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.
We recommend you also visit Federal Student Aid for additional information on student loans.
What types of student loans are available?
There are two types of federal loans available, Direct Loans for students and Parent Loans for Undergraduate Students (PLUS) for parents. Private loans may also be available. Students must seek out a private loan through the lender of their choice and Lake Land may or may not certify the loan depending on eligibility requirements.
Federal Direct Loan Program
How do I qualify for a Federal Direct Loan?
You must complete the Free Application for Federal Student Aid (FAFSA) in order to be considered for a Direct loan. There are two types of Direct Loans: subsidized and unsubsidized.
A subsidized Direct 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 Direct 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 Direct Loan you must meet the following eligibility requirements:
How much can I borrow under the Direct 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 Direct Loans?
For the 2014-15 academic year, the interest rate on subsidized and unsubsidized Direct loans is 4.66%.
What is Entrance Loan Counseling?
Because borrowing under the Direct loan program is a serious financial obligation that should not be entered into lightly, all students who borrow a Direct 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.
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 Direct loans must be repaid with interest, all students borrowing under the Direct loan program must sign a promissory note. 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. Select "Complete MPN" and then be sure to select "Subsidized/Unsubsidized ".
What is Exit Loan Counseling?
When a student graduates or drops below half-time attendance, exit loan counseling must be completed. The exit loan counseling session will review your repayment obligation, provide information regarding monthly repayment amounts, 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 U.S. Department of Education’s Direct Loans Web site. Click on "Complete Counseling" and then select "Exit Counseling".
How do I Request a Federal Direct Loan?
You must log in to the Lake Land Hub and select "Request a Student Loan" under the Financial Aid section.
Direct Loan 150% Loan Limit Rule
As of July 1st, 2013, any first-time borrower, (which is defined as someone who has no outstanding balance on a FFELP or Direct loan when receiving a Direct loan on or after July 1, 2013), will only be able to obtain federal Direct Subsidized loans for a maximum of 150% of the published program length in which they are enrolled. Additionally, the subsidized loans that had been borrowed up to the 150% point will lose further government subsidy and interest will begin to become the student's responsibility if they do not graduate by the 150% point (and continue to be enrolled in the same or a shorter undergraduate program). From that point forward, these subsidized loans will become unsubsidized loans.
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 the 2014-2015 academic year the interest rate is 7.21% and interest accrues on the PLUS loan as soon as the loan is 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. The fee is deducted 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 unless the parent opts to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after the student is no longer enrolled at least half-time. If you are a parent borrower, you may contact your loan servicer to request a deferment..
How much time will I have to repay my loan, and how much will I have to pay each month?
When you receive your Direct PLUS loan, you will be contacted by your loan servicer. The loan servicer will provide you with information on how and when to repay your loan. For more information on PLUS Loans and to determine your PLUS loan servicer, you may log in to My Federal Student Aid.
Student Loan Resources
2015-16 FAFSA Available January 1
Submit your 2015-16 FAFSA at www.fafsa.gov on or soon after January 1 in order to maximize financial aid eligibility for 2015-16 school year, which begins with the Fall 2015 term.
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.
1/1/15 - 2015-16 FAFSA Available
1/12/15 - Spring Semester Begins
2/6/15 - Pell Refunds of Credit Issued
2/20/15 - Loan Refunds of Credit Issued
3/6/15 - Spring Bills Due in Full
5/1/15 - Final Day to Request Spring Loan
5/11/15 - Spring Semester Ends