Federal Direct Student Loans - About

Federal Direct Student Loans at LCCC

Federal Stafford Loans

    How to apply for a student loan
Click here for student loan application instructions
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
  • Federal 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 via https://studentloans.gov.

 ***In order for students to receive disbursement of federal stafford loan funds, they must be currently attending atleast 6 credit hours at the time of disbursement and meet all eligibility requirements.

Federal 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).  

Federal 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 Parental Loan to Undergraduate Student (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. 

Update on Federal Interest Rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans

Interest rates will be established each year for Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans for which the first disbursement is on or after July 1 through the following June 30. The rate will be the sum of a uniform “index rate” plus an “add-on” that varies depending on the type of loan (Subsidized/Unsubsidized or PLUS) and the borrower’s grade level (undergraduate or graduate/professional). Thus, interest rates will be the same for Direct Subsidized Loans and Direct Unsubsidized Loans taken out by an undergraduate student, with a different rate for PLUS Loans taken out by taken out by parent borrowers.
The interest rate for a loan, once established, will apply for the life of the loan – that is, the loan will be a fixed-rate loan. As a result, it is likely that many borrowers will have a set of fixed-rate loans, each with a different interest rate, including the 3.4% and/or 6.8% Direct Subsidized and Direct Unsubsidized loans made prior to July 1, 2013.  

**New Loan Length Restrictions**

Beginning July 1, 2013, the length of time students will have access to subsidized loans is limited for new borrowers. Students cannot borrow more than 150% of a student’s program length.  For example, students who enroll in a two-year degree program can only borrow loans for three years total.  Once that limit has been reached, a student may borrow only unsubsidized loans, and will begin to accrue interest on outstanding subsidized loans. For more information, please visit: http://tinyurl.com/LimitRule 

 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


July 1, 2008 – June 30, 2009


July 1, 2009 – June 30, 2010


July 1, 2010 – June 30, 2011


July 1, 2011 – June 30, 2012


July 1, 2012 - June 30, 2013


July 1, 2013 or after


**For all Unsubsidized Loans disbursed prior to July 1, 2013 the interest rate is fixed at 6.8%.  **For all Unsubsidized loans disbursed after July 1, 2013, the interest rate is fixed at 3.86%.

Loan Limits

Review the chart below for annual and aggregate limits for the Federal Stafford Loan.

Dependent Undergraduates


Additional Unsubsidized

Total (Subsidized and Unsubsidized) 

First Year




Second Year




Independent Undergraduates
(and dependents whose parents are unable to borrow under the PLUS program)

First Year




Second Year




Aggregate Limits for Sub/Unsubsidized Loans
Dependent Undergraduates
(Excluding those whose parents can't borrow PLUS)
$23,000 $8,000 $31,000
Independent Undergrads & Dependent Students whose parents can't get PLUS $23,000 $34,500 $57,500

** Loan eligibility is based on the federal loan calculation.

Loan Fees  




Federal Subsidized Stafford Loans


Federal Unsubsidized Stafford Loans


Federal PLUS Loans






 Federal Subsidized Stafford Loans    


 Federal Unsubsidized Stafford Loans


 Federal PLUS Loans



How to Apply for a Federal Student Loan


Lorain County Community College
Financial Services 
1005 North Abbe Rd.
Elyria, OH 44035

Phone: 440-366-4034


Be a Success. Register Now!

Registration is now open for Summer and Fall classes.  Learn more and register today at www.lorainccc.edu/reginfo.

MyTuition Guarantee

LCCC students now have the opportunity to participate in the MyTuition Guarantee. This new program holds tuition and fee rates for students registering in fall 2014 and spring 2015 for up to three years or until the completion of a degree, whichever comes first.
Click here to learn more and to complete the Completion Pledge. 

Hours of Operation

Please note that campus service hours have been adjusted for spring semester. For a list of updated service hours, please visit www.lorainccc.edu/hours

Expect Traffic Delays

Road construction on Abbe Road north of LCCC will resume Monday, April 7. Please expect delays when traveling north from LCCC towards Detroit Road.  
Click here for updates and alternate travel routes.

Level Up 2014 Digital Game Development Conference

LCCC will host Level Up 2014 @ LCCC for anyone interested in turning their gaming interest or hobby into a career. 

Friday, May 2
9 a.m to 1 p.m.
Lorain County Community College
Learn more at www.lorainccc.edu/levelup.

1098-T Tax Forms

Students will begin receiving 1098-T tax forms via postal mail in the next several days. Click here for more information about the 1098-T forms.

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Lorain County WIN

LCCC and the JVS have launched Lorain County WIN (Workforce Innovation Network), a new partnership providing workforce training to Lorain County. Learn more at www.loraincountywins.com.

Mental Health Online Screenings

The Lorain County Board of Mental Health offers a free online screening tool for mental health disorders.

Click here to learn more.