligibility is now calculated based on actual enrollment.   As a result, students enrolled in fewer aid-eligible credit hours may qualify for a reduced loan amount, while students enrolled in more aid-eligible credit hours may qualify for a larger loan amount, up to their annual loan limit.   

The Schedule of Reduction (SOR) expands the calculation of loan eligibility from a single semester to the entire academic year. Under these regulations, the annual loan limit must be adjusted based on the percentage of full-time enrollment expected to complete during the academic year.  This is where enrollment intensity and full-time status work together. Enrollment intensity is determined by comparing the number of federal aid-eligible credit hours that are planned to be complete to the number of credit hours considered full-time for your program's academic year.

Determination of Full-Time Enrollment for Academic Year

For enrollment purposes, full-time enrollment for a semester is generally 12 credit hours; however, for federal loan eligibility calculations, full-time enrollment is evaluated across the entire academic year and varies by programs.  For programs that require enrollment in the fall, spring, and summer semesters, full-time enrollment for the academic year is generally 36 credit hours.  For programs that require enrollment in the fall and spring semesters, with summer enrollment optional, full-time enrollment for the academic year is generally 24 credit hours.  Your enrollment intensity, and therefore your loan eligibility, will be based on the number of federal aid-eligible credit hours you complete during your program's defined academic year.

Distribution of Loan Funds Across Semesters

Federal student loan eligibility is determined based on enrollment for the entire academic year; however, because students typically register one semester at a time, future enrollment may not be known when initial loan eligibility is calculated.  As a result, HGTC may use available enrollment information and projected future enrollment when determining initial loan eligibility.  As future semester enrollment becomes known, loan eligibility may be recalculated based on the actual number of federal aid-eligible credit hours you plan to complete during the academic year.

Annual loan eligibility for students enrolling in fewer credit hours than originally projected may be reduced under the Schedule of Reduction (SOR).  Annual loan eligibility for students enrolling in more credit hours than originally planned may increase up to the applicable annual loan limit.

Once annual loan eligibility is determined, the amount is generally divided between semesters based on the percentage of total annual federal aid-eligible credit hours taken during each semester.  Students who take more of their yearly credit hours in one semester may receive a larger portion of their annual loan eligibility during that semester.  Conversely, students who take fewer of their yearly credit hours in a semester may receive a smaller portion of their annual loan eligibility during that term.  As a result, loan amounts may not always be divided equally between semesters.

For example, if 60% of your annual federal aid-eligible credit hours are taken during the Fall semester and 40% are taken during the Spring semester, approximately 60% of your adjusted annual loan eligibility may be awarded in Fall and 40% in Spring resulting in your Fall and Spring loan amounts being different.

Importance of Your Schedule

Because loan eligibility is directly tied to enrollment intensity, changes to your class schedule, such as dropping, failing to begin attendance, or withdrawing from a course may affect the amount of aid you are eligible to receive.  If you do not actively participate in a course, that course will not count for loan purposes, which could reduce your enrollment intensity and your loan eligibility.  Changing your schedule may affect future loan disbursements, future loan eligibility, or result in other financial aid adjustments depending on the circumstances.  To help avoid unexpected changes to your financial aid, it is important to enroll only in the courses you need, remain enrolled as planned, actively attend all classes, and successfully complete your coursework.           

Importance of the Census Date

The census date is the point during the semester when HGTC reviews your enrollment for financial aid purposes.  Before the census date, adding, dropping, or withdrawing from classes may affect the number of federal aid-eligible credit hours used to calculate your loan eligibility.

After the census date, your enrollment for that semester is generally locked for Schedule of Reduction (SOR) calculations.  This means that adding a class after the census date will not typically increase your financial aid eligibility for that semester, although it may affect future loan eligibility calculations.

Once the Census Date has passed, your enrollment and attendance is reviewed to confirm your eligibility for federal student aid.  Federal Direct Loan funds generally do not disburse until this review is completed and your enrollment has been verified.  If additional attendance verification is required, such as for Flex Start or Fast Forward II courses, a portion or all of your loan funds may be delayed until attendance and participation can be confirmed.

Changes made after the census date can still have financial aid consequences.  Although enrollment for the semester is generally locked for Schedule of Reduction (SOR) calculations, dropping, withdrawing from, or failing to complete a course may affect future loan disbursements, future loan eligibility, Satisfactory Academic Progress (SAP), or result in other financial aid adjustments depending on the circumstances.  In some cases, you may also be required to repay a portion of the financial aid you received.  The impact depends on factors such as the timing of the change, your enrollment status, and your last date of attendance.

Because every student's situation is unique, you are encouraged to contact the Financial Aid Office before making changes to your class schedule to better understand how those changes may affect your financial aid eligibility.

Loan Disbursement and Attendance Requirements

Being eligible for a Federal Direct Loan does not automatically mean loan funds will immediately disburse.  Federal regulations require students to be actively attending at least six federal aid-eligible credit hours at the time loan funds are released.   Students who never begin attendance in a course may have their loan eligibility recalculated and could experience delays in receiving loan funds.

Students enrolled in classes that begin at different times during the semester, such as Flex Start and Fast Forward II, may experience delayed or partial loan disbursements.  If attendance in a late-start course is needed to reach the required six federal aid-eligible credit hours, all student loan funds are held until attendance can be confirmed in those courses.

For example, if a student is enrolled in three credit hours during the regular semester and three credit hours in a Fast Forward II course that does not begin until later in the semester, the loan funds will be delayed until the student begins attending and participation is confirmed in the Fast Forward II course.

In some situations, loan funds may be paid out in more than one disbursement.  When a schedule includes late-start courses, such as Flex Start or Fast Forward II, only the portion of loan funds associated with the courses in which attendance has been confirmed may be released.  Once the Flex Start or Fast Forward II classes begin and attendance and participation is confirmed, the remaining loan funds will be disbursed. 

For example, students enrolled in six federal aid-eligible credit hours during the regular semester and three federal aid-eligible credit hours in a Fast Forward II course will receive two loan disbursements.  Students will receive a partial loan disbursement based on the six credit hours actively attending for the regular semester.  Once attendance and participation are confirmed in the Fast Forward II course, students will receive a second disbursement of the remaining loan funds.

Because enrollment patterns vary, the timing of loan disbursements may differ from student to student.  Students are encouraged to review their class schedules carefully and plan accordingly, especially when enrolling in courses that begin later in the semester.

Sample SOR Calculations

The examples below are provided for educational purposes only.  Actual loan eligibility may differ based on individual enrollment, dependency status, financial aid eligibility, academic program, other federal requirements, other individual student circumstances, and federal guidance.

Example 1:

First-year dependent student with standard annual loan eligibility of $5,500 is in a program  that does not require summer enrollment so full-time for the year is 24 credit hours.  The student enrolls for 7 credit hours in the Fall and 8 credit hours in the Spring.  Because the student is less-than-full time, SOR must be applied:

1. Add total credit hours for the year.

7 credits for Fall + 8 credits for Spring = 15 credit hours for the year

2. Determine what full-time means for the student鈥檚 program

24 credit hours if full-time for the year since summer is not required

3. Calculate the percentage of full-time enrollment for the year to determine enrollment intensity

15 credits for year 梅 24 credits required for yearly full-time enrollment = 0.625
0.625 x 100 = 62.5 % (rounded to 63%)

This means the student is scheduled to complete 63% of full-time enrollment for the academic year.  This is the student鈥檚 enrollment intensity

4. Calculate adjusted annual loan eligibility

Under SOR, the student鈥檚 federal loan eligibility is based on enrollment intensity. 

63% of full-time enrollment x $5,500 standard yearly loan limit = $3,465 adjusted loan eligibility

This means the student is only eligible to receive a maximum of $3,465 in student loans for the year.

5. Determine how much of the enrollment occurs each semester.

The annual loan limit is split between the semesters based on the percentage of credit hours taken each semester.

Fall semester

7 credits 梅 15 total credits for the year) = 0.467
0.467 x 100 = 46.7% (rounded to 47%)

                  Spring semester

8 credits 梅 15 total credits for the year = 0.533
0.533 x 100 = 53.3% (rounded to 53%)

This means the student completed 47% of their yearly credit hours in Fall and 53% of their yearly credit hours in Spring

6. Calculate the semester loan awards

Fall semester

47% of credits completed during Fall x $3465 maximum adjusted loan eligibility = $1,628.55 (rounded to $1,629)

Spring semester

53% of credits completed during Spring x $3465 maximum adjusted loan eligibility = $1,836.45 (rounded to $1,836)

This means the student would receive $1,629 in student loans for the Fall and $1,836 in students loans for the Spring.

Example 2:

Second-year independent student with standard annual loan eligibility of $10,500 is in a program that does require summer enrollment so full-time for the year is 36 credit hours.  The student enrolls for 8 credit hours in the Fall, 11 credit hours in the Spring, and 9 credit hours for the Summer.  Because the student is less-than-full time, SOR must be applied:

1. Add total credit hours for the year.

8 credits for Fall + 11 credits for Spring + 9 credits for Summer = 28 credit hours for the year

2. Determine what full-time means for the student鈥檚 program

36 credit hours if full-time for the year since summer is required

3. Calculate the percentage of full-time enrollment for the year to determine enrollment intensity

28 credits for year 梅 36 credits required for yearly full-time enrollment = 0.778
0.778 x 100 = 77.8 % (rounded to 78%)

This means the student is scheduled to complete 78% of full-time enrollment for the academic year.  This is the student鈥檚 enrollment intensity

4. Calculate adjusted annual loan eligibility

Under SOR, the student鈥檚 federal loan eligibility is based on enrollment intensity. 

78% of full-time enrollment x $10,500 standard yearly loan limit = $8,190 adjusted loan eligibility

This means the student is only eligible to receive a maximum of $8,190 in student loans for the year.

5. Determine how much of the enrollment occurs each semester.

The annual loan limit is split between the semesters based on the percentage of credit hours taken each semester.

Fall semester

8 credits 梅 28 total credits for the year) = 0.285
0.285 x 100 = 28.5% (rounded to 29%)

Spring semester

11 credits 梅 28 total credits for the year = 0.392
0.392 x 100 = 39.2% (rounded to 39%)

Summer semester

9 credits 梅 28 total credits for the year = 0.321
0.321 x 100 = 32.1% (rounded to 32%)

This means the student completed 29% of their yearly credit hours in Fall, 39% of their yearly credit hours in Spring, and 32% of their yearly credit hours in Summer.

6. Calculate the semester loan awards

Fall semester

29% of credits completed during Fall x $8,190 maximum adjusted loan eligibility = $2,375.1 (rounded to $2,375)

Spring semester

39% of credits completed during Spring x $8,190 maximum adjusted loan eligibility = $3,194.1 (rounded to $3,194)

Summer semester

32% of credits completed during Summer x $8,190 maximum adjusted loan eligibility = $2,620.80 (rounded to $2,621)

This means the student would receive $2,375 in student loans for the Fall, $3,194 in students loans for the Spring, and $2,621 in student loans for the Summer.

PLUS Loans are loans that parents can request to pay for a dependent child鈥檚 educational expenses if a dependent undergraduate student is enrolled at least half-time. PLUS Loans are unsubsidized. 

To be eligible for a PLUS Loan, all the following basic eligibility requirements must be met each semester at the time of the loan disbursement:

• Student must be enrolled in an approved degree, diploma, or certificate program.
• Student must be registered for at least six qualifying credit hours during the semester(s) in which loan funds are received. Qualifying credit hours are credit hours that count toward your major and are eligible for Federal financial aid.
• Student must meet all general eligibility requirements for federal aid.
• Parent borrowers cannot have adverse credit history.
• Parent borrowers must meet the general eligibility requirements for federal student aid.
• The amount of a PLUS Loan cannot exceed the student鈥檚 cost of attendance  minus other applied aid.

Parent borrowers apply for the Federal Direct PLUS Loan on . The application requires a credit check and the credit check is valid for 180 days. In addition to this, a signed master promissory note is required. At the end of the application, the parent borrowers will receive their credit check results. Below is a list of results and explanations of your results:

• Accepted鈥擨f the credit decision is approved, our office will be notified and the loan will be processed
• Declined鈥擮ur office will be notified and the student may become eligible for additional unsubsidized loan funds. Parents with an adverse credit decision have the option to appeal or get an endorser. 
• Pending鈥擬ore information may be required by the Department of Education. In this case contact them at Student Loan Support Center at 1-800-557-7394 or StudentLoanSupport@ed.gov.

For more information about PLUS Loans visit .

What are the requirements for receiving a Federal Direct Student Loan?

 To be eligible you must:

• Complete the FAFSA and meet general financial aid eligibility requirements
• Be enrolled in an eligible degree, diploma, or certificate program
• Be enrolled in and actively attending in at least six federal-aid-eligible credit hours
• Meet Satisfactory Academic Progress (SAP) standards
• Sign a Master Promissory Note (MPN) and, if required, complete Entrance Counseling
• For subsidized loans only demonstrate financial need as determined by the FAFSA.

Can I receive a loan while on Financial Aid Suspension?

No.  Students on Financial Aid Suspension are not eligible for federal financial aid, including Federal Direct Loans.

Do I have to repay my student loans?

Yes.  Student loans are borrowed funds and must be repaid, even if a student does not complete their educational program or is unable to find employment after graduation.

What is an aggregate loan limit?

An aggregate loan limit is the maximum amount of Federal Direct Subsidized and Unsubsidized Loans that can be borrowed throughout a student's educational career. This limit includes loans received from all colleges attended, not just HGTC.

What happens if I reach my aggregate loan limit?

Students who reach their aggregate loan limit are no longer eligible to receive additional Federal Direct Subsidized or Unsubsidized Loans unless eligibility is restored.  Students may review their federal loan history through  to determine available eligibility.

How many credit hours must I be enrolled in to be eligible for a student loan?

Students must be enrolled in and actively attend at least six federal-aid-eligible credit hours to be eligible for a student loan.

Do all classes count toward loan eligibility?

No.  Only federal aid-eligible credit hours count toward enrollment intensity and loan eligibility.  Examples of classes that may not count include:

• Courses that are not required for your program of study
• Certain repeated coursework that is no longer eligible for federal aid
• Courses you never begin attending
• Courses that are not completed or withdrawn from

If you are unsure if a course counts for federal aid, contact the Financial Aid Office.

What does "six federal aid-eligible credit hours" mean?

Not all classes count toward federal student loan eligibility.  Federal aid-eligible credit hours generally include courses required for your declared program of study.

The following may not count:

• Audited courses
• Repeated courses that are no longer eligible for federal financial aid. In most cases, federal aid will only pay for one additional attempt of a course that has already been passed with a grade of D or higher.
• Coursework that is not required for your program
• Ineligible certificate or continuing education courses

Students should not assume that simply registering for six or more credit hours automatically qualifies them for a student loan.  Only eligible coursework can be used to determine federal loan eligibility.

What does actively attending courses mean?

Actively attending courses means that you must be attending and participating in your courses.  Simply registering for a class is no longer enough.  If you do not begin attendance or stop participating in a course, that course may not be counted when determining your loan eligibility.  Active participation may include activities required by your instructor such as:

• Attending class
• Participating in online coursework
• Submitting assignments
• Taking quizzes or exams
• Completing other academically related activities required for the course

Can I receive loan funds if I am enrolled in less than six federal-aid-eligible credit hours?

No.  Federal regulations require students to be enrolled in and actively attending at least six federal aid-eligible credit hours to receive Federal Direct Subsidized or Unsubsidized Loan funds.

What is SOR?

SOR stands for Schedule of Reduction and is a federal requirement, beginning with the 2026-2027 academic year, that reduces loan eligibility when a student is enrolled less than full-time for the academic year.

What is enrollment intensity?

Enrollment intensity measures the percentage of full-time enrollment a student plans to complete during the academic year.  Under SOR students who are enrolled in fewer federal aid-eligible credit hours than required for full-time status in their program's academic year may have their loan eligibility reduced.  The lower the enrollment intensity, the lower the potential student loan eligibility

What happens if I have not registered for a future semester yet?

Because Federal Direct Loan eligibility is calculated for the academic year, projected future enrollment may be used when initial loan eligibility is determined.  Once registration occurs, loan eligibility may be reviewed and adjusted based on actual enrollment.

Will taking fewer classes reduce my loan eligibility?

Yes.  Under SOR, students enrolled in fewer federal aid-eligible credit hours than required for full-time enrollment in their academic year may be eligible for less Federal Direct Loan funding.

How is full-time enrollment determined for SOR?

For loan eligibility purposes, full-time enrollment is measured across the entire academic year, not just one semester.

Programs requiring only Fall and Spring enrollment with Summer as optional, full-time for the academic year is 24 credit hours.

Programs requiring Fall, Spring, and Summer enrollment, full-time for the academic year is 36 credit hours.

Does the SOR calculation impact all types of financial aid?

No.  The SOR calculation is only used for Federal Direct Subsidized and Federal Direct Unsubsidized student loans.  The SOR calculation is not used for grant aid, scholarships, Federal Direct PLUS Loans, or alternative student loans. 

When is the SOR calculation not used for Federal Direct Subsidized and Federal Direct Unsubsidized student loans?

The SOR calculation does not in limited situations including:

• Being enrolled full-time for the academic year.
• One-semester academic programs鈥擬ost SOR calculations look at your enrollment over the entire academic year; however, if your program only includes one semester, or you are only attending for a single term, the loan is generally calculated based on that term rather than spreading the calculation across multiple semesters
• Students Returning from Financial Aid Satisfactory Academic Progress Suspension--Students who become eligible for loans after regaining eligibility during Spring or Summer may have loan eligibility determined under different federal provisions rather than a full-year SOR calculation.

Because these situations vary, students should contact the Financial Aid Office for an individualized review.

Why does active attendance matter under SOR?

Beginning with the 2026-27 award year, student loan eligibility is based on the number of federal aid-eligible credit hours a student plans to complete during the academic year.  If you never begin attendance in a class, those credit hours will not count toward the enrollment intensity calculation.  Since enrollment intensity is used to determine loan eligibility, failing to begin attendance and not actively participating in the course could reduce the amount of student loan funding you are eligible to receive.

What is the Census Date?

The census date is the point in the semester when HGTC reviews your enrollment for financial aid purposes.  Before the Census Date your financial aid eligibility, including your student loan eligibility, adjusts with your enrollment.  On the Census Date, the credit hours you are actively enrolled in and are attending are evaluated to determine your financial aid eligibility, including student loans. 

What happens if I do not begin attendance in all of my classes?

If you never begin attendance in a class, those credit hours for that class will not count toward the enrollment intensity calculation.  Since enrollment intensity is used to determine loan eligibility, failing to begin attendance and not actively participating in the course could reduce the amount of student loan funding you are eligible to receive.

Will adding a course increase my student loan eligibility?

Adding a federal-aid-eligible course during the add/drop period may increase your student loan eligibility if doing so changes enrollment intensity.  It is important to remember that dropping a course generally occurs the first few days of the course during the add/drop period.  The dates of the add/drop period can be found on the College鈥檚 academic calendar.

Will dropping a course decrease my student loan eligibility?

Dropping a federal-aid-eligible course before the Census Date will generally decrease your student loan eligibility because it reduced the number of credit hours used to determine enrollment intensity.  It is important to remember that dropping a course generally occurs during the first few days of the course during the add/drop period.  The dates of the add/drop period can be found on the College鈥檚 academic calendar.

Will adding a course after the Census Date increase my loan eligibility?

Adding a federal-aid-eligible course after the Census Date will not increase your student loan eligibility for that semester; however, it could increase your student loan eligibility for the upcoming semester since your loan eligibility is based on enrollment intensity for the academic year.  Before making any schedule changes contact the Financial Aid Office to determine exactly how your financial aid will be impacted.

Will withdrawing from a course after the add/drop period but before Census Date decrease my student loan eligibility?

Withdrawing from a federal-aid-eligible course after the add/drop period has ended but before the Census Date will decrease your student loan eligibility because your enrollment intensity is lowered.  Before making any schedule changes contact the Financial Aid Office to determine exactly how your financial aid will be impacted.

Will withdrawing from a course after the Census Date decrease my student loan eligibility?

After the Census Date, enrollment for that semester is generally locked for Schedule of Reduction (SOR) calculations; however, withdrawing from a course after the Census Date may still affect future loan disbursements, future loan eligibility, Satisfactory Academic Progress (SAP), or result in other financial aid adjustments depending on the circumstances.  In some cases, you may also be required to repay a portion of the financial aid you received.  Because the impact depends on factors such as the timing of the withdrawal, your enrollment status, and your last date of attendance, students are strongly encouraged to contact the Financial Aid Office before making changes to their schedule.

What happens if I never begin attendance in a Flex Start or Fast Forward II class?

If you do not begin attendance in a course, that course will not count as a federal-aid-eligible credit hour for student loan purposes.  This could reduce your enrollment intensity, change your Schedule of Reduction (SOR) calculation, and reduce future loan eligibility

What should I do before changing my schedule?

Before adding, dropping, or withdrawing from classes, contact the Financial Aid Office.  Even small enrollment changes can affect:

• Your enrollment intensity
• Your student loan eligibility
• Future loan disbursements
• Potential repayment obligations

A quick conversation with Financial Aid can help you avoid unexpected financial aid adjustments or balances owed to the college. 

Can my loan amount change after I am awarded?

 Yes, your loan eligibility may be recalculated if:

• You change your schedule before the Census Date.
• You do not begin attendance in a course.
• Your enrollment changes before a future loan disbursement
• You are enrolled in fewer aid-eligible credit hours than originally planned

How are loan amounts divided between the semesters?

Once your annual loan eligibility is determined, the amount is generally divided between semesters based on the percentage of total annual credit hours you take during each semester.  Students taking more of their yearly credits in one semester may receive a larger portion of their loan eligibility during that semester.  Conversely, students taking fewer of their yearly credits in one semester may receive a lower portion of their loan eligibility during that semester.  As a consequence, your loan amounts may not equally be divided among your semesters. 

Why have my student loan funds not been paid to my account yet?

Federal student loans generally do not disburse until after the Census Date, when enrollment has been reviewed and eligibility has been confirmed.  To receive loan funds, students must be actively attending the required number of federal aid-eligible credit hours.  If your schedule includes late-start courses, such as Flex Start or Fast Forward II classes, all or a portion of your loan funds may be delayed until attendance and participation can be verified in those courses.  In some cases, loan funds may be paid out in multiple disbursements if attendance in later-start courses is needed to determine the full amount of loan funds that can be released.

Why did I receive only part of my loan?

If your schedule includes classes that begin later in the semester, such as Flex Start or Fast Forward II courses, you may receive only a portion of your loan funds initially.  The remaining funds may be disbursed after attendance and participation are confirmed in the later-start courses.  The amount and timing of loan disbursements are based on your enrollment and attendance in federal aid-eligible courses.

Why is my loan amount different than another student鈥檚?

Student loan eligibility varies based on many factors, including dependency status, grade level, program requirements, enrollment intensity, aggregate loan usage, other financial aid received, and federal eligibility requirements.  As a result, loan amounts may differ between students.

How can I avoid delays in receiving my loan funds?

To help avoid delays:

• Enroll only in courses required for your program.
• Begin attending all classes as scheduled.
• Participate in your courses from the start.
• Monitor your HGTC email for financial aid notifications.
• Contact the Financial Aid Office before making schedule changes.

A quick conversation with the Financial Aid Office can help you understand how your course schedule may affect your student loan eligibility and disbursement timing.

What happens to my student loans if I withdraw from all classes?

Withdrawing from all classes may affect current financial aid eligibility and may require the College to perform a Return of Title IV Funds (R2T4) calculation. Depending on the circumstances, a portion of previously received financial aid may need to be returned, which could result in a balance owed to the College.  

In addition, withdrawing from all classes may cause Federal Direct Loans to enter their grace period.  Once the grace period ends, repayment of student loans may begin. Students who withdraw may also be required to complete Exit Counseling, which provides important information about repayment responsibilities, repayment plans, and options for avoiding delinquency and default.

Because every student's situation is unique, students should contact the Financial Aid Office before withdrawing from classes to understand how the decision may affect financial aid eligibility, student loan repayment, and any balance owed to the College.

What is Exit Counseling?

Federal Direct Loan borrowers who graduate, withdraw, or drop below half-time enrollment are generally required to complete Exit Counseling. Exit Counseling provides important information about repayment responsibilities, repayment options, deferment and forbearance opportunities, and strategies for avoiding delinquency and default.

When do I have to start repaying my student loans?

Repayment generally begins after graduation, withdrawal, or dropping below half-time enrollment, following any applicable grace period.  Borrowers should monitor communications from their loan servicer and ensure contact information remains current.  This information can also be reviewed through

What is a loan servicer?

A loan servicer is the company assigned by the federal government to manage student loans, process payments, and assist borrowers with repayment options.  You may find your loan servicer visiting and clicking 鈥淔ind Your Student Loan Servicer.鈥�

I have questions, who should I contact?

 If you have questions, please contact the Financial Aid Office through:

• Phone: 843-349-5250
• Email: financialaid@hgtc.edu
• In person: Visit your nearest Tech Central
  • Conway: Building 1100, room 132D
  • Grand Strand: Building 200, Room 117
  • Georgetown: Building 100, Room 107

Beginning with the 2026-2027 award year, Federal Direct Student Loans are not automatically awarded.  Students who wish to borrow a Federal Direct Loan must complete the loan request process outlined below.

Step 1:  Complete the FAFSA and All Outstanding Financial Aid Requirements

Before Federal Direct Loan eligibility can be determined, the Free Application for Federal Student Aid (FAFSA) must be submitted and all outstanding financial aid requirements must be completed.  Required documents, forms, and other financial aid requirements can be viewed through the student's MyHGTC account.

Loan eligibility cannot be reviewed until all requested information has been received and processed. Completing requirements early can help avoid delays in determining eligibility and processing loan requests. 

Step 2:  Submit a Federal Direct Loan Request Form

Students who wish to borrow a Federal Direct Subsidized Loan, Federal Direct Unsubsidized Loan, or a combination of both must complete the Federal Direct Loan Request Form.  The Loan Request Form can be accessed on the Financial Aid Forms webpage under 鈥淔orms for Award Year 2026-2027.鈥�  Because Federal Direct Loans are no longer automatically offered, submitting a request is required before loan eligibility will be reviewed. 

Step 3:  Review the Loan Offer and Accept or Decline the Loan

After the Loan Request Form is reviewed, eligible students will be offered Federal Direct Loan funding up to their maximum loan eligibility based on their year in college and dependency status as determined by the FAFSA.  

Students must log in to their MyHGTC account to review the loan offer and either accept or decline the loan.  Loan funds cannot be disbursed until the loan has been accepted

Step 4:  Borrow Only What is Needed

Federal Direct Loans are generally offered up to the maximum amount for which a student is eligible; however, eligibility does not mean the full amount must be borrowed.  Because student loans must be repaid with interest, students are encouraged to carefully review their educational expenses, available financial aid, and future repayment obligations before accepting a loan offer.  Borrowing only what is needed can help reduce future monthly payments and the overall cost of borrowing.

Students who wish to borrow less than the amount offered may submit a Loan Adjustment Form requesting a reduced loan amount.  The Loan Adjustment form is located on the 鈥淔inancial Aid Forms鈥� webpage under 鈥淔orms for Award Year 2026-2027.鈥� 

Loan Adjustment Forms are typically processed after the Census Date when enrollment and attendance are reviewed to determine final eligibility, and before loan funds are disbursed.

Step 5: Complete Federal Loan Requirements

Before Federal Direct Loan funds can be disbursed, all required federal loan documents must be completed including signing the Master Promissory Notes (MPN) and, if required, completing Entrance Counseling.

The  is the legal agreement to repay Federal Direct Loans, including any interest and fees that may accrue.  It also explains the terms and conditions of borrowing and repayment.

is generally required for students who are borrowing a Federal Direct Subsidized Loan or Federal Direct Unsubsidized Loan for the first time.  Entrance Counseling helps borrowers understand:

• The terms and conditions of federal student loans
• Borrower rights and responsibilities
• Interest and repayment obligations
• Available repayment options
• How to avoid delinquency and default

Both requirements must be completed before Federal Direct Loan funds can be released. Students should log in to  using their FSA ID to complete any required loan documents.

Step 6: Loan Disbursement

Federal Direct Loan funds generally do not disburse until after the Census Date, when enrollment and attendance are reviewed to confirm eligibility and determine the amount of loan funding that can be released.

To receive loan funds, students must be actively attending at least six federal aid-eligible credit hours.  Students enrolled in Flex Start, Fast Forward II, or other late-start classes may experience delayed or multiple loan disbursements as attendance must be verified before funds can be released.

Step 7: Remain Enrolled, Attend Class, and Contact Financial Aid Before Making Schedule Changes

Student loan eligibility is directly tied to enrollment and attendance.  Dropping, withdrawing from, or failing to begin attendance in a course may reduce loan eligibility, delay future loan disbursements, or require adjustments to loan funds already received.  Students are encouraged to attend and actively participate in all courses throughout the semester.

Before making any changes to a class schedule, contact the Financial Aid Office to understand how those changes may affect financial aid eligibility, loan funding, and future disbursements.  Early communication can help prevent unexpected reductions in aid or balances owed to the College.

Federal student loans are borrowed funds that must be repaid. Students who graduate, withdraw from all courses, or drop below half-time enrollment (fewer than six federal aid-eligible credit hours) should be aware that these changes may affect both current financial aid eligibility and future loan repayment obligations.

When a student graduates, withdraws from all courses, or drops below half-time enrollment, Federal Direct Loans generally enter a grace period before repayment begins.   For most Federal Direct Subsidized and Unsubsidized Loans, the grace period is six months; however, borrowers should review information provided by their loan servicer to confirm their specific repayment timeline.

Federal Direct Loan borrowers who graduate, withdraw, or drop below half-time enrollment are generally required to complete .  Exit Counseling provides important information about loan repayment, available repayment plans, borrower rights and responsibilities, interest accrual, and strategies for avoiding delinquency and default.

Students who withdraw from all classes before completing a semester may also be subject to a Return of Title IV Funds (R2T4) calculation.  Depending on the student's last date of attendance, a portion of previously received financial aid, including student loan funds, may be required to be returned to the federal government. This may result in a balance owed to the College.

Following graduation, withdrawal, or a reduction below half-time enrollment, borrowers should ensure that contact information remains current with both the College and their federal loan servicer.  Important information regarding loan repayment, billing statements, repayment options, and borrower responsibilities will be sent using the contact information on file.

Because every student's situation is unique, students considering withdrawing from classes or reducing enrollment below half-time status are strongly encouraged to contact the Financial Aid Office before making any enrollment changes.  Understanding the potential impact on financial aid eligibility, student loan repayment, future borrowing eligibility, and possible balances owed to the College can help avoid unexpected financial obligations.

Borrowers who have questions about repayment or need assistance understanding available repayment options are also encouraged to take advantage of the financial literacy resources available through HGTC and its partnership with Inceptia.

HGTC Emergency Loan Programs

The Emergency Loan Programs are available to assist students with books, supplies, and emergency expenses during the academic year. The programs include the Institutional Book Loan and the Foundation Emergency Loan. Available funding for these programs is limited each semester. Students are limited to only one book or emergency loan per academic year. 

Institutional Book Loan

Beginning the first day of classes, institutional book loan vouchers will be available to assist eligible students with the purchase of books and supplies. Students are required to be enrolled in a degree, diploma, or certificate program in the term for which loan is requested. Eligible students cannot have a bookstore credit available at the time of applying for the book loan. The maximum amount that may be borrowed is $400 and must be repaid within 45 days after receiving the authorization. Applicants may inquire within the Financial Aid office about additional requirements and eligibility. Available funding is limited each semester and only one book or emergency loan may be obtained per academic year. To apply for the Institutional Book Loans, students must complete the .

Foundation Emergency Loan

Foundation Emergency Loans are available to students to assist with unexpected emergency expenses such as car repairs, medical bills, stolen cash, utility repairs (ex: heat pump, water pipes, etc.), and unanticipated housing moves. The maximum amount that may be borrowed is $500 and must be repaid within 45 calendar days after receiving the loan. Applicants may inquire within the Financial Aid office about additional requirements and eligibility. Available funding is limited each semester and only one book or emergency loan may be obtained per academic year. To apply for the Foundation Emergency Loan, student must complete the .

Funding for the Emergency Loan Programs are provided by:

John D. Gilland, III Memorial Book Loan Fund: Established in 1986 by Dr. and Mrs. J.D. Gilland of Conway in memory of their son, this fund provides book loans for full-time students who reside in Horry County.

Plantation Federal Student Book Loan Fund: Established in 1993 by Plantation Federal Savings Bank, this loan fund provides book loans for full-time students who reside in Georgetown County.

Ruth Lewis and Helen G. Stuart Book Loan Fund: Established in 1997, this fund provides emergency loans for Georgetown residents enrolled full-time and attending classes at one of HGTC's Horry County campuses. The fund honors Ruth Lewis, the mother of Neil Lewis, who established the fund, and Helen G. Stuart, a long-time HGTC employee.

Franklin and Elsie Burroughs Book Loan Fund: Established in 2000 by family members and friends to memorialize Mr. and Mrs. Burroughs, this fund provides emergency loans through the HGTC Foundation. Funds are available to students who were born in Horry County or who graduated from Horry County schools. 

Archie Dargan and Harold Cushman Construction Emergency Fund: Established by Dargan Construction in Myrtle Beach in honor of Archie Dargan and Harold Chushamn, this fund provides emergency funding for college related educational expenses for HGTC students facing financial difficulties that may preclude them from attending college if additional financial needs are not met. Funds are available to students who are enrolled at HGTC in the Construction Project Management Program.

Foundation Emergency Book Loan: Established in 2003 by the HGTC Foundation to provide small emergency book loans for students. Dates for applications are posted each semester.

Foundation Emergency Loan Fund: Established by the HGTC Foundation to provide emergency funds that may be borrowed to cover the cost of unexpected expenses such as car repairs, emergency travel costs and other documented situations. This loan cannot be used for the purchase of textbooks and supplies. Documents detailing the extenuating circumstances are required when applying for the funds.

At HGTC, we understand that managing student loan borrowing and repayment can sometimes feel overwhelming or intimidating. That鈥檚 why we have partnered with , a nonprofit organization, to provide you with free assistance on your student loan obligations to ensure you feel comfortable and can be successful in your loan repayment.

Inceptia may be calling to help you with next steps in your repayment journey.  Their friendly counselors are there to help you every step of the way.  If you become on your loans, they may contact you to help find a solution that works within your means.

The Inceptia counselors are there to help you with every step by staying in touch with you via phone calls, letters, and/or emails.  They will not be collecting money from you. Inceptia鈥檚 nonprofit purpose is to help you find answers to your questions and solutions to your issues.

We strongly encourage you to visit Inceptia鈥檚 Student Knowledge HQ website at .  Inceptia鈥檚 Student Knowledge HQ website has tips, tools, and resources that will help you increase your financial IQ and take control of your financial future.

•  
•  
• Articles from Federal Student Aid