Financial Aid

Loans

Federal Stafford Loans (Subsidized and Unsubsidized)
Federal Stafford loans are administered by the federal government. Stafford loans are made with a bank (chosen by the applicant) and guaranteed by a guaranty agency. Federal Stafford loans carry low variable interest rates that are determined every July 1. Repayment begins six months after leaving school or dropping below half-time enrollment. Students must complete an Entrance Interview when first receiving a Federal Stafford loan and an Exit Interview when graduating or leaving LC. For students who are receiving a Federal Stafford loan for less than an academic year for a remaining period of enrollment and who will complete their degree requirements at LC, the maximum yearly amount for which they are eligible will be prorated according to federal guidelines.

Other important information regarding Federal Stafford loans:

• FAFSA is required when applying for a Stafford loan
• Application for a Stafford loan should be made annually through the LC Financial Aid Data Form
• Students must be enrolled at LC at least half-time.

Subsidized Stafford Loans — Subsidized loans are based on need and family income. The interest on Subsidized loans is paid by the federal government during in-school and eligible deferment periods. A student's eligibility for Subsidized loans will be considered before any requested Unsubsidized Stafford loan is processed.

Unsubsidized Stafford Loans — Unsubsidized loans are available for applicants who are not eligible or who have limited eligibility for Subsidized Stafford loans. The student is responsible for the interest on Unsubsidized loans during all periods, including in-school.

Dependent students may request the following amounts per academic year. Dependency status is determined by the FAFSA:

• Freshman
  $2,625, after July 1, 2007 will increase to $3,500

• Sophomore
  $3,500, after July 1, 2007 will increase to $4,500

• Junior, Senior — $5,500

Independent students (and dependent students whose parents do not qualify for PLUS) may request the following amounts per academic year:

• Freshman
  $6,625 ($2,625 may be subsidized),
  after July 1, 2007 will increase to $7,500 ($3,500 may be subsidized)

• Sophomore
  $7,500 ($3,500 may be subsidized),
  after July 1, 2007, will increase to $8,500 ($4,500 may be subsidized)

• Junior, Senior — $10,500 ($5,500 may be subsidized)

Further information and application forms are available in the LC Financial Aid Office.

Federal PLUS loans
Parents with good credit histories may borrow funds for a dependent child who is enrolled at least half-time at LC. The variable interest rate is calculated every July 1. The yearly loan limit is the cost of education minus any estimated financial aid. Repayment begins 60 days after the final disbursement. There is no grade period for a PLUS loan. Parent borrowers must meet U.S. citizenship requirements and must not be in default or owe a refund on a federal student loan or grant. Further information and application forms are available in the LC Financial Aid Office.

J. Leo and Nan Perry Bunch Loan
Amount: Up to $1,000 per year
Eligibility: Financial need
Frequency of Application: Each semester

Any full-time student who may not qualify for the Federal Stafford Loan (GSL) and, who in the opinion of the director of financial aid must have a loan either to enroll or remain as a student at Louisiana College, may apply for this loan. Borrowers begin repayment of the loan six months after leaving Louisiana College. Minimum re-payment is $30 plus interest per month. Nine percent is the simple rate of interest and 10 years are allowed for repayment. For information concerning the Bunch Loan, contact the LC Financial Aid office.

Short Term Loans
Amount: Maximum of $500 per semester
Eligibility: Financial need; one previous semester at Louisiana College; minimum of 2.0 GPA; loan committee approval.
Frequency of Application: Maximum of one per semester

Occasionally Louisiana College is able to make short term loans to students who find themselves in temporary financial difficulty at the time of registration only. Repayment must be made according to he signed repayment schedule. Late fees will be added to loans not paid when due. Application is made through the Office of Vice President for Business Affairs.

These short-term loans are administered through the Office of the Vice President for Business Affairs.

• Ursula H. Denbo Memorial Fund (missionary/ministerial)
• B. E. Doughty Loan Fund
• J. O. Kimball Loan Fund (church-related vocations)
• Parrot-Culbertson
• Pate Memorial Loan Fund
• Rev. Mark Price Loan Fund
• Central Baptist Church, Springhill Loan Fund
• L. C. Starr Loan Fund
• Lucy Stewart Strain Memorial Loan Fund (Seniors only)
• William T. Strain Memorial Loan Fund