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Federal Loans

Federal Direct Student Loans are a low-interest form of financial aid to assist students with educational expenses not covered by other grants, scholarships, and who may have decided not to use the Payment Plan. Loans are provided through federal funds, which must be repaid after a student graduates or drops below half-time enrollment (6 credit hours). 

Important Notes

The COVID-19 borrower repayment pause is extended to January 31, 2022. Repayments are to resume starting February 1, 2022. 

It is recommended that all loan borrowers (new and returning) complete the Annual Student Loan Acknowledgement as it will provide additional information to borrowers and is expected to become a requirement in the future. It may be completed online at the Student Aid site. 

Students must maintain enrollment in at least 6 credit hours (non-repeat classes within his/her program of study) for each respective term they request & are approved for loan funds. 

Once set up, the loan must be processed by the federal processing center before it could be applied as a credit toward tuition & fee charges. This processing timeframe can sometimes take 1-2 weeks.

Loans are split into 3 disbursements each term (with the exception of summer term), and there will be up to a 14 business day timeframe for the funds to be received and processed out to BankMobile. View our Disbursement Dates page for more information regarding disbursements. 

The National Student Loan Data System - As a consumer, you need to be aware that the U.S. Department of Education will post your Federal Direct Loan data on the National Student Loan Data System (NSLDS) which is accessible by federal student loan guarantee agencies, lenders and institutions which the Department of Education has authorized access to this data system.


  • Student must complete GNTC Admissions Application, all admissions requirements, and be Officially Accepted to GNTC.
  • Student must fill out the Free Application for Federal Student Aid (FAFSA). Please visit our How to Apply page.
  • Student must be enrolled in an associate’s degree, diploma, or an eligible certificate program.
  • Student must be registered for at least 6 credit hours within his/her program of study.
  • Student must be a US citizen or an eligible non-citizen
    *IF you are an eligible non-citizen, you must submit a copy of your permanent resident card to the Financial Aid Office. You must be a permanent resident of the United States for at least 24 months before you become eligible for the federal loan funds.
  • If a student is a Male and born after 1960, he must be registered with the Selective Service (visit for more information on the Selective Service)
  • Student must not owe any repayments on previous grants or scholarships
  • Student must not be in default on a federal loan.
  • Student must maintain Satisfactory Academic Progress (SAP).

Application Process

  • Once the student’s financial aid file is completed, verified (if necessary), and eligibility for standard state aid & federal Pell is determined, then the student may request loan funds in person, by phone, or via email.
  • Just as a student has to complete a FAFSA each aid year to be considered for financial aid, returning students wishing to receive loan funds for a new aid year will have to request loan funds each year prior to the start of each new aid year.
  • Summer term loans are calculated separately from fall/spring loans. Therefore, if you request fall/spring loans and wish to receive loan funds for the summer term, you will need to do another request for summer after registering for summer classes.
    • Student borrowers must complete the mandatory Entrance Counseling, the Master Promissory Note, and it is recommended that they also complete the Annual Student Loan Acknowledgement. Each may be completed online at the Student Aid site
  • Student must review the Terms & Conditions and accept loan funds through their MyGNTC account. Please view our Utilizing MyGNTC link for instructions on accepting loan funds.

General Information

GNTC offers two types of Federal Direct Loans: Subsidized and Unsubsidized. The main difference between the two is in the interest. Subsidized Loans do not accumulate interest while a student is enrolled; however, once the student graduates, drops below six (6) credit hours, or stops attending the interest will begin accumulating and the student will be required to start making payments within six (6) months. In contrast, Unsubsidized loans do accumulate interest while the student is enrolled and the student is responsible for all interest charges from the time the loan is disbursed. While students receiving Unsubsidized loans are not required to make payments while attending, under a grace period, or under a deferment period; we do recommend that students pay interest quarterly. Any accrued interest that is not paid while the student is attending will be added (capitalized) to the loan balance when the student enters repayment.

The graphs below detail the Annual Max and Total (Lifetime) Limits that a student may qualify to be awarded. Please note that the amounts depicted do not necessarily apply to each student. Eligibility will be calculated based on each student’s enrollment, Estimated Family Contribution (EFC), other aid resources, and Cost of Attendance budget (COA).

Annual Max Subsidized Loans

Information on the Fixed Interest Rate for Subsidized Loans

Grade Level in College

Max Amount

Freshmen - Students with less than 30 earned credit hours

Sophomores - Students with 30 or more earned credit hours

$3,500 (per year)

$4,500 (per year)


Annual Max Unsubsidized Loans

Information on the Fixed Interest Rate for Unsubsidized Loans

Dependency Status

Max Amount

Dependent Students
(as determined by the FAFSA)

Independent Students
(as determined by the FAFSA)

$2,000 (per year)

$6,000 (per year)


Total Loan Limits (Lifetime Eligibility)

Dependency Status




Dependent Students
(as determined by the FAFSA)

Independent Students
(as determined by the FAFSA)