FinancialAidLoans
Federal student loans are borrowed money that must be repaid, with interest. Trinidad State participates in the William D. Ford Direct Loan Program, so eligible students and parents borrow directly from the U.S. Department of Education.
Two federal changes worth knowing about:
Repayment plans changed in 2026. The SAVE Plan was struck down in court and PAYE and ICR are closing to new enrollment. If you're choosing a repayment plan, see the Repayment section below.
Graduate PLUS Loans are being phased out. Starting July 1, 2026, graduate and professional students enrolling in a new program, a new school, or taking out their first Direct Loan for a program are no longer eligible for a Graduate PLUS Loan.
Loan Types
Direct Subsidized Loan
Available to undergraduate students who demonstrate financial need. The federal government pays the interest while you're enrolled at least half-time and for a grace period after you leave school.
Direct Unsubsidized Loan
Available to undergraduate and graduate students regardless of financial need. Interest accrues from the time the loan is disbursed, whether or not you're enrolled.
Direct PLUS Loan (Parent)
Credit-based loans that parents of dependent undergraduate students can borrow to help cover costs not met by other aid. Repayment can begin while the student is still in school.
Private/Alternative Loan
Credit-based loans from a private lender, used to help cover costs not met by federal aid. Terms vary by provider, so review them carefully — apply at least 30 days before your bill is due, since private lenders have their own applications and timelines.
Full details on each loan type, including current interest rates, are available at studentaid.gov/understand-aid/types/loans.
Loan Limits
| Year | Total Loan | Subsidized Portion (max) |
|---|---|---|
| Freshman | $5,500 | $3,500 |
| Sophomore | $6,500 | $4,500 |
| Junior and beyond | $7,500 | $5,500 |
| Year | Total Loan | Subsidized Portion (max) |
|---|---|---|
| Freshman | $9,500 | $3,500 |
| Sophomore | $10,500 | $4,500 |
| Junior and beyond | $12,500 | $5,500 |
Aggregate (lifetime) limits: $31,000 for dependent undergraduates (up to $23,000 subsidized); $57,500 for independent undergraduates (up to $23,000 subsidized). Parent PLUS Loans are limited to the student's cost of attendance minus other aid received, up to $20,000 per year and $65,000 aggregate per dependent student. Figures reflect the 2026–2027 award year; confirm current limits at studentaid.gov since these are set annually.
Applying for a Loan
- 1
Complete the FAFSA
File or renew your FAFSA at studentaid.gov using TSC's federal school code: 001368.
- 2
Complete Entrance Counseling and sign a Master Promissory Note (MPN)
First-time federal loan borrowers must complete both before funds can be disbursed. Log in at studentaid.gov, go to your dashboard, and complete "Entrance Counseling" and "Master Promissory Note" under the checklist for your loan type (undergraduate, graduate, or PLUS).
- 3
Submit TSC's loan request form
Complete the current-year Federal Direct Stafford Loan Process form or Direct PLUS Loan Application, available on the Financial Aid Forms page. Return the completed, signed form to the Financial Aid Office by fax, mail, or email — contact details are below.
- 4
Watch for confirmation
You'll typically receive electronic confirmation of your counseling and MPN within 24–48 hours. Check your student portal for updates on your loan status.
Interest Rates & Fees
Rates are set annually by the federal government
Because rates and origination fees change every July 1, we link directly to the Department of Education's current numbers instead of publishing a rate here.
Repayment
The repayment plan landscape changed in 2026: the SAVE Plan was struck down by a federal court, and PAYE and ICR are closing to new enrollment. Current options generally include:
- Standard Repayment Plan — a fixed payment over up to 10 years.
- Tiered Standard Plan — a newer fixed-payment option with longer terms available for larger balances.
- Income-Based Repayment (IBR) — payments based on income and family size.
- Repayment Assistance Plan (RAP) — a newer income-driven option with payments generally set between 1% and 10% of income.
Parent PLUS borrowers have more limited income-driven options and should check current eligibility directly with their loan servicer. Use the Loan Simulator at studentaid.gov to compare plans and estimate payments for your specific loans — a general sample-payment table isn't reliable here since it depends on your loan mix, balance, and plan.
If you're enrolled in the SAVE Plan, your servicer will contact you directly with your transition timeline and options.
Exit Counseling
Federal Direct Loan borrowers must complete Exit Counseling before leaving school, dropping below half-time enrollment, or graduating. This reviews your rights and responsibilities as a borrower and when repayment begins (typically six months after you leave school or drop below half-time).
- 1
Log in at studentaid.gov
Go to studentaid.gov and sign in with your FSA ID.
- 2
Complete Exit Counseling
Select "Complete Exit Counseling" from your dashboard and follow the steps. It typically takes 20–30 minutes.
- 3
Notify Trinidad State
Select Trinidad State College as the school to notify, then submit. Print or save your confirmation for your records.
NSLDS Disclosure
Any loan borrowed by a student or parent is submitted to the National Student Loan Data System (NSLDS) and is accessible by guaranty agencies, lenders, and schools authorized to use the system. You can view your federal loan and grant history, including balances and servicer contact information, by logging in at studentaid.gov.
Additional Resources
Code of Conduct
TSC's Financial Aid Code of Conduct outlines ethical standards for administering financial aid.
FSA Ombudsman
If you have a dispute about your loan you can't resolve with your servicer, contact the Department of Education's Office of the Ombudsman at 1-877-557-2575 or fsaombudsmanoffice@ed.gov.
Questions about your loan?
Financial Aid Office — Trinidad Campus: (719) 846-5017 · Fax: 719-846-5420 · financialaid@trinidadstate.edu
Mail: TSC Financial Aid Office, 600 Prospect St., Trinidad, CO 81082
The Financial Aid Office has taken great care in providing the most recent information. Contents are subject to change without notice because of changing federal, state, or institutional policies. All financial aid awards are contingent upon availability of funds and the student's final eligibility determination.
Still have questions about your loan options?
The Financial Aid Office can walk you through what's right for your situation.