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 2018-2019 academic year is 5.05%.
  • 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.
  • 1.066% is the current fee for a loan first disbursed on or after October 1, 2017, and before October 1, 2018.
  • 1.062% is the origination fee for a loan first disbursed on or after October 1, 2018, and before October 1, 2019.

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.

 

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