Federal Direct Loan Program

Unlike scholarships and grants, loans must be repaid. Educational loans are usually subsidized, and therefore have more favorable terms than consumer loans. However, because they must be repaid, you should borrow no more than necessary.

Federal Direct Loan Program allows students to borrow loan funds directly from the Federal Government. All Direct Loans are either subsidized (the government pays the interest on the students behalf while in school) or unsubsidized (the students pay all the interest). 

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Eligibility criteria:


  • Must complete a FAFSA
  • Be enrolled at least part-time (6-8 credit hours) 
  • Demonstrate a calculated need 
  • Maintain EPCC Satisfactory Academic Progress 
  • Register and attend an entrance counseling loan session each academic year.


Federal Direct Loan Registration Form 




Direct Loan Sessions Schedules (PDF)




  • Register to attend an In-Person Loan Entrance Counseling Session

Complete the Federal Direct Loan Registration Form prior to attending an entrance counseling    session (all fields are required).  At EPCC, students must attend one in-person entrance loan counseling session every academic year (Fall, Spring, Summer). Select a session convenient for your schedule.


  • Attend Loan Session

The Loan Entrance Counseling Session  provides information about how to manage student loans during and after college. Arrive half an hour prior to start time. Sessions last approximately 2 hours. Children are not allowed in the sessions. Late arrivals will need to re-register for another session. All Counseling Sessions are held at: (unless otherwise stated) Administrative Services Center, 9050 Viscount El Paso, TX 79925 


  • Complete a Financial Literacy Module

Complete the Financial Literacy Module and turned in your Certificate of Completion to the Financial Aid Office. Further instructions and step by step details are provided during the In-Person Entrance Loan Counseling Session.


  • Complete Online Entrance Counseling and E-MPN

Student are required to complete and submit an online entrance counseling and E-MPN. Further instructions and step by step details are provided during the In-Person Entrance Loan Counseling Session. For a copy of these steps, refer to Federal Direct Loan Step by Step Process (PDF).


  • Accept Offered Federal Direct Loans Award

 Accepted your offered Direct Loan Award in Banner. Students cannot decline the Subsidized Direct Loan, if offered both the Subsidized and Unsubsidized Direct Loans.



Students do not qualify for a Direct Loan at EPCC if:


  • Not maintaining Satisfactory Academic Progress, refer to Eligibility Requirements for specific details.
  • In default status on a Federal Student Loan.
  • A FAFSA is not on file for current academic year.
  • Have met or exceeded the regulatory aggregate limit.

 Exit Counseling

Students need to complete an online Student Loan Exit Counseling Session if:


  • Enrollment is less than part-time (less than 6 credit hours).
  • Drop/Withdraw  
  • Graduated


Student Loan Exit Counseling Session



Refer to the Exit Counseling Guide for Federal Student Loan Borrowers (PDF) for detailed information about rights and responsibilities as a borrower.

 EPCC Default Management Plan

This plan is on file with Texas Guarantee Student Loan Corporation in Austin, Texas.

  • Students must attend an EPCC loan counseling session each year prior to having a loan certified, even if they have already attended a session at another school.
  • Transient and/or undeclared major students are not eligible for any financial aid including Stafford student loans.
  • No loan or benefits of loan shall be disbursed prior to the end of add and drop periods for each semester.
  • First time borrowers cannot receive loan or loan benefit disbursements until 30 days after the first class day of the semester.
  • If at any time a student falls below half-time enrollment or fails to meet EPCC’s Satisfactory Academic Progress (SAP) criteria, the loan will be canceled without notice and any un-disbursed loan funds will be returned to the lender.
  • El Paso Community College is a two year granting institution.  Students may only receive freshman and sophomore level loans while attending EPCC.
  • Freshman level = successfully completed fewer than 30 credit hours. 
  • Sophomore level = successfully completed 30 or more credit hours.
  • Developmental (remedial & ESL) do not count as hours toward student classification.  Students requesting a loan while in developmental courses will not be eligible for a sophomore level loan until they have completed and earned 30 academic hours.
  • Students in default on a prior student loan cannot receive any further loans or other financial aid until the default status has been placed in “satisfactory” status. Students must provide the Financial Aid Office written documentation verifying this status. Failure to comply will result in a hold being placed on all student records.
  • If at any time a student’s enrollment status drops below half-time they must complete the Student Loan Exit Counseling process.  Failure to complete this will result in a hold being placed on all student records.

Effective Fall 2006