What are student loans?
Student loans are educational funds that must be repaid with interest. We strongly encourage you to consider all other options for financing your education first, and use a student loan only as a "last resort."
Lake Land College participates in the Federal Direct Loan program.
Under the Federal Direct Loan program, loan eligibility is determined by the Lake Land College Financial Aid Office and the loans are made by the U.S. Department of Education.
What types of student loans are available?
There are two types of loans available, Online Loans for students and Parent Loans for Undergraduate Students (PLUS) for parents.
How do I qualify for a Stafford Loan?
You must complete the Free Application for Federal Student Aid (FAFSA) in order to be considered for a Stafford loan. There are two types of Stafford Loans: subsidized and unsubsidized.
A subsidized Stafford loan is a need-based loan which means students must demonstrate need according to data submitted on the FAFSA. Interest begins accruing on the loan at the time the loan funds are disbursed, but the federal government pays (subsidizes) the interest for students while they are enrolled in school on at least a half-time basis.
An unsubsidized Stafford loan is not based on need. Interest begins accruing on the loan at the time the loan funds are disbursed and the student is responsible for paying the interest while in school. Interest can be capitalized which means the student would not have to pay the interest while in school, but the interest accruing is added to the amount borrowed, so the loan amount continues to increase.
To be considered for a Stafford Loan you must meet the following eligibility requirements:
How much can I borrow under the Stafford Loan Program?
Additional unsubsidized loan funds may be available for students with remaining unmet cost of attendance. Students are required to meet with a financial aid advisor for loan counseling and to discuss available non-loan options.
We strongly advise students to only borrow what is absolutely needed. Lake Land College is a low-cost institution, and we want to keep your student loan debt at a minimum upon graduation or transfer to a four-year institution.
Formula to determine financial eligibility
Subsidized = Cost of Attendance (COA) - Expected Family Contribution (EFC) - Expected Financial Assistance
Unsubsidized = Cost of Attendance (COA) – Expected Financial Assistance
What is the interest rate on Stafford Loans?
For the 2013-14 academic year, the interest rate on subsidized and unsubsidized Stafford loans is 3.86%.
What is Entrance Loan Counseling?
Because borrowing under the Stafford loan program is a serious financial obligation that should not be entered into lightly, all students who borrow a Stafford loan must complete an entrance loan counseling session before loan funds can be disbursed.
The entrance loan counseling session is designed to inform students about their rights and responsibilities as a borrower, explain the importance of loan repayment, and make sure students understand the consequence of defaulting on a student loan. The entrance loan counseling session needs to be completed once each academic year (Fall, Spring, Summer).
Students complete the online loan counseling through the U.S. Department of Education's Direct Loans Web site. Click on the Entrance and Exit Counseling option and then select "Entrance Counseling."
How do I sign my Master Promissory Note?
Because Stafford loans must be repaid with interest, all students borrowing under the Stafford loan program must sign a promissory note each time they borrow. This is your promise to repay the loan and it is a legally-binding document between you and the U.S. Department of Education. The MPN is completed online through the U.S. Department of Education’s Direct Loans Web site.
What is Exit Loan Counseling?
When a student graduates or drops below half-time attendance, an exit loan counseling session must be completed. The exit loan counseling session will review your repayment obligation, provide information regarding typical monthly repayment amounts based on various levels of borrowing, explain deferment and forbearance options and stress the serious consequences of defaulting on a federal student loan. Students complete the online exit counseling through the National Student Loan Data System Web site. Click on the Entrance and Exit Counseling option and then select "Exit Counseling."
How do I Request a Federal Direct Stafford Loan?
You must log in to the Lake Land Hub and select "Request a Student Loan" under the Financial Aid section.
What is a PLUS Loan?
A PLUS loan is a loan that parents of dependent students can receive to cover educational expenses for their dependent undergraduate student.
Click here to learn more about the different PLUS Loans at the U.S. Department of Education
How much can a parent borrow, and what is the interest rate on the loan?
Parents can borrow up to the cost of attendance at LLC, less any financial aid their student is receiving. For example, if the cost of attendance is $9,220 and your student receives $5,000 in other financial aid, parents can borrow up to $4,220. The current interest rate is 6.41% and interest accrues on the PLUS loan as soon as the loan is disbursed. Repayment of the loan begins within 60 days of the loan being fully disbursed.
Formula to determine financial eligibility
PLUS loan = Cost of Attendance (COA) – other financial aid received
Is there a charge for the PLUS loan?
Yes. In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. We deduct the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.
How do parents apply for a PLUS Loan?
What are the eligibility requirements for a parent to get a Direct PLUS Loan?
How will I receive PLUS loan money?
Lake Land College disburses loan money by crediting the student’s account, and will mail any excess funds directly to the parent. Loan money is always disbursed in at least two installments.
When do I have to begin repaying my PLUS Loan?
Repayment of a Direct PLUS Loan begins 60 days after the full amount you have borrowed for a school year has been disbursed. You can find information about postponing repayment by contacting the Direct Loan Servicing Center (1-800-848-0983) or by visiting Direct Loans on the Web.
How much time will I have to repay my loan, and how much will I have to pay each month?
Your monthly payment amount will be based on how much you borrowed and how long you take to repay. There is no penalty if you make payments before they are due or pay more than the amount due each month. You can find information about repayment by contacting the Direct Loan Servicing Center (1-800-848-0983) or by visiting Direct Loans on the Web.
Student Loan Resources
2014-15 FAFSA Available NOW!
Complete or renew your FAFSA for Fall 2014. Funds are limited, so don't delay, APPLY TODAY!
Financial Aid on LLC Hub/IRIS
You can now check the status of your FAFSA application and documents on the Hub/IRIS. Simply log in, and click on Financial Aid "Status and Documents". Awards can also be viewed there.
Check Your Lake Land E-mail!
Important financial aid updates and information is being sent via LLC e-mail. Be sure to check it regularly!
Get Your Refund Faster!
Sign up for Direct Deposit! Log on to IRIS, click on Student Refunds-Bank Info, and enter your info.
1/1/14 - 14/15 FAFSA Available
1/13/14 - Spring Semester Begins
2/7/14 - Pell Refunds of Credit Issued
2/21/14 - Loan Refunds of Credit Issued
3/7/14 - Bills Due in Full
5/2/14 - Final Day to Request Spring Loan
5/12/14 - Spring Semester Ends