Financial Aid

Student 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 students loans: Subsidized and Unsubsidized.

Subsidized

  • Must demonstrate financial need based on the FAFSA.
  • Must be enrolled at least half-time (6 or more credits).
  • Student may borrow up to listed amount but cannot exceed their Cost of Attendance.
  • A Loan Agreement (MPN) and Entrance Counseling must be completed prior to the first loan disbursement at https://studentaid.gov
  • A loan fee is proportionately deducted from each loan disbursement. The amount varies depending on when the loan is first disbursed
    • 1.059% if loan is first disbursed on or after October 1, 2019, and before October 1, 2020
    • 1.057% if loan is first disbursed on or after October, 1, 2020 and before October 1, 2021
  • Borrowers graduating in the current year must complete Exit Counseling within 20 days of the end of the semester at https://studentaid.gov
  • Fixed interest rate for the 2020-2021 academic year is 2.75%.
  • Interest on the loan is paid by the Federal government until you are required to begin repayment after you graduate or drop below half-time enrollment.
  • Subsidized loan repayment may be consolidated with Perkins and Nursing loans.

Unsubsidized

  • Must complete a FAFSA, but do not have to demonstrate financial need.
  • Must be enrolled at least half-time (6 or more credits).
  • Student may borrow up to listed amount but cannot exceed their Cost of Attendance.
  • A Loan Agreement (MPN) and Entrance Counseling must be completed prior to the first loan disbursement at https://studentaid.gov
  • A loan fee is proportionately deducted from each loan disbursement. The amount varies depending on when the loan is first disbursed.
    • 1.059% if loan is first disbursed on or after October 1, 2019, and before October 1, 2020
    • 1.057% if loan is first disbursed on or after October 1, 2020 and before October 1, 2021 
  • Borrowers graduating in the current year must complete Exit Counseling within 20 days of the end of the semester at https://studentaid.gov
  • Fixed interest rate for the 2020-2021 academic year is 2.75%.
  • Student is responsible for all interest that accrues on the loan and interest will be charged until the loan is fully repaid.
  • You do have the option of capitalizing the interest and not paying anything until you are required to begin repayment 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.

Federal Nursing Student Loan (BSN)

  • Awarded to students who have been accepted into the Nursing program at LCSC.
  • Award amounts may vary depending on the availability of funding and your demonstrated financial need.
  • A BSN specific Promissory Note must be signed in the Student Accounts Office and Self-Certification and Approval and Disclosure Forms must be signed in the Financial Aid Office.
  • Is a loan that must be repaid.
  • Interest rate is 5%.
  • Students are allowed a 9-month grace period before repayment begins.
  • 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 Perkins and Direct loans.

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