Getting a Loan
All students must complete and submit their Free Application for Federal Student Aid (FAFSA) and all applicable financial aid forms before requesting a loan from the Financial Aid office.
Students who have never previously borrowed a Federal Direct Loan at Durham Technical Community College must complete all required loan application steps, including Entrance Loan Counseling and a Master Promissory Note (MPN), before loan eligibility can be determined.
- 1. Complete Entrance Counseling
Complete the required Entrance Counseling online.
Please note: The official rate published in September 2022 shows that 0% of borrowers of loans at Durham Tech have defaulted on their loans.
- 2. Complete your Master Promissory Note (MPN)
Fill out your MPN at studentaid.gov.
- 3. Complete the Loan Authorization Form
Complete and Submit the Loan Authorization Form to the Financial Aid office. All sections must be completed to be considered for a loan.
View the Frequently Asked Questions to learn more about loan awards.
Federal Student Loan Updates (OBBBA)
The One Big Beautiful Bill Act (OBBBA) includes several changes to federal student loans that take effect beginning July 1, 2026. These changes may affect borrowing limits, repayment options, and loan eligibility.
Undergraduate Direct Loans
There are no changes to annual Federal Direct Subsidized or Unsubsidized Loan limits for undergraduate students. However, undergraduate borrowing will count toward applicable federal lifetime borrowing limits.
Parent PLUS Loans
Beginning July 1, 2026:
- Parent PLUS Loans are limited to $20,000 per dependent student per academic year.
- Parent PLUS Loans are subject to a $65,000 lifetime limit per dependent student.
- Parents who received Parent PLUS Loans for a student before July 1, 2026, may continue borrowing under previous limits for up to three additional years or until the student completes their current program of study, whichever occurs first.
Loan Proration for Part-Time Students
Beginning July 1, 2026, students enrolled less than full-time may have their federal loan eligibility reduced based on the number of credit hours in which they are enrolled. Previously, loan eligibility was based primarily on maintaining at least half-time enrollment status.
Students who have questions about how enrollment may affect their loan eligibility should contact the Financial Aid Office.
New Repayment Plans
For federal loans first disbursed on or after July 1, 2026, borrowers will generally have two repayment options:
Repayment Assistance Plan (RAP)
- A new income-based repayment plan.
- Monthly payments are based on income.
- Borrowers may choose to switch to a standard repayment plan if desired.
Tiered Standard Repayment Plan
- Fixed monthly payments.
- Repayment periods generally range from 10 to 25 years based on the total loan balance.
Students with Existing Loans
Students who borrowed federal loans before July 1, 2026, and later receive new loans on or after July 1, 2026, will be subject to the new repayment framework for their new loans and will generally use either RAP or the Tiered Standard Repayment Plan.
Borrowers who do not receive any new federal loans on or after July 1, 2026, may continue to have access to existing repayment plans, including Standard, Income-Based Repayment (IBR), Graduated, and Extended Repayment plans. These borrowers may also choose RAP if eligible.
Transition from SAVE, PAYE, and ICR
Borrowers currently enrolled in SAVE, PAYE, or Income-Contingent Repayment (ICR) plans must transition to an eligible repayment plan by July 1, 2028. Current Department of Education guidance indicates that borrowers who do not select a new repayment plan may be automatically placed into a Standard Repayment Plan. Additional implementation guidance is expected.
For additional information about RAP and other federal repayment options, visit StudentAid.gov.
Public Service Loan Forgiveness (PSLF)
The OBBBA did not make changes to Public Service Loan Forgiveness (PSLF). Borrowers pursuing PSLF should continue to follow existing federal PSLF requirements.
Previous Loan Recipients from Durham Tech
Students who have received a loan from Durham Tech and who wish to continue to receive a loan must reapply for each academic year.
Students who have previously borrowed at Durham Technical Community College (only) should complete the Loan Authorization Form and submit it to the Financial Aid office.