Federal Stafford/Plus Direct Loan Program (DL)

To be eligible to apply for any of the Title IV student loans you must:

• Apply for financial aid using the FAFSA
• Have a completed, verified as accurate, student aid file on record
• Complete loan counseling and other special requirements. 
• Be enrolled in an eligible program in at least half-time enrollment status
• Be enrolled in only coursework relevant to your program of study
• Meet  DL Program Regulations per 34 CFR part 668
• Meet School processing deadlines (published on campus kiosks, in Campus Planner & on the WEB)

Federal Direct Stafford Loan Program (subsidized and unsubsidized)

• Repayment begins six months after the student graduates, leaves school or drops below half-time enrollment.
• Loans cannot be certified until after the add/drop period of the semester.
• Loan disbursements are deposited in the form of electronic funds to the student's LCN account and are released no earlier than thirty days after the beginning of the semester.
• Students may request up to $7,500.00 at the Junior or Senior Level each award year (max subsidized amount in figure is $5500.00).
• Independent students may be eligible for additional unsubsidized loans.

Federal Parent Loan for Undergraduate Students (PLUS)

Parents may borrow for their undergraduate students. Parents would be eligible to borrow up to the cost of education minus any financial aid.

Loan Interest Rates Between July 1, 2010 and June 30, 2011

• Stafford Subsidized      4.5 % 
• Stafford Unsubsidized  6.8%
• PLUS      8.50%

34 CFR Section 668.202(e)(1) of the Federal Direct Loan (DL) Program provides that a school may refuse to certify a Stafford or PLUS loan application or may reduce the borrower's determination of need for the loan if the reason for that action is documented and provided to the student in writing provided the determination is made on a case-by-case basis. All previous borrowing of student loans and total debt will be reviewed prior to certification of future loans.

Applying for Federal Direct Loans

The application process is conducted via the Internet. You will be required to login at specific sites (noted below) and use your Federal Student Aid Personal Identification Number (PIN) which is the same number you must use when completing the application for Federal Student Aid (the FAFSA) each award year.

To apply complete these steps:

1. Complete entrance counseling at StudentLoans.gov. All first time borrowers at LCN are required to complete this step even if they have done so at previous schools.
2. Complete the Electronic Master Promissory Note (EMPN) at StudentLoans.gov
3. Meet school deadlines for the semester in regards to loan processing.

If parent is applying for the Parent Loan for Undergraduate Students (PLUS) you must:

1. Complete PLUS request process at StudentLoans.gov
2. Endorse PLUS loans at StudentLoans.gov

All Loan Questions address to: tgarza@lakeviewcol.edu or phone (217)554-6839.