Student Loans
Student Loan Repayment to Resume
Congress recently passed a law preventing further extensions of the Federal Student Loan Payment Pause. Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October. The Department of Education will notify borrowers well before their payments are set to restart.
Loans are a form of financial aid that students use to help pay for classes and educational-related expenses (Cost of Attendance) that may not be otherwise covered by scholarships, grants, or personal resources. When considering student loans, keep in mind that loans accrue interest and must be repaid even if the student does not complete the program and/or does not find employment in the selected area of study.
Interest for student loans accrues while a borrower is in school, in a grace period, or in authorized period of deferment.
First-time loan borrowers at LCCC are required to complete Entrance Counseling and sign a Master Promissory Note. (Once a student graduates, leaves LCCC, or drops below half-time enrollment, the student is required to complete Exit Counseling that explains loan repayment responsibilities. Students required to complete this process will receive direct communication about the necessary steps.)
Federal Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s college education. With Direct Loans, the student and/or parent borrows funds directly from the federal government and has a single contact, the loan servicer, for everything related to repayment even if the borrower receives Direct Loans at different schools.
The Federal Direct Subsidized Loan
This is a need-based federal loan awarded only to students who demonstrate financial need. Undergraduate students who have unmet financial need can be considered for this loan up to the amount of the students’ borrowing limit. Borrowers must be U.S. citizens or eligible non-citizens, enrolled at least half time and meet all other eligibility requirements including Satisfactory Academic Progress.
The Federal Direct Unsubsidized Loan
This is a non-need based federal loan that cannot exceed the educational cost of attendance minus other financial aid. Undergraduate students who are not eligible for a Subsidized Direct Loan or are eligible for only a portion of the annual loan limit for the Subsidized Direct Loan may be eligible for the Unsubsidized Direct Loan. Borrowers must be U.S. citizens or eligible non-citizens, enrolled at least half time and meet all other eligibility requirements including Satisfactory Academic Progress.
Federal Parent Loan to Undergraduate Student (PLUS) Loan
Federal PLUS loans are Unsubsidized loans for the parents of dependent 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.
How to Apply
- Complete the FAFSA (Free Application for Federal Student Aid) FSA ID.
- You will need an FSA ID (username and password).
- LCCC’s Federal School Code is 003068.
- Complete the LCCC Online Federal Direct Loan Request form.
- Complete Entrance Counseling & the Loan Agreement/Master Promissory Note.
To review your financial aid, log into your Student Center in MyCampus. Under “Financial Aid,” click “View Financial Aid” and select the financial aid year to review your award summary.
To reduce or decline your student loan once it appears in your award summary, complete the Loan Reduction Request Form.
Eligibility Requirements for Federal Direct Student Loan Borrowers
- Must be enrolled for a minimum of six credit hours for each semester you wish to borrow funds
- Must be meeting the College’s satisfactory academic progress standards
- Must be meeting all other U.S. Department of Education eligibility requirements
- At the time of disbursement, must be enrolled in and commenced attendance in a minimum of 6 credit hours.
Students who borrow from the Federal Direct Loan Program are required to complete Entrance and Exit Counseling. These sessions are required by Federal Regulations and offer information relating to the terms and conditions of the loan programs and a student’s obligation when borrowing. Financial Services is notified electronically when students have completed the required counseling.
Entrance Counseling is required for all first-time borrowers of a Federal Direct Loan while attending LCCC. Failure to complete an Entrance Counseling session will prohibit the disbursement of student loan funds to the students’ account. To complete Entrance Counseling, students should go to StudentAid, choose “Complete Aid Process,” then choose “Complete Entrance Counseling” and follow the steps outlined.
Once the Entrance Counseling is completed, students need to sign the Master Promissory Note (MPN) electronically. Students may choose to print the MPN to sign and mail to the U.S. Department of Education. (Choosing to print, sign, and mail the MPN could delay disbursement of student loans if the MPN isn’t received by the Department of Education in a timely manner.) To sign the Master Promissory Note, students should go to StudentAid, choose “Complete Aid Process” and choose “MPN for Undergraduates” under the “Complete a Master Promissory Note” heading and follow the steps outlined.
Exit Counseling is required of all loan borrowers who graduate or drop below half time status (less than 6 credit hours). For Exit Counseling, go to StudentAid, choose “Manage Loans,” then choose “Complete Exit Counseling,” and follow the steps outlined. An Exit Counseling session will provide information concerning the terms of a student’s loan, indebtedness, repayment and debt management. Students who do not complete the Exit Counseling will not receive their diplomas or academic transcripts from LCCC. Failure to complete Exit Counseling may also delay future disbursement of aid at LCCC. If you prefer a paper copy of the Direct Loan Exit Counseling Guide, you may download the PDF version from the StudentAid website. An alternative to fulfilling the Exit Counseling requirement electronically, you will need to read the guide, complete the Student Contact Information and Acknowledgment, and return it to Student Financial Aid.
Interest Rates for Direct Loans First Disbursed on or After July 1, 2023, and Before July 1, 2024
| LOAN TYPE BORROWER TYPE | FIRST DISBURSEMENT DATE | FIXED INTEREST RATE |
|---|---|---|
| Direct Subsidized Loans Undergraduate | 7/1/23 – 6/30/24 | 5.50% |
| Direct Unsubsidized Loans Undergraduate | 7/1/23 – 6/30/24 | 5.50% |
| Direct Parent PLUS Loans | 7/1/23 – 6/30/24 | 8.05% |
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. View the interest rates on federal student loans first disbursed before July 1, 2023.
Review the charts below for annual and lifetime aggregate limits for the Federal Direct Loan(s).
Dependent Undergraduates
| ANNUAL LIMITS | SUBSIDIZED | ADDITIONAL UNSUBSIDIZED | TOTAL (SUBSIDIZED AND UNSUBSIDIZED) |
|---|---|---|---|
| First Year | $3,500 | $2,000 | $5,500 |
| Second Year | $4,500 | $2,000 | $6,500 |
| Third Year and Beyond | $5,500 | $2,000 | $7,500 |
Independent Undergraduates
(and dependents whose parents are unable to borrow under the PLUS program)
| ANNUAL LIMITS | SUBSIDIZED | ADDITIONAL UNSUBSIDIZED | TOTAL (SUBSIDIZED AND UNSUBSIDIZED) |
|---|---|---|---|
| First Year | $3,500 | $6,000 | $9,500 |
| Second Year | $4,500 | $6,000 | $10,500 |
| Third Year and Beyond | $5,500 | $7,000 | $12,500 |
Aggregate Lifetime Limits for Subsidized / Unsubsidized Loans
| SUBSIDIZED | ADDITIONAL UNSUBSIDIZED | TOTAL SUBSIDIZED AND UNSUBSIDIZED | |
|---|---|---|---|
| Dependent Undergraduates (Excluding those whose parents can’t borrow PLUS) | $23,000 | $8,000 | $31,000 |
| Independent Undergraduates & Dependent Students whose parents can’t get PLUS | $23,000 | $34,500 | $57,500 |
** Loan eligibility is based on the federal loan calculation.
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.
First Disbursement Date On or After 10/01/20 and before 10/01/23
(fees are the same for 2022-23 and 2023-24)
| PROGRAM | ORIGINATION FEE |
|---|---|
| Federal Direct Subsidized and Unsubsidized Loans | 1.057% |
| Federal Direct PLUS Loans | 4.228% |
Federal Direct Loans that are processed and disbursed by Lorain County Community College will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders and schools determined to be authorized users of the data system., as required by the Consumer Information regulations.
Student Loan Code of Conduct
The purpose of this Student Loan Code of Conduct is to ensure the integrity of the student aid process and ethical conduct of Lorain County Community College (LCCC) officers, employees, and agents with respect to student loan practices.
Administrative Provisions
- The LCCC Student Financial Aid Office will publish this Student Loan Code of Conduct on its Consumer Information webpage and on its Federal Financial Aid webpage.
- The LCCC Student Financial Aid Office will administer and enforce this Student Loan Code of Conduct and will require its officers, employees, and agents with responsibilities, with respect to federal program loans and private education loans, to be informed annually of the provisions of the code of conduct.
Definition
For purpose of this code of conduct, Lending Institution means:
- Any entity that itself or through an affiliate engages in the business of making loans to students, parents, or others for purposes of financing higher education expenses or that securitizes such loans; or
- Any entity, or association of entities, that guarantees or services education loans; or
- Any industry, trade or professional association that receives money from any entity described above in subsections (1) and (2).
Revenue Sharing
LCCC prohibits its employees from entering any type of revenue-sharing arrangement with any lender, guarantor, or servicer. The term “revenue-sharing arrangement” means an arrangement between an institution and a lender in which:
- The lender provides or issues a loan that is made, insured, or guaranteed to students under the Higher Education Act attending the institution or to the families of such students; and
- The institution recommends the lender or the loan products of the lender, in exchange for a fee paid by the lender or in exchange for other material benefits, including revenue or profit sharing, provided to the institution, or to its officer, employee, or agent.
LCCC will not accept material benefits including revenue or profit sharing to the institution, or to an officer or an employee of the institution or an agent.
Gifts
Employees of the LCCC Student Financial Aid Office are prohibited from soliciting or accepting any gift or anything of more than a de minimus value from a lender, guarantor, or education loan servicers.
- Gifts include any gratuity, favor, discount, entertainment, hospitality, loan, or other item. This includes transportation, lodging, meals, or a gift of service whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has incurred.
- This provision shall not be construed to prohibit any officer, employee, or agent of LCCC who has responsibility with respect to educational loans from conducting non-college business activity with any lending institution or prevent LCCC from holding membership in any nonprofit professional association.
- Gifts to family members of a LCCC employee are considered a gift to the employee, if the gift is given with the knowledge and acquiescence of the employee and there is reason to believe the gift was given because of the official position of the LCCC employee.
Family members include a person’s: (1) Parent or stepparent, sibling or stepsibling, spouse, child or stepchild, or grandchild or step-grandchild; (2) Spouse’s parent or stepparent, sibling or stepsibling, child or stepchild, or grandchild or step-grandchild; (3) Child’s spouse; and (4) Sibling’s spouse.
A gift does not include:
- Standard materials, activities or programs related to a loan being provided
- Food, refreshments, training, or other informational material furnished as an integral part of a training session, that is designed to improve the service of the lender, if such training contributes to the professional development of the agent
- Favorable terms, conditions or borrower benefits provided to a student employed by LCCC if comparable terms are provided to all students of LCCC
- Entrance and exit counseling services provided to borrowers as long as the institution’s staff is in control of the counseling session, and it does not promote the products and services of any specific lender
- Philanthropic contributions to the College unrelated to education loans or made in exchange for any advantage related to private education loans; or
- State education grants, scholarships, or financial aid funds.
Preferred Lender Status
LCCC participates in the following loan programs that provide student and parent loans through the U.S. Department of Education: William D. Ford Federal Direct Loan Program.
LCCC does not provide students with a preferred lender list.
Contract Arrangements
LCCC prohibits any employee, officer or agent employed by the student financial aid office who otherwise has responsibilities with respect to federal or private education loans from accepting from any lender or affiliate any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of the lender.
Opportunity Pool Loans
LCCC prohibits any employee, officer, or agent from requesting or accepting from any lender, any offer of funds to be used for private education loans including an opportunity pool loan to students in exchange for concessions or promises regarding providing the lender with:
- A specified number of loans made, insured, or guaranteed
- A specified loan volume of such loans or
- A preferred lender arrangement for such loans.
Private education loans include an opportunity pool loan which means a private education loan made by a lender to a student or family member of the student attending the institution that involves a payment, directly or indirectly, by such institution of points, premiums, additional interest, or financial support to such lender for the purpose of such lender extending credit to the student or the family.
Staffing Assistance
LCCC prohibits accepting or soliciting staffing assistance from a lending institution, including but not limited to, call center staffing or student financial aid office staffing. However, this does not prohibit requesting or accepting professional development training for aid officers, or requesting and/or accepting counseling, financial aid literacy, or debt management materials for borrowers, if the material discloses that the lender prepared or provided the materials.
Advisory Board Compensation
Employees of the Student Financial Aid Office who serve on an advisory board, commission or group established by a lender or guarantor, must not receive anything of value from the lender or guarantor except that the employee may be reimbursed for reasonable expenses incurred for serving on such advisory board, commission, or group.
Private loans are available for students who qualify, as an alternative way to fund educational expenses. When choosing to borrow private loans, students may choose any lender who actively participates in the private education programs. Student Loan borrowers may also qualify for loans or other assistance under the HEA (Higher Education Act) programs. Terms and conditions of the Title IV, HEA programs may be more favorable than the provision of the private education loans.
LCCC recommends students to file a FAFSA to determine if you are eligible for federal aid [grants, Direct Student Loans, and PLUS (Parent Loan for Undergraduate Students)]. The terms and conditions of a Federal Direct Student Loan may be more favorable than the provisions of a private education loan. LCCC does not endorse any private educational loan lender or lending program. Borrowers may choose ANY eligible, participating lender.
The Nurse Education Assistance Loan Program (NEALP) provides financial assistance to Ohio students enrolled for at least half-time study (or accepted for enrollment) in an approved Ohio nurse education program. NEALP provides funding for nurses who intend to serve as instructors or students who intend to serve as nurses after graduation.
When it comes to repaying your federal student loan(s), there are many things to understand. The details of repayment can save students time and money. Understanding when loan repayment starts, how to make payments on them, the repayment plan options available, and what to do if you have trouble making payments on your Federal Student Loan(s) will all be essential.
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program (PSLF). The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. To see if you qualify for PSLF, please review the program details.
If your PSLF application was denied because some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity. To request consideration for loan forgiveness, review the details here.
Loan Disbursement Regulations
In an effort to incent student success and completion of courses and to reduce Lorain County Community College’s Federal Student Loan default rate, student loans will be disbursed in two payments during the fall and spring semesters. Summer semester will be disbursed in one payment. The fall and spring disbursements will be based on commencement of attendance and the midterm grades. For full term classes, the disbursements will occur about the fifth and tenth week of fall and spring semesters. At the first disbursement, students must commence attendance and be currently enrolled in a minimum of 6 credit hours. The second disbursement for Direct Student Loans occurs starting the 10th week of the semester pending at least 6 credit hours of successful mid-term grades. Final grades of W or U, or a midterm/final grade of FAW will not be counted towards the total hours for the minimum 6 credit hour disbursement requirement. Summer disbursements will be based on commencement of attendance in a minimum of 6 credit hours at the time of disbursement.
Final grades of W or U, or a midterm/final grade of FAW will not be counted towards the total hours for the minimum 6 credit hour disbursement requirement.
Additional Resources
The following website provides more useful information about managing student loans: