Federal Direct Student Loans at LCCC
Federal Stafford Loan
Due to the recent enactment of a new federal law, the Health Care and Education Reconciliation Act of 2010, all colleges and universities must participate in the William D. Ford Federal Direct Loan Program for new federal student loans. In this program, students borrow directly from the federal government through Lorain County Community College. This includes the:
- Federal Subsidized Stafford Loan
- Federal Unsubsidized Stafford Loan
- Parental Loan to Undergraduate Students (PLUS)
Unlike grants, student loans are not free. They are federally guaranteed loans that must be repaid. Repayment begins six months after the student graduates or stops going to school at least half-time (6 credit hours or more). The typical expense period for student loans is the first day of fall semester and the last day of spring semester (August through May). However, student loans may be processed for eligible semesters of enrollment of less than a full academic year including summer or on a borrower-based academic year. Pre-loan counseling is conducted for all student loan applicants.
Subsidized Stafford Loan
Subsidized means that interest (which accrues on a loan while a borrower is in school, grace, or authorized periods of deferment), is paid by the government. Students do not have to make principal or interest payments while enrolled in an eligible academic program for at least half time (six credit hours).
Unsubsidized Stafford Loan
Unsubsidized means that the borrower is fully responsible for paying the interest that accrues on the loan. Interest on an unsubsidized loan accrues from the date of disbursement and continues throughout the life of the loan. Students do not have to make principal payments but ARE responsible for accrued interest while enrolled in an eligible academic program for at least half-time (six credit hours). Interest payments may be deferred until the student is in repayment.
Federal PLUS Loan
Federal PLUS loans are unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
Interest Rates
The interest rate for Subsidized Stafford loans depend on the date of disbursement.
| Date of First Disbursement |
Interest Rate |
|
July 1, 2006 – June 30, 2008 |
6.8% |
|
July 1, 2008 – June 30, 2009 |
6.0% |
|
July 1, 2009 – June 30, 2010 |
5.6% |
|
July 1, 2010 – June 30, 2011 |
4.5% |
|
July 1, 2011 – June 30, 2012 |
3.4% |
|
July 1, 2012 - June 30, 2013 |
3.4% |
| July 1, 2013 or after |
6.8% |
**For all Unsubsidized Federal Stafford Loans the interest rate is fixed at 6.8%
Loan Limits
Review the chart below for annual and aggregate limits for the Federal Stafford Loan.
|
Dependent Undergraduates |
Subsidized |
Additional Unsubsidized |
Total (Subsidized and Unsubsidized) |
|
First Year |
$3,500 |
$2,000 |
$5,500 |
|
Second Year |
$4,500 |
$2,000 |
$6,500 |
|
|
|
|
|
Independent Undergraduates
(and dependents whose parents are unable to borrow under the PLUS program) |
|
|
|
|
First Year |
$3,500 |
$6,000 |
$9,500 |
|
Second Year |
$4,500 |
$6,000 |
$10,500 |
* Loan eligibility is based on the federal loan calculation.
Loan Fees
THESE RATES ARE AS OF JULY 1, 2013:
|
PROGRAM |
ORIGINATION FEE |
| Direct Lending Subsidized Stafford Loans |
1.051% |
|
Direct Lending Unsubsidized Loans |
1.051% |
|
Direct Lending Plus Loans |
4.204% |
How to Apply for a Student Loan
Questions?
Lorain County Community College
Financial Services
1005 North Abbe Rd.
Elyria, OH 44035
Phone: 440-366-4034