Loans

SMCC participates in the William D. Ford Federal Direct Loan program. The Federal Direct Loan program offers our students and parents a stable, streamlined, and predictable borrowing experience.

  • Complete the Free Application for Federal Student Aid (FAFSA).
  • Complete any other required financial aid items being requested.
  • Meet federal student aid eligibility requirements.
  • Be enrolled in at least 6 Course Applicable credits.
  • Complete Entrance Counseling in-person at SMCC.
  • Complete a Master Promissory Note (MPN).
  • Accept your loan in your Student Center after it has been awarded.

Federal student loans are disbursed in two payments during the loan period, even if you attend only one semester.

At SMCC, your federal student loan amount is based on your Course Applicable credits for each semester. Course Applicable credits are classes that apply toward your declared academic plan or certificate program.
 
Starting with the 2026-27 award year, federal rules require the annual Direct Loan limit to be reduced for students who are enrolled less than full-time. This reduction is called a Schedule of Reduction (SOR).
 

The SOR adjusts the annual loan limit based on the percentage of full-time enrollment you are taking during the academic year. At SCC, 12 Course Applicable credits is considered full-time enrollment for purposes of determining your SOR.

  • If you would like to request a federal student loan, please complete the AY27 Award Revision Request.
  • To Access the AY27 Award Revision Request:
  • Log in to your Student Center
  • Click on My Student Forms
  • Click on Financial Aid Forms
  • Click on and Complete AY27 Award Revision Request, and select the "Request Initial Loan" from the drop-down menu.
  • SMCC Financial Aid will review your request and determine your eligibility. The amount you are eligible to receive may be less than the amount you request.

Please do not submit more than one request if you do not see an award posted. You will be notified once the request is processed.

For schools having 30 or more borrowers entering repayment in a fiscal year, the school’s cohort default rate is the percentage of a school’s borrowers who enter repayment on certain William D. Ford Federal Direct Loans (Direct Loans) and Federal Family Education Loans (FFELs) during that fiscal year and default (or meet the other specified condition) before the end of the second fiscal year following the fiscal year that the borrower entered repayment.

Average Rate Calculation: The denominator for the average cohort default rate is the number of borrowers who entered repayment in the current cohort fiscal year and the two preceding cohort fiscal years. The numerator for the average cohort default rate is the number of borrowers who entered repayment in the current cohort fiscal year or either of the two preceding cohort fiscal years and who defaulted or met the other specified condition in the cohort default period for the cohort fiscal year in which they entered repayment.

For more information, see Understanding Delinquency and Default.

South Mountain’s Cohort Default Rates for the last three calculated cohort years:

Cohort Year 2021 2022 2023
Default Rate 0 0 2.5%
Number of Default 0 0 5
Number in Repayment 347 293 194

Direct Loan Interest Rates: Find out more information about direct loan interest rates.
 
Income Based Repayment Plan: Find our more information about the new Income Based Repayment Plan (IBR) for federal student loans.
 
NSLDS Student Access: The National Student Loan Data System (NSLDS) is a central database that tracks your financial aid history. NSLDS contains all of your Title IV aid history. Loan information will be submitted to NSLDS and it allows you and authorized agencies, lenders and institutions to view all types of funding from Federal grants, Federal Stafford loans, Direct loans, Perkins loans, and Plus loans. It tracks loan servicers, account numbers, current balances, loan status, disbursements, loan types, loan periods, interest rates, school name and contact information, grant history, and remaining eligibility.
 

In-school Deferments: It's a good idea to make sure your loans borrowed through other schools are in deferment.