Loans

 A loan is money you borrow and must pay back after you leave school. Whether interest accrues while you are in school depends on the type of loan you receive. Subsidized loans are for students who demonstrate financial need — the federal government pays the interest while you are enrolled at least half time, so your balance does not grow while you are in school. Unsubsidized loans are available regardless of financial need, and interest begins building from the day the loan is paid out. In both cases, the loan must be repaid after you leave school — even if you do not finish your degree or cannot find work after graduation. Before taking out a loan, make sure you have used all of your free aid options first, including grants, scholarships, and work-study. Only borrow what you truly need.

Southwestern College participates in the William D. Ford Federal Direct Loan Program. When you borrow a Direct Loan, you borrow directly from the federal government. A loan servicer is assigned to manage your account and handle repayment. You will have 24-hour online access to your loan information by logging in to your StudentAid.gov account and can choose from several repayment plans designed to fit your needs.

If you received an award notice that includes a loan, you are responsible for reading all of the information on these pages. Pay close attention to the Applying for a Loan page. Missing a step can delay or cancel your loan.

Important: Changes to Federal Student Loans Coming July 1, 2026

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBB) into law. Several significant changes to federal student loans are scheduled to take effect on July 1, 2026 for the 2026-2027 academic year. These changes will affect both new and current borrowers. The information below reflects our current understanding of the law. Final guidance from the U.S. Department of Education is still being finalized and this page will be updated as new information becomes available.

Loan Cancellation

If you receive a loan disbursement and decide you do not want it, you have the right to cancel all or part of your loan. You must notify the Financial Aid Office within 14 days of the loan being applied to your SWC account. Complete the Direct Loan Cancellation Form on the Financial Aid Forms page. If you want to return funds after the 14-day window has passed, contact your loan servicer directly about making a payment.

Repayment Help: ECMC Solutions

SWC has partnered with ECMC Solutions, a free nonprofit service dedicated to helping students manage and repay their student loans. If you have questions about your repayment options, an ECMC advisor can help. They can be reached by contact form, chat, or phone at (877)-331-3262.