Loans

The Federal Direct Subsidized Loan is made to eligible undergraduate students who demonstrate financial need to help cover educational expenses. These funds must be repaid according to the terms of the Master Promissory Note and interest does not accrue while the student is in school.

The Federal Direct Unsubsidized Loan is made to eligible undergraduate, graduate, and professional students to help cover educational expenses. The student does not have to demonstrate financial need. These funds must be repaid according to the terms of the Master Promissory Note and interest does accrue while the student is in school. The Federal Direct Unsubsidized Loan is available to any student, regardless of need. Also, unlike the other federal loans, interest accrues while the student is attending school. If students want to apply for the Federal Direct Unsubsidized Loan, they must complete the FAFSA.

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  How to Apply:

  1. Submit the Free Application for Federal Student Aid (FAFSA) by the Priority FAFSA File Date.
  2. Review Financial Aid Status via myLCC and complete any requested requirements by the Priority Document Submit Date.
  3. View financial aid awards and Accept/Decline student loans via myLCC.
  4. Prior to the first disbursement, a first time borrower must complete Federal Direct Loan Entrance Counseling which will provide comprehensive information on borrower responsibilities and the terms and conditions of the loan. Borrowers must also sign a Master Promissory Note (MPN) which is the promise to repay the loan funds.
  5. Refer to Student Finance for how to receive financial aid refunds and the requirement for signing up every semester for an installment payment plan.
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  Important Information:

  1. Students must be actively enrolled at least half-time enrollment, six (6) financial aid eligible credits, during the semester the student receives FDL. This includes being enrolled in six (6) credits during summer semester even though the College's definition for half-time is only three (3) credits.
  2. Students must meet all Basic Eligibility Requirements, including meeting Satisfactory Academic Progress.
  3. If the student has earned fewer than 30 credits (including transfer credits) and has never borrowed a federal loan, federal regulations require that the first loan disbursement be delayed until the 31st day of the first semester funds are borrowed.
  4. If the FDL is for one semester only, federal regulations require loans to be disbursed in two equal payments with the second disbursement not being prior to the mid-point of the semester. View anticipated disbursement dates via myLCC.
  5. Students may borrow up to the maximum amount of loan eligibility as determined by dependency status and the amount of credits earned (including transfer credits).
  6. After graduation, or dropping below half-time attendance, students must complete Exit Counseling which will inform the borrower of his/her repayment options, responsibilities and consequences of not repaying the loan.
  7. The DOE has many servicers who students will interact with during the course of receiving and repaying loans. For students to determine which servicer(s) their loans have been assigned, access studentaid.gov. You may view all FDLs received.
  8. LCC has an agreement with Educational Credit Management Corporation (ECMC) to provide repayment resources and education/career planning tools. ECMC can help with options available to borrowers who are having trouble paying.
  9. If you borrow a loan, the loan information will be submitted to the National Student Loan Data System (NSLDS) through the Department of Education, and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.

  Annual Loan Limits

  The actual loan amount a student is eligible to receive each academic year is determined based on FAFSA results, a student's Cost of Attendance (COA), and overall financial aid package. However, there are limits on the amount of Federal Direct Subsidized and Unsubsidized Loans a student may be eligible to receive each year (annual loan limits). The actual loan amount a student may be eligible to receive each academic year may be less than the annual loan limit. These limits vary based on semesters of eligible attendance, dependency status, the amount of credits earned (including transfer credits) and COA.

  Federal Undergraduate Aggregate Loan Limit

  The Federal Undergraduate Aggregate Loan Limit is the maximum amount a borrower can have in overall outstanding student loan debt. At the independent, undergraduate level, the total amount a student may borrow is $57,500. No more than $23,000 of that amount may be in Federal Subsidized Loans. At the dependent, undergraduate level, the total amount a student may borrow is $31,000. No more than $23,000 of that amount may be in Federal Subsidized Loans. Students can view their loan history by logging into studentaid.gov with their Federal Student Aid ID (FSA ID) and selecting View Details. If the total loan amount a student receives over the course of their education reaches the aggregate loan limit, they are not eligible to receive additional loans.

  Federal Direct Subsidized Loan Limit

  There is a limit on the maximum period of time (measured in academic years) that students can receive Federal Direct Subsidized Loans. First-time borrowers taking out Federal Direct Subsidized Loans on or after July 1, 2013 are subject to the 150% Direct Subsidized Loan Limit federal regulation, which limits the amount of time a student is eligible to borrow Federal Direct Subsidized Loans to 150% of their published program length.

  For example, a student enrolled in a two-year associate degree program may only receive Federal Direct Subsidized Loans for a maximum period of three years (150% of two years = three years). Additionally, if a student has reached this limit, interest may start accruing on prior Federal Direct Subsidized Loans. The maximum eligibility period is based on the published length of the student's program of study. This means that the maximum eligibility period can change if a student changes programs. Also, if a student receives Federal Direct Subsidized Loans for one program and changes to another program, the Federal Direct Subsidized Loans received for the earlier program will generally count against the new maximum eligibility period.

  Enrollment level is also used to calculate the 150% Federal Direct Subsidized Loan Limit. For example, receiving a Federal Direct Subsidized Loan with full-time enrollment for a full academic year is considered one year of eligibility, whereas receiving a Federal Direct Subsidized Loan with half-time enrollment for a full academic year is considered half a year of eligibility. For more information regarding this eligibility limit, please visit Great Lake's article: Do You Know About the Federal Subsidized Student Loan Limit?

The Direct PLUS Loans are loans made to parents of a dependent student to help cover educational expenses of the dependent student. Eligibility is not based on financial need, but a credit check is required. Parent borrowers who have an adverse credit history must meet additional requirements to qualify.

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  How to Apply:

  1. Submit the Free Application for Federal Student Aid (FAFSA) by the Priority FAFSA File Date.
  2. Review Financial Aid Status via myLCC and complete any outstanding requirements by the Priority Document Submit Date.
  3. To borrow a Federal Direct PLUS Loan, the parent borrower must submit the Direct PLUS Loan Application.
  4. The parent borrower must sign a Master Promissory Note (MPN). (Ensure PLUS MPN for Parents is being completed)
  5. Refer to Student Finance for how to receive financial aid refunds and the requirement for signing up every semester for an installment payment plan.
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  Important Information:

  1. The DOE makes the decision regarding a parent's creditworthiness for the PLUS Loan.
  2. Students whose parent has been denied a Federal Direct PLUS Loan based on credit may qualify for additional Federal Direct Unsubsidized Loans. To request the additional Federal Direct Unsubsidized Loan funds, complete the Loan Form.
  3. Parents denied based on credit may choose to get an Endorser (co-signer) or appeal the credit decision. To begin the endorser or appeal process, call 517-483-1200, select option 2, and ask for a loan specialist. The parent who applied must login to the Direct PLUS Loan Application
  4. Students must be actively enrolled at least half-time enrollment, six (6) financial aid eligible credits, during the semester the student receives the loan. This includes being enrolled in six (6) credits during summer semester even though the College's definition for half-time is only three (3) credits.
  5. If the PLUS Loan is for one semester only, federal regulations require loans to be disbursed in two equal payments with the second disbursement not being prior to the mid-point of the semester. View anticipated disbursement dates via myLCC.
  6. The DOE has many servicers who student and parent borrowers will interact with during the course of receiving and repaying loans. For borrowers to determine which servicer their loans have been assigned, access studentaid.gov. You may view all loans received.
  7. LCC has an agreement with Educational Credit Management Corporation (ECMC) to provide repayment resources and education/career planning tools. ECMC can help with options available to borrowers who are having trouble paying.
  8. If your parent borrows a Federal Direct PLUS Loan, the loan information will be submitted to the National Student Loan Data System (NSLDS) through the Department of Education, and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.

Private (Alternative) Loans are credit-based student loans offered by private lenders. They are available to students who need funds in addition to their federal aid to meet educational expenses or for those students not eligible for federal aid.

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  How to Apply:

  1. Review a lender through FASTChoice, an Internet search, or by inquiring at the banking institution of your choice.
  2. Apply for the loan through the lender you have selected.
  3. Submit the Private (Alternative) Loan Self-Certification Form to LCC.
  4. Monitor Student Requirements via myLCC and LCC email.
  5. Once notified via myLCC, sign the Private (Alternative) Loan check at Student Finance.
  6. Refer to Student Finance for how to receive financial aid refunds and the requirement for signing up every semester for an installment payment plan.

  Note: A lender must obtain a self-certification signed by the applicant before disbursing a private education loan. The school is required on request to complete this form and provide it to the student.

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  Important Information:

  When choosing a lender, students should be mindful of the following:

  1. Variable vs. Fixed Interest Rates
  2. Delayed Repayment (in-school deferment) vs. Immediate Repayment
  3. Application, Processing, and Disbursement Fees
  4. Flexible Repayment Options
  5. Repayment Incentives
  6. Consolidation Options
  7. Utilize all Federal Loans first before borrowing from a Private/Alternative Lender