Loans | ECTC


ECTC participates in the Federal Direct Loan Program. Direct Lending is when eligible students and parents borrow directly from the federal government. Direct Loans include Direct Subsidized, Unsubsidized Loans, and Direct PLUS Loans. Borrowers repay these loans directly to the U.S. Department of Education or a servicer appointed by the U. S. Department of Education.

Subsidized Loans

Direct Subsidized Loans are based on financial need as well as annual and aggregate loan limits. Interest on this loan does not accrue during eligible periods of enrollment and stated grace periods. Interest accrual and repayment begins six months after graduation or when a student is no longer enrolled at least half time (6 semester hours).

Unsubsidized Loans

Direct Stafford Unsubsidized Loans are based on annual and aggregate loan limits and is not based on financial need. Unlike the subsidized loan, the borrow must pay all interest that accrues regardless of enrollment status or loan deferments. Interest can be paid monthly or quarterly or be capitalized (added to the principal balance). Principal repayment begins six months after graduation or when the student is no longer enrolled at least half time (6 semester hours).


You will be required to sign a Master Promissory Note (MPN) prior to your loan funds disbursing to your account. You may ESign your MPN at student loans.

*The Terms and Conditions and the Rights and Responsibilities of Federal Student Loans are listed on the Master Promissory Note (MPN), which is signed by the borrower who is accepting the loan. If you would like to review this information before borrowing a loan, view a sample MPN for Federal Stafford or Federal PLUS loans. This MPN also provides a sample loan repayment schedule and the necessity for repaying any loans you borrow. (Please note: If you want to borrow a student loan, and need to sign your MPN, please go to


Federal Direct Loan student borrowers are required to complete mandatory entrance and exit counseling. The purpose of the counseling is to provide the student with information regarding their rights and responsibilities; the commitment that comes with the acceptance of a student loan; and to help the student understand how to manage their student loans. It is important for all borrowers to realize that student loans are not grants or scholarships; they require repayment.

You will need to have an FSA ID to access the entrance and exit counseling web sites. If you used an FSA ID to apply for federal financial aid, you will use that FSA ID to complete entrance and exit counseling.

Entrance Counseling

Entrance counseling is required for all first-time Federal Direct Stafford loan borrowers. Entrance counseling takes approximately 20-30 minutes to complete. After signing in on the student loans website to complete entrance counseling, be sure to click the Entrance Counseling link, not the Financial Awareness Counseling link.

The Office of Student Financial Aid receives results of entrance counseling. Federal Direct Stafford loans will not disburse until entrance counseling has been completed.

Requirements to Borrow a Student Loan

To borrow a student loan, you must:

  • File your FAFSA;
  • Meet all of ECTC’s Admission and Financial Aid requirements;
  • Maintain Satisfactory Academic Progress and;
  • Enroll (and remain enrolled) in 6 program applicable credit hours or more for the term for which you are borrowing the student loan.
  • Student must be enrolled in an eligible academic program offered by ECTC.

Exit Counseling

All student borrowers who leave the Elizabethtown Community and Technical College either by graduating, withdrawing, or failing to return for a subsequent semester are required by Federal Law to complete exit counseling on the web at Student borrowers must complete exit counseling. Exit counseling takes approximately 30-40 minutes to complete.

How to request a student loan

If you are a first-time borrower as a ECTC student, you will need to login to with your FSA ID and password (your FAFSA login credentials) and complete an Entrance Counseling and a Master Promissory Note (MPN). You will find these under the Loans and Grants dropdown menu.

Loans are not automatically included in your financial aid package. A link to request a student loan is available in the Financial Aid tile of your Student Self-Service, and then click on the link: FA Loan Request.

Note: You may cancel your request at any time before submitting the final step.

FA loan instructions

Verify student information:

  • Home Address, Phone Number, Email Address
    • If changes need to be made, click the “change” hyperlink under the field you need to update
  • Check box to confirm information is correct and click “Continue
  • Read Loan Request Acknowledgment Statements  
    • Check box to confirm, and click "Continue"
  • Confirm if you are interested in a loan by clicking Yes or No and “Submit.”
  • Select term you are wanting loan (i.e. Fall/Spring, Fall only, Spring only)
  • Enter the amount of student loan you would like to request for the academic year in the Requesting Loan Amount box.
    • Please note: If you are requesting a loan for Fall and Spring, the amount you request will be split between both semesters
      • (Example, You request $3500, you'll receive $1750 in Fall and $1750 in Spring, minus fees)
      • If requesting for Fall Only or Spring Only, amounts will be sent in 2 disbursements during the semester
  • Click Submit

Maximum Annual Loan Limits

Subsidized and Unsubsidized Direct Loans

Freshman (0-29 semester hours)

  • Dependent Undergraduate Student
    • $5,500
    • No more than $3,500 of this amount may be in subsidized loans

  • Independent Undergraduate Student
    • $9,500
    • No more than $3,500 of this amount may be in subsidized loans

Sophomore (30-59 semester hours)

  • Dependent Undergraduate Student
    • $6,500
    • No more than $4,500 of this amount may be in subsidized loans

  • Independent Undergraduate Student
    • $10,500
    • No more than $4,500 of this amount may be in subsidized loans

*Loan amounts may be reduced due to other aid offered. Aid may not exceed Cost of Attendance.

Repeal of the 150% Subsidized Usage Limit

Since July 1, 2013, Direct Loan statutory requirements have limited a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower’s educational program. In addition, under certain conditions, the requirements have caused first-time borrowers who have met or exceeded the 150% limit to lose the interest subsidy on their Direct Subsidized Loans. The FAFSA Simplification Act, part of the Consolidated Appropriations Act, 2021, provides for a repeal of the 150% Subsidized Usage Limit Applies (SULA) requirements.

Please see below the important components of the repeal:

  • If the first disbursement of your Direct Subsidized loan is on or after July 1, 2021, there is no time limitation on how long you can receive a Direct Subsidized Loan.
  • As of July 1, 2021, you cannot lose Direct Subsidized Loan eligibility based on your continued enrollment in a program beyond the 150 percent published length of your program.
  • If you had lost your subsidized loan eligibility due to reaching the 150 percent time limit, your eligibility for new subsidized loans first disbursed on or after July 1, 2021, is restored.
  • As of July 1, 2021, new Direct Subsidized Loans will not lose their subsidy benefits before entering repayment and during periods of deferment.
  • If your Direct Subsidized Loans had lost their subsidy benefits before July 1, 2021, and you have a balance greater than zero on July 1, 2021, those loans will have their subsidy benefits retroactively reinstated.

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