Loans

The Federal Direct Subsidized Loan is a need-based loan, and offered to eligible undergraduate students 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 enrolled at least half-time in school.

The Federal Direct Unsubsidized Loan is non-need-based, and offered to eligible undergraduate students to help cover educational expenses. These funds must be repaid according to the terms of the Master Promissory Note and interest does accrue while the student is in school.

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  How to Apply:

  1. Submit the Free Application for Federal Student Aid (FAFSA) by the Recommended FAFSA File Date.
  2. Review Financial Aid Status via Banner Self- Service and complete any requested requirements by the Recommended Document Submit Date.
  3. View financial aid awards and Accept/Decline offered loan(s) on the Offer tab of your Financial Aid Record in Banner Self-Service.
  4. First time loan borrowers will need to complete Federal Direct Loan Entrance Counseling, which provides comprehensive information on borrower responsibilities, repayment information, and the terms and conditions of borrowing loans.
  5. Borrowers are also required to sign a Master Promissory Note (MPN) which is a legal agreement to repay the loans and accrued interest. An MPN is required of all first-time borrowers, and borrowers with a previous MPN that is inactive or has expired must also sign a new MPN.
  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.
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  Important Information:

  1. Students must be actively enrolled at least half-time, six (6) financial aid eligible credits, during the semester the student receives Federal Direct Loans (FDL). This includes being enrolled at least half-time to receive FDL in the summer semester.
  2. Students must meet all Basic Eligibility Requirements, including meeting Satisfactory Academic Progress.
  3. Students may borrow up to the maximum amount of loan eligibility as determined by dependency status and the number of credits earned (including transfer credits).
  4. After graduation, or dropping below half-time attendance, students must complete Exit Counseling which will inform the borrower of their repayment options, responsibilities and consequences of not repaying the loan.
  5. The Department of Education has contracted federal loan servicers that work with students during the course of receiving and repaying loans. Borrowers can determine their assigned loan servicer by accessing studentaid.gov. 
  6. LCC has an agreement with Student Connections to provide repayment resources and education/career planning tools. Student Connections can help with options available to borrowers who are having trouble making loan payments.
  7. 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

  Grade Level	Dependent Students	Independent Students
  Freshman: 0-29 credit hours	$5,500 (no more than $3,500 subsidized)	$9,500 (no more than $3,500 subsidized)
  Sophomore: 30-59 credit hours	$6,500 (no more than $4,500 subsidized)	$10,500 (no more than $4,500 subsidized)

  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. The COA can vary based on the number of credits a student takes, their program of study, and the start and end-dates of their courses each semester.

  Maximum Amounts for an Academic Year (Annual Loan Limits)

  	Grade Level	Federal Direct Subsidized or Unsubsidized based on need	Additional Federal Direct Unsubsidized	Total
  Dependent Student (Parent information required on FAFSA)	Freshman (0 - 29.99 earned credits)	3500	+2000	5500*
  	Sophomore (30+ earned credits)	4500	+2000	6500*
  Independent Student (Parent information not required on FAFSA)	Freshman (0 - 29.99 earned credits)	3500	+6000	9500*
  	Sophomore (30+ earned credits)	4500	+6000	10500*

  *Please note loan amounts may be affected by Cost of Attendance, EFC, and/or other sources of aid. To view Cost of Attendance, EFC, and other sources of aid, login to Banner Self-Service > Financial Aid > Financial Aid Record > Award Overview.

  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 a student’s outstanding principal loan balance is at the aggregate loan limit, they are not eligible to receive additional loans. If a student’s outstanding principal loan balance exceeds the Subsidized and/or total combined loan limit, they are not eligible for any Title IV aid.

The Federal Direct PLUS 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 Recommended FAFSA File Date.
  2. Review Financial Aid Status via Banner Self- Service and complete any outstanding requirements by the Recommended 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 Department of Education 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, based on the denial of a PLUS Loan, the student can 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, the parent who applied must login to the Direct PLUS Loan Application and complete the process through Federal Student Aid.
  4. Students must be actively enrolled at least half-time, six (6) financial aid eligible credits, during the semester the student receives the loan. This includes being enrolled at least half-time to receive a PLUS Loan during summer semester.
  5. The Department of Education has contracted federal loan servicers that work with students and parent borrowers during the course of receiving and repaying loans. Borrowers can determine their assigned loan servicer by accessing studentaid.gov. 
  6. LCC has an agreement with Student Connections to provide repayment resources and education/career planning tools. Student Connections can help with options available to borrowers who are having trouble making loan payments.
  7. 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 your Banner Self-Service and LCC student email.
  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.

  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