|
|
|
|
|
Click here to apply for Federal Financial Aid
|
|
|
|
|
|
Financial Aid Office -->
Loan
Types
There are several different types of loans that students may be eligible
to receive. It is important to remember that these are loans and
must be repaid once you have left school.
William D. Ford Federal Direct Loan Program:
The William D. Ford Federal Direct Loan Program provides for two types of student loans: (1) Subsidized and (2) Unsubsidized.
(1) To be eligible for a Subsidized loan you must demonstrate
financial need based on FAFSA information and be enrolled at least half-time
(6 or more credits). The Federal government currently pays the interest on
the Subsidized loan until you are required to begin repayment after you
graduate or drop below half-time enrollment. The fixed rate for the
Subsidized loan during the 2012-2013 academic year is 3.4%. Subsidized loan repayment may be
consolidated with Perkins and Nursing loans.
(2)
You do not have to demonstrate financial need to receive an Unsubsidized loan, but
you must complete the FAFSA and be enrolled at least halftime. The Federal government will
not pay the interest on an unsubsidized loan, and interest will be charged until the loan
is fully repaid. The fixed rate for the Unsubsidized loan during the
2012-2013 academic year is 6.8%. You do, however, have the option of capitalizing the
interest and not paying anything until six months after you graduate or drop below
half-time enrollment. If you choose this option, the interest will be added to the
principal balance for your loan.
Students may borrow up to the listed amounts but cannot exceed their Cost of Education.
You will be required to sign a Master Promissory Note at
www.studentloans.gov after the Award Letter is returned to the
Financial Aid Office. Your loan will be disbursed in two disbursements, regardless of your
loan period. First time borrowers and borrowers who are graduating in
the current year must complete a Debt Management Session (Entrance or Exit
Counseling) before checks can be disbursed.
Federal Perkins Loan:
The Federal Perkins Loan is awarded to students who demonstrate exceptional financial
need. The awards may vary depending on availability of funding and your demonstrated
financial need. This is a loan that must be repaid, but the interest rate is only 5% and students are allowed a 9-month grace period before they must begin repayment.
The minimum monthly payment is $40 and repayment is made to LCSC through the University
Accounting Services. Repayment of this loan may be consolidated with the
FFELP, Nursing
and Stafford loans.
A Perkins specific promissory note must be signed in the Controller’s Office
once the Award Letter accepting the loan is submitted.
Federal Nursing Student Loann
(BSN):
The Federal Nursing Student Loan is awarded to students who have been accepted into the
Nursing program at LCSC. The award values may vary depending on the availability of
funding and your demonstrated financial need. The interest rate is 5% and a 9-month
grace period is allowed before repayment begins. The minimum monthly payment is $40 and
repayment is made to LCSC through the University Accounting Services. This loan may be
consolidated with the FFELP, Stafford and Perkins loans..
A BSN specific promissory note must be signed
in the Controller’s Office and Self-Certification and Approval
and Disclosure Forms must be signed in the Financial Aid Office once
the Award Letter accepting the loan is submitted.
[Back to top]
Completing your Direct Loan Master
Promissory Note (MPN) and Entrance Counseling
A MPN must be
completed before your first loan can be processed for disbursement.
Once you have signed your Master Promissory Note you will not need
to complete another MPN for any future Direct Loans at Lewis-Clark
State College.
If you are first time borrower, you will also need to complete the on-line Entrance Counseling session.
An Entrance Counseling session must be completed before your first
disbursement can be credited to your student account.
Step 1 - Log on to
www.studentloans.gov.
Step 2 - Click on
the green "Sign In" button in the "Manage My Direct Loan" box.
Step 3 - Enter your
personal information including your FAFSA PIN number.
Step 4 -
Choose "Complete Master Promissory Note" and begin MPN completion.
To complete Entrance Counseling, follow steps 1-3 above and choose
"Complete Entrance Counseling".
**Perkins and BSN Promissory Notes and entrance and exit
counseling are performed in the LCSC Controller's Office.**
[Back to top]
National Student Loan Data System
(NSLDS):
All information
pertaining to a Title IV loan will be submitted to the National
Student Loan Data System (NSLDS), whether the borrower is a student or
parent. NSLDS will be
accessible by guaranty agencies, lenders, and institutions determined
to be authorized users of the data system. Students and parents may
obtain access to this website at
www.nslds.ed.gov to track individual loans.
[Back to top]
Private Educational Loans:
Before
considering private funding, you should apply for federal loans.
If you choose to seek private funding, you might want to look
into borrowing from a bank, credit union or other lending institution.
These loans are similar to government sponsored loans, but will
often require credit checks and/or a creditworthy co-signor.
You will need to
contact the lending institution directly in order to obtain any
additional information and to apply for a Private Education Loan.
Once you have completed an application with your selected
lender, a loan certification will be sent to the Lewis-Clark State College
Financial Aid Office. A
Self-Certification Form will be provided to the student upon request
from the LCSC Financial Aid Office.
Loan amounts requested as
part of a private educational loan will be split into two disbursments.
[Back to top]
Managing Your Loan Payments:
It's easier than you might think. What's
more, it will save you considerable angst and eliminate serious
negative consequences.
Fast Facts To Help Manage Your Loan Payments
- On-time repayment of your student loan is
critically important. It's also a great way to develop a
good credit history, which follows you wherever you go and
whatever you do.
- Delinquent payments are reported to a
national credit agency and will damage your credit report and
your future ability to borrow.
- Your lender or guarantor can provide you with
options if you're having difficulty making payments.
- The consequences of defaulting on your
student loan can be downright scary:
- You lose the privilege of monthly
payments, and the full amount of your loan becomes
immediately due and payable.
- Your wages and/or your entire tax refund
may be garnished.
- Collection charges and attorney fees may
be assessed, increasing the loan payoff amount.
- You will lose your eligibility for any
additional federal student financial aid.
- Your payments may increase, further
straining your ability to repay.
- You will lose the options of deferment
and forbearance.
- You may not be eligible for certain
federal and state jobs.
- You may lose your professional license.
Deferment
- A deferment is the temporary postponement of
payments on your student loan
- Your lender or guarantor can advise you on
your deferment eligibility status.
- Primary reasons and time considerations for
deferment include:
- Returning to school at least half time
(unlimited periods)
- Unemployment (six-month period with a
maximum of six periods)
- Economic hardship (12-month period with a
maximum of three periods)
- Deferments are not automatic; you must apply
for one and receive approval from your lender.
- When subsidized loans are deferred, the
principal payments are postponed and the interest is billed to
the federal government.
- When unsubsidized loan is deferred, the
principal payments are postponed but you are responsible for
paying the accrued interest.
- If you received a student loan prior to July
1, 1993, additional factors may constitute eligibility for
deferment - a graduate fellowship, military duty, parental
leave, and more. Talk to your lender for details.
Forbearance
- Forbearance is the temporary cessation or
reduction of principal payments on your student loan.
- You are still responsible for all accrued
interest during the forbearance period.
- If you do not qualify for a deferment but are
having a hard time repaying your student loan, you may be
eligible for forbearance.
- Common reasons for forbearance include:
- Poor health
- A rigorous residency program
- A loan payment that exceeds 20 percent of
your total monthly gross income
- Forbearance is allowed at the discretion of
the lender.
- Forbearance often results in an extended
repayment period.
Loan Cancellation
- A loan may be cancelled under extreme
circumstances:
- Permanent and total disability
- inability to complete a course of study
because your school closes (if certain conditions prevail)
- Eligibility falsely certified by your
school
- Death
[Back to top]
|
|
|
