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Federal Direct Loans (Subsidized and Unsubsidized)
Federal Direct loans are administered by the federal government. Direct loans are made with and guaranteed by the government. Federal Direct 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 Direct loan and an Exit Interview when graduating or leaving LC. For students who are receiving a Federal Direct 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 Direct loans:
•FAFSA is required when applying for a Direct loan
•Application for a Direct loan should be made annually through the LC Financial Aid Data Form
•Students must be enrolled at LC at least half-time.
Subsidized Direct 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 Direct loan is processed.
Unsubsidized Direct Loans — Unsubsidized loans are available for applicants who are not eligible or who have limited eligibility for Subsidized Direct 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 — $5,500 ($3,500 may be subsidized.)
•Sophomore — $6,500 ($4,500 may be subsidized.)
•Junior, Senior — $7,500 ($5,500 may be subsidized.)
Independent students (and dependent students whose parents do not qualify for PLUS) may request the following amounts per academic year:
•Freshman — $9,500 ($3,500 may be subsidized)
•Sophomore — $10,500 ($4,500 may be subsidized),
•Junior, Senior — $12,500 ($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.