Financial Aid

What are my loan options

How can loans help me pay for school?

  • Federal loans assist with the costs associated with your education.
  • Borrow at a lower interest rate than private loans.
  • You have several repayment options available.
  • No credit check.

What is the difference between a Subsidized Loan and an Unsubsidized Loan?

  • Subsidized Loans:
    1. Need based.
    2. No interest accrued until 6 months after you leave school.
  • Unsubsidized Loans
    1. Non-need based.
    2. Interest accrues while you are attending school.

How do I qualify for loans?

  • Eligibility is determined based on completion of the Free Application for Federal Student Aid (FAFSA).
  • You must be enrolled for at least 6 credits per semester.
  • You must be in good academic standing.

Is there anything I need to do to get my loans?

  • Sign and return your LCSC Award Letter and Conditions of Award.
  • You must complete Entrance Counseling when you first borrow at https://studentloans.gov.
  • You must complete a Loan Agreement (MPN) at https://studentloans.gov.
  • An MPN needs to be completed once every ten years unless you have a stop out period of greater than a year.

 

How much can I borrow?

  • There is an annual limit and an aggregate limit based on dependency status.
  • Dependent students (had to provide parental information on the FAFSA) can borrow up to the following amounts annually:
    • Freshman (0-25 credits) - $5500 (no more than $3500 of this amount may be in subsidized loan)
    • Sophomore (26-57 credits) - $6500 (no more than $4500 of this amount may be in subsidized loan)
    • Junior/Senior (58+ credits) - $7500 (no more than $5500 of this amount may be in subsidized loans)
  • Aggregate limit for a dependent student is $31,000. Subsidized loan limit cannot exceed $23,000.
  • Independent students (did not have to provide parental information on the FAFSA) can borrow up to the following amounts annually:
    • Freshman (0-25 credits) - $9500 (no more than $3500 of this amount may be in subsidized loan)
    • Sophomore (26-57 credits) - $10,500 (no more than $4500 of this amount may be in subsidized loan)
    • Junior (58+ credits) - $12,500 (no more than $5500 of this amount may be in subsidized loan)
  • Aggregate limit for an independent student is $57,500. Subsidized loan limit cannot exceed more than $23,000.
  • Student may borrow up to listed amounts above, but cannot exceed the Cost of Attendance.

What is the interest rate?

  • The current interest rate for the 2017-2018 academic year is 4.45%.
  • The interest rate changes each July 1 for the next academic year.

Are there fees associated with these loans?

  • There is an origination loan fee assessed to each loan disbursement.
  • 1.069% is the current fee for a loan first disbursed on or after October 1, 2016, and before October 1, 2017.
  • 1.066% is the origination fee for a loan first disbursed on or after October 1, 2017, and before October 1, 2018.

When will I get my loan money?

  • If you are a first-year, first-time borrower, your first loan disbursement will be held for 30-days from the first day of school.
  • If you have previously attended or borrowed, the funds will be disbursed once all required paperwork is processed.
  • Yearlong loans are disbursed in two payments, one in the fall and one in the spring semester.
  • If you are a one-semester student, your loans will be disbursed at the start of the semester and after the mid-point of the semester, even if you attended another school the previous semester.

How do I know when I need to start making payments on my loans?

  • LCSC provides enrollment data each semester to the loan servicers.
  • Your loan servicer will contact you once you are reported as graduated, withdrawn or attending less than half time.
  • You will have a one-time 6 month grace period before payments will begin.

Where can I check my loan amounts or who my servicer is?

For information on your loans, you can log into the National Student Loan Data System (NSLDS) at https://nslds.ed.gov.

You will need to use your FSA ID and password to log in.

You can also sign up for a service provided by LCSC called SALT. You can upload your loan information and they can help you with consolidation and repayment issues. Visit saltmoney.org or the LCSC Financial Aid Office for more information.

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