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Loans for Students

Federal Direct Loans for Students

There are two types of Federal Direct Loans:

  • Subsidized
  • Unsubsidized

Students with Direct Subsidized Loans have the government pay the interest while the student is enrolled in at least 6.0 units (half time). For Unsubsidized Direct Loans, the student is responsible for paying all the interest on the loan, during college and after. A student can receive both types of Direct Loans at the same time.

  • For Direct Subsidized and Unsubsidized loans where the first disbursement is on July, 1, 2021, through June 30, 2022, the fixed interest rate is 3.73%. (Subject to change without notice.)
  • #1) Complete a Free Application for Federal Student Aid (FAFSA) at studentaid.gov

    #2) Submit all documents requested by the SBCC Financial Aid Office to complete your FAFSA application and enrolled in at
    least half-time (6 units) per semester.

    #3) Log into your Federal Student Aid account (studentaid.gov) to complete the Direct Loan Entrance Counseling and the Direct Loan Master Promissory Note.
    NOTE: Failure to complete, your loan request can't be processed.

    #4) Log into your Federal Student Aid account (studentaid.gov) to complete the required Annual Student Loan Acknowledgment
    NOTE: Your student loan will not be disbursed without completing the Annual Student Loan Acknowledgment

    #5) Meeting good standing for Satisfactory Academic Progress (SAP) is required to be eligible for a student loan.

    #6) Download your direct loan request form by, logging into your SBCC Pipeline account. Click on the following:
            a. Student tab
            b. Financial Aid
            c. Award
            d. Award for Aid Year, select aid year
            e. Award Overview tab, click on the Direct Loan Request link

    NOTE: Review the Direct Loan Recommendations and Additional Information pages for helpful tools to complete the Student Loan Request form.

    #7)  Complete the Student Loan Request form. PLEASE NOTE: A hand-signed signature is required

    #8)  Submit loan request from your SBCC Pipeline student email account to directloan@sbcc.edu attach the following:
           8.1  Hand-signed and completed Student Loan Request Form
           8.2 An
    unexpired, legible government-issued picture ID

  • #1)  Complete Steps 1 through 8 under "How do I request a Direct Loan?"

    #2)  Email the hand-signed and completed Student Loan Request Form and an unexpired legible government picture ID to directloan@sbcc.edu from your SBCC Pipeline student email account. 

    Please note that the financial aid office may contact you for additional phone counseling and/or video chat in order to process your Direct Loan request.
    Processing Time:   At least 7 or more business days depending on loan request volume.

  • SBCC is a two-year institution. Therefore, students are only eligible to apply for a first-year (less than 30 units completed at SBCC) or second-year (30 units or more completed at SBCC) student loan. Note: Transcripts from other institutions WILL NOT be considered to determine grade level for loan eligibility. SBCC transcripts will be used solely to determine grade level eligibility.

    Annual Stafford Loan Limits are as follows:

      Base Amount Additional Unsubsidized Additional Unsubsidized
      (All Students) Dependent* Students Independent* Students
          Dependent Students whose parents cannot borrow PLUS
    1st Year $3500 $2000 $6000
    2nd Year $4500 $2000 $6000

    * As defined by the Department of Education for financial aid purposes.

  • Yes. For all Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on October 1, 2021, through September 30, 2022, the origination fee is 1.057%. (Subject to change without notice.)

  • Student loans are paid in two equal disbursements during the selected loan period.  For academic year loans, the 1st disbursement is paid in fall and the 2nd disbursement is paid at the beginning of the spring semester.  For one-semester loans, the loan is paid in two equal disbursements during the semester. Fall Semester ONLY loan request will require show of proof of graduation (a graduation date on a SEP declared by an academic counselor). 

    Loans for the Summer enrollment will be paid in one disbursement. However, you will not receive your loan disbursement until you are actively taking at least 6 units.

    In accordance with federal regulations, no loan money may be released sooner than ten days prior to the beginning of a semester, unless you are a first time Direct Loan borrower with the Department of Education.  If you are a first-time Direct Loan borrower, the 1st disbursement will be 30 days after the beginning of the semester.

    IMPORTANT!  To receive a disbursement of an approved Direct Loan, you must be enrolled in at least 6 units (half time) for each semester it is intended. Please note! The start date of your classes will affect when you will receive your student loan. Please refer to your registration or the Schedule of Classes to determine the start date of your classes.

    You must be in good academic standing. For more information regarding Satisfactory Academic Progress, click here.
    You must complete the Loan Entrance Counseling and Loan Agreement/Master Promissory Note (MPN) at studentaid.gov.

  •  The Direct Loan is delivered to the student through Santa Barbara City College. Students have two choices of how they receive their disbursement – either as a check mailed to the address in their Pipeline account or by direct deposit to a checking or savings account. To sign up for direct deposit,log into your financial aid Pipeline account and click on the link Direct Deposit.

    Please note - checks CANNOT be picked up!

  • Yes.  Check Deadlines for specific dates.
  • After graduating, leaving school, or enrolling less than half time, a student will have a six month "grace period" before the first loan payment is due. All Direct Loans must be paid back with interest. Typically a student will have 10 years to repay their Direct Loan.


If you have a problem or question about your student loan, the Federal Student Aid (FSA) Ombudsman of the Department of Education helps resolve disputes and solve other problems with federal student loans.  For more information about the FSA Ombudsman, go to Federal Student Aid Ombudsman Group or call (877) 557-2575.  The mailing address is U.S. Department of Education, FSA Ombudsman Group, 830 1st Street, N.E. Mail Stop 5144, Washington, D.C. 20202-5144.  Fax number (202) 275-0549. 

 If you have additional questions, please contact our office by emailing your financial aid advisor or by calling the financial aid office
at (805) 730-5157.